BILLINGS, Mont. (AP) — Federal officials rejected a company’s bid to acquire 167 million tons of coal on public lands in Montana for less than a penny per ton, in what would have been the biggest U.S. government coal sale in more than a decade.
The failed sale underscores a continued low appetite for coal among utilities that are turning to cheaper natural gas and renewables such as wind and solar to generate electricity. Emissions from burning coal are a leading driver of climate change, which scientists say is raising sea levels and making weather more extreme.
President Donald Trump has made reviving the coal industry a centerpiece of his agenda to increase U.S. energy production. But economists say Trump’s attempts to boost coal are unlikely to reverse its yearslong decline.
The Department of Interior said in a Tuesday statement that last week’s $186,000 bid from the Navajo Transitional Energy Co. (NTEC) did not meet the requirements of the Mineral Leasing Act.
Agency representatives did not provide further details, and it’s unclear if they will attempt to hold the sale again.