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On a coal comeback, permitting reform, and NRDC’s nuclear conversion

Current conditions: A megastorm is bombarding more than 200 million Americans from the Midwest to the East Coast, blasting dozens of states with wind speeds as high as 80 miles per hour • Eight states — Alabama, Arkansas, Louisiana, Missouri, Oklahoma, Tennessee, and Texas — are bracing for sub-zero temperatures • It’s rainy and just over 50 degrees Fahrenheit in Dublin, Ireland, for St. Patrick’s Day.
When someone writes the definitive history of the Biden-era Inflation Reduction Act, one of the more ironic footnotes will be the fact that the breakthrough that gave rise to a new era for geothermal energy came 11 months after the law passed. As a result, geothermal was little more than a rounding error in the bill, receiving relatively little support compared to the billions of dollars allocated for next-generation nuclear power. Like nuclear power, geothermal is carbon-free, runs 24/7, and loved by both climate hawk Democrats and energy hawk Republicans. That’s exactly what’s behind a new bill to bolster the industry. Legislation set to be introduced in the Senate would boost federal funding and research for geothermal power, I can report exclusively in this newsletter. On Tuesday, Senators John Hickenlooper, the Democrat from Colorado, and Steve Daines, the Montana Republican, plan to propose the GEO Power Act to authorize the Department of Energy to “move beyond limited-scale pilots and unlock the large-scale geothermal electricity generation needed to meet surging demand and drive down costs,” according to the senators’ description of the bill. If passed, the GEO Power Act would allow the Energy Department to offer “innovative financing approaches” to help build up the industry in areas with little existing geothermal power. The bill would also “generate public data to de-risk future geothermal projects” and set milestones to make sure companies that receive funding maintain fiscal accountability. Two of the industry’s top trade groups, Geothermal Rising Action and the Enhanced Geothermal Systems Deployment Coalition, backed the bill, as did companies such as Fervo, Eavor, XGS Energy, and Quaise Energy. “We’re on the verge of harnessing a new wave of geothermal energy to meet surging electricity demand, lower prices, and address the climate crisis,” Hickenlooper said in a statement. “The key will be in scaling up new, next-generation geothermal projects across the country.”
Enhanced geothermal, a specific subset of next-generation technologies, could actually come online fairly quickly, too. New research by the Center for Public Enterprise, a think tank that tracks effective government spending on energy, suggests that a commercial-scale project of up to 500 megawatts could enter into commercial production within 36 to 52 months of active development, “with a conservative planning horizon of three to six years from project initiation to in-service,” assuming developers can secure necessary permits and transmission. That timeline “can be compressed even further, to less than three years, if a sufficient number of drill rigs and crews are available.”
Oklo has received its first license from the Nuclear Regulatory Commission, allowing the nuclear startup to begin recycling and selling isotopes “across medicine, research, advanced manufacturing, and national security,” I can exclusively report in this newsletter. The approval makes the California-based company the first of the cohort of fourth-generation reactor startups whose technologies use coolants other than water to get the green light to start up a commercial operation of any kind. Once operational, it will also allow Oklo to begin generating revenue for the first time. The NRC has given out permits to rival fourth-generation companies only for construction activities. The Bill Gates-backed TerraPower, for instance, was granted permission just this month to begin construction on its first commercial power plant in Wyoming, as was the Google-backed Kairos Power for its demonstration facility in Oak Ridge, Tennessee.
The permit for the facility, dubbed Atomic Alchemy and located at the Idaho Radiochemistry Laboratory, authorizes the company to “receive, possess, use, store, and conduct” chemical and mechanical processing, packing, manufacturing, and distribution of a limited amount of Radium-226, which is used to make advanced cancer treatments, in addition to a handful of other isotopes. “Demand for critical isotopes is rising, but U.S. supply remains limited,” Jacob DeWitte, Oklo’s chief executive and co-founder, said in a statement. “This work helps create a more resilient and dependable domestic supply chain of isotopes and supports the transition from early operations to durable, commercial isotope production in the United States.” The license grants the company a foothold in one of its core businesses. On top of designing liquid sodium-cooled microreactors the startup plans to own and operate for electricity production, Oklo is building out a division to reprocess and recycle nuclear waste into fresh fuel for its power plants. That business, too, would involve extracting and selling high-priced medical isotopes from spent fuel, and Atomic Alchemy lays the groundwork for that future effort. To construct this debut facility, Oklo plans to build four non-power Versatile Isotope Production Reactors systems with a capacity of about 15 megawatts-thermal each.
The United States could get its first new coal-fired power plant since 2013 as part of a sweeping $56 billion deal the Trump administration announced Monday with 17 Indo-Pacific countries. Terra Energy Center reached a $1 billion deal with South Korea’s Hyundai Industries Power Systems to supply large-scale boilers for a new, more than 1.2-gigawatt coal plant in Alaska. It’s the first order for utility-scale coal boilers in the U.S. since about 2006. KOREIT, one of Korea’s largest private equity firms focused on infrastructure, pledged to make a $500 million equity investment in the Terra Energy Center project.
Coal use has collapsed in the U.S. over the past two decades as hydraulic fracturing, or fracking, made natural gas cheap and abundant, the prices of renewables and batteries dropped, and decarbonization policies encouraged the closure of existing stations. Today coal generates about 16% of America’s electricity. But President Donald Trump has sought to stimulate demand for coal by forcing retiring plants across the country to remain open past their closure deadlines and easing regulations such as limits on mercury emissions from existing stations. The policies have delivered mixed results. Coal use has recently seen spikes. But states such as Washington are finding loopholes, as Heatmap’s Emily Pontecorvo reported. Either way, as Heatmap’s Matthew Zeitlin wrote last year, coal plants just keep breaking down.
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The Trump administration declined to appeal a federal court ruling in favor of the offshore wind project that, as I wrote yesterday, came online this week off the coast of Rhode Island. Last week, the Department of Justice whiffed on filing an appeal before the deadline to challenge a federal judge's injunction blocking a Department of the Interior order meant to stop construction on Revolution Wind over national security concerns.
E&E News called the move “a potential sign of the importance of bipartisan permitting negotiations.” In December, the top climate hawks in the Senate told Heatmap’s Jael Holzman that their votes on permitting reform hinged on the legislation barring the Trump administration from continuing its assault on offshore wind and solar. When the SPEED Act passed in the House later that month, right-wing Republicans conditioned their support on a carve-out specifically granting Trump the power to go after renewables. A new bipartisan bill introduced last month, called the FREEDOM Act, rekindled those negotiations by specifically barring the executive branch from yanking already-granted permits, whether it’s an offshore wind farm or an oil pipeline.

The Natural Resources Defense Council cut its teeth fighting against the expansion of nuclear power. Now the storied conservation group has come out in support of atomic energy for the first time. The NRDC filed comments in support of restarting Iowa’s defunct Duane Arnold nuclear plant, the state’s only atomic power station, which closed in 2020. “This is unprecedented for us because it marks the first time in our history that we have taken action in support of an individual nuclear power plant,” Manish Bapna, president and chief executive of NRDC, told Axios.
The move comes just days after the Nuclear Regulatory Commission took its latest step to speed up approvals of new reactors. The rule proposed last week would set fixed, accountable fee caps for new and current licensees and reduce fees for prospective applicants. “We need to cultivate accountability internally, incentivize applicants, and lower barriers for new technologies,” NRC Chairman Ho Nieh said in a statement. “This rule supports innovation and aligns with the NRC’s principles of efficiency and reliability.”
Nevada’s biggest utility is putting off launching a new rate structure that critics warn could raise household electricity costs by changing the billing formula. State regulators gave NV Energy permission last year to charge customers in southern Nevada on the 15-minute period each day when they use electricity the most rather than tallying up total usage. The new charge was set to come into effect on April 1. But NV Energy told E&E News it would hold off until October 1 to inform customers of what they should expect. “Postponing the implementation of daily demand is the right decision for our customers,” NV Energy President Brandon Barkhuff said in a statement. “This additional time will allow us to provide customers with personalized information and practical tools so they can better understand how their energy use affects their bill before daily demand takes effect.”
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Just look at Heatmap’s latest poll results.
A few times a year, Heatmap News surveys a few thousand Americans on the biggest questions driving the world of energy, environment, and climate change. We’ve spent the past few days writing up the results of our latest poll, which was in the field in late May and which I thought was particularly striking.
It’s worth taking a step back to look at the biggest results together, because the American view of data centers is essentially in free fall:
The upshot of these findings: The public‘s turn against artificial intelligence and AI infrastructure is real, widespread, and cross-partisan. It doesn't matter whether Americans started out tolerating data centers or having no opinion about them; they now seem to resent them en masse.
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These results also suggest Americans see little distinction between data centers as energy users and data centers as the physical embodiment of AI and Big Tech. At Heatmap, we can be a wonky and energy-focused bunch, and so we tend to think about data centers primarily as large-scale electricity users. I think most approaches to come up with “data center policy” do the same. We know data centers are distinctive in some ways, of course — an AI data center might require more on-site batteries or power generation than, say, an EV factory — but fundamentally it is just another air polluter, large-scale power user, and light-industrial land user.
But the public does not see things this way. Americans understand data centers in the context of the much broader AI policy conversation about jobs, growth, alignment, and even human extinction. And so, I should add, do politicians: Senator Bernie Sanders has framed his data center moratorium proposal as a response to rapid AI development as much as anything having to do with energy affordability. For that reason, I wonder how long the distinction between these two policy conversations — data centers here, and AI policy over there — can persist.
One last thought on this topic: Is the public’s resentment starting to affect the AI boom overall? I think it might be. It was hard for me not to think of our polling results — or our analysis of canceled data center projects — as I read about a recent JPMorgan analysis that found America’s data center boom is “falling way behind schedule,” in the words of The Wall Street Journal. More than 60% of the data center capacity that is supposed to come online next year has yet to break ground, according to the bank; another 7% is “delayed.”
That’s partially due to equipment and labor shortages, but it also might be what a siting-and-permitting bottleneck would look like. Much like renewable developers or venture capitalists, data center developers work by picking a number of sites and trying to develop on all of them. If only a few sites work out, they’re still in the money. But if a falling share of projects are working out — if building anything, anywhere, is getting harder, everywhere — then it might materialize as delays.
Plus more of the week’s big money moves in critical minerals and electric vehicle charging.
Two of climate tech’s hottest sectors — fusion and critical minerals — dominated this week’s funding headlines. Helion led the pack with its $465 million Series G, helping to push the startup with the sector’s most aggressive commercialization timeline one step closer to putting power on the grid. The round follows last week’s news that German fusion startup Focused Energy secured a $240 million Series A, making it Europe’s most valuable fusion company.
Then there’s the critical minerals. Shortly after venture firm Gigascale Capital announced the close of its $250 million fund targeting the physical clean energy economy, it announced one of its first investments: Red Metals, a startup working to bring copper refining back to the U.S. Terra AI, which is using artificial intelligence to identify promising sites for mineral extraction, also landed fresh funding. Rounding out the week’s deals, EV charging and energy services company InCharge also raised a new round as it looks to expand into a broader suite of energy services.
Leading fusion startup Helion has nearly tripled its valuation with its latest $465 million Series G round, which aims to help the company deliver commercial fusion power this decade — the most ambitious timeline in the industry. Per the terms of the power purchase agreement Helion signed with Microsoft in 2023, the startup plans to turn on its first commercial reactor just two years from now. That’s far sooner than even its most precocious competitors, who aim to put fusion power on the grid by the 2030s at the earliest.
Joshua Kushner’s venture firm Thrive Capital led the round, which also included participation from new investors including Lux Capital and Alta Park Capital. Thrive now values the company at $15.5 billion.
“The investors that have joined this round, it’s institutional capital, some very marquee investors,” Helion’s CEO David Kirtley told me, explaining they were willing to back an unproven technology thanks to a series of recent milestones that Helion’s latest prototype reactor, Polaris, achieved. “Polaris earlier this year set records for temperature and fuel. We’ve also reduced a lot of the business risk on the regulatory front, the commercial front, and the actual supply chain, too.” In February, Polaris became the first reactor developed by a private fusion company to operate on deuterium-tritium fuel — the most common fuel in the industry — and to achieve a plasma temperature of 150 million degrees Celsius.
Helion differs from many of its peers pursuing more established reactor concepts such as tokamaks, stellarators, or laser-driven inertial confinement. Instead, Helion’s tech uses powerful magnets to collide and compress two fusion plasmas together, generating temperatures over 100 million degrees Celsius and triggering a fusion reaction. It then seeks to capture the electricity this reaction generates via electromagnetic induction — no steam turbine required — similar to the way regenerative braking works in an electric vehicle. If successful, the approach could enable smaller, more modular fusion reactors than conventional designs would.
While the company had originally aimed for Polaris to demonstrate electricity production from fusion in 2024, that date came and went with no new goal set. Kirtley told me that Helion remains on track to meet the terms of its agreement with Microsoft, however. The startup broke ground on its commercial reactor site last year in Malaga, Washington, where it already has access to a substation and grid interconnection from a dormant aluminum smelter. In addition to building out this facility, Helion also plans to use its new funding to boost production at its electrical component manufacturing plant in nearby Everett, which Kirtley said opened earlier this year.
As investors pour billions into artificial intelligence and the infrastructure supporting it, former Meta CTO Mike Schroepfer has raised an inaugural $250 million fund for his venture firm, Gigascale Capital, which is focused on the physical clean energy economy. This represents Gigascale’s first institutional fundraise since its founding in 2023; until now, the firm’s investments have come entirely out of Schroepfer’s own pocket.
The fund will target early-stage companies working in clean energy, grid infrastructure, critical minerals, and AI-enabled design and manufacturing, while reserving capital to continue backing its portfolio companies as they scale. Gigascale has already backed a number of big names in the space, including Commonwealth Fusion System, iron-air battery developer Form Energy, solid-state transformer company Heron Power, and clean baseload power startup Arbor Energy.
It’s also already begun investing out of this new fund, announcing this week that it led a $10 million seed round for critical minerals company Red Metals, which also included participation from JB Straubel, founder and CEO of the battery recycling company Redwood Materials. The company aims to help reshore copper refining in the U.S., and will use this fresh capital to support the development of a $70 million refining facility in Charleston, South Carolina. Red Metals says its process can convert copper scrap directly into a finished copper product, bypassing several of the costly and emissions-intensive intermediate steps typical of conventional refining.
The investment offers a window into the kinds of companies Schroepfer is most interested in — businesses that might lack the glamor of an AI startup but represent bipartisan opportunities to address core industrial bottlenecks. Copper, for example, is essential to all sorts of clean energy infrastructure, including transformers, power lines, and anode battery materials, but also critical for defense technologies such as radar systems and ammunition. Yet American copper production has been on the decline, with analysts projecting that the U.S. will face a refined copper shortage of over 2.5 million metric tons annually by 2035.
Sustainability-focused firm S2G Investments has been on a roll recently, announcing a $1 billion fund last month that aims to fill climate tech’s “missing middle” and backing Goshe Energy Storage with up to $40 million in strategic financing last week. Its latest move is leading a $46 million strategic investment round for InCharge Energy, an EV charging and distributed energy management company.
InCharge got its start installing and managing electric vehicle charging stations, and is now operating more than 30,000 assets across North America. Through its software platform and network of technicians, the company handles all monitoring, diagnostics, and on-the-ground repairs, taking on a charger’s full lifecycle to minimize downtime. With this new capital, InCharge plans to expand beyond EV charging and leverage its software and field service network in adjacent industries, including electrical infrastructure work such as panel upgrades and wiring repairs, as well as distributed energy resources like rooftop solar and battery storage systems.
“EV charging was the entry point, but our customers increasingly need help operating more complex energy infrastructure,” Rich Mohr, InCharge’s CEO said in a press release. “This investment from S2G accelerates our evolution into a full energy solutions provider and allows us to advance smarter technology and strengthen our service capabilities nationwide.”
It’s a hot week — nay a hot year, for critical minerals and subsurface exploration startups, especially for those pairing geology with artificial intelligence. AI-powered mineral exploration company KoBold Metals has raised about $1.2 billion to date, while geothermal exploration startup Zanskar has brought in about $220 million.
Now, another entrant is attracting investor attention. Terra AI has raised a $20 million Series A led by Khosla Ventures to help do it all — use AI to identify prospective sites for critical minerals mining, next-generation geothermal development, and permanent carbon sequestration.
Terra’s platform integrates vast geological and geophysical datasets to generate 3D subsurface models, as well as risk assessments that allow teams to evaluate a range of potential geologic scenarios. From there, the team can identify the best sites for exploratory drilling and thus reduce risk and uncertainty much sooner in the project’s lifecycle. The company even uses what it calls “geology reasoning agents” to help operators create their exploration plans, all with the goal of drastically reducing the notoriously long timeline between discovery and production, which can stretch to nearly two decades for many subsurface projects.
“Minerals sit at the center of every major technology and infrastructure transition, but today’s exploration results are not keeping pace with demand,” Terra’s CEO John Mern posted on LinkedIn. “Our mission is to advance the frontier of AI into the geosciences and help supply the metals and resources the next generation needs.”
One of the biggest fusion funding rounds of the year landed last week, and somehow much of the media — including me — missed it. German fusion startup Focused Energy raised a whopping $240 million Series A led by RWE, one of Germany’s largest energy companies. Yet unlike most deals of this magnitude, it arrived with little fanfare: No press release in my inbox nor a flood of headlines. So in the interest of making up for lost time, here are the details.
With this latest round, which also includes participation from the German Federal Agency for Breakthrough Innovation, the European Innovation Council Fund and Prime Movers Lab, Focused Energy has become Europe’s most valuable fusion company. Like several other leading players, including Inertia Enterprises and Pacific Fusion, Focused Energy relies on an approach known as inertial confinement fusion. This involves using powerful lasers to compress a tiny fuel target, creating the extreme pressures and temperatures required for a fusion reaction. To date, inertial confinement remains the only approach to have demonstrated net energy gain, with Lawrence Livermore National Lab achieving this milestone in 2022.
The startup plans to use this latest funding to build out a demonstration plant in the German state of Hesse, at a site where RWE formerly operated a nuclear fission plant. The company ultimately aims to build a commercial reactor by the mid-2030s.
Catching up with the American Council on Renewable Energy’s Ray Long.
Today’s chat is with Ray Long, CEO of the American Council on Renewable Energy. We first discussed the odds of permitting reform a year and a half ago, for one of the first Q&As in The Fight. Flash forward and we’re still in the same situation, but now also wrestling with added demand for electricity to power data centers. I wanted to talk again about whether he thought the rise of artificial intelligence would increase the odds of some federal deal happening any time soon. The result: a wide-reaching conversation about the future of the electric grid, the struggles to win community buy-in and the sclerotic nature of the U.S. Congress.
The following conversation was lightly edited for clarity.
Do you think the buildout of our energy grid is entwined with the rise of the nation’s data center buildout?
When you look at what we need over the next four years — 166 gigawatts, 15 times the peak load of New York City — that’s a lot of power to build. Roughly half of that is for data center and AI growth.
There are five things we can build in the next four years at scale to address that collective amount. First, it’s transmission — the transmission buildout will help to get a modern grid to enable power flow to where it’s needed in a much more effective way. That’s the first step because if we just build all that power, the current grid can’t handle it.
Second, there are four supply technologies that can be built: solar, batteries, wind, and natural gas. All four of those technologies, we know there’s enough equipment here in the U.S. available for purchase that we can build at volume. And I’ll say this — natural gas is only about 10% of all those gigawatts because of the availability of turbines from suppliers. You can’t get enough over the next four years. So when I talk about decarbonization, most of what is built to address this issue is zero-carbon resources, renewable energy resources.
If you were to compare the current conversation around data center development to the debate over developing renewable energy in the U.S. — or energy in general — do you see any similarities or differences?
There are always issues with permitting projects. Communities are always going to have concerns about what’s built in their backyards.
What’s new — and your polling shows this — is the level of concern communities have. But here’s the thing: Most of this can be overcome by developers going in, listening to what the needs of the communities are, then responding and through the permitting process addressing those concerns. You can’t do that 100% of the time. But my experience is, when you take that sort of approach, you can overcome a lot of it.
Most of the large data centers are actually doing the things I’m discussing — going in and saying, Look, we want to be grid interconnected because grid connection at the end of the day means the resources we’re bringing to bear are also going to make a stronger grid. Number two, it's investing in power generation sources like the ones I said — and those power sources will be on the grid, so they’ll solve for the increased power demands of a community.
Third, water. They should bring the water solutions. You’re seeing data centers coming in and saying it head on now, that they have closed-loop systems or whatever the solution is. At the end of the day, the communities they’re proposing these in have a real negotiating opportunity to make sure they’re holding the data center developers accountable to the needs of the community.
For a community to say we don’t want it here misses a real opportunity for those communities to get the power they need, the grid they need, and the ability to bring down energy costs.
How is the data center debate affecting permitting reform conversations in Washington, from your perspective?
Permitting reform in the U.S. at the state and federal level has been broken for years. The SunZia transmission project? It took 17 years to permit. Ribbon-cutting is in a week or two and there’s still litigation around it. From a business perspective, it’s just untenable, and it’s a miracle that the project is getting built. Developers need a chance to come in and have their project evaluated. Both the community and the developer should be able to get to a go or no-go in a couple of years on one of these projects.
How is data center growth affecting the permitting reform discussion? It’s a very hot issue right now. Right now I think in part because the data center issue is so huge — because we’ve only got four years to solve for the first really big tranche of power we need and prices across the board for electricity are escalating — this is coming to a head. The data center load is a part of the catalyst to get people talking about it [permitting reform].
Do you expect legislating in Congress on permitting reform this year? Anything beyond more conversation?
My hope is that we get a bill. A few weeks ago someone from the administration was quoted as saying they wanted a framework for a bill by the end of May, and it’s June now. We haven’t seen both sides or the administration coalesce around a final project yet.
We’re in a midterm election cycle. Typically it’s very difficult during these cycles to move bills like this. At the same time, with electricity prices increasing and the need to build more, to fix this, I’m very hopeful something will come together. And look at the Senate — you’ve got Republicans and the Democratic ranking members talking about this. It’s all good signs.
If everyone’s talking about energy and affordability during this election, isn’t that a good thing for action in the next Congress?
I’ll say this: You’re seeing the catalyst for it right now with prices rising, and almost every grid operator around the country has raised concerns about shortages at some point this year or next year. It’ll hopefully be enough to have policymakers do something about it this year.