U.S. Companies Projected to Spend $50 Billion on Coal and Gas Power in 2026, $3 Billion More Than China

U.S. companies are projected to spend $50 billion on coal and natural gas power generation in 2026, exceeding China's spending on the same fuels by $3 billion, @zerohedge reported. This marks the first time in decades that American investment in these sources has surpassed China's, according to the International Energy Agency.

The bulk of the spending stems from orders placed in the first quarter for 20 gigawatts of gas turbine capacity. Prices for the turbines have risen from $800 per kilowatt-hour to more than $2,500 per kilowatt-hour because of tight supply, a Rystad Energy analyst told the Financial Times.

Data center operators have driven much of the demand by seeking reliable baseload power from gas plants, and in some cases coal.

Expansion of wind and solar generation has added to the need for backup capacity to maintain grid stability during periods of low renewable output. Siemens Energy reported a record quarter for its gas services business in February, with 102 new turbines added to its backlog. Forty percent of those orders originated in the United States and 35 percent in Europe.

Mitsubishi, another major turbine manufacturer, announced plans last year to double production capacity. Its chief executive stated that an earlier target of a 30 percent increase proved insufficient and that fulfilling existing orders remains the company's top priority.