CONSOL Energy Inc. (CNX), Alpha Natural Resources, Inc. (ANR): One “Pie in the Sky” Idea to Save Coal

Page 2 of 2

In addition to exports, the coal industry has been working to clean up its image so it can reverse that trend. Overall, more than $12 billion is being spent on research across 43 states on clean coal projects thanks to funding from the Department of Energy. Even more recently, President Obama has called from $8 billion in federal loan guarantees to support “advanced fossil energy,” which includes clean-coal-fired power plants. These funds are being used to not only make coal a cleaner-burning fuel, but to create and keep jobs.

The current problem is that most of the solutions either aren’t yet commercial or not very economical, especially when going up against cheap natural gas. Utilities like

Duke Energy Corp (NYSE:DUK) and The Southern Company (NYSE:SO), for example, have spent billions on projects to turn coal into cleaner-burning gas. These projects have been very costly to build and aren’t able to completely capture the carbon dioxide emissions. However, what’s most promising is that The Southern Company (NYSE:SO)’s project in Mississippi will sell the carbon dioxide it captures to oil companies to use in enhanced oil recovery methods in the the Gulf of Mexico. It’s one indication that these projects really do represent a step in the right direction.

Further, it’s likely that we will continue to take steps forward in the future because the stakes really are quite high. We have such an ample supply of coal in our country, which produces very high paying jobs, that we can’t simply abandon it completely. It also provides our nation with fossil fuel diversity, which could help keep natural gas prices in check. So, while the future of coal might not be in pizza, its dual future of exports as well as cleaner-burning technologies do look rather appetizing.

The article 1 “Pie in the Sky” Idea to Save Coal originally appeared on Fool.com is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Southern Company.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2