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AM Briefing

Trump Goes for the Climate Killshot

On BYD’s lawsuit, Fervo’s hottest well, and China’s geologic hydrogen

Lee Zeldin.
Heatmap Illustration/Getty Images

Current conditions: A midweek clipper storm is poised to bring as much as six more inches of snow to parts of the Great Lakes and Northeast • American Samoa is halfway through three days of fierce thunderstorms and temperatures above 80 degrees Fahrenheit • Northern Portugal is bracing for up to four inches more of rain after three deadly storms in just two weeks.


THE TOP FIVE

1. Trump goes for the climate killshot

EPA Administrator Lee Zeldin. Kevin Lamarque-Pool/Getty Images

The Environmental Protection Agency is preparing this week to repeal the Obama-era scientific finding that provides the legal basis for virtually all federal regulations of planet-heating emissions, marking what The Wall Street Journal called “the most far-reaching rollback of U.S. climate policy to date.” The 2009 “endangerment finding” concluded that greenhouse gases pose a threat to public health and welfare, calling for cuts to emissions from power plants and vehicle tailpipes. EPA Administrator Lee Zeldin told the newspaper the move “amounts to the largest act of deregulation in the history of the United States.” In an interview with my colleague Emily Pontecorvo last year, Harvard Law School’s Jody Freeman said rescinding the endangerment finding would do “more serious and more long term damage” and “could knock out a future administration from trying to” bring back climate policy. But that, Freeman said, would depend on the Supreme Court backing the administration. “I don’t think that’s likely, but it’s possible,” she said.

At issue is the 2007 case Massachusetts v. EPA, which determined that greenhouse gases qualified as pollutants under the Clean Air Act. As Emily wrote last week, “the agency claims that its previous read of Massachusetts v. EPA was wrong, especially in light of subsequent Supreme Court decisions, such as West Virginia v. EPA and Loper Bright v. Raimondo. The former limited the EPA's toolbox for regulating power plants, and the latter ended a requirement that courts defer to agency expertise in cases where the law is vague.” An earlier report in The Washington Post questioned whether the agency would proceed with the repeal at all, fearing these arguments would pass muster in the nation’s highest court.

2. BYD sues the Trump administration over Chinese electric car ban

BYD has sued the United States government over the 100% tariff on Chinese electrics that serves as an effective ban on Beijing’s booming auto exports. Four U.S.-based subsidiaries of the world’s largest manufacturer of electric vehicles filed a lawsuit in the U.S. Court of International Trade challenging the legality of the Trump administration’s trade levies. The litigation marks what the state-backed tabloid Global Times called “the first instance of a Chinese automaker directly and actively challenging U.S. tariffs, setting a precedent and carrying significance for Chinese enterprises to protect their legitimate rights and interests through legal means.”

Outside the U.S., BYD is booming. China’s cheap electric cars are popular all over the world, as Heatmap’s Shift Key podcast covered in December. Canadian Prime Minister Mark Carney’s deal to increase trade with China will bring the battery-powered vehicles to North American roads. And the Chinese edition of the trade publication Automotive News just reported that BYD is planning a factory expansion in Europe and Canada.

3. Fervo just drilled its hottest well yet

Hot off last month’s news that it plans to go public, Fervo Energy has drilled its highest-temperature well yet. The drilling results confirm that the next-generation geothermal startup tapped into a resource with temperatures above 555 degrees Fahrenheit at approximately 11,200 feet deep. The company announced the findings Monday of an independent assessment using appraisal data from the drilling. The analysis found that the Project Blanford site in Millard County, Utah, has multiple gigawatts of heat that can be harnessed. Its completion will be a breakthrough for enhanced geothermal systems, one of two leading approaches to the next-generation geothermal sector that Heatmap’s Matthew Zeitlin outlined here. “This latest ultra-high temperature discovery highlights our team’s ability to detect and develop EGS sweet spots using AI-enhanced geophysical techniques,” Jack Norbeck, Fervo’s co-founder and chief technology officer, said in a statement.

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4. China makes a major discovery of natural hydrogen

Chinese scientists have for the first time discovered natural hydrogen sealed in microscopic inclusions near Tibet. The finding, which the Xinhua news agency called “groundbreaking,” fills what the China Hydrogen Bulletin called “a major domestic research gap and points to a new geological pathway for identifying China’s next generation of clean energy resources.” Natural, or geological, hydrogen could provide a cheap source of the zero-carbon fuel and give oil and gas drillers a natural foothold in a new, clean industry. In the color spectrum associated with hydrogen, the rare, naturally formed stuff is called white hydrogen. But as Heatmap’s Katie Brigham wrote in December, a new color has joined the rainbow. Orange hydrogen refers to a family of technologies that naturally spur production of the gas, as the startup Vema is now attempting to do.

China’s coal-fired power generation decreased 1.9% last year, marking what the consultancy Wood Mackenzie called “a historic shift driven by new non-fossil generation that has finally outpaced demand growth.” Power demand surged 5% in China last year, but for the first time in a decade that wasn’t propelled by coal plants. Instead, that new demand was supplied by renewables, nuclear, and hydro, all of which Beijing has rapidly deployed. Over that time, the levelized cost of energy — a widely used though, as Matthew wrote last year, far-from-perfect metric — fell 77% for utility-scale solar and 73% for onshore wind. “At the heart of this transformation is the unprecedented expansion of renewable energy capacity,” Sharon Feng, a senior research analyst for Wood Mackenzie, said in a statement. “China’s wind and solar capacity had risen more than ten-fold to 1,842 gigawatts over the past decade.”

5. The world’s largest independent oil trader says demand will take longer to peak

Gone are the days when the oil industry seemed to be on track for a lucrative decline. Demand for crude will take longer to peak than previously estimated as governments prioritize growth and energy security over efforts to curb consumption. That’s according to a report issued Sunday by Vitol Group, the world’s largest independent oil trader. “Over the past year, decarbonisation policies have become a less decisive driver of efforts to curb oil consumption and reduce carbon dioxide emissions,” the report stated, according to Bloomberg. “Policy priorities have increasingly been reframed around economic competitiveness and geopolitical strategy.”

THE KICKER

The race for a long-duration energy storage solution has a new competitor. The Dutch startup Ore Energy has deployed its iron-air storage technology successfully on the grid for a technical pilot of its system that can store for 100 hours of power. The pilot, the first of its kind in Europe, demonstrated that the company’s technology can store and discharge energy for up to four days. “This pilot allowed us to evaluate iron-air performance under European operating profiles and real-world grid conditions,” Aytaç Yilmaz, co-founder and CEO of Ore Energy, said in a statement.

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Q&A

How Building Transmission Could Lower Electricity Costs

Talking with National Grid’s Matthew Satterwhite about his new report with S&P Global.

The Q&A subject.
Heatmap Illustration

This week’s conversation is with Matthew Satterwhite, head of U.S. policy for National Grid. This week National Grid released a report in collaboration with S&P Global I found noteworthy amidst the data center backlash, asserting that building new transmission lines can potentially reduce consumer costs. I reached out asking if we could chat about how this argument leans into the fight over hyperscale infrastructure. I found our conversation illuminating and educational.

The following Q&A was lightly edited for clarity.

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Hotspots

The Solar Farm-to-Data Center Switcheroo Hits a Snag

Plus more of the week’s biggest development fights.

The United States.
Heatmap Illustration/Getty Images

1. Clark County, Nevada – The first data center approved on federal lands has hit a legal brick wall.

  • On Monday, the Townsite 2 solar farm-to-data center environmental review swap I’ve previously covered received a stay from the Interior Department’s board of appeals. David Gunter, a Biden appointee, ruled that the Center for Biological Diversity’s appeal of the permit flip was likely to succeed on the merits because a solar farm … is not a data center. Seems logical!
  • As I covered at the time, the Bureau of Land Management approved the environmental review swap claiming that a solar farm and a data center have essentially the same characteristics. It was a bold claim. Both the agency and Townsite said the characteristics would have substantially the same environmental impacts. Gunter shrugged off the claim idea, however, stating that statute requires projects to be both substantially similar and have equally similar impacts under the National Environmental Policy Act.
  • Crucially, Gunter also noted that the federal agency had never done an environmental review of any data centers under NEPA, so there’s not even a proper frame of reference. “BLM has not studied the Townsite data center project, or indeed any other data center project, in any environmental document,” he wrote.

2. Jackson County, Missouri – We have yet another high-profile case of a city councilor losing their job over voting for a data center, and this one’s a doozy.

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Spotlight

These 5 States Are Primed for a Data Center Pause

Where temporary moratoria could happen next.

A data center protest.
Heatmap Illustration/Getty Images

Brace yourself for more statewide data center moratoria.

So far there are only two full state-wide blocks on data center permits, in New York and Texas. At least fifteen states have moratorium legislation in the pipeline, but few if any of those bills stand a chance of becoming law in the short term. Here are five states, however, where a broad development pause may gain momentum in the next year or two — and all of them are crucial to watch this November.

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