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Wyoming Lawmaker Proposes Micro Coal Plants to Boost Energy Independence and Support Coal Industry

Wyoming Lawmaker Proposes Micro Coal Plants to Boost Energy Independence and Support Coal Industry
A loaded coal train rolls past the Dry Fork Station power plant about 10 miles north of Gillette, Wyoming (Getty Images)
  • PublishedDecember 18, 2024

State Rep. John Bear (R-Gillette) is promoting a plan to develop micro coal-fired power plants across Wyoming, a concept he believes could revitalize the coal industry, support economic diversification, and increase energy independence for local communities, Cowboy State Daily reports.

With Wyoming’s coal production at risk of hitting its lowest point since 1992, Bear hopes that a shift toward smaller, localized coal plants — combined with the development of microgrids — could help stabilize the state’s energy sector. The goal is to create an energy model that is self-sufficient, community-centered, and more resilient to federal regulation.

“We’re going to have good, steady energy, protected from a lot of different things that would impact us,” Bear said.

Unlike traditional large-scale coal plants, the micro coal plants Bear envisions would be significantly smaller, producing as little as 35 to 50 megawatts of electricity — roughly a quarter of the output of a standard coal plant. The size and production capacity of each plant would be tailored to meet the energy demands of the specific community it serves.

The plants would be linked to microgrids, small-scale electrical grids that operate independently of larger, regional power grids. Bear sees this as a way for Wyoming to achieve energy autonomy. If connected to the larger national grid, it would only be for the purpose of selling Wyoming’s surplus energy at higher prices, rather than relying on imported energy.

Similar to recent advancements in modular nuclear power plants, these coal-fired micro plants could use cutting-edge technologies, such as carbon capture systems, to reduce emissions. In fact, Bear argues that carbon capture is easier to integrate into newly built plants than it is to retrofit existing, larger plants.

Wyoming’s economy has long been dependent on its coal, oil, and natural gas industries, but declining demand and increased federal regulations have put pressure on the sector. In 2025, coal production is on pace to drop below 200 million tons for the first time since 1992. Bear’s proposal aims to reverse this trend by creating a new, local market for Wyoming’s coal.

This proposal isn’t entirely new. During the Trump administration, the Department of Energy explored similar ideas for modular coal-based power plants. Bear sees this as an opportunity to bring that concept to life in Wyoming.

“Texas and California run their own independent electrical grids,” Bear said.

He referenced how other states have taken steps toward energy self-sufficiency. He believes Wyoming could follow a similar path and establish its own regulatory framework to allow for the construction and operation of these micro plants.

Bear emphasized that Wyoming must act before the federal government steps in with regulations, arguing that it’s better to have control of the process rather than react to federal mandates.

“I’d rather have them suing us than us trying to sue them to maintain our mineral industry,” Bear said.

Building out a network of micro coal plants and microgrids would be a significant investment. Experts estimate that such an endeavor would cost billions of dollars to develop. However, Bear argues that the potential for energy security and economic development would make it a worthwhile investment for the state.

The Wyoming Business Council and Wyoming Business Alliance could play key roles in researching the feasibility of the project, while private investors would be critical to its funding. Bear believes that private investors would be drawn to a low-regulation, low-cost energy opportunity.

“The people who are interested in the technology and the low-cost energy, they can operate a lot faster than the government,” Bear said. “I wouldn’t want the government doing much — we just set up the regulatory framework to allow it.”

One idea under consideration is whether these micro plants could also support small-scale refineries that produce fuel solely for local Wyoming consumption. By keeping the production and consumption of energy within the state, Bear hopes to create a closed-loop system that allows Wyoming to regulate its own energy prices.

While the idea is ambitious, experts say it is technically feasible. Holly Krutka, executive director of the University of Wyoming’s School of Energy Resources, said that while building small, coal-fired power plants is possible, the challenge will be in drawing private investment and ensuring the plants are cost-effective.

“It takes a couple of these getting built before they can be profitable, but that’s true of basically any energy technology at all,” Krutka said. “Once you build the first of something, of course it’s expensive. But when you build that same thing over and over, the costs come down.”

Krutka added that her school is already researching similar concepts. The University of Wyoming is investigating ways to use supercritical carbon dioxide generated from coal production to power turbines. This technology could allow a power plant to produce energy without emitting carbon dioxide, helping it become what she calls “semi-regulation-proof.”

The biggest hurdle will be making the plants financially viable in a market that increasingly favors renewable energy sources like wind and solar. Smaller plants may also struggle with economies of scale, as larger plants typically produce energy at a lower cost.

One of Bear’s core arguments for micro coal plants is energy independence. He believes that Wyoming, like Texas and California, could operate an independent energy grid separate from the larger national grid. This would give Wyoming complete control over its energy pricing and regulatory environment.

Currently, Wyoming exports about 70% of the energy it produces, but Bear wants to see the state become more self-sufficient. He sees this as a way to avoid price fluctuations caused by national energy markets and ensure that Wyoming’s energy consumers are shielded from rising costs.

“That way, these high-cost energy sources that other states might desire won’t affect the rates that people in Wyoming are paying,” Bear said.

Bear also views Wyoming’s status as an energy exporter as a potential opportunity. If Wyoming builds its own microgrid and energy production model, it could charge higher prices to out-of-state consumers for exported energy.

Part of Bear’s argument is that energy independence could support economic diversification. He believes manufacturers seeking low-cost, reliable energy would be drawn to Wyoming, especially if the state can offer affordable, predictable energy rates.

For Wyoming to achieve this, Bear believes it must specialize in all forms of low-cost energy, but he wants the state to focus more on coal than natural gas. Coal prices, he argues, have historically been more stable than gas prices.

“You want to lower the risk, lower the volatility of the cost of goods,” Bear said.

If the project succeeds, Bear believes other states may copy Wyoming’s approach, potentially revitalizing the coal industry on a broader scale. While coal is seen as a declining industry, Bear thinks Wyoming has an opportunity to lead the nation in innovative coal technologies and demonstrate how micro plants can support local economies.

Bear doesn’t plan to introduce legislation on micro coal plants in the upcoming legislative session, preferring instead to gauge interest and market the concept to potential investors. He hopes that if the idea gains traction, the Wyoming Legislature will establish a regulatory framework to allow these plants to be built.

Rather than having the government fund or operate the plants, Bear sees the state’s role as a facilitator, establishing rules and regulations that make Wyoming an attractive place for private-sector investment.

While it’s a long shot, Bear believes the proposal could be a bold way for Wyoming to drive change in an energy industry that is slowly moving away from coal.

“If Wyoming can prove that it works and can attract manufacturing for it, competition will naturally develop based on other states picking up the same idea,” Bear said.

Written By
Joe Yans