# DOE Expands Coal Infrastructure Funding

The U.S. Department of Energy (DOE) has allocated substantial funding under the Defense Production Act (DPA) Title III to modernize and expand the nation's coal-fired power plants and related export infrastructure. Announced in early June 2026, this initiative includes up to **$500 million** to support 13 coal plants and build export facilities such as the West Gateway Terminal in Oakland, California. Additionally, up to **$425 million** is designated for 12 projects to upgrade coal infrastructure, including a **$70 million** modernization at North Dakota's Antelope Valley Station. The DOE's Hydrocarbons and Geothermal Energy Office has also invested **$3.6 million** in nine design and engineering projects to improve plant efficiency and operational flexibility. This funding aims to enhance energy security, strengthen domestic coal supply chains, and expand export capacity to allied Indo-Pacific nations.

- **Why this matters:** Procurement professionals should note the significant government investment unlocking new contracting opportunities in coal infrastructure modernization and export terminal development.
- Contractors specializing in energy infrastructure upgrades, engineering design, and coal plant technologies can expect increased demand and should prepare for forthcoming solicitations.
- The focus on export infrastructure, particularly the West Gateway Terminal in California, signals opportunities in logistics and terminal construction sectors.
- This initiative reflects a strategic shift toward reinforcing coal-based energy assets, impacting procurement planning and supplier engagement in the energy sector.

**Jurisdictions:** federal
**Industries:** Energy & Utilities
**Topics:** Physical Infrastructure
**Published:** June 11, 2026

### Government Entities
- U.S. Department of Energy (DOE)
- Hydrocarbons and Geothermal Energy Office (HGEO)
- United States Government
- United States Senate
- North Dakota

### Vendors
- Baker Hughes Energy Transition LLC (awardee)
- Heartland Water Technology Inc. (awardee)
- University of Kentucky Research Foundation (awardee)
- University of Wyoming (awardee)
- Hallador Power Company LLC (awardee)

### Key Quotes
> What looks like energy policy is really a major shift in government contractingunlocking fast-moving funding opportunities, new deal structures, and heightened compliance risks.
> — Teddie Arnold, Host, Claims & Sustains

> The West Gateway Terminal Project fills a critical infrastructure gap in the U.S. energy export system by providing additional West Coast export capacity for American coal producers.
> — Kyle Haustveit, DOE Under Secretary of Energy

> For more than 20 years, federal and state policies prioritized unreliable, intermittent energy generation resulting in higher electricity bills and distribution grids pushed to the breaking point.
> — Kevin Cramer, U.S. Senator

### Sources
- [Energy Department to Use Defense Production Act Funding to Expand Coal Capacity at 13 Plants and Build Export Infrastructure | Department of Energy](https://www.energy.gov/articles/energy-department-use-defense-production-act-funding-expand-coal-capacity-13-plants-and) - DOE
- [Funding Critical Energy Infrastructure Through the Defense Production Act](https://www.cramer.senate.gov/news/press-releases/funding-critical-energy-infrastructure-through-the-defense-production-act) - Cramer Senate
- [Armstrong applauds federal funding for upgrading coal infrastructure, including Antelope Valley Station | North Dakota State Government - ND Portal](https://www.nd.gov/news/armstrong-applauds-federal-funding-upgrading-coal-infrastructure-including-antelope-valley) - ND