Craig sets its sights on a new energy future as it plans to phase out coal plants in the coming years.
Shifting Toward Clean Energy
The City of Craig, a small town in northwest Colorado, is navigating a significant energy transition. In response to the Colorado House Bill 25-1040, which designates nuclear as a clean energy source, Craig is moving away from its reliance on coal-powered plants after more than five decades of operation.
“We’re just exploring all economic opportunities in the energy sector,” said Chris Nichols, the mayor of Craig. The shift is driven by both environmental policy changes and the need to diversify energy sources in line with state legislation.
As the town adapts to this new reality, officials are weighing a range of options for a sustainable energy future, while also considering the impact on local jobs and the economy.
Job Losses and Economic Fallout
While the move away from coal is a step toward a cleaner environment, it brings significant challenges. Nichols warned that the closure of coal plants and mines will lead to the loss of hundreds, if not thousands, of high-paying jobs.
“What that means for us is it’s about 700 direct, high-paying jobs the community will lose,” Nichols said. “We’re projecting, depending on who you talk to, it’s about 2,000 jobs we’re losing across the Yampa Valley here.”
The first of Craig’s three coal-powered plants is slated to close on January 1, 2026, with the remaining two plants expected to shut down by mid-2028. Additionally, one of Craig’s coal mines will cease operations at the end of 2025, while Trapper Mine is set to close alongside the plants in 2028.
New Opportunities: The Nuclear Path
To mitigate the economic impact, Craig officials are exploring alternatives, including the possibility of nuclear energy. Nichols emphasized that the town is not interested in becoming a nuclear waste disposal site. Instead, they are focused on the newer, more sustainable nuclear fuel cycle, which includes the potential for small modular reactors and recycling re-enrichment.
“We’re interested in the new nuclear cycle, the complete cycle. Which includes recycling re-enrichment—if that would ever come to play—and the new small modular reactors and whatever possibilities that open up,” Nichols explained.
Although no specific projects have been formalized, the Northwest Colorado Energy Initiative is in talks with city officials to explore the viability of a new nuclear energy infrastructure in the region. The transition to nuclear energy presents both opportunities and challenges, but city leaders remain hopeful that a sustainable solution will emerge.
Resilience in the Face of Change
Despite the challenges, Nichols expressed optimism about the town’s future. “We’re a resilient community, and we are just looking at everything that we can do,” he said. As Craig prepares for this major transition, officials are committed to finding the most viable solution to secure both the town’s energy future and its economic stability.
With its sights set on a cleaner, more sustainable energy landscape, Craig’s shift away from coal is a significant chapter in the region’s ongoing efforts to adapt to evolving energy needs.
