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AM Briefing

Trump Weighs $1 Billion Deal to Kill Off Offshore Wind

On the Second Avenue subway, Tesla’s big deal, and the top mining CEO

Donald Trump.
Heatmap Illustration/Getty Images

Current conditions: An historic heatwave in the Southwest could drive temperatures up to 110 degrees in parts of southeastern California and Arizona in what would mark the earliest date in recorded history that the region hit that temperature • Three major wildfires, including the largest in Nebraska’s history, have scorched more than 600,000 acres and killed at least one person so far • Days of heavy rainfall in Limpopo have washed out roads across South Africa’s northernmost province.

THE TOP FIVE

1. Trump is considering paying offshore wind developers $1 billion to kill off project

John Moore/Getty Images

Defeated at every turn in its crusade to halt construction of offshore turbines, the Trump administration is considering a new approach to throttle the industry: Paying companies to abandon projects. Senior administration officials are drafting settlement agreements that would pay nearly $1 billion to TotalEnergies, the French company behind two wind farms off the coasts of New York and North Carolina, to abandon the projects, according to documents The New York Times obtained. The terms of the deal would allow the Department of the Interior to cancel leases in federal waters for the two projects. In exchange, the Department of Justice would pay more than $928 million to the company to reimburse its winning bid in the lease sales during the Biden administration. As part of the agreement, TotalEnergies would invest in natural gas infrastructure in Texas.

It’s a sign the White House recognizes its barrage of legal fire against the offshore wind industry isn’t landing, as Heatmap’s Jael Holzman has written. Indeed, I reported last month about the FREEDOM Act, a new bipartisan permitting reform bill endorsed by more Republicans than Democrats that curbed the president’s power to revoke already-granted permits..

2. New York’s metro authority sues Trump for withholding subway funding

New York’s Metropolitan Transportation Authority sued the Trump administration Tuesday for withholding federal funding for the expansion of the Second Avenue subway into northern Manhattan’s East Harlem. The lawsuit, according to Gothamist, comes five months after the White House budget director Russell Vought halted disbursements of a $3.4 billion grant for the project. The administration said it was holding up funding to weed out grants to minority- and women-owned businesses. The MTA said it complied with that probe, and the funding still hasn’t been released. The state agency accused the Department of Transportation of withholding the money illegally. “Once again, New York has been forced to sue the Trump administration to stop them from erratically shutting off billions of dollars in previously committed infrastructure funding,” Governor Kathy Hochul, a Democrat, wrote in a statement.

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3. Spain defends the EU’s carbon trading system

The European Union wants to loosen its carbon trading system to ease the energy price shock of the Iran war. But renewables-rich Spain says doing so would be a “big error.” In an interview with the Financial Times, Spanish energy minister Sara Aagesen Muñoz said using “this crisis to change a system that works is irresponsible and a big error,” adding that the trading scheme “needs to last and we can’t ignore the lessons learned about the war in Ukraine.” The fight over policy is set to intensify this week when European Commission President Ursula von der Leyen, who outlined plans to reduce energy prices Monday, meets with EU leaders on Thursday.

4. Tesla buys $4.3 billion of lithium iron phosphate batteries

Tesla has inked a $4.3 billion deal to buy lithium iron phosphate batteries from LG Energy Solution. The South Korean giant had first announced the deal back in July, but the counterparty was a mystery. On Monday, however, the Trump administration announced the partnership as part of a fact sheet listing $56 billion in deals between American companies and Indo-Pacific firms. The three-year agreement will, according to Electrek, “see LG produce LFP prismatic cells at its Lansing, Michigan, factory starting in 2027, feeding directly into Tesla’s next-generation Megapack 3 energy storage systems assembled at the Houston Megafactory.”

Google, meanwhile, unveiled a series of its own deals. On Tuesday, the tech behemoth announced a new carbon removal deal with AMP. The startup is, per a blog post from Google, “developing AI-powered sortation technology to recover organic material from municipal solid waste facilities.” Instead of allowing those food scraps and yard debris to decompose in landfills and spew carbon and methane into the atmosphere, AMP converts the material into biochar, a stable material that can keep carbon locked away for centuries. “This deal will add biochar production to the largest recycling project in the U.S., enabling AMP to transform organic waste into a stable material that locks carbon away for centuries while ensuring that all other valuable materials are put back into the circular economy,” Reilly O’Hara, the program manager in charge of carbon removal commercialization at Google, wrote in a LinkedIn post. That same day, Google announced a separate deal with the Detroit-area utility DTE Energy to develop a new data center in Michigan, promising to bring 2.7 gigawatts of new clean generation resources onto the grid.

5. The world’s biggest mining company has a new CEO

BHP Group, the world’s biggest mining company, has named Brandon Craig as its new chief executive. Starting July 1, Craig will take over from Mike Henry, whose seven-year tenure saw shareholder returns surge 17% per year, but who agreed to resign after a failed attempt to buy Anglo American last December. Craig previously led BHP’s largest division, iron ore, before becoming the president of the Americas region in 2024, according to Mining.com. During that time, BHP became the world’s top copper producer, right as prices for the metal surged to record highs.

It’s a big moment for minerals. Just last month, the Trump administration unveiled plans for a $12 billion stockpile of key metals that China controls in a bid to insulate U.S. companies from the price shocks spurred by Beijing on-again, off-again export controls.

THE KICKER

A longstanding theory on the origin of life posits that asteroids carrying fundamental elements crashed into our planet eons ago, depositing the basic ingredients that later formed into single-celled, anaerobic microorganisms believed to have been the Earth’s first living creatures. In a boon to that concept, scientists have now discovered the basic building blocks of DNA and RNA on the asteroid Ryugu. On Monday, a new study by a team of Japanese researchers in Nature Astronomy showed that the samples taken from the asteroid in 2014 contained all the “nucleobases” of both genetic materials. Still, Toshiki Koga, a biochemist at the Japan Agency for Marine-Earth Science and Technology and the study’s lead author, cautioned that this “does not mean that life existed on Ryugu.”

Red

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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.

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Plus

Is the Election Really About Data Centers?

Talking with Kevin Gundersen, the head of public affairs for Digital Realty.

Kevin Gundersen
Heatmap Illustration

This week’s conversation is with Kevin Gundersen, head of public affairs for data center developer Digital Realty. On Wednesday, Digital Realty released a fascinating poll as part of Infrastructure for America, a pro-data center organization that also includes Compass, Vantage Data Centers, and QTS. The poll pushed back on the idea that we’re currently in the middle of a “data center election”; instead, it found most voters are not expected to choose their national elected officials based on a politician’s stance on data centers.

I reached out to folks involved in the poll's release, and they put me in touch with Gundersen, whom I’ve met before and consider to be a straight shooter. He accepted my invitation to do a candid hot-seat chat about the findings, his thoughts on all the data center attack ads, and whether his industry’s actually recovering any ground with the American people.

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Politics

Why Project Certainty Is the Thorniest Part of the Permitting Bill

Can a key section of BAAJA be saved from unintended consequences?

Donald Trump and Congress.
Heatmap Illustration/Getty Images

Any bipartisan bill to update the nation’s permitting laws was always going to be a compromise, with advantages for the oil and gas industry as well as clean energy. Proponents of the Senate’s latest attempt at permitting reform have painted it as a delicate balance, a hard-won opportunity, and an all-or-nothing deal.

What, then, to make of drafting errors, or unintended consequences?

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