The auctions and what’s at stake

The U.S. government is set to auction coal leases in Alabama, Utah, Montana, and Wyoming after reopening federal lands to mining, a major test of industry appetite. Energy officials argue new supply could support grid reliability as power demand surges, including from AI data centers. The leases include metallurgical coal areas in Alabama and large thermal coal tracts in the Mountain West, with royalty terms revised under this year’s tax changes.

Backlash and climate implications

Environmental groups condemned the plan as locking in future emissions and delaying a shift toward cleaner power, noting coal output has fallen sharply over the past decade. They warn new leases may not be mined for years but could extend coal dependence well into mid-century. Industry groups counter that electricity needs are rising and say the auctions will draw strong bids. The outcome will signal whether coal can rebound in today’s energy mix.