Frank Talk: Trump's coal comeback could face a brutal economic reality

Core Insights - The U.S. is experiencing a surge in electricity demand driven by AI, electric vehicles, and reindustrialization efforts, prompting a political push to revive the coal industry [1][3] - Despite this political revival, the long-term economic viability of coal is questioned, with a significant shift towards renewable energy sources being observed [5][15] Group 1: Coal Industry Developments - President Trump signed an executive order to revive the coal industry, reclassifying coal as a critical mineral and facilitating mining and coal-fired electricity support [2] - Peabody Energy Corporation, the largest U.S. coal producer, saw a 9.21% increase in stock price recently, although its value has dropped nearly 60% since Election Day [4] Group 2: Economic Viability of Coal - The levelized cost of electricity (LCOE) for new coal plants is more than double that of solar, wind, and natural gas, indicating coal's struggle to compete on cost [6] - Coal's share of power generation in advanced economies has been declining since 2007, with U.S. coal consumption falling 4% last year and fossil fuels' share of the electricity mix dropping below 50% for the first time [7][11] Group 3: Renewable Energy Trends - Renewable energy capacity additions surged by 25% last year, with solar expected to account for over half of new generating capacity in the U.S. this year [12] - Renewables are now cheaper than operating most existing coal plants, with 99% of U.S. coal plants potentially replaceable by new solar or wind at a lower cost [13] Group 4: Future Energy Consumption - Electricity consumption by data centers is projected to more than double by 2030, highlighting the need for sustainable energy solutions rather than reliance on coal [14] - The global transition to cleaner energy is underway, and investors are encouraged to follow the data and trends in renewable energy [15]