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On the cobalt conundrum, Madagascar’s mining mess, and Antarctica’s ‘Greenlandification’

Current conditions: Severe storms are sweeping through the central Great Plains states this weekend, whipping up winds of up to 75 miles per hour • Freezing temperatures are settling over Kazakhstan and Mongolia • A record heat wave in Australia is raising temperatures as high as 113 degrees Fahrenheit.
Nearly two dozen states signed onto two lawsuits Thursday to stop the Trump administration from ending the $7 billion grant program that funded solar panels in low-income communities. The first complaint, filed Wednesday, seeks monetary damages over the Environmental Protection Agency’s bid to eliminate the so-called Solar for All program. A second lawsuit, filed Thursday, seeks to reinstate the program. Arizona Attorney General Kris Mayes told Reuters the cancellation affected 900,000 low-income households nationwide, including some 11,000 in Arizona that the state expected to see a 20% spike in bills after losing access to the $156 million in funding from Solar for All. California would lose $250 million in funding. The litigation comes days after Harris County, which encompasses most of Houston, Texas, filed suit against the EPA over its own loss of $250 million due to the program’s termination. Earlier this month, a coalition of solar energy companies, labor unions, nonprofit groups, and homeowners also sued the EPA over the cancellation.
It remains to be seen whether other countries are willing to balk at the Trump administration’s push to gut key carbon-cutting policies. But at least in theory, later today, the drafting group for the International Maritime Organization, the United Nations agency overseeing global shipping, will vote on an emissions pricing mechanism meant to slash greenhouse gas output from an industry that still relies on some of the most heavily polluting fuels. The scheduled vote comes a day after President Donald Trump pressed the international body to reject the proposal, calling it “the Global Green New Scam Tax on Shipping” and vowing to ignore the rules.
The maritime shipping industry accounts for about 3% of global emissions. But the impact of shipping fuels is substantial. As Heatmap’s Robinson Meyer wrote in December, a study found that, when the IMO began enforcing rules to remove a toxic pollutant, sulfur dioxide from shipping fuels, the planet’s temperatures spiked. That’s because, in addition to inflaming the heart and lungs, triggering asthma attacks, and causing acid rain, sulfur dioxide can also reflect heat back into space, artificially cooling the Earth. When that fuel went away, the warming effects of all the carbon in the atmosphere became more apparent.
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The Department of Defense canceled a tender to buy cobalt, in what the trade publication Mining.com called “a fresh sign of the challenges facing Western countries trying to bolster domestic supplies of the battery metal.” In mid-August, the Defense Logistics Agency first sought offers for up to 7,500 tons of the bluish metal used in batteries and alloys for jet engines over the next five years, in a contract worth as much as $500 million. It was, according to Bloomberg, the U.S. government’s first attempt to acquire the metal since 1990. When no deals came in by the original due date of August 29, the offer was extended to October 15. But a notice published on a government website Wednesday indicated that the offer had been pulled. The move marks an apparent setback for the Pentagon’s effort to stockpile critical minerals, as I reported in this newsletter earlier this week.
While the funding doesn’t produce raw cobalt from mining, as I reported for Heatmap last month, the DLA has backed an Ohio-based startup called Xerion that’s commercializing a novel approach to processing both that metal and gallium, another mineral over which China has tightened export controls recently. It’s not alone. As Heatmap’s Katie Brigham wrote last month, “everybody wants to invest in critical mineral startups.”
The British rare earths processor Pensana has canceled plans for a refinery in East Yorkshire, England, in favor of investing in an American project instead. The company spent the past seven years developing a $268 million rare earths mine in Angola. One of the largest of its kind in the world, the project is scheduled to begin delivering raw materials in 2027. To turn that ore into industrial-grade materials, Pensana had planned to build a processing facility at the Saltend Chemicals Plant near Hull, England, that would have turned the metals into powerful magnets. The project won about $6.7 million in support from the British government. But Pensana’s founder and chairman, Paul Atherley, told the BBC that was “nowhere near enough.” He compared the deal to the Trump administration’s direct investment of billions of dollars into MP Materials, the country’s only rare earths mine. Pensana instead announced plans to work with the U.S. refiner ReElement to develop a domestic American supply chain, and plans to list its shares on the Nasdaq. As I wrote in Tuesday morning’s newsletter, the world’s top metals trader warned this week that the West’s mineral weakness is a lack of refining capacity, not mining. “Mining is not critical,” Trafigura CEO Richard Holtum said in London on Monday, according to Mining Journal. “True supply chain security comes from processing investment, not just extraction.”
But even the increased supply of ore from overseas projects could be in jeopardy. I have a scoop this morning in Heatmap that highlights the geopolitical challenges U.S. mining projects face overseas. On Sunday, following weeks of youth-led protests over electricity and water outages, Madagascar’s military overthrew its government in a coup. Now the new self-declared leaders have pulled support for Denver-based mining developer Energy Fuels’ plans for a giant mine that would produce rare earths, uranium, and other metals. The so-called Toliara mine, worth an estimated $2 billion, had won approval from the previous government last winter. But a consultant on the ground in Madagascar’s capital of Antananarivo told me the new leaders had “announced the definitive cancellation” of what was previously described as the future “crown jewel” of an economy where 75% of people live on less than $3 per day and less than 40% of the population has access to electricity.
As recently as the 1990s, the Greenland Ice Sheet and the Arctic were melting at a measurable pace thanks to global warming, but Antarctica’s ice cap seemed securely frozen. But, as Inside Climate News reported Thursday, “not anymore.” New satellite data and field observations show the only unpopulated continent is thawing at an alarming rate, leading to what some scientists are now calling the “Greenlandification” of Antarctica, turning it into an environment that’s melting at a rate closer to the Arctic.
There’s little question as to what is causing the meltdown. More than 100 countries now experience at least 10 more “hot days” per year than a decade ago, when the Paris climate accord was first drafted, according to new data analysis from the research groups Climate Central and World Weather Attribution published Thursday in the Financial Times. In 10 countries, the warming over the past decade added roughly a month of additional “hot days.”
The good climate news, reported by Bloomberg: the Bay Area startup Rondo Energy has turned on the world’s largest industrial heat battery, a giant cubic structure that heats clay bricks with electricity from a 20-megawatt solar array to generate steam.
The bad climate news? That steam is used to force more oil out of the ground as part of Holmes Western Oil Corp.’s enhanced oil recovery system.
The mitigating factors to consider: The battery replaced a natural gas-fired boiler at the Kern County, California, facility. And proponents of enhanced oil recovery say the approach meets lasting demand for petroleum by extracting more fuel from existing wells rather than encouraging new drilling.
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A new front opens in the data center wars.
A series of lawsuits filed in federal court asks a big question – are data center moratoria constitutional?
In early August, data center developer DC Blox sued the city of Nashville in federal court to overturn a zoning moratorium stopping them from building a hyperscale facility adjacent to the city zoo. “The Data Center Moratorium, moreover, is a targeted attack against DC BLOX, in violation of federal constitutional protections,” the suit argued, claiming that it defied the corporation’s due process and equal protection rights.
Around the same time, another developer – Wixom Industrial One – filed a federal lawsuit against the city of Wixom, Michigan, to try and “invalidate the city’s illegal police power moratorium” blocking their data center.
These two cases were far from novel or the first of their kind, and they’re now a fresh front in the battle over hyperscale data centers. At least that’s what some who work on these cases say: In April, attorneys with the law firm Vorys published a “client alert” asserting “many moratoria may be vulnerable to statutory, procedural, and constitutional challenges.” The attorneys advised that constitutional arguments against moratoria “may be stronger where a government singles out data centers without a sound factual basis, treats similar land uses differently without a reasonable basis, or adopts a restriction driven more by political pressure than by defensible planning or regulatory objectives.”
Months later, according to court documents, the Vorys attorneys who authored the alert now represent real estate firm Thor Equities in a federal case against the Ohio city of Urbana, arguing the city’s decision to reject their data center project broke “fundamental protections” under the U.S. Constitution. (Vorys and Thor Equities did not respond to requests for comment.)
It’s unclear how many of these kinds of cases have been filed to date. Data on federal court cases is quite opaque. But legal experts and industry attorneys tell me we should expect them to be on the rise as developers seek whatever tools they can find to get projects built.
“Bringing a lawsuit like this is fairly cheap, something they can do at a relatively low cost, and imposes a real cost on local governments to defend themselves,” said Daniel Metzger, director of the Cities Climate Law Initiative at Columbia Law School’s Sabin Center. “The cases out there will be bellwethers. And if successful, there’ll be a lot more of them.”
What developers probably want looks a lot like Hill County, Texas, where an LLC proposing an $80 million data center project was stymied in May by the state’s first countywide moratorium. (It predated Governor Greg Abbott’s temporary freeze of data center development in Texas by three months.) Within a period of only a few weeks, the LLC sued and the county rescinded the pause on approvals. The case was dropped a month later. Local reports state the county had to afterwards pay the corporation $100,000 in legal fees – a drop in the bucket compared to what a drawn-out court battle would have cost the rural county.
Metzger said whether the companies will win these cases is ultimately not the point – their goal is to win a finished data center, not a judicial ruling. By filing expansive litigation in the national court system, a hypothetical developer can exhaust the coffers of a city or county with legal expenses that are chump change compared to would-be billions in private financing for compute infrastructure.
“These lawsuits may deter some local governments from taking steps to oppose data center development, just because of the cost it would impose on them to defend a lawsuit, even if they know they have a strong legal basis for the action they want to take.”
Those I spoke to in private practice about data center developers’ constitutional arguments agreed with Metzger’s assessment that it’s too early to tell whether the companies will win. Generally, they said, a city or county will win this kind of case if it demonstrates a rational basis for its decision-making and courts typically want to defer to governmental autonomy. The onus will be on the developers to prove a moratorium was meritless – that’s the due process challenge – or unfairly targeted their industry in a way other sectors don’t face, which is the basis of the equal protection claim.
“What they’re saying is in essence that these actions the municipality is taking are arbitrary and capricious, which is one of the sort of catch-all standards,” Thomas Allen, a partner at K&L Gates, told me. “They say the laws lack a rational basis. And then they make equal protection claims, saying data centers are being singled out because of political concerns as opposed to actual things relevant to the legislature’s directive. They’re not basing their decisions on the underlying merits of the project but reacting to political pressure.”
“It’s a reliance question and it’s about the treatment of their projects,” added Laura Morton, an attorney with Ashurst Perkins Coie. “It’s always been important to talk about and engage with communities where your infrastructure is planned. Here, I think this is the developers going in, maybe having conversations, and then suddenly they’re getting a reversal after already receiving these approvals and making investments based off of what the conversations and rules were.”
The likelihood of these constitutional challenges reaching higher courts anytime soon is quite low. It’ll be a long time before we see one of these cases reach a verdict, let alone some kind of appeals process come to fruition. Nevertheless, the new legal ambiguity around these local restrictions is an important new facet of the data center wars, including for developers.
“Companies want to act within the law to get [things] done, so whatever tactics they can do to help get the project over the line that are legal and ethical, they may try those,” Allen told me. “And if that includes the pressure of a lawsuit, that’s a judgment they’ll have to make.”
And more on this week’s conflicts around project development.
1. Montgomery County, Pennsylvania – We reached a new normal in the data center backlash, and it all seems to have started in King of Prussia.
2. Columbia County, Wisconsin – The gubernatorial race in this state is transforming local fights over wind projects into must-watch popcorn fodder for anyone obsessed with the state of the energy transition, or national politics for that matter.
3. Shelby County, Alabama – One quick update on the intervention of John Rich, the country star turned Trump’s “special envoy for American landowners,” in an Alabama Power transmission project: it’s getting a lot more elected officials involved.
4. New Jersey – We try to conclude every Hotspots on a positive note. So this week’s silver lining comes to you from the Garden State, where state regulators have approved more than a dozen agrivoltaics projects.
A conversation with Ella Nilsen — formerly of CNN, now with Echo Communications — about where we stand in the fight over the energy transition.
This week’s conversation is with Ella Nilsen, who recently left CNN as a climate reporter and is now a new vice president at energy and cleantech PR firm Echo Communications. Having worked on Capitol Hill alongside Nilsen, I knew her to be an exceptional reporter who asked hard questions of those in power on all sides. So when I found out she was taking her journalism hat off and putting the comms cap on, I wanted to do something you rarely get to do with one of your reporting peers: ask for her own opinion about where we stand in the fight over the energy transition.
Our chat was lightly edited for clarity.
What’s it like going from CNN and climate journalism to advising on communications in the energy sector, especially when it comes to clean tech in this fraught moment?
So before I covered climate and clean energy, I was a political reporter who covered campaign cycles and Capitol Hill for a while, and I was always interested in the nexus of politics and politics. I tried to make as much of my coverage about that. Politics is policy, and the other way around.
Being on the other side of it is, well, I know from my experience as a reporter what interests them. I’m trying to figure out ways to make sure when I’m bugging you all that the pitch lands, because hopefully it’ll be something people are interested in. Things are changing so fast. It’s a really fascinating time to be a reporter and be in the clean energy comms space.
Okay, but now that you’re in clean energy comms, how do you handicap the fight over developing these technologies? Who is winning, who is losing, and why?
I think it’s tough to call exact winners and losers right now because over the last few months, there have been so many new and interesting developments.
Look at the Invest in Tomorrow Coalition, which has been getting involved in Republican primaries for Freedom Caucus members. There’s been this perception for a long time that the clean energy industry didn’t fare well in the One Big Beautiful Bill Act fight. They had important wins while losing pretty key stuff. But there’s been this interesting reckoning within the industry, and even this last summer, where people are moving the ball forward in interesting ways. They’re trying to get involved in political fights with direct results.
What messages do these primaries send? On the one hand I can see there being political consequences but also, now, more solar energy money going into Republican politics has the anti-renewable folks saying they need to go harder at them. I’m curious how you see the energy fight landscape changing in light of these election results.
I think it shows the industry has some fight in it. What the Coalition would probably say is, they want to be lethal and this is political warfare. They’re trying to be taken seriously.
There is sort of this two-pronged strategy happening right now. Obviously Invest in Tomorrow has gotten a lot of press attention for their track record. There’s also within the industry an attempt to shape a public narrative around wind, solar, battery storage to combat misinformation, both through conventional media and social media. They’re happening in tandem and it's a reflection of the results.
How is the backlash over data center development affecting the work you’re now doing?
Well, I’m still early, but I think the data center question is a fascinating one. Conversations around policy and where we go from here really seem to me to be happening in the state realm. Not a lot of policy happening at the federal level. There’s New York State’s data center pause, which is leading to lawmakers trying to get more leverage.
It’s in the backdrop, where projects are being announced with massive power plants to supply new data center demand, and at the same time there’s a conversation around virtual power plants, DERs. Another phrase emerging for it is “community power.”
It’s starting to be a fascinating conversation around community benefits. There are tax benefits when a data center comes to town but when it comes to energy use, what can communities actually leverage out of this? I know former Energy Secretary Jennifer Granholm has been arguing for strong community benefit agreements, getting big tech companies to pay for solar and EVs and then using all of that to create a virtual power plant. Getting that to be flexible for data centers. That’s only one part of the pie but it’s fascinating to have this conversation about what forms of energy we need for all this demand happening.
What do you foresee about the impact of the backlash, given that land use, visuals, air, and water – its all being swept up in the same conversation?
I don’t have a crystal ball and have the same questions.
It’s all happening so quickly and it’s all playing out in so many different states. There are really important questions here and there are people smarter than I am on this, talking about how we meet this demand in the short term and long term or whether this is an opportunity for getting clean energy onto the grid. But it’s a delicate dance.