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On thorium, South Carolina nuclear, and green steel

Current conditions: Severe thunderstorms are drenching the American South from New Orleans to Virginia Beach • Mount Mayon has forced thousands to evacuate within the Philippines’ Bicol peninsula • Temperatures in Denver are poised to plunge from about 75 degrees Fahrenheit yesterday to 39 degrees today with a chance of snow.

The North American Electric Reliability Corporation, the quasi-governmental watchdog that monitors the health of the power grids that span the United States and Canada, has issued a rare Level 3 warning. The alert, announced Monday, marks only the third time NERC has put out a notice with that degree of severity in its 58-year history. The warning comes on the heels of reports that data centers abruptly went offline in Virginia and Texas, prompting concerns of potential blackouts. “Computational loads, such as data centers, could increase exponentially in the next four years,” NERC said in a draft of the alert, adding that “significant risks” to the power network “need to be addressed through immediate industry action.” Lee Shaver, a senior energy analyst at the Union of Concerned Scientists, told E&E News that NERC’s action was a “big deal.”
The California Energy Commission has issued an administrative investigative subpoena to Golden State Wind seeking documents and information related to the company’s recent deal with the U.S. Department of the Interior to take a payout in exchange for abandoning its offshore wind lease. Last week, the developer announced a deal to scrap its lease in the Morro Bay Wind Energy off the central California coast for $120 million as part of the Trump administration’s efforts to kill off an industry he failed to destroy through regulatory fiat alone. The facility was supposed to be California’s first offshore wind farm, and planned to use floating turbines to account for the steep continental shelf dropoff on the nation’s Pacific Coast. Now the administration’s latest “shady deal” is drawing scrutiny from state regulators. “The Trump Administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation,” David Hochschild, the chairman of the California Energy Commission, said in a statement. “Californians deserve immediate answers about the nature of this payout. Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”
Meanwhile, California’s grid operator has switched on a new regional electricity market as part of what E&E News called “a major milestone in the yearslong push to expand energy trading” across the American West. The California Independent System Operator launched its new Extended Day-Ahead Market early Friday morning, allowing California’s investor-owned utilities and the Northwestern giant PacifiCorp, whose coverage area spans two million customers across six states, to trade electricity on the regional market for the first time. “The West is rich with a diverse mix of renewable resources, and this market will capture their potential,” Michael Colvin, director of the California energy program at the Environmental Defense Fund, said in a statement. “Through better sharing of cheap, clean energy beyond state borders, the market will cut household bills, reduce reliance on expensive, polluting fossil plants and build a grid that's bigger than any single extreme weather event.”
For nearly as long as there have been nuclear power plants, there have been thorium bulls insisting the metal is a better fuel than uranium. In most places, the thorium dream faded long ago as ample new sources of uranium were discovered. But China revived the thorium race in 2023, when its experimental molten salt reactor powered by the metal split atoms for the first time. Now the only serious contender in the entire West looking to commercialize thorium is a Chicago-based company taking an unusual approach. Rather than creating a whole new kind of reactor to run on thorium, Clean Core Thorium Energy has designed fuel assemblies that blend thorium with a special kind of uranium fuel and work in existing reactors without any modifications. Clean Core’s technology only works, at least for now, in pressurized heavy water reactors, which make up the bulk of the fleets in Canada and India, though the U.S. has none in operation. But the key verb there is that: It works. On Tuesday, I can exclusively report for this newsletter, Clean Core plans to announce that its patented fuel completed a high burnup irradiation test at Idaho National Laboratory’s Advanced Test Reactor. The fuel burnup represented “more than eight times the typical” output from the traditional uranium fuel used in pressurized heavy water reactors. The latest test “provides meaningful performance data” and demonstrates that Clean Core’s fuel “achieve burnup levels comparable to those seen in PWR fuels while offering improved fuel utilization, enhanced safety characteristics, inherent proliferation resistance, and meaningful reductions in long-lived nuclear spent fuel radioisotopes,” Mehul Shah, Clean Core’s chief executive, told me in a statement. “Our objective has been to introduce thorium into the nuclear fuel cycle in a practical way using existing reactors, and this milestone represents a significant step toward that goal.”
It’s the latest good news for Clean Core. Last month, as I reported for Heatmap, the company inked a deal with the Canadian National Laboratories to manufacture its first commercial fuel assemblies.
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In July 2017, South Carolina abandoned its $9 billion expansion of the V.C. Summer Nuclear Station, leaving ratepayers holding the bag and utility executives facing prison time for lying about the project’s viability. Now the pair of Westinghouse AP1000s planned at the site are making a comeback. On Monday, Westinghouse-owner Brookfield Asset Management formed a new joint venture with The Nuclear Company, a reactor construction manager, to work together on building more Westinghouse reactors such as the AP1000 or the smaller version, the AP300. V.C. Summer is the likely first project. “Our team was built on the field of Vogtle and on some of the most complex energy projects in the world,” Joe Klecha, The Nuclear Company’s chief nuclear officer, said in a statement. “We know what it takes to deliver nuclear. What’s been missing is a model that brings together the people, the capabilities, and the capital to do it at speed and scale. That’s what this partnership creates.” The announcement comes as the Trump administration meets with utility executives to discuss funding deals to build the 10 new large-scale reactors President Donald Trump ordered the Department of Energy to facilitate construction on by 2029, as Heatmap’s Robinson Meyer reported. Completing 10 AP1000s would give the U.S. economy a trillion-dollar boost, per a PricewaterhouseCoopers report Westinghouse released in March.
That’s not the only nuclear developer making deals. On Tuesday morning, Blue Energy, another startup focused on serving as a project developer for existing reactor designs, announced a partnership with GE Vernova to work on building the world’s first gas-plus-nuclear plant in Texas. The 2.5-gigawatt project would include GE Vernova’s gas turbines and its BWRX-300 small modular reactors through its joint venture with Hitachi. “Innovative projects like this one will help advance the future of nuclear power and meet the surging demand for electricity,” Scott Strazik, GE Vernova’s chief executive, said in a statement.
Steel, if you’re unfamiliar, is made in two big steps. Traditionally, iron ore is melted down in a coal-fired blast furnace, then forged into steel in a basic oxygen furnace. New plants typically run on something called direct reduced iron, which uses natural gas to turn the ore into iron, then made into steel in an electric arc furnace. The latter process is far cleaner. It can even be green, if the natural gas is swapped for green hydrogen and the electric arc furnace is powered by renewables or nuclear reactors. Nearly 40% of all global clean steel investments to date are hydrogen-powered DRI facilities. That’s according to new data from the Rhodium Group, which released its latest estimates Tuesday. Another 57% of investments are gas-powered DRI plants. While Europe has so far dominated investment into hydrogen DRI, “the region will likely see relatively little demand growth for iron over the coming decades,” the report found. In the fastest growing regions, such as India, Africa, and South America, “most new demand is being met with traditional, fossil-based ironmaking technologies, which risks locking in emissions for decades.” The consultancy’s modeling shows that clean steel supply capacity is on track to exceed demand by between 1.8 and 4.3 times by 2030, “risking a collapse of the nascent industry, where existing projects cannot find buyers and scale production to drive down costs.”
It may be time for a new New Orleans. The city has reached a “point of no return” that will see it surrounded by ocean within decades as climate change worsens. That’s the conclusion of a new paper in the journal Nature Sustainability. “In paleo-climate terms, New Orleans is gone; the question is how long it has,” Jesse Keenan, an expert in climate adaptation at Tulane University and one of the paper’s five co-authors, told The Guardian.
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Current conditions: New England is bracing for a series of severe thunderstorms this afternoon with the potential to cause widespread damage from winds and flooding • A firefighting helicopter crashed while battling Colorado’s Gold Mountain Fire, killing the pilot • Temperatures in Delhi, India, are nearing 100 degrees Fahrenheit today.
Dubai is planning to build a new port and container terminal on the United Arab Emirates’ east coast in a bid to circumvent the Strait of Hormuz and neuter Iran’s ability to leverage its control of the waterway toward geopolitical ends. On Monday, the Financial Times reported that DP World, the logistics giant and port operator based in the glitzy Emirati megacity, was working on a new port in the coastal area of Fujairah. The company’s Jebel Ali hub, located near the contested maritime route, has long served as “Dubai’s crown jewel.” But the newspaper said “shifting some of the port’s capacity outside Dubai marks a seismic change for the emirate, which has established itself as a global trade and finance hub partly off the back of Jebel Ali’s growth.” After all, activity at the port nosedived by as much as 95% after the United States and Israel began bombing Iran in February.
Meanwhile, the war appears to be back on. After resuming mutual attacks last week, President Donald Trump said Monday the U.S. would reinstate its blockade of Iran’s ports. “The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’” Trump wrote in a post on his Truth Social network.
With the world’s largest fleet of nuclear reactors, the U.S. has the capacity to pump out about 97 gigawatts of atomic energy. If every project now waiting in the pipeline goes forward, the country could nearly double that total capacity. A new analysis by the Breakthrough Institute, a think tank, found that the U.S. has 74 gigawatts of projects in various stages of development. “While it is unlikely that all of that capacity will ultimately be built, if even a fraction of it is deployed it would mark a historic turnaround for the U.S. nuclear industry,” Joy Jiang, an analyst at the Breakthrough Institute who authored the paper, wrote in a blog post. And more appears to be coming: New Jersey Governor Mikie Sherrill signed a bill Monday that creates a new procurement process for building a new nuclear plant in the state.
In Belgium, meanwhile, the government just approved nearly $12.5 million in funding for eight nuclear energy research projects as Prime Minister Bart De Wever seeks to reverse his country’s previous phaseout policy. On Monday, NucNet reported that the government wanted to restore nuclear power to its “rightful place” in the Belgian energy mix.
The International Brotherhood of Electrical Workers, or IBEW, added a record 30,000 new members so far this year, up from 24,000 a year ago. The milestone, announced Monday in a post on X, highlights a looming challenge for Democrats who are embracing the populist wing of the party’s calls for a moratorium on data center construction, no doubt a large part of what’s led to the recent hiring boom. “The building trades unions that the left’s major decarbonization agenda revolves around putting to work are further alienated by data center rejection (instead of regulation),” Fred Stafford, the pseudonymous socialist energy researcher and Heatmap contributor, wrote in a post on X. Still, the political dynamics are hard to pass up for left-wing candidates and advocacy groups. As Semafor reporter David Weigel wrote on X, moderates worry that coming out against a data center will activate opposition spending from the AI industry’s political action committees. “No such worries on the left, which wasn’t getting that money,” he wrote.
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Turkey is building its first nuclear plant and billions of dollars of new hydroelectric dams. But that doesn’t mean wind and solar don’t have a part. On Monday, Renewables Now reported that, over the weekend, the Turkish Ministry of Energy and Natural Resources published announcements for nearly two dozen renewable energy tenders scheduled for this year, with a target of deploying 2.4 gigawatts of new projects.
Shortly after the 2024 presidential election, Heatmap’s Katie Brigham declared “the death of ‘climate tech.’” By that, she meant that the incoming Trump administration would kibosh use of that two-word phrase to describe next-generation technologies that could generate power without emissions or reduce the impacts of global warming in other ways. But the sector is mounting quite a comeback. In the first half of this year, the global climate tech sector notched its busiest six months on record. A Bloomberg write-up of a new analysis by the market research firm Currence identified 153 transactions in the first half of 2026. That’s an eye-popping 70% hike from the same period last year.
It’s been 36 years since the signing of the Americans with Disability Act, yet the country remains tragically inaccessible to people who use wheelchairs, walkers, and canes. (For a disturbing account of just how bad things are in the nation’s largest city, listen to this old “This American Life” episode about lawyer and advocate Britney Wilson’s struggle to use Access-a-Ride, New York City’s para-transit provider.) It’s a problem Tesla aims to change. The auto giant is building a wheelchair-accessible self-driving taxi. But Electrek cautioned that Tesla “gave no timeline, no vehicle, and no details, and it’s not clear the ‘active product’ is anything more than the Robovan it unveiled nearly two years ago.” Nevertheless, I’d welcome its entry to the roads.
At this point, I think it’s clear that AI data centers are unpopular.
You probably know it, at least. I was preparing talk about data center opposition on a podcast today and I took the opportunity to dive back into our data, so I certainly know it. At this point, we’ve written about results from our polling that show Americans overwhelmingly oppose local data center construction, that majorities of Americans now support a national data center moratorium, and that the only group of Americans who feels more optimistic than pessimistic about artificial intelligence is … men older than 65 years old.
So I got curious: Given all that, who actually supports AI data centers?
One question from our recent Heatmap Pro poll, conducted by Embold Research, helps give us a sense. This is the profile of someone our data says would support a data center built in their local area:
A few facets stand out. These data center YIMBYs are more likely to be men, and more likely to be 2024 Trump voters, but they’re not locked into one age demographic or voting cohort. A third are Harris supporters, and roughly a third are women. Data center YIMBYs are more likely to be older than 50, but the majority isn’t overwhelming.
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Perhaps more surprising: The group has many more people who voted third-party in the 2024 election (8%) than the general population (just under 2%), although that response could also include people who didn’t vote. (Alas, the data can’t quite confirm how many in this group are libertarian.)
What’s perhaps most interesting: This group overwhelmingly believes that artificial intelligence will make their lives better. And in heartening news for climate advocates, they are even more likely to support a given data center project if it is powered by renewables.
I was going to joke that the profile is essentially a newly retired engineering dad — except that, to my surprise, these data center YIMBYs are far less gender imbalanced than the American engineering profession. (They’re also less gender-imbalanced than American Tesla owners.) So I’ll leave it at that.
Five takeaways from the latest Lazard Levelized Cost of Energy report.
It’s all getting more expensive.
That’s the conclusion of the investment bank Lazard’s latest report on the levelized cost of energy, one of the most closely watched and cited energy reports of the year.
Levelized cost of energy measures the dollars per megawatt-hour a power plant needs to earn in revenue to break even over the course of its lifetime in present-value terms.
What makes LCOE so alluring is that it’s a way to compare any type of generator, whether it requires a large upfront investment but has few operating costs, like a utility-scale solar project, or whether its expenses are largely fuel costs incurred in the future, like a combined cycle natural gas plant. This is also why LCOE has its critics, who point out that a solar panel that only runs during certain times of day has a different value to the electricity system than a natural gas plant that can ramp up and down quickly or a nuclear plant that provides steady baseload power.
Anyway, here’s what we can learn from this year’s Lazard report.
Curves that were once gently sloping downward are starting to look like incipient U’s. While longterm LCOE falls are still dramatic and impressive for some technologies — utility solar has fallen from $359 per megawatt-hour in 2009 to $69 in 2026 — the short term rises are worrisome. That $69 per megawatt hour represents a nearly 10% increase from 2025, when utility-scale solar had a LCOE of $58. And it’s not just renewables — the LCOE for a combined cycle natural gas plant rose from $78 per megawatt-hour to $90 in the past year. Gas plant LCOE got as low as $60 in 2021. That’s a 50% price hike in just five years.
Lazard attributed the increase in solar and wind LCOE to “higher capital costs, sustained interest rates, tariff pass-through and supply chain repricing.” These technologies are also the most “sensitive” to subsidies by way of the tax code, with federal tax tax credits taking the low end cost of utility solar to as low as $16 per megawatt hour. To the extent those tax credits are no longer available or weren’t accessible due to strict eligibility rules, that could be a source of future upward pressure on costs.
That being said, renewables “maintain their relative cost advantage despite facing the same cost pressures affecting the rest of the generation stack,” the Lazard analysts concluded.
Natural gas, meanwhile, is seeing prices spiral upward on huge and growing customer demand.
“Continuous upward revisions to demand projections have driven a sharp increase in announced new-build gas generation despite a 15-year high LCOE and historically long development lead times,” according to Lazard.
The report hints at what LCOE is not always able to capture, namely that generators like gas have attributes besides low cost that make them attractive. “New gas combined cycle plants offer the lowest-cost dispatchable power in high-demand and low-cost-gas environments,” the analysts point out.
Anyone building a new combined cycle gas plant, however, will have to deal with the high cost and low availability for turbines, which is “extending development timelines well beyond historical norms.” That provides an opening for renewables that can be deployed quickly and cheaply, like solar and accompanied by battery storage.
In 2019, the low end of LCOE for onshore end was $28 per megawatt-hour, according to Lazard’s figures, and the high end was $54. In 2026, however, the low end costs sits a bit higher at $37 per megawatt-hour, but the high end cost rose to $99. There’s a similar story for utility solar: in 2019, the spread between low and high was a snug $8 per megawatt-hour, while this year it’s ballooned to $58.
The broadening range is “likely reflecting that some project developers have been better able to mitigate broader cost pressures across supply chain and project-level economics than others,” the Lazard analysts wrote.
The Lazard report doesn’t just look at the discounted cost of individual generators over their lifetimes. It also tries to figure how much they cost on certain grids. One way of doing this is to look at what Lazard calls the “cost of firming intermittency” or “levelized firming costs.” This is essentially looking at what it costs to bring solar, solar and storage, and wind and storage onto actual grids considering their ability to perform when the grid is most stressed.
This measure tries to refine LCOE to give a sense of how various forms of energy generation compare to gas plants in real world circumstances, not just as a financial construct. This is not a perfect, real-world comparison — gas capacity needs to be “firmed” as well, as it’s not always entirely available at times of peak need — but at least it gives an idea of how these resources actually function in a real-world grid.
Even with firming costs, “renewables remain broadly cost-competitive,” the report concludes.
Not surprisingly, some of the most dramatic costs are in America’s most troubled electricity market, PJM Interconnection. The unsubsidized cost of firming intermittency for solar and storage is $167 per megawatt-hour, compared to $150 in Texas or $115 in California. That’s also compared to a $129 per megawatt-hour at the high end for conventional combined cycle gas plants in PJM.
PJM is notorious for its inability to bring on new resources quickly and its strict standards for accrediting the contribution of storage and renewables to grid stability.
While the Lazard authors explicitly caution that it doesn’t measure what the“total system costs are for 1 MWh of incremental electricity” and can’t say “the optimal mix of renewables, conventional generation and storage,” it does conclude that “firming costs and dispatchability are increasingly critical for comparing resources on a more complex grid.”
In short, no matter what ends up on the grid, grid planners will have to think carefully about how to make sure it’s reliable and works in concert with what’s already there.