Battered U.S. coal industry hopes for
Trump, prepares for Clinton
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[November 04, 2016]
By Timothy Gardner
WASHINGTON (Reuters) - Republican
presidential nominee Donald Trump has won over the U.S. coal industry by
promising to revive the downtrodden sector and scrap regulations if
elected.
But the industry has a Plan B if the New York businessman loses to his
more green-minded Democratic rival Hillary Clinton on Tuesday: carbon
capture and storage, a technology that captures carbon dioxide from
burning coal and injects it underground, where many scientists are
optimistic it cannot contribute to global warming.
Coal backers see CCS as a politically feasible solution that could help
the next president thread the needle between environmentalists and a
once-powerful business that is in desperate need of a lifeline. They
have been pushing both major party candidates to embrace it.
Staff at the National Enhanced Oil Recovery Initiative held separate
teleconferences with the Clinton and Trump campaigns in August on the
merits of a bill that would extend and raise tax breaks for coal and
other fossil fuel companies doing CCS in oilfields, from $10 per ton of
carbon stored to $35 a ton. NEORI is made up of diverse groups ranging
from environmental ogranizations to some of the country's largest coal
companies.
![](http://archives.lincolndailynews.com/2016/Nov/04/images/ads/current/lincolntheatre_sda_031016.png)
Weeks after the teleconference, Clinton announced her support for the
bipartisan CCS bill. Nearly 20 of 100 senators, including Clinton's vice
presidential running mate Tim Kaine, also back it and expect it to gain
momentum.
Trump has not given a position on the bill, but a senior policy adviser
to Trump's campaign, Dan Kowalski, said he "supports all sources of
American energy. This includes clean coal and research into new coal
technologies."
"My sense is Clinton recognizes that, especially in certain parts of the
country, coal-based energy and other fossil fuels provide some of the
highest-paying jobs in our economy,” said Brad Crabtree, of the Great
Plains Institute, a policy group that pushes for the deployment
technologies to reduce fossil fuel emissions, and the parent
organization of NEORI.
Oil drillers have used CCS since the 1970s, pumping carbon dioxide into
aging reservoirs to force out remaining crude. Coal advocates want to
expand CCS to coal-fueled power plants. But the business is expensive
and needs incentives.
TRUMP'S PLEDGE, CLINTON'S PRAGMATISM
Trump's anti-regulation stance has made him a clear favorite of the
industry, because it suggests lower costs and risks for major producers
like Arch Coal Inc, Peabody Energy Corp, Cloud Peak Energy Inc and Alpha
Natural Resources Inc.
The sector has given about $223,000 in support of Trump, compared with
none for Clinton, according to a Reuters analysis of contributions over
$200 made by several of the biggest coal companies and their employees.
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![](../images/110416pics/news_w45.jpg)
The massive Big John dragline works to reshape the rocky landscape
in some of the last sections to be mined for coal at the Hobet site
in Boone County, West Virginia, U.S. May 12, 2016. REUTERS/Jonathan
Ernst/File Photo
![](../images/ads/current/richardson_lda_090916.png)
Coal faces a potentially starker future under Clinton. She has
promised to build on Democratic President Barack Obama's disputed
Clean Power Plan to curb carbon output and suffered political damage
earlier this year when she said that by doing so "we're going to put
a lot of coal miners and coal companies out of business."
Those jobs are already quickly evaporating.
The industry now employs only about 65,000 miners across states like
West Virginia, Pennsylvania, Kentucky and Wyoming, down from around
91,000 in 2011, according to the most recent statistics from the
U.S. Department of Energy. The country's top two biggest coal
companies, Arch and Peabody Energy, this year filed for bankruptcy.
Neither Trump scrapping federal regulations nor the expanded use of
CCS will likely restore the sector, where production last year
dropped to the lowest level since 1986, to its previous heights.
Coal <NYM/QL> faces a dual headwind of both a global push for
cleaner energy such as wind and solar power, and drilling technology
that has made its competitor natural gas abundant - and cheap.
Jeff Holmstead, a Republican lobbyist at Bracewell Law, said if
Clinton wins, much of coal's fate in coming years could be
determined in the first 30 to 60 days. By then it should be known
whether she appoints staunch environmentalists at departments
including the Environmental Protection Agency and the Department of
the Interior.
But he is confident that Clinton would work with industry on CCS and
allow "coal to play a role in the future in the U.S. power sector."
![](http://archives.lincolndailynews.com/2016/Nov/04/images/ads/current/stacy_sda_101816.png)
Elizabeth Gore, a Democrat who lobbies with Brownstein, Hyatt,
Farber and Schreck for a coal-burning cooperative said coal
companies must "find the marginal changes they can make to buy
themselves some time, to provide more of a soft landing."
(Reporting by Timothy Gardner; Additional reporting by Grant Smith,
Valerie Volcovici and Emily Stephenson; Editing by Richard Valdmanis
and Lisa Shumaker)
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