Published: September 8, 2025 |

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Swelling U.S. demand for electricity has the potential to boost coal consumption as much as 57 percent, according to mining giant Peabody Energy, in what would be a major shift for an industry that’s been waning for years.

With the U.S. seeking to meet skyrocketing demand and the Trump administration pushing to prop up the coal industry, Peabody expects utilities to ramp up output from coal plants that are running well below full speed, the company said in an investor presentation on Wednesday. Boosting usage to “historic capacity factors” could lead to more than 250 million tons of additional annual demand in the coming years, it said.

President Donald Trump’s pro-coal and anti-renewable approach has included blocking plans to shut down this from a Michigan power plant that burns fuel from Peabody. Total consumption is expected to be 439 million tons this year, according to the U.S. Energy Information Administration. That’s up 6.7 percent from last year, but well down from its 2007 peak of 1.13 billion tons.

“Peabody sees great untapped potential for existing U.S. coal plants,” Mark Spurbeck, Peabody chief financial officer said by email.

Electricity demand in the U.S. is set to climb 25 percent through 2030, driven by factories, increasingly electrified homes and especially from the booming buildout of data centers used for artificial intelligence. At the same time, supply-chain constraints have hindered utilities’ efforts to add more natural gas plants.

That’s spurring increased reliance on underused coal plants, which have significant potential to deliver more power.

The U.S. fleet was operating at just 42 percent last year, according to Peabody, compared to 72 percent in 2008.

Source: Bloomberg

Peabody is a leading coal producer, providing essential products for the production of affordable, reliable energy, and steel. Their commitment to sustainability underpins everything they do and shapes their strategy for the future.

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