Coal is experiencing a mini U.S. rebound thanks to higher prices for natural gas domestically and in key global markets.
Driving the news: U.S. coal exports are 29% higher this year, the Energy Information Administration said in its monthly outlook Tuesday.
"Higher U.S. exports reflect rising global demand for coal amid high natural gas prices," EIA said.
Coal consumption in the U.S. power sector is slated to be 18% higher this year than 2020, also reflecting higher gas prices.
Yes, but: EIA notes coal-fired power has not increased as much in response to gas prices as in the past, due to lower supplies.
The big picture: Coal, the most CO2-intensive fuel, once provided over half of U.S. power but has bled market share to gas and renewables over the last decade.
It fell to 20% of total U.S. generation last year but is reviving to 23% this year, per EIA.
White House climate policy is aimed at fully decarbonizing the power sector by 2035.
But turning that into reality likely rests on major incentives and investments Democrats are struggling to move through Congress.