Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

AM Briefing

Big Oil Balks at Trump’s Offshore Wind Assault

On stronger uranium, Elon Musk’s big gamble, and Japan’s offshore headwinds

A Shell truck.
Heatmap Illustration/Getty Images

Current conditions: A warm front coming from the Southwest is raising temperatures up to 30 degrees Fahrenheit above average across the Upper Midwest • A heat wave nearly 200 miles north of Montreal in La Tuque, Quebec, is sending temperatures to nearly 80 degrees today • Typhoon Matmo has made landfall in southern China, forcing thousands to evacuate amid peak holiday season.


THE TOP FIVE

1. The U.S. wind industry’s latest defender? Big Oil.

The United States’ beleaguered offshore-wind industry has found a new ally in its effort to fend off President Donald Trump’s assault: Big Oil. On Sunday, the Financial Times published an interview with Shell’s top executive in the U.S., in which she called the administration’s decision to halt permitting on seaborne turbines “very damaging” to investment and warned that a future Democratic president could use the precedent Trump set to attack the oil and gas industry. “However far the pendulum swings one way, it’s likely that it’s going to swing just as far the other way,” Colette Hirstius, president of Shell USA, told the newspaper when asked about the Trump administration’s stop-work orders on offshore wind farms. “I certainly would like to see those projects that have been permitted in the past continue to be developed. Similarly, if you think of the business I run offshore [Gulf of Mexico], that type of permitting uncertainty has been utilized to undermine the permits that we have in the past — and that’s equally as damaging.”

As I reported last month in this newsletter, a federal judge blocked Trump’s stop-work order on the 80% complete wind farm off Rhode Island’s coast. But the administration’s multi-agency onslaught against the offshore wind industry, which Heatmap’s Jael Holzman called a “total war,” is already taking a toll. Danish wind giant Orsted, for example, was forced to raise money via an unusual offering of new shares — which it then sold at a nearly 70% discount.

2. Trump leverages Chicago transit money, FEMA grants amid shutdown

The Trump administration said Friday it would delay $2.1 billion in funding for transit projects in Chicago amid negotiations with Democrats in Congress to approve a federal budget. The move comes after Russ Vought, the director of the Office of Management and Budget, announced cuts to major New York City infrastructure projects, in what Heatmap’s Matthew Zeitlin interpreted as Trump’s “seeking retribution from New Yorkers” for the ongoing government shutdown, since Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries both hail from the city.

The Federal Emergency Management Agency, meanwhile, is withholding more than $300 million in emergency preparedness grants from states until they can prove that the population estimates used to calculate the funding awards do not include people who have been deported as part of the administration’s immigration crackdown. A group representing state emergency management agencies called the move “a never-before-seen provision” that amounts to “further delaying resources intended to strengthen disaster preparedness and emergency response,” The New York Times reported Friday.

3. U.S. regulators approve production of higher-enriched uranium fuel

The Nuclear Regulatory Commission gave fuel giant Urenco’s U.S. subsidiary the green light last week to produce reactor pellets enriched with up to double the normal concentration of uranium-235. This past spring, the utility giant Southern Company made history by loading one of the older reactors at the nation’s most powerful nuclear station in Georgia with what’s known as LEU+, a version of low-enriched uranium that goes beyond the roughly 5% enrichment limit regulators typically set for the fuel. Uranium enriched up to 10% with U-235, the fissile isotope that can produce energy through atom-splitting, leaves behind less waste and can keep a reactor going for longer. In a press release, Urenco said the federal permit to produce LEU+ at its Eunice plant in New Mexico “will create new opportunities for the current U.S. reactor fleet by allowing for longer operating cycles and fewer refueling outages.”

4. Elon Musk gambles billions on Memphis AI data complex

Elon Musk will need to spend at least $18 billion to buy roughly 300,000 more Nvidia microchips to complete his sprawling Memphis data center complex, The Wall Street Journal reported Sunday. The project, called Colossus, has a colossal appetite for electricity. In July, Musk bought a former gas plant in Mississippi. In August, green groups accused xAI of violating federal air pollution rules with its use of gas-fired turbines to power its servers. The federally owned Tennessee Valley Authority’s aggressive push to build more nuclear reactors is often discussed as a means of supplying Musk’s demand with cleaner power, but those projects are still years away from producing electrons.

Over the course of one year, Musk’s xAI has surged to become the second-largest taxpayer in the Tennessee county, after FedEx, as the company burns through cash at what the newspaper called “a breakneck clip.” Earlier this year, xAI raised $10 billion through a combination of debt and equity, and its billionaire founder has turned to his privately held SpaceX to chip in $2 billion. “In typical xAI and Elon fashion, the company’s future is highly unpredictable,” Dylan Patel, chief executive of the semiconductor and artificial intelligence research firm SemiAnalysis, told the Journal. “Elon will do everything he can to not lose to Sam Altman.” He’s struggling. On Monday morning, Altman’s OpenAI inked a deal to buy chips from AMD, just weeks after signing a $100 billion agreement with Nvidia, The New York Times reported.

5. Japan delays offshore wind pricing plan

Japan last week “delayed indefinitely” an auction to set government funding levels for offshore wind projects in what Bloomberg called “the latest blow to the country’s push to expand renewable energy supplies.” The Ministry of Economy, Trade and Industry put the auction, which had been scheduled to start on October 14 and run for two weeks, on hold to give officials time to reassess the effects of higher interest rates and rising material costs. In August, Japanese industrial giant Mitsubishi Corp. announced its withdrawal from several projects won via a previous auction, citing escalating construction costs.

THE KICKER

Scientists have long wondered when and how otophysans, the supergroup of fish that accounts for two-thirds of all freshwater fish and includes catfish, carps, and tetras, evolved to live outside saltwater oceans. A fossil of a tiny fish found in southwestern Alberta has provided some answers. The four-centimeter specimen from the Late Cretaceous period — between 100.5 million and 66 million years ago, when the iconic Tyrannosaurus Rex lived — showed the distinct first four vertebrae that otophysans evolved to transmit vibrations to the ear from the swim bladder. The discovery of the species, named Acronichthys maccognoi, “fills a gap in our record of the otophysans supergroup,” Neil Banerjee, a Western University scientist and co-author of the study, said in a press release. “It is the oldest North America member of the group and provides incredible data to help document the origin and early evolution of so many freshwater fish living today.”

Yellow

You’re out of free articles.

Subscribe to access Heatmap's exclusive climate and energy polling, award-winning journalism, and subscriber-only events, now just $99 $79.20/year.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
AM Briefing

Neutral, at Worst

On Chinese hydrogen, Fermi upheaval, and British offshore wind

Smokestacks.
Heatmap Illustration/Getty Images

Current conditions: The Pineapple Express, an atmospheric river originating in the Pacific near Hawaii, is arriving in the Southwest laden with heavy rain that’s set to flood the region • Indonesia has the worst air quality in the world as forest fires rage along Sumatra’s southern coast • A cross-country storm will soak much of the United States on Tuesday’s Election Day.


THE TOP FIVE

1. Permitting bill’s worst-case climate scenario is still carbon neutral

The Senate’s grand compromise to simplify federal permitting on energy projects would likely drop emissions slightly as the benefits to accelerating deployments of clean energy infrastructure outweigh the boost the legislation could give to fossil fuels. Even under the worst-case scenario, emissions remain on the same trajectory as today. That’s according to a hotly anticipated new analysis by the Rhodium Group, the consultancy whose U.S. emissions estimates are among the most widely cited in American politics. The report, shared first with my colleague Emily Pontecorvo, found that provisions in the Bipartisan American Affordability and Jobs Act largely counteract each other on climate. The bill makes building transmission lines much easier, a key step to patching more renewables onto the grid. But it also makes new gas pipelines simpler to permit, clearing the way for a buildout of the infrastructure for the fossil fuel already dominating U.S. electricity and heating systems. Still, under the best-case scenario, the legislation could cut U.S. economy-wide emissions by 5% below where they would otherwise go in 2040. The bill could also slash energy bills by $78 per year and support construction of more than 200 gigawatts of clean energy capacity, as compared to a world where it didn’t pass. The Rhodium report is at least the second analysis yet to find that the bill could modestly lower emissions. The first, as I reported last week, came from the think tank Resources for the Future, which saw a slight drop in power-sector emissions relative to a world without BAAJA.

Keep reading...Show less
Blue
Energy

Exclusive: New Modeling Finds Permitting Bill Would Likely Cut Emissions

Even in the worst case scenario, BAAJA wouldn't increase emissions, an analysis by the Rhodium Group concludes.

Pollution and the Capitol.
Heatmap Illustration/Getty Images

The bipartisan permitting reform bill is likely to slightly cut greenhouse gas emissions and lower electricity bills by 2040 — or at worst leave emissions on the same trajectory that they are on today — as compared to the status quo, according to a new analysis of many of its provisions by the Rhodium Group, an independent research firm.

The analysis examines the policies in the Bipartisan American Affordability and Jobs Act, or BAAJA, that would have the most-clear cut effects on climate pollution and the energy system. It is the most comprehensive account of the bill’s effects on emissions so far, although it does not examine all of its provisions.

Keep reading...Show less
Blue
Hotspots

Meta Data Center Federal Pipeline Review Due Early Next Year

And more of the week’s top fights around development.

The United States.
Heatmap Illustration/Getty Images

1. Richland Parish, Louisiana – Gird your loins for the coming fight over the Meta Hyperion data center’s gas pipeline.

  • On Wednesday, the Federal Energy Regulatory Commission laid out plans for an environmental assessment of the Entergy pipeline for the Meta data center under the National Environmental Policy Act and stated it’ll be issued in early January 2027. Federal agencies have been ordered by the panel to complete any remaining decisions on authorizations by April.
  • The decision to do an environmental assessment under NEPA will be controversial. The Sierra Club filed comments to FERC stating they wanted an environmental impact statement instead that took into account the environmental impacts of the data center being fed by the pipeline, as well as a review of the project’s cumulative impacts, as the activist group said they’re explicitly linked to the data center’s operations. “The power stations and data center are not remote or speculative developments unrelated to the proposed action,” their comments read.
  • This is quite similar to what’s playing out with the Green Chile pipeline in New Mexico for Oracle and OpenAI’s Project Jupiter, which we recently explained could turn into litigation with high stakes for future gas pipelines linked to data centers. But to me, this conflict with Meta feels like it has more at stake for this individual project, as it’s playing out while construction on gas power plants for the data center has been underway for almost a year after earlier being blessed by state regulators.
  • I asked Sierra Club what could happen next. Eric Huber, one of their managing attorneys, told me on Thursday, “I heard the EA is expected in January, but we are in wait and see mode and will decide on further steps when it comes out.” Meta and Entergy did not respond to a request for comment.

2. Spartanburg County, South Carolina – I have one last data center race to tell you to watch on Tuesday: South Carolina’s 4th, on the northern rim of the state.

Keep reading...Show less
Yellow