Half of Montana’s coal exports go to the Pacific Rim, with a large portion going to South Korea.
A Korean delegation met with coal executives and Gov. Greg Gianforte in hopes of opening new markets for Montana coal.
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Gianforte was in Billings Wednesday with the Korean delegation to deliver a message at the Montana Coal Summit at the Double Tree Inn.
“We rely on coal to keep our lights on,” Gianforte said.
Montana is coal country, or at least that was the message during Gianforte's sit-down with South Korean energy companies.
“Montana coal is low in sulfur,” Gianforte said. “It's high in energy content, and it's desirable.”
The governor says nations in the Pacific Rim, including Japan, South Korea, and Taiwan, purchase Montana coal every year.
“We have buyers in the Pacific Rim that want our coal,” Gianforte said.
And there's interest in expanding coal exports.
Earlier this month, President Trump announced a $700 million investment in coal and coal-fired plants.
Several states were mentioned, but not Montana.
Gianforte, a Republican, says the Trump administration has nevertheless been supportive of Montana's coal industry.
“But we need more capacity, and so we're having discussions with them about how we make that happen,” Gianforte said.
Federal investment is focused largely on a proposed export terminal in Oakland, a project aimed at boosting coal shipping capacity.
“So that's something that will help the coal industry in general,” said Parker Phipps, CEO of Signal Peak Energy, which owns a mine in Roundup. “For us here in Montana, we ship up through Vancouver.”
Phipps says his company in Musselshell County will export upwards of six million tons of coal each year, and South Korea is a big recipient of the product.
Signal Peak and Navajo Transitional Energy hosted the Korean delegation at Wednesday's summit.
“There's multiple coal buyers within South Korea, and so we'll be negotiating with them and trying to place additional volume,” Phipps said.
But some question whether the Korean market offers lasting potential.
“We're not going to have the buyers for our product that we want, and any deal with South Korea, my guess would be it would be extremely short-term,” said Anne Hedges, Montana Environmental Information Center executive director.
Hedges argues fossil fuels are becoming less competitive globally.
“The world is moving away from coal and fossil fuels because they're too expensive,” Hedges said.
However, the U.S. Department of Energy says coal still has a place in South Korea's energy mix.
“There will be plenty of deals, and they're all tariff-related,” said Curt Coccodrilli, DOE acting assistant secretary for hydrocarbons and geothermal. “In tariff negotiations over the course of the last year, the Koreans have pledged $350 billion.”
