Port Coal Switch To Be Funded By State

The Port of Mobile is set to receive funding from the state to transform its coal operations from thermal coal to metallurgical coal, AL.com reported. Gov. Kay Ivey’s proposal for distributing $2.8 billion in surplus educational funding includes $25 million to the Port of Alabama (aka Port of Mobile) for “economic development and coal loading/unloading equipment.” The money is to be used for a larger shift happening in the port’s coal operation. As the use of thermal coal, which is used to produce energy, winds down, Alabama’s metallurgical coal—high-quality coal used to produce steel—is becoming more in demand, says Patrick Cagle, president of the Alabama Mining Association (AMA). In turn, the port’s McDuffie Coal Terminal, one of the world’s largest, is transitioning from primarily importing thermal coal to mostly exporting metallurgical coal. According to an AMA economic impact study, metallurgical coal exports accounted for 50% of the port’s revenue in 2018. By the end of the year, the terminal may be export only.