America's second-largest coal producer announced today it's filing for bankruptcy, highlighting the continuing shift toward cleaner sources of energy in the US.
Arch Coal, Inc. on Monday filed for chapter 11 bankruptcy protection, hoping to burn $4.5 billion worth of debt off its books. Coal prices in August were at their lowest in 12 years. Arch is one of four coal production companies to file for bankruptcy recently.
It's no surprise that companies producing coal—the dirtiest of all energy sources—are in the midst of financial crises as the world looks for solutions to impending catastrophic climate change. In November, Portland City Council unanimously passed two resolutions placing the city in official opposition to all projects that would expand fossil fuel infrastructure in the city. Oregon utility companies Portland General Electric and Pacific Power are jointly working on a bill that, if passed, would commit them to operating coal-free by 2030.
In Washington, Arch Coal is involved in the Millennium Bulk terminal project proposed at the Port of Longview, which would have the capacity to handle 44 million metric tons of coal annually.
Ross Macfarlane a senior advisor with Seattle-based Climate Solutions called Arch's bankruptcy the "final nail in the coffin for the Millennium coal terminal," saying the announcement leaves the project without any "solvent financial backers."
Missouri-based Arch Coal employs about 4,600 people and has said it expects no interruption in mining operations and customer shipments during the bankruptcy process. The company cut production, wages, and prices before declaring bankruptcy.
"Arch’s financial collapse shows that Big Coal makes a terrible partner for local communities looking for stability and economic prosperity" Clark Williams-Derry, research and communications director for Seattle's Sightline Institute wrote in a statement. "The domestic coal industry continues to disintegrate, international coal markets are at a decade low—and the smart money is staying as far away as possible from coal."
