Coal distributions for non-electric power generation purposes in the Southern United States have experienced a significant decline, falling by approximately 75% between 2010 and 2025. This decrease amounts to a reduction of 14.7 million short tons (MMst) in coal delivered for these uses, according to data from the U.S. Energy Information Administration (EIA) through its Annual Coal Distribution Report and Quarterly Coal Distribution Report. Historically, the South received more than double the volume of coal for non-electric power uses compared to the Northeast. However, by 2025, the coal receipts in both regions were roughly equivalent.
The primary drivers behind this substantial drop in coal consumption for manufacturing and other non-power generation activities are attributed to manufacturers increasingly shifting to natural gas as an alternative fuel source and the closure of manufacturing facilities that previously relied on coal. These shifts have reshaped the energy landscape for industrial sectors across the region.
Receipts of coal for non-electric power uses saw a reduction in nearly all Southern states when compared to 2010 levels. The states within the Appalachian coal belt, including West Virginia, Alabama, Virginia, Tennessee, Kentucky, and Georgia, recorded the most substantial volumetric decreases. On average, these states saw a decline of 1.7 MMst in coal distributions for these purposes.
In terms of percentage decline, several Southern states experienced dramatic reductions of 90% or greater. Florida, West Virginia, Georgia, Texas, and South Carolina were among those with the steepest drops in coal deliveries for non-electric power generation. The only exception in the South was Louisiana, which saw an increase in coal receipts for these uses, rising by 775% or 0.2 MMst between 2010 and 2025. However, it is important to note that Louisiana's non-electric power coal distributions represented a relatively small portion, approximately 5%, of the South's total coal distributions in 2025.
Data from the 2022 Manufacturing Energy Consumption Survey (MECS) further illustrates the trend of declining coal use in the U.S. manufacturing sector. Nationally, the use of coal for both fuel and feedstock purposes decreased by 28%, from 60 MMst in 2010 to 43 MMst in 2022. The South accounted for the largest share of this national decline, with its coal consumption for manufacturing purposes falling by 60% from 20 MMst in 2010 to 8 MMst in 2022.
Several key manufacturing industries within the South were principal contributors to this reduction in coal consumption. These include paper industry plants, primary metals production facilities such as iron and steel mills, chemical manufacturing plants, and coking plants. The operational status of these industries directly impacted coal demand.
Some of these manufacturing sectors experienced a reduction in operations or outright closures in the South. For instance, the closure of coking plants in Alabama and West Virginia directly led to decreased coal demand in those areas. These closures represent a significant factor in the overall decline of coal distribution for non-electric power uses.
Concurrently, the same industries that reduced their coal consumption significantly increased their reliance on natural gas. Between 2010 and 2022, these four key industries—paper, primary metals, chemicals, and coking—saw their natural gas consumption rise by a range of 16% to 200%. This substantial shift highlights the growing preference for natural gas over coal in industrial processes across the Southern United States.
