trending Market Intelligence /marketintelligence/en/news-insights/trending/ttHWhQOUuSY_NFIL1cRHiw2 content esgSubNav
In This List

W.Va. rep denounces Trump's claim; no solutions from FERC on coal's decline

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


W.Va. rep denounces Trump's claim; no solutions from FERC on coal's decline

The U.S. coal sector was abuzz in the mid-Atlantic region with several industry events and high-profile speakers this week, but perhaps most notably a West Virginia Republican Congressman denounced President Donald Trump's belief that the coal sector has been saved.

Speaking before a National Coal Transportation Association conference in Baltimore, U.S. Rep. David McKinley said he wants Energy Secretary Rick Perry to put someone from his department in the White House to focus on coal and other fossil fuels, claiming that Trump's advisers are telling the president the sector has been cared for.

"DOE has to worry about so many other issues. I want someone on coal," McKinley said. "Focus on coal, and wake him up, because Donald Trump thinks coal has been saved."

While Trump may be overlooking the coal sector's plight, Federal Energy Regulatory Commission Chairman Neil Chatterjee, a Kentucky native, acknowledged that coal is suffering as a result of the nation's energy transition. Addressing National Coal Council attendees at a dinner this week, Chatterjee empathized with the industry but stopped short of offering a solution as coal plants continue to come offline.

The commission is trying to identify attributes needed for a resilient grid as well as threats to resiliency and is closely considering comments in the process, Chatterjee said.

"We're putting a lot of work into it," the chairman said in an interview following his presentation. "We've got a lot on our plates, but I'm hoping for sooner rather than later."

Other industry representatives and experts revealed potential bright spots for the sector. The National Coal Council devoted much of its Sept. 12 meeting to discussing technologies pertaining to coal plants of the future, carbon capture and alternative uses for coal, which may help stimulate demand for the fuel.

However, many of these technologies are still a few years away from large-scale commercialization, and representatives from the industry were less optimistic that their development would come in time to significantly affect the sector's trajectory.

"The challenge is to get the utility world in sync with the advantages of using coal, which of course they understand," said Randall Atkins, founder and executive chairman of metallurgical coal producer Ramaco Resources Inc. "But in this kind of low-gas-price market, it's awfully seductive for them to continue to use gas as opposed to coal."

But speakers at the meeting noted the interest from investors and the government in the development of carbon capture methods. Hilary Moffett, senior director of government relations for Oxy Low Carbon Ventures LLC, said people in Washington are excited to hear about the company's work in sequestering carbon for enhanced oil recovery and are looking for options they can support to reduce emissions.

"Right now, the politics are very difficult, especially as it relates to climate change, so giving folks something that they can support as it relates to climate solutions is something that is widely accepted and appreciated," Moffett said. "For so long, Republicans especially, haven't had a strong argument when it comes to climate solutions."

On the transportation side, two attorneys said the U.S. Surface Transportation Board may soon address several issues that could benefit coal shippers. Among them, the regulatory body may reform its rate review process and address complaints stemming from demurrage and accessorial charges.

Patrick Fuchs, vice chairman of the board, said the regulators plan to consider action on the rate reform process by the end of the summer and may address issues around demurrage and accessorial charges in the coming weeks.

There were a few developments in Blackjewel LLC's bankruptcy case this week as well. The debtor contacted furloughed employees in the Powder River Basin and told them the company may call workers back to the mines. The company also closed on a deal with Rhino Resource Partners LP, which is buying three of Blackjewel's underground, mid-vol metallurgical coal mines in Virginia.

Rhino agreed to sell some of its assets pertaining to the Pennyrile mining complex to a subsidiary of Alliance Resource Partners LP as well, and that deal is expected to close in the fourth quarter. The president and CEO of Rhino's general partner said the company opted to close and sell Pennyrile partially due to pressures on the U.S. coal industry, especially in the Illinois Basin.

Upcoming events

Southern States Energy Board: SSEB is having its 59th Annual meeting Sept. 23-25 in Louisville, Ky.

North American Export Coal and Gas Summit: The event will take place Oct. 2-4 in San Francisco.

2019 Coal Conference Canada: The Coal Association of Canada will hold a conference Oct. 8-10 in Vancouver.

Coaltrans: The World Coal Leaders Network conference will take place Oct. 20-22 in Lisbon.

Mining conference: The Future of Mining Americas conference will run from Oct. 21-22 in Denver.