🌎 Coal hard facts #241

Happy Monday!

With a flurry of executive orders and agency moves, coal’s back in the policy spotlight — but it’s still losing the price war. In this edition, we’re unpacking why coal can’t compete and what cleaner, cheaper technologies are stepping in to replace it.

In deals, $200m for battery storage development, $121m for residential solar, and $30m for power grid hardware and software.

In other news, more battles in the trade war, a climate change lawsuit blocked a new megafarm in the UK, and big news for small nuclear in Canada.

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Keep coal, can't carry on

Last week, President Trump signed four executive orders aiming to revive the beleaguered US coal industry, putting the full weight of the federal government behind more coal production, exports, and infrastructure. But underneath the hood, it looks a lot less like “energy dominance” and a lot more like nostalgia for the US’ energy system of yester-year. 2000s fashion may be back, but there’s no reason for the energy system to follow suit.

What happened

The orders take a few different tacks to attempt to rebuild the case for coal:

EO 14241 looks to boost “beautiful clean coal” for data centers on federal lands, and in steelmaking. It directs various federal agencies to identify regions where coal-fired infrastructure is available to support AI data centers, as well as to review and revise policies that limit coal investment or production. It also designates coal as a “mineral,” while expediting coal leasing and lifting environmental review barriers on federal lands.
Another targets state-level climate policies, directing the Department of Justice to challenge states like California and New York that have imposed stricter fossil fuel restrictions it calls “unconstitutional.”
Yet another aims to get more coal on the grid and keep it there: It invokes emergency powers and directs the DOE to develop a reserve margin methodology to expedite the approval of new electric generation resources (aka coal plants) in regions with grid instability and ensure that they stay online in these regions, effectively delaying coal plant retirement.
The final EO slashes more red tape at the EPA, DOE, FERC, and NRC, among other agencies. It directs them to regularly reassess and set sunset dates for energy-related regulations, or else they will now automatically expire unless extended.

Simultaneously, DOE chief Chris Wright announced that he was reinstating the National Coal Council, earmarking $200bn in loan authority for financing energy infrastructure projects to include coal, designating metallurgical coal (for steelmaking) as a critical material and mineral, and deploying new mineral extraction technologies from coal ash to recover valuable materials. Meanwhile, the EPA recently offered coal-fired power plants and other industrial polluters the chance to request exemptions from regulations aimed at reducing toxic chemical emissions.

But what this flurry of announcements don’t do is address the underlying economic realities that have already moved the US energy system away from high-polluting coal.

Why it matters

Coal has been on the decline in the US for years — a trend that’s unlikely to reverse. In 2023, coal accounted for just 15% of the nation's electricity generation, a dramatic drop from 45% in 2010. Meanwhile, natural gas, which is cheaper and cleaner (it releases ~50% less CO2 than coal, although high-emitting methane leaks persist), took the lead, supplying about 43% of US power, while wind and solar became more cost-competitive.

Coal costs have risen not just because of stricter regulations, but because its economics have been eroded by competing energy sources. Unlike natural gas, which benefited from the fracking revolution, or renewables like wind, solar, and batteries, which have seen steep cost declines from innovation and scale, coal remains stuck in a slow-moving, high-cost cycle. About 80% of US coal plants cost more to run than it would cost to build new wind or solar, per Energy Innovation — costs that are passed on to ratepayers. Trump’s push to roll back regulations can’t reverse the economic fundamentals that are steadily phasing coal out of the energy mix.

Still, coal’s not dead yet. Energy demand is rising — not to sound like a broken record, but due to data centers, manufacturing, and the electrification of everything — and some utilities are extending the life of aging coal plants. Southern Company, for example, announced plans to keep three coal plants running longer in Georgia and Mississippi to meet the growing demand for electricity earlier this year.

But the bump for coal is likely to be short-lived. It’s been tried before — the FutureGen 2.0 project aimed to retrofit an Illinois coal plant with a carbon capture system, backed by $1bn in the 2009 federal stimulus. Yet, it struggled to secure the additional $650m required from the private sector, and failed to meet its 2015 funding deadline. Today, unless the US government pays for these plants outright, it’s hard to see who would make the investment, especially with neither sufficient tax incentives nor favorable market forces, much less any policy certainty.

Meanwhile, in March 2025, clean energy sources like solar, wind, hydro, and nuclear surpassed fossil fuels in monthly US power generation for the first time. Despite political support for coal, its environmental toll — on the climate and on miners (many of whom have seen jobs automated) — represent a risk for major players, and they don’t want to be liable for that risk premium down the line.

What’s next

Federal vs. local. Ultimately, utilities are the ones building power plants, and most must get approval from their Public Utility Commissions (PUCs). RMI’s reviews of recent IRPs show utilities planning significant wind and solar additions by 2035, alongside substantial gas capacity increases. Coal retirements are projected, although utilities have delayed fossil retirements or scaled back renewable additions due to interconnection challenges and reliability concerns. Western utility PacifiCorp, for example, has plans for 2,400 MW of solar, 2,270 MW of wind, and 1,680 MW of storage by 2030, plus a 500-MW deal with TerraPower’s nuclear project by 2031. While it will likely extend some coal operations, it will convert 562 MW to gas and add carbon capture at one coal plant.
Emerging tech could give retiring coal plants new life. Developers can skip the interconnection queue and avoid permitting delays by building new tech at old power plants. For example, Indiana Michigan Power is developing a project using GE Hitachi’s small light water reactor at Rockport Generating Station (to retire in 2028) and Energy Dome’s second-of-a-kind is at the Columbia Energy Center (to retire in 2029). Longer term, thermal energy storage systems could even reuse the steam generators at coal plants, if their upfront costs come down and they can charge cheaply enough. [Sightline clients can explore profiles of these emerging technologies here, and dive into projects like these here.]

Globally, the push for energy security can accelerate the deployment of clean energy. Domestic renewables are less vulnerable to tariffs compared to energy imports. While coal consumption is rising in countries like China and India, driven by growing energy demand from industrialization and urbanization, these nations are also rapidly expanding their solar capacity: India’s solar capacity doubled between 2023 and 2024, and China added a record 277 GW of solar to its grid in 2024. Notably, the world installed a total of 500 GW of solar, so China accounted for more than half — and while it did bring on 95 GW of coal, its solar capacity was nearly three times that.

Deals of the Week (4/7-4/13)

Late-Stage / Growth

⚡ Base Power, an Austin, TX-based battery storage developer, raised $200m in Series B funding from Addition, Andreessen Horowitz, Lightspeed Venture Partners, Valor Equity Partners, Altimeter and other investors.

⚡ Corinex, a Vancouver, Canada-based power grid hardware and software, raised $30m in Growth funding from Adara Ventures, Energy Growth Momentum, and Suma Capital.

🍎 AgNext Technologies, a Chandigarh, India-based AI-driven agribusiness platform, raised an undisclosed amount in Series B funding from Novo Holdings and The Hashgraph Group (THG).

Early-Stage

👕 Simplifyber, a Raleigh, NC-based molded biomaterials manufacturer, raised $12m in Series A funding from Suzano Ventures, At One Ventures, Collateral Good, MIH Capital Management, Meliorate Partners and other investors.

🌱 Tracera, a New York City, NY-based ESG data platform, raised $12m in Series A funding from Foundry Group, Contour Venture Partners, Rho Ignition, and Tola Capital.

🏭 Zero Industrial, a Charleston, SC-based thermal energy storage service provider, raised $10m in Series A funding from Evok Innovations and Rusheen Capital Management.

⚡ Gridsight, a Sydney, Australia-based AI-powered grid insights platform, raised $7,5m in Series A funding from AirTree Ventures, Aera VC, and Energy Transition Ventures.

🧱 Adaptis Technologies, a Toronto, Canada-based net-zero building optimization platform, raised $4m in Seed funding from Building Ventures, 2048 Ventures, Blue Vision Capital, MetaProp, and Powerhouse Ventures.

🛰 Nafas, a Jakarta, Indonesia-based air quality technology developer, raised $3m in Seed funding from Qatar Development Bank (QDB) and Rigel Capital.

🔋 Vimano, a Bengaluru, India-based advanced materials manufacturer, raised $3m in Seed funding from Ankur Capital.

♻️ Matoha, a London, England-based portable material identification devices manufacturer, raised $2m in Seed funding from Archipelago Investors, Circular Plastics Accelerator, British Design Fund, Fashion For Good, and The Conduit Connect.

Other

⚡ Enpal, a Berlin, Germany-based residential solar installation service provider, raised $121m in PE Expansion funding from TPG Rise Climate.

💨 Up Catalyst, a Tallinn, Estonia-based sustainable carbon nanomaterials and graphite manufacturer, raised $20m in Debt funding from European Investment Bank (EIB).

Exits

🚗 Urban Mobility Systems, an Ede, Netherlands-based zero-emission powertrains provider, was acquired by DEUTZ AG.

🛰 Climate Engine, a Reno, NV-based climate data analytics platform, was acquired by Earth Finance.

🔋 Northvolt Systems Industrial, a Stockholm, Sweden-based battery systems manufacturer, was acquired by Scania Group for an undisclosed amount at an implied valuation of $6m.

New Funds

Carbon Equity, an Amsterdam, Netherlands based investment firm, announced a final close of their Climate Tech Portfolio Fund III at $119m, targeting sectors such as green hydrogen, carbon-free cement, iron-air batteries, and next-generation proteins.

Can’t get enough deals? See full listings and deal analytics on Sightline Climate.

Request a Sightline Climate demo

In the News

The trade war continues to brew, as the US raised tariffs on Chinese imports to 145% last week, with China retaliating at 125% on US goods. He has also threatened new tariffs on previously exempt AI chips. This escalation threatens global supply chains critical to climate tech, driving up costs and delaying projects. As the trade environment becomes more volatile, companies and investors could turn to other regions, like the EU, with more stability.

A proposed "megafarm" in Norfolk, UK, was rejected over climate concerns, marking one of the first applications of a landmark fossil fuel court ruling, known as the "Finch" decision, to the food industry. Citing greenhouse gas emissions from manure and proximity to protected sites, council planners warned the farm lacked sufficient environmental assessment and posed legal risks, showing the continued impact of climate litigation on future projects.

Canada approved the first commercial small modular reactor (SMR) in North America, the first SMR project outside of Russia and China, marking major progress for the industry. The project, led by Ontario Power Generation, still awaits final approval from the Ontario government, but this is a key step in advancing next-generation nuclear technology globally and positioning Canada as a leader.

In AI news, the IEA’s new report on Energy and AI highlights AI's potential to increase global electricity demand while reducing emissions by 5% by 2035. However, it cautions that AI’s overall impact on energy systems remains uncertain, depending on the future energy mix and technological advancements. Meanwhile, Microsoft has slowed or paused several AI data center projects, signaling a more cautious approach as it reassesses infrastructure needs.

The US withdrew from International Maritime Organization talks on implementing a carbon fee for the shipping industry and warned it will retaliate against any emissions-related fees imposed on its merchant fleet. While most ships entering US ports are registered elsewhere, the outcome of these carbon rules will have repercussions for the global shipping sector.

The EPA has granted its first permit for CO2 storage from Direct Air Capture (DAC) to 1PointFive’s STRATOS project in Texas, a significant milestone for both the project, set to begin in 2025, and DAC overall. After a three-year approval process, the EPA is expected to issue more permits to projects in its pipeline, so expect announcements in the months ahead.

JERA, CFE, and Mitsui have reached a final investment decision on a blue ammonia project in Louisiana, securing a 25-year CO2 sequestration deal with 1PointFive. The project will use Louisiana’s expanding carbon sequestration infrastructure and resources to support low-carbon fuel production, with these new investors and buyers signaling stronger demand and momentum in this technology.

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Opportunities & Events

📅 Energy Tech Summit 2025: Register to attend the largest energy tech summit in Europe from April 15-16th bringing together bring together investors, disruptors, and government leaders to facilitate connections.

📅 Renewable Energy Infrastructure in New York: RSVP to attend New York Climate Exchange's Wall Street Climate Forum for Young Professionals forum on April 16th to discuss financing renewable energy infrastructure and network with peers.

📅 GSB Climate Innovation Summit: RSVP to attend Stanford’s Climate Innovation Summit on April 16th to convene with students, academics and industry professionals for a discussion on the future of the industry over the next decade.

📅 Harvard Infrastructure Summit: Register to attend the Harvard Infrastructure Summit on April 19th to discuss topics such as AI & energy infrastructure policy, the future of tail transportation, and space launch infrastructure.

📅 Monitoring the Future of Biodiversity: RSVP to attend Monitoring the Future of Biodiversity on April 21st for a discussion of public and private data usage, lowering barriers to accessing data, and the next generation of AI-driven insights on biodiversity.

💡 Urban Future Prize Competition: Apply to the Urban Future Prize Competition by April 28th for an opportunity to win up to $50k in non-dilutive funding as well as admission to the ACRE Incubator.

📅 Sightline Clients Fusion Webinar: Join us Friday, 25 April, 8:00am PST / 11:00am EST / 4:00pm GMT for a 30-minute Sightline client-only session on fusion with our clean firm power senior research associate, Guy Cohen. Register here.

💡 IAGi Innovation Accelerator: Apply by April 30 to the IAG Innovation Accelerator, which partners with startups to address key challenges in the aviation industry. The program offers two tracks: Deploy (12-week proof-of-value) and Discover (24-week deep tech exploration).