DOE props up dying coal with 5M days after Wright mocks clean energy subsidies

DOE props up dying coal with $625M days after Wright mocks clean energy subsidies

Published

1 day ago

September 29, 2025

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The US Department of Energy (DOE) announced it will spend $625 million to “expand and reinvigorate” the US coal industry, claiming it will boost energy production and help rural communities. Energy Secretary Chris Wright praised “beautiful, clean coal” as “essential to powering America’s reindustrialization and winning the AI race.”

The Trump administration argues this spending will keep aging coal plants running, lower electricity costs, and prevent blackouts. But this so-called coal revival plan wastes millions when clean energy is cheaper and growing at a breakneck pace.

What the $625 million will fund

According to the DOE press release, the funds will prop up coal-fired power plants through several programs:

$350 million to restart or upgrade old coal plants, improving their capacity and reliability.
$175 million for projects bringing power to rural areas, aiming to deliver cheaper, more reliable coal-fired electricity.
$50 million to upgrade coal plant wastewater systems, reducing water pollution and extending plant life.
$25 million for “dual-firing” retrofits, so plants can switch between coal and other fuels like natural gas.
$25 million to develop 100% natural gas co-firing, keeping boilers running efficiently if a plant uses gas instead of coal.

Wright claims these DOE coal investments will “keep electricity prices low and the lights on without interruption.” He also touted coal as the “backbone” of industries like steel and cement, insisting it’s “necessary to feed the AI boom.” In short, the administration is betting that propping up coal now will secure US energy supply for factories and data centers.

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Interior Secretary Doug Burgum also said at a press conference in Washington that 13.1 million acres of federal land will be opened up in Montana, North Dakota, and Wyoming for coal leasing.

‘This is a colossal waste of money’

Environmental experts and clean energy advocates blasted the DOE’s coal plan as wasteful, polluting, and economically foolish. “The Trump administration is hell-bent on supporting one of the oldest, dirtiest electricity sources. It’s handing our hard-earned tax dollars over to the owners of plants that cost more to run than new, clean energy, while giving those plants a free pass to keep polluting,” said Amanda Levin, policy analyst at NRDC. “Propping up coal means dirtier air and water, destruction of public lands, and higher utility bills for struggling families… This is a colossal waste of money at a time when the federal government should be spurring on new energy sources that can power the AI boom and help bring down utility bills.”

Levin’s frustration is echoed by others. The Sierra Club warned that continuing to subsidize coal will lead to “skyrocketing bills,” worse health outcomes, and a “decaying environment.” The Environmental Defense Fund noted that modern clean energy like solar, wind, and battery storage is now cheaper and faster to deploy – the real solution for powering a high-tech economy affordably. Critics argue that pouring more money into coal props up “dirty, uncompetitive plants from the last century” instead of investing in 21st-century energy.

Coal’s decline vs. clean energy’s rise

The backlash is fueled by coal’s sharp decline in the US power mix. Coal generated only about 15% of US electricity in 2024, down from 50% in 2000, according to the US Energy Information Administration (EIA), as cheap natural gas and booming solar and wind power have eaten away coal’s market share. No new US coal plants are planned, and dozens of aging coal plants are slated for retirement in the next few years due to high costs and old age. In fact, wind and solar produced more electricity than coal in the US last year for the first time ever, and the EIA reported last week that wind and solar combined provided 19% more electricity than did coal during the first seven months of 2025.

Against that backdrop, pouring hundreds of millions into coal flies in the face of market trends and climate urgency. Analysts are skeptical that the DOE’s coal push will change coal’s long-term outlook, calling it at best a short-term boost for a “zombie” industry that can’t compete in the long run.

Electrek’s Take

Spending $625 million to revive coal – the dirtiest, most carbon-heavy energy source – is a ridiculous move when clean energy is cleaner and cheaper. It’s an especially hypocritical move given that just last week, Wright canceled $13 billion of funding for renewable energy projects and dismissed renewables’ need for federal subsidies at a press conference, saying:

If you can’t rock on your own after 33 years, maybe that’s not a business that’s going places.

Guess it slipped Wright’s mind that US fossil fuels already receive about $760 billion a year in federal subsidies, according to the International Monetary Fund, after nearly two centuries of government support. And just days later, he’s handing hundreds of millions more in taxpayer dollars to a dying coal industry that isn’t “rocking on its own.”

This hefty taxpayer-funded handout is highly unlikely to reverse coal’s decades-long decline, but it could slow cleaner investments and keep polluting plants on life support. At a time when the government “should be spurring new energy sources to power the AI boom,” funneling money into dirty 19th-century fuel is an embarrassing, damaging throwback.

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Environment

Tesla launches Model Y Performance in the US for $57,500

Published

2 hours ago

September 30, 2025

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Tesla launches Model Y Performance in the US for ,500

Tesla has officially launched and started taking orders for the updated Model Y Performance in the US, starting at $57,500 before incentives.

In January, Tesla began rolling out the Model Y design refresh, but as it typically does, it didn’t launch the top performance version immediately.

We are already aware of the new version, as it was launched in Europe a month ago, but Tesla is launching it in the US today.

The main thing we didn’t know about the Model Y Performance in the US is the price. It is now confirmed to start $57,490 before incentive:

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We also didn’t know the EPA estimated range, which is now confirmed to be 308 miles (496 km).

The Performance version can accelerate from 0 to 60 mph in 3.3 seconds.

In terms of design, the new version also comes with slight changes to the front and back designs:

It features the slick 21″ Arachnid wheels, which look fantastic.

As usual, the performance version includes an improved suspension with adaptive damping.

The Model Y Performance also features more high-density battery cells, which enable faster charging, as Tesla previously announced when introducing the Model Y Performance in Europe.

Inside, the most significant change is in the seats, which now feature bigger side cushions and powered thigh cushion extenders for extra comfort.

Electrek’s Take

It looks like Tesla timed the release just before the end of the tax credit. Literally, hours before.

As we previously reported, the IRS has allowed individuals to take delivery after the September 30th deadline, provided they have a binding order with a deposit paid before the deadline.

It appears that Tesla is encouraging people to secure their orders tonight before the limit is reached to take advantage of the federal tax credit.

Sales-wise, it is actually a pretty smart approach.

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Environment

The world’s first carbon border tax will soon go live — shaking up global trade

Published

3 hours ago

September 30, 2025

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The world's first carbon border tax will soon go live — shaking up global trade

A worker walks past molten steel at a steel factory in Huai’an, in China’s eastern Jiangsu province on July 22, 2025.

– | Afp | Getty Images

The European Union is less than three months away from launching its carbon levy — the world’s first large-scale border tax on carbon-intensive goods.

The forthcoming step, which has the potential to completely transform global trade, comes as part of the bloc’s efforts to slash greenhouse gas emissions from heavy industries and promote cleaner production processes across the globe.

Starting from Jan. 1 next year, the EU’s Carbon Border Adjustment Mechanism (CBAM) will impose a cost on goods such as steel, fertilizers, cement, aluminum and hydrogen imported from outside the 27-nation bloc.

Under the terms of the policy, importers bringing these goods into the EU will be required to purchase CBAM certificates to cover their associated emissions. The cost of these certificates is expected to be the same as the EU Emissions Trading System (ETS) market price.

Vocal opposition

Not everyone is thrilled about the EU’s upcoming carbon border tax. The U.S., China, India and Brazil are among the countries that have raised concerns, with some threatening to take retaliatory measures and others warning the policy might hinder rather than help global climate efforts.

The European Commission, the EU’s executive arm, did not respond to a request for comment when contacted by CNBC.

An aerial view of the Belchatow Power Station, Europe’s largest coal-fired power station near Belchatow, Poland on August 22, 2025. It is Poland’s largest power station with an installed capacity of 5,1 MW. The power plant is one of the candidates to be reconstructed as a future nuclear power site.

Nurphoto | Nurphoto | Getty Images

Nicolas Endress, founder and CEO of ClimEase, a CBAM software solutions company, said the EU’s integrated carbon tax and tariff scheme will reshape global trade in ways most businesses haven’t yet grasped. Steel, cement, fertilizers and aluminum-related sectors are set to be first in the firing line.

It’s “no surprise” that the likes of the U.S., Brazil and India have raised concerns about the policy, Endress said, noting that countries without an emissions trading system (ETS) will be exposed to the border tax.

The EU says the CBAM is designed to put a “fair price” on carbon emitted during the production of emissions-intensive goods.

The tax is also designed to prevent what’s known as “carbon leakage,” which is when companies move production abroad to countries where less stringent climate polices are in place.

A test of climate leadership

The U.S., for its part, has warned that European climate rules could threaten the EU’s trade deal with the White House.

U.S. President Donald Trump struck a framework agreement with European Commission President Ursula von der Leyen in late July, establishing a tariff ceiling of 15% for most EU goods from the start of August.

This rate was significantly lower than the 30% previously threatened by the U.S. president, but above the 10% baseline the EU had been hoping for.

Speaking to the Financial Times last month, U.S. Energy Secretary Chris Wright said that, in the absence of significant modifications, the EU’s CBAM — among other green regulatory policies — would create “huge legal risks” for U.S. companies selling fossil fuels into Europe.

Other countries exposed to the EU’s CBAM have criticized the plans, too. India has reportedly said it will retaliate against the carbon border taxes, saying high-income countries that are historically responsible for the climate crisis should do more to slash greenhouse gas emissions.

China, Brazil and Russia, meanwhile, have all raised concerns about the EU’s carbon border taxes, both at U.N. climate negotiations and with the World Trade Organization.

European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte hold a joint press statement in Brussels, Belgium on September 30, 2025.

Anadolu | Anadolu | Getty Images

The EU’s von der Leyen, in a 2019 manifesto to become European Commission president, said she intended to introduce a carbon border tax “to avoid carbon leakage” and help EU companies “compete on a level playing field.”

The policy was later introduced as part of the bloc’s effort to reduce emissions by at least 55% by the end of the decade.

Alex Mengden, policy analyst at Tax Foundation Europe, said EU officials have typically sought to downplay the potential for any retaliatory steps from major economies when the final stage of CBAM kicks in.

“It might show that we can only take so much climate leadership because it has real costs on us and if we are not in a global coalition, those costs fall back on ourselves instead of our trading partners, which is essentially the goal,” Mengden told CNBC by video call.

“Now, of course, it might still succeed,” Mengden said. “The success case for policymakers that devise the CBAM policy would be other countries adopting their own ETS systems,” he added.

Not just ‘a European experiment’

For some, the EU’s CBAM marks the first step of what is expected to become a global initiative to tackle the climate crisis.

“Within the next few years, carbon pricing won’t just be a European experiment — it will likely cover as much as 80% of global trade,” ClimEase’s Endress said.

“CBAM is what is making this happen by likely penalising countries without sturdy systems and rewarding those with EU-aligned ETS frameworks,” he added. “Countries that evolve with the change and build credible carbon pricing will defend their industries, while those that pull away will watch their exporters ultimately face the consequences.”

Environment

Lithium Americas stock pops 35% as government takes a stake to boost Nevada project

Published

4 hours ago

September 30, 2025

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Lithium Americas stock pops 35% as government takes a stake to boost Nevada project

In windswept, remote Thacker Pass in the far northern reaches of Nevada permits approved for a massive lithium mine, proposed by Lithium Americas Corp., are drawing impassioned protest from the local indigenous population, ranchers, and environmentalists.

Carolyn Cole | Los Angeles Times | Getty Images

Shares of Lithium Americas popped more than 35% in extended trading Tuesday after U.S. Energy Secretary Chris Wright told Bloomberg that the U.S. government will take a small stake in the company.

The U.S. Department of Energy plans to take a 5% equity stake in Lithium Americas and a separate 5% stake directly in the Canadian miner’s Thacker Pass project, Wright told Bloomberg Television. General Motors has a minority stake in lithium mine, which is in northern Nevada.

Thacker Pass is expected to become one of the largest sources of lithium in North America, with the first phase of the project expected to begin operations in late 2027.

“We’ll own the mine itself and in the corporate entity that is the developer of the mine,” Wright said Tuesday on air.

It is the latest move by the White House to take direct ownership in the mineral supply chain critical to U.S. interests, but the first such stake proposed for a Canadian company. Lithium Americas trades on both the Toronto Stock Exchange and the NYSE but is incorporated and domiciled in Canada.

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Lithium Americas shares year to date

“This is just economic common sense,” Wright said. “Lithium Americas needs to raise some more capital so the mine is financially sound. We’re leaning in with a large amount of debt capital. So it’s just a more commercial transaction where we’re making sure lithium is going to be mined and refined in the United States.”

Shares of Lithium Americas have skyrocketed 92% year to date, with much of those gains powered by reports that the government was acquiring a stake.