The U.S. Department of Energy has selected Duke Energy for up to $61.8 million in new grant funding to modernize and refurbish coal-fired power plants in Kentucky and North Carolina.
- This latest allocation builds on a previous $34-million grant, bringing total recent federal backing for the utility's coal facilities to nearly $96 million.
- The grant funding is part of President Trump's invoking the Defense Production Act to direct hundreds of millions of dollars to support U.S. coal-fired power plants.
- Includes up to $33.4M for East Bend Station in Kentucky and up to $28.4M for Roxboro Station units 2 and 3 in North Carolina.
Duke Energy (DUK) shares gained 3% on Friday after the U.S. Department of Energy selected the firm for up to $61.8 million in new grant funding to support refurbishment and reliability projects at coal-fired power plants in Kentucky and North Carolina.
The new funds build upon a previously awarded $34-million grant for the Belews Creek Steam Station in North Carolina, bringing total federal funding for Duke Energy's coal plant upgrades to nearly $96 million. The utility will now enter formal negotiations with the DOE to finalize the funding agreements.
Federal Funding Backs Grid Reliability Projects
The firm submitted applications for the competitive grants late last year after identifying critical components at the plants that required maintenance and modernization. Company officials noted that enhancing existing infrastructure is one of the quickest ways to handle surging electricity demand across its multi-state territory.
“We take every opportunity at Duke Energy Kentucky to reduce costs for our customers while continuing to deliver the reliable energy they depend on, and we appreciate the partnership of the Trump administration and DOE in this regard,” Amy Spiller, president of Duke Energy's utility operations in Ohio and Kentucky, said in a statement.
Kendal Bowman, president of Duke Energy's North Carolina operations, echoed the sentiment, noting the funding allows the utility to execute previously planned infrastructure upgrades while shielding ratepayers from the full financial impact of the projects.
The grant announcement comes amid a broader push by the Charlotte-based firm to lower long-term customer bills. The company recently projected $5 billion in future customer savings, driven by an upcoming utility merger in the Carolinas and billions in nuclear and solar tax credits.
Duke Energy is one of the nation's largest energy holding companies, supplying electricity to 8.7 million customers across North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky.
Federal Support and Grants for the Coal Industry
The Department of Energy's multi-million dollar allocation highlights the Trump administration's continued policy focus on revitalizing and preserving the nation's coal infrastructure. Rather than forcing the immediate retirement of fossil-fuel assets, federal energy policies under the administration have prioritized directing grants, loans, and research funding toward upgrading existing coal-fired plants.
The Trump administration on Thursday announced a $850M grant to modernize US coal capacity and build 2 new coal plants. Critics, however, argue that directing federal millions toward coal infrastructure delays the necessary transition to renewable energy sources.
DUK Stock: Retail Sentiment
Retail sentiment on Stocktwits was “bullish” with “high” message volumes. Retail message chatter has lost about 50% over the past seven days and has remained flat over longer durations.
DUK stock has gained about 6% year-to-date.
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