Trump directs Pentagon to purchase electricity from coal-fired power plants

President Donald Trump signed an executive order Wednesday directing the Pentagon to purchase electricity from coal-fired power plants, marking his latest effort to boost demand for the fossil fuel industry.

Trump issued the directive at a White House event called "The Champion of Coal Event," attended by coal executives including Peabody Energy CEO James Grech. The order directs the U.S. Department of Defence to enter into long-term purchase agreements with coal-fired plants and prioritize the "preservation and strategic utilisation" of "coal-based energy assets."

"We're going to be buying a lot of coal through the military now," Trump said at the ceremony. "And it's going to be less expensive and actually much more effective than what we have been using for many, many years."

Trump also stated that environmental progress made on coal means the fuel "is going to be just as clean." He added that he directed the Department of Energy to issue funding related to the initiative, though specific details were not provided.

The executive order did not specify the volume of energy the Pentagon would purchase or the financial terms of the agreements. The order applies to military installations across the Defense Department.

The move comes as the coal industry faces declining cost competitiveness against alternative energy resources. Shares of Peabody Energy rose 4 percent in extended trading following the announcement.

The directive has drawn criticism from energy and environmental experts, according to reports. Coal-fired electricity generation has faced increasing pressure from renewable energy sources and natural gas, which have become cheaper alternatives in recent years.

Secretary of the Interior Doug Burgess, House Speaker Mike Johnson, and EPA Administrator Lee Zeldin were present at the White House ceremony where Trump signed the executive order.