Roughly half of Utah's electricity generation is fueled by coal, but a reduction in output from state coal mines has created challenges. In this interview, edited for length and clarity, Utah Office of Energy Development director Gregory Todd and deputy director Harry Hansen discuss the future of coal production and use in Utah.
What are your expectations for Utah coal production and supply moving forward?
Todd: We are confident that coal has a future in Utah. Despite setbacks or despite changes in demand, we are hopeful about coal and see it as a player in our energy sector.
Hansen: Once technology gets to a point where coal may not be necessary any more for energy production, what are we are going to do with our coal? There are new technologies that use coal to produce carbon-fibers and similar things. So, coal, whether it is in energy production or other areas, has a future in Utah.
We are keen on keeping our coal resources in place until there is a suitable replacement. We have a very vested interest in ensuring that we maintain that type of reliability of those (electricity generating units.) We are working on it, talking about how we can affect that positively.
But unfortunately, the federal government has a role to play in that, too. A lot of our coal is locked up in national monuments, and so that is another difficulty.
Every source has challenges. You just have to work past it, mitigate your way through it, and come out the other end hopefully on a positive trajectory.
Todd: We know that coal is — right now — going to be a little short supply, for a little while, especially with the Lila Canyon mine closed. Coal plants are continuing to produce, but maybe not at full capacity, because they might not have a year's supply of coal waiting available.
In terms of Lila Canyon, our understanding is that American Consolidated Natural Resources is not going to move forward with it, but that certainly would not prevent another company from coming in and extracting coal from the area because there is so much potential.
What actions is your office taking to assist Utah coal producers in addressing issues related to regulatory and market challenges?
Hansen: A state bill passed last year gives money to the attorney general to be able to combat some of these federal regulations that would effectively shut down coal generation in the state. That is part of what we are doing.
We are grateful that we did get a stay on the ozone transport rule the Cross-State Air Pollution Rule (CSAPR). That will help us keep those coal units going for a little longer. Obviously, the threat is not completely dead yet, but it is dormant basically. We are working with the legislature right now on other strategies that we can use to bolster coal in the state.
What will happen to the Intermountain Power Project (IPP), given that California plans to stop using coal-fired energy starting in May 2025?
Hansen: The legislature is keen on keeping those coal units open or, not necessarily open, but we don't want them to be demolished. There is no need for that. They have plenty of useful life.
Todd: IPP will be renewed as a new energy company. The plant renewal involves the construction of an 840MW natural gas and hydrogen plant adjacent to the existing facility. That is going to bring in natural gas and hydrogen right next door. They are putting billions of dollars [into it]. They feel that they will be ready to go with power in May 2025.
There is some [energy] legislation potentially coming in January. Energy will be a really big topic in the legislature in Utah. And we will see what the legislators decide to do about IPP.
Hansen: We did just present a study on IPP to the legislature in November. So that gives some options that might be viable to keep IPP open.
We have had some conversations [on this and the focus is] not if, but when we will need the power. That demand might not be here currently, but we are projecting — especially with artificial intelligence, data centers and supercomputing power that is going to be potentially taking over the technology sector in the next decade or so — that the need and demand for reliable, consistent, affordable power will resurface.
Todd: And you probably recognize that the renewed IPP is half of the energy that it has been or potentially what coal units can do. So that in itself cuts off half of the energy that is being produced.
How else is your office supporting the Utah coal industry and nascent coal-to-products space?
Hansen: We have partnered with a few organizations in the state to retrain some of the workers that used to work at the coal plants or currently work with the coal plants. If they run turbines, for example, they know how turbines work. So, we are repurposing some of their skills over into airplane mechanics, for example. And one of the major recommendations from that [IPP] study was about using coal to produce hydrogen and graphite.
