It will arrive in the Ukraine in September, Kallanish Energy learns.
The coal, from mines in northeast Pennsylvania, is going to one of the largest power companies in Ukraine to meet demand during the coming winter.
The anthracite coal, costing $113 per metric tonne, is going to Centrenergo PJSC, an Ukrainian state-owned power utility.
The deal calls for 700,000 tons to be shipped to Ukraine by Dec. 31, in a $79 million deal brokered by the U.S. government.
The U.S. Department of Energy, the U.S. Department of Commerce, Ukrainian Ambassador Valeriy Chaly and Pennsylvania-based XCoal Energy & Resources celebrated the first shipment with ceremonies Monday in Baltimore.
“U.S. coal will be a secure and reliable energy source for Centrenergo and its electricity customers,” said U.S. Secretary of Energy Rick Perry, in a statement.
He added, “This shipment will boost both of our countries’ economies by supporting jobs in the coal and transportation industries. The department and this administration look forward to making available even more of our abundant natural resources to allies like Ukraine in the future to promote their own energy security through diversity of supply and source.”
The deal was announced last month. The price of $113 per ton is for the first shipment only, officials said.
The Trump administration has hailed the deal because it supports the U.S. coal industry and also sends a strong signal to Russia that aggression in Ukraine will not be tolerated.
In recent years, Ukraine and much of eastern Europe has had to rely totally on Russia for energy needs.
XCoal, based in Latrobe, Pa., markets coal mined in Pennsylvania and West Virginia to international customers.
Unlike a broker, who just sets up a deal, the company buys the coal from the mines and ships it to the customer once a contract is signed.