Alabama's energy revolution and critical minerals

Alabama's energy landscape, historically dominated by fossil fuels, is gradually shifting towards renewable energy and greater efficiency. Currently, the state's electricity generation is primarily fuelled by natural gas (45%), followed by nuclear power (31%) and coal (approximately 15%). While solar energy adoption remains slow, hydroelectric power continues to be Alabama’s leading renewable source, leveraging the state’s extensive river systems to maintain a strong position in hydroelectric generation.

Renewable sources contribute around 6% of the state’s electricity through hydro, 2% through biomass, and about 1% from solar. Despite this, the pace of renewable energy adoption, particularly solar, continues to lag behind other states. Notably, Alabama ranks as the second-largest hydroelectric producer in the eastern United States, and its Browns Ferry Nuclear Plant stands among the nation’s largest nuclear power stations.

In addition to energy generation, Alabama possesses a wealth of mineral resources essential to both its economy and the broader energy transition. The state has long been a major producer of materials such as limestone, granite, sand, gravel, clay, and iron ore, resources foundational to its industrial development.

In recent years, attention has increasingly turned to critical minerals vital for modern technologies and renewable energy systems. Notably, Coosa County hosts a 42,000-acre graphite project, recognised as the most advanced of its kind in the United States. As a key component in batteries, especially for electric vehicles—graphite highlights Alabama’s growing role in supporting the nation’s energy future.

To further explore and develop these resources, the U.S. Geological Survey, in partnership with the Geological Survey of Alabama, has allocated over $1 million to map critical mineral deposits across the state. This initiative focuses on the Alabama Graphite Belt, aiming to enhance understanding of the region’s potential in graphite, platinum group elements, and rare earth elements.

A key milestone in this effort was the Alabama Critical Minerals Symposium, held on 2 February 2024 at the Bryant Conference Centre in Tuscaloosa. Hosted by the University of Alabama's Department of Geological Sciences and the Geological Survey of Alabama, the event brought together industry experts and scientists to foster collaboration and share knowledge on identifying and utilising critical minerals within Alabama and beyond. The symposium featured a full day of presentations and discussions on critical minerals, their applications, and strategies for securing domestic supply chains vital to defence and economic resilience.

In parallel with mineral development, Alabama is actively advancing policies to support the energy transition. Programmes such as AlabamaSAVES promote energy efficiency in the commercial and industrial sectors, reflecting the state’s commitment to sustainability. Additionally, federal initiatives such as the Inflation Reduction Act of 2022 offer incentives for renewable energy projects, positioning Alabama to reduce its reliance on fossil fuels and promote environmental stewardship.

These combined efforts in critical mineral development and energy policy highlight Alabama's strategic role in the evolving landscape of renewable energy and technological advancement.