U.S. Energy Department Awards $175 Million to Upgrade Coal Plants

The U.S. Energy Department on Feb. 11 awarded $175 million to six projects aimed at modernizing and extending the life of coal-fired power plants serving rural and remote communities, advancing a broader $525 million initiative to strengthen existing generation assets and bolster grid reliability. The funding targets upgrades designed to improve plant efficiency, increase dependable capacity, and preserve infrastructure already connected to the power system.

The department’s effort focuses on enhancing facilities that provide around-the-clock generation at a time of rising electricity demand. By retrofitting existing plants rather than building new facilities, federal officials are seeking to deliver reliable power more quickly and at lower cost while supporting energy sector employment, particularly in Appalachian regions with longstanding ties to coal production and power generation.

The selected projects span several states.

• Appalachian Power Company will upgrade the Mountaineer Power Plant in Letart, West Virginia, and the John E. Amos Power Plant in Winfield, West Virginia.
• Buckeye Power will undertake system-wide improvements at Units 1 and 2 of the Cardinal Plant in Brilliant, Ohio.
• Duke Energy Carolinas LLC will modernize two units at the Belews Creek Steam Station in Sauratown Township, North Carolina.
• Kentucky Utilities Corporation will increase the annual capacity factor of Unit 2 at the Ghent Generating Station in Ghent, Kentucky.
• Monongahela Power Company will enhance the two-unit Fort Martin Power Station in Maidsville, West Virginia.
• Ohio Valley Electric Corporation will upgrade all five units at the Kyger Creek Station in Cheshire, Ohio.

The funding aligns with executive actions issued by President Donald Trump aimed at supporting the coal industry and reinforcing the reliability and security of the nation’s electric grid. Federal officials frame the initiative as a strategy to maintain dependable generation, moderate electricity costs, and ensure communities retain access to secure energy supplies.