U.S. Energy Department Offers $100 Million to Modernize and Extend Lifespan of Existing Coal Power Plants

The U.S. Department of Energy on Oct. 31 issued a notice of funding opportunity for up to $100 million to refurbish and modernize the nation’s coal-fired power plants, aiming to enhance operational efficiency, reliability, and longevity. The initiative builds on the department’s earlier plan to invest $625 million to expand and revitalize the coal sector, reinforcing the administration’s commitment to maintaining coal as a cornerstone of U.S. energy security.

The funding opportunity seeks applications for projects that design, test, and implement advanced technologies across three key areas of plant modernization. The first focuses on wastewater management systems capable of recovering water and producing value-added byproducts from wastewater streams. The second supports retrofit systems that allow seamless fuel switching between coal and natural gas without undermining plant performance. The third area emphasizes advanced co-firing systems, including fuel-flexible burner designs and upgraded control systems, to maximize gas co-firing capabilities at lower cost while minimizing efficiency penalties.

The measure aligns with the administration’s strategy to promote what it calls “clean coal” development and preserve grid reliability. It also supports directives under President Donald Trump’s executive orders on strengthening the electric grid and reinvigorating the domestic coal industry. By targeting practical, high-impact projects, the program aims to provide near-term improvements in power plant operations while supporting long-term energy resilience.

The move reflects a continuation of the previous President Trump administration’s policy direction, which sought to revive coal and nuclear industries through research and development initiatives. During that period, the DOE launched programs to diversify coal use, including projects to create high-value materials and advance carbon capture technologies. The administration also expanded access to national laboratories for private research and proposed tax incentives to encourage innovation in fossil and nuclear technologies.

Applications for the funding opportunity are due by Jan. 7, 2026.