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On ravenous data centers, treasured aluminum trash, and the drilling slump

Current conditions: The West Coast’s parade of storms continues with downpours along the California shoreline, threatening mudslides • Up to 10 inches of rain is headed for the Ozarks • Temperatures climbed beyond 50 degrees Fahrenheit in Greenland this week before beginning a downward slide.
The Department of Energy’s Loan Programs Office just announced a $1 billion loan to finance Microsoft’s restart of the functional Unit 1 reactor at the Three Mile Island nuclear plant. The funding will go to Constellation, the station’s owner, and cover the majority of the estimated $1.6 billion restart cost. If successful, it’ll likely be the nation’s second-ever reactor restart, assuming Holtec International’s revival of the Palisades nuclear plant goes as planned in the next few months. While the Trump administration has rebranded several loans brokered under its predecessor, this marks the first completely new deal sanctioned by the Trump-era LPO, a sign of Energy Secretary Chris Wright’s recent pledge to focus funding on nuclear projects. It’s also the first-ever LPO loan to reach conditional commitment and financial close on the same day.
“Constellation’s restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region,” Wright said in a statement. “It will also help ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race.” Constellation’s stock soared in after-hours trading in response to the news. Holtec’s historic first restart in Michigan got the green light from regulators to come back online in July, as I reported in this newsletter at the time. But already another company is lining up to turn its defunct reactor back on: As I reported here in August, utility giant NextEra wants to revive its Duane Arnold nuclear station in Iowa. The push to restart older reactors reflects a growing need for electricity long before new reactors can come online. Meanwhile, next-generation reactors are plowing ahead. The nuclear startup Valar Atomics claimed this week to achieve criticality long before the July 4 deadline set in an Energy Department competition.
Over the next five years, American demand for electricity is set to grow by the equivalent of 15 times the peak demand of the entirety of New York City. That’s according to the latest annual forecast from the consultancy Grid Strategies. The growth — roughly sixfold what was forecast in 2022 — comes overwhelmingly from data centers, as shown by which regions expect the largest growth:

“The fact that these facilities are city-sized is a huge deal,” John Wilson, Grid Strategies’ vice president and the report’s lead author, told Canary Media. “That has huge implications if these facilities get canceled, or they get built and don’t have long service lives.” Mounting political opposition to data centers could make deals less certain. A Heatmap Pro survey in September found just 44% of Americans would welcome a data center opening nearby. And last week I wrote about how progressives in Congress are rallying around a crackdown on data centers.
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The contrast couldn’t be starker. In Washington, President Donald Trump rolled out the red carpet for Saudi Crown Prince Mohammed bin Salman, offering an opulent welcome to the White House and lashing out at reporters who asked about September 11 or the killing of journalist Jamal Khashoggi. In Belém, Brazil, meanwhile, former Vice President Al Gore tore into the team of delegates Saudi Arabia sent to the United Nations climate summit for “flexing its muscles” in negotiations about how to shift away from oil and gas. “Saudi Arabia appears to be determined to veto the effort to solve the climate crisis, only to protect their lavish income from selling the fossil fuels that are the principal cause of the climate crisis,” Gore told the Financial Times. “I hope that the rest of the world will stand up to this obscene greed and recklessness on the part of the kingdom.”
But the Trump meeting could yield some progress on clean energy. Among the top issues the White House listed in its read-out of the summit was the push to export American atomic energy technology to Saudi Arabia as the country looks to follow the United Arab Emirates in embracing nuclear power.
Facing growing needs for domestic sources of metal for the energy transition, the European Union is seeing its trash as treasure. On Tuesday, the European Commission proposed restricting exports of aluminum scrap amid what The Wall Street Journal called “concerns that rising outflows of the resource could leave Europe short of a critical input for its decarbonization efforts.” Speaking at the European Aluminum Summit, EU trade chief Maros Sefcovic referred to the exports as “leakage.” The proposal wouldn’t fully block sales of aluminum scrap overseas, but would adopt a “balanced” measure that ensures sufficient supplies and competitive prices in the single market. “Scrap is a strategic commodity given its important contribution to circularity and decarbonization, as production from secondary materials releases less emissions and is less energy intensive, as well as to our strategic autonomy,” Sefcovic said. The measure is set to be adopted by spring 2026.
In the U.S., the Biden administration made what Heatmap’s Matthew Zeitlin last year called a “big bet” on aluminum. The Trump administration slapped steep new tariffs on imported aluminum, though as our colleague Katie Brigham wrote, “aluminum producers rely on imports of these same materials to build their own plants. Tariffs on these vital construction materials — plus exorbitant levies on all goods from China — will make building new production facilities significantly costlier.”

The average number of active rigs per month that are drilling for oil and natural gas in the continental United States fell steadily over the past year. As of last month, the U.S. had 517 rigs in operation, down from a peak of 750 in the end of 2022. The number of oil-pumping rigs dropped 33% to 397 rigs, while gas-pumping rigs slid 23% to 120 rigs over the same period from December 2022 to October 2025. While the Energy Information Administration said the declining rig count “reflects operators’ responses to declining crude oil and natural gas prices,” the federal research agency said it’s also “improvement in drilling efficiencies,” meaning companies are getting more fuel out of existing wells.
It’s been a pattern in recent research on sustainability. Scientists look at methods that Indigenous groups have maintained as traditions only to find that approaches that have sustained throughout centuries or millennia are finding new value now. A study by the University of Hawaiʻi at Mānoa’s Hawaiʻi Institute of Marine Biology found that Native Hawaiian aquaculture systems — essentially fish ponds known as loko iʻa — effectively shielded fish populations from the negative impacts of climate change, demonstrating resilience and bolstering local food security. “Our study is one of the first in academic literature to compare the temperatures between loko iʻa and the surrounding bay and how these temperature differences may be reflected in potential fish productivity,” lead author Annie Innes-Gold, a recent PhD graduate from the university, said in a press release. “We found that although rising water temperature may lead to declines in fish populations, loko iʻa fish populations were more resilient.”
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Current conditions: The Pacific Northwest’s second atmospheric river in a row is set to pour up to 8 inches of rain on Washington and Oregon • A snow storm is dumping up to 6 inches of snow from North Dakota to northern New York • Warm air is blowing northeastward into Central Asia, raising temperatures to nearly 80 degrees Fahrenheit at elevations nearly 2,000 feet above sea level.
Heatmap’s Jael Holzman had a big scoop last night: The three leading Senate Democrats on energy and permitting reform issues are a nay on passing the SPEED Act. In a joint statement shared exclusively with Jael, Senate Energy and Natural Resources ranking member Martin Heinrich, Environment and Public Works ranking member Sheldon Whitehouse, and Hawaii senator Brian Schatz pledged to vote against the bill to overhaul the National Environmental Policy Act unless the legislation is updated to include measures to boost renewable energy and transmission development. “We are committed to streamlining the permitting process — but only if it ensures we can build out transmission and cheap, clean energy. While the SPEED Act does not meet that standard, we will continue working to pass comprehensive permitting reform that takes real steps to bring down electricity costs,” the statement read. To get up to speed on the legislation, read this breakdown from Heatmap’s Emily Pontecorvo.

In June, Heatmap’s Matthew Zeitlin explained how New York State was attempting to overcome the biggest challenge to building a new nuclear plant — its deregulated electricity market — by tasking its state-owned utility with overseeing the project. It’s already begun staffing up for the nuclear project, as I reported in this newsletter. But it’s worth remembering that the New York Power Authority, the second-largest government-controlled utility in the U.S. after the federal Tennessee Valley Authority, gained a new mandate to invest in power plants directly again when the 2023 state budget passed with measures calling for public ownership of renewables. On Tuesday, NYPA’s board of trustees unanimously approved a list of projects in which the utility will take 51% ownership stakes in a bid to hasten construction of large-scale solar, wind, and battery facilities. The combined maximum output of all the projects comes to 5.5 gigawatts, nearly double the original target of 3 gigawatts set in January.
But that’s still about 25% below the 7 gigawatts NYPA outlined in its draft proposal in July. What changed? At a hearing Tuesday morning, NYPA officials described headwinds blowing from three directions: Trump’s phaseout of renewable tax credits, a new transmission study that identified which projects would cost too much to patch onto the grid, and a lack of power purchase agreements from offtakers. One or more of those variables ultimately led private developers to pull out at least 16 projects that NYPA would have co-owned.
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During World War II, the Lionel toy train company started making components for warships, the Ford Motor Company produced bomber planes, and the Mattatuck Manufacturing Company known for its upholstery nails switched to churning out cartridge clips for Springfield rifles. In a sign of how severe the shortfall of equipment to generate gas-powered electricity has become, would-be supersonic jet startups are making turbines. While pushing to legalize flights of the supersonic jets his company wants to build, Blake Scholl, the chief executive of Boom Supersonic, said he “kept hearing about how AI companies couldn’t get enough electricity,” and how companies such as ChatGPT-maker OpenAI “were building their own power plants with large arrays of converted jet engines.” In a thread on X, he said that, “under real world conditions, four of our Superpower turbines could do the job of seven legacy units. Without the cooling water required by legacy turbines!”
The gas turbine crisis, as Matthew wrote in September, may be moving into a new phase as industrial giants race to meet the surging demand. In general, investors have rewarded the effort. “But,” as Matthew posed, “what happens when the pressure to build doesn’t come from customers but from competitors?” We may soon find out.
It is, quite literally, the stuff of science fiction, the kind of space-based solar power plant that Isaac Asimov imagined back in 1940. But as Heatmap’s Katie Brigham reported in an exclusive this morning, the space solar company Overview Energy has emerged from stealth, announcing its intention to make satellites that will transmit energy via lasers directly onto Earth’s power grids. The company has raised $20 million in a seed round led by Lowercarbon Capital, Prime Movers Lab, and Engine Ventures, and is now working toward raising a Series A. The way the technology would work is by beaming the solar power to existing utility-scale solar projects. As Katie explained: “The core thesis behind Overview is to allow solar farms to generate power when the sun isn’t shining, turning solar into a firm, 24/7 renewable resource. What’s more, the satellites could direct their energy anywhere in the world, depending on demand. California solar farms, for example, could receive energy in the early morning hours. Then, as the sun rises over the West Coast and sets in Europe, ‘we switch the beam over to Western Europe, Morocco, things in that area, power them through the evening peak,’” Marc Berte, the founder and CEO of Overview Energy, told her. He added: “It hits 10 p.m., 11 p.m., most people are starting to go to bed if it’s a weekday. Demand is going down. But it’s now 3 p.m. in California, so you switch the beam back.”
In bigger fundraising news with more immediate implications for our energy system, next-generation geothermal darling Fervo Energy has raised another $462 million in a Series E round to help push its first power plants over the finish line, as Matthew wrote about this morning.
When Sanae Takaichi became the first Japanese woman to serve as prime minister in October, I told you at the time how she wanted to put surging energy needs ahead of lingering fears from Fukushima by turning the country’s nuclear plants back on and building more reactors. Her focus isn’t just on fission. Japan is “repositioning fusion energy from a distant research objective to an industrial priority,” according to The Fusion Report. And Helical Fusion has emerged as its national champion. The Tokyo-based company has signed the first power purchase agreement in Japan for fusion, a deal with the regional supermarket chain Aoki Super Co. to power some of its 50 stores. The Takaichi administration has signaled plans to increase funding for fusion as the new government looks to hasten its development. While “Japan still trails the U.S. and China in total fusion investment,” the trade newsletter reported, “the policy architecture now exists to close that gap rapidly.”
Another day, another emerging energy or climate technology gets Google’s backing. This morning, the carbon removal startup Ebb inked a deal with Google to suck 3,500 tons of CO2 out of the atmosphere. Ebb’s technology converts carbon dioxide from the air into “safe, durable” bicarbonate in seawater and converting “what has historically been a waste stream into a climate solution,” Ben Tarbell, chief executive of Ebb, said in a statement. “The natural systems in the ocean represent the most powerful and rapidly scalable path to meaningful carbon removal … Our ability to remove CO2 at scale becomes the natural outcome of smart business decisions — a powerful financial incentive that will drive expansion of our technology.”
The Series E round will fund the enhanced geothermal company’s flagship Cape Station project.
The enhanced geothermal company Fervo is raising another $462 million, bringing on new investors in its Series E equity round.
The lead investor is a new one to the company’s books: venture capital firm B Capital, started by Facebook co-founder Eduardo Saverin. Fervo did not disclose a valuation, but Axios reported in March that it had been discussing an IPO in the next year or two at a $2 billion to $4 billion valuation.
Much of the capital will be devoted to further investments in its Cape Station facility in Utah, which is due to start generating 100 megawatts of grid power by the end of 2026. A smaller project in Nevada came online in 2023.
Fervo’s last equity round was early last year, when it raised $255 million led by oil and gas company Devon. It also raised another $206 million this past summer in debt and equity to finance the Cape Station project, specifically, and reported faster, deeper drilling numbers.
“I think putting pedal to the metal is a good way to put it. We are continuing to make progress at Cape station, which is our flagship project in Southwest Utah, and some of the funding will also be used for early stage development at other projects and locations to expand Fervo’s reach across the Western U.S.,” Sarah Jewett, Fervo’s senior vice president of strategy, told me
“Enhanced geothermal” refers to injecting fluid into hot, underground rocks using techniques borrowed from hydraulic fracturing for oil and gas. Along with the geothermal industry as a whole, Fervo has found itself in the sweet spot of energy politics. It can provide power for technology companies with sustainability mandates and states with decarbonization goals because it produces carbon-free electricity. And it can host Republican politicians at its facilities because the power is 24/7 and employs labor and equipment familiar to the oil and gas industry. While the Trump administration has been on a warpath against solar and (especially) wind, geothermal got a shoutout in the White House’s AI Action Report as an electricity source that should be nurtured.
“Being clean and operating around the clock is just a really strong value proposition to the market,” Jewett said. “Utilizing an oil and gas workforce is obviously a big part of that story; developing in rural America to serve grids across the West; producing clean, emissions-free energy. It's just a really nice, well-rounded value proposition that has managed to maintain really strong support across the aisle in Washington despite the administration shift.”
But bipartisan support on its own can’t lead to gigawatts of new, enhanced geothermal powering the American west. For that Fervo, like any venture-backed or startup energy developer, needs project finance, money raised for an individual energy project (like a solar farm or a power plant) that must be matched by predictable, steady cashflows. “That is, obviously the ultimate goal, is to bring the cost of capital down for these projects to what we call the ‘solar standard,’’’ Jewett said, referring to a minimum return to investors of below 10%, which solar projects can finance themselves at.
While solar power at this point is a mature technology using mass-manufactured, standardized parts having very good foreknowledge of where it will be most effective for generating electricity (it’s where the sun shines), enhanced geothermal is riskier, both in finding places to drill and in terms of drilling costs. Project finance investors tend to like what they can easily predict.
“We are well on our way to do it,” Jewett said of bringing down the perceived risk of enhanced geothermal. “This corporate equity helps us build the track record that we need to attract” project finance investors.
Whether enhanced geothermal is price competitive isn’t quite clear: Its levelized cost of energy is estimated to be around twice utility scale solar's, although that metric doesn’t give it credit for geothermal’s greater reliability and lack of dependence on the weather.
While Cape Station itself is currently covered in snow, Jewett said, construction is heating up. The facility has three power plants installed, a substation and transmission and distribution lines starting to be put up, putting the facility in line to start generating power next year, Jewett said.By the time it starts generating power for customers, Fervo hopes to have reduced costs even more.
“Cost reductions happen through learning by doing — doing it over and over and over again. We have now drilled over 30 wells at the Cape Station field and we’re learning over time what works best,” Jewett said.
Overview Energy has raised $20 million already and is targeting a Series A early next year.
When renowned sci-fi author Isaac Asimov first wrote about space-based solar power in the 1940s, it helped inspire engineers and the federal government alike to take the idea seriously. By the 1970s, a design had been patented and feasibility studies were underway. But those initial efforts didn’t get far — challenges with launch costs, constructing the necessary structures in space, and energy conversion efficiency proved too much for scientists to overcome.
Now the idea is edging ever closer to reality.
The space solar company Overview Energy emerged from stealth today, announcing its intention to make satellites that will transmit energy via lasers directly onto the Earth’s grid, targeting preexisting utility-scale solar installations. The startup has already raised $20 million in a seed round led by Lowercarbon Capital, Prime Movers Lab, and Engine Ventures, and is now working on raising a Series A.
The core thesis behind Overview is to allow solar farms to generate power when the sun isn’t shining, turning solar into a firm, 24/7 renewable resource. What’s more, the satellites could direct their energy anywhere in the world, depending on demand. California solar farms, for example, could receive energy in the early morning hours. Then, as the sun rises over the West Coast and sets in Europe, “we switch the beam over to Western Europe, Morocco, things in that area, power them through the evening peak,” Marc Berte, the founder and CEO of Overview Energy, explained. “It hits 10 p.m., 11 p.m., most people are starting to go to bed if it’s a weekday. Demand is going down. But it’s now 3 p.m. in California, so you switch the beam back.”
That so-called “geographic untethering” will be a key factor in making all of this economically feasible one day, Berte told me. The startup is targeting between $60 and $100 per megawatt-hour by 2035, when it aims to be putting gigawatts of commercial space solar on the grid. “It’s 5 o’clock somewhere,” Berte told me. “You’re profitable at $100 bucks a megawatt-hour somewhere, instantaneously, all the time.”
Making the math pencil out has also meant developing super-efficient lasers and eliminating all power electronics on its custom spacecraft. The type of light Overview beams to earth — called “near-infrared” and invisible to the naked eye — is also very efficiently converted into electricity on a solar cell. While pure sunlight is only converted at 20% efficient, near-infrared light is converted at 50% efficiency. Thus, Overview enables solar panels to operate even more efficiently during the night than during the day.
Today, the startup also announced the successful demonstration of its ability to transmit energy from a moving aircraft to a ground receiver three miles below — the first time anyone has beamed high power from a moving source. Although Overview’s satellites will eventually need to transmit light from much farther away — around 22,000 miles from Earth — the test proved that the fundamental technical components work together as planned.
“There’s no functional difference from what we just did from an airplane to what we’re going to do in 10 years at gigawatts from space,” Berte told me. “The same beacon, the same tracking, the same mirror, the same lasers, all the same stuff, just an airplane instead of space.”
Overview’s ultimate goal is ambitious to say the least: It’s aiming to design a system that can deliver the equivalent of 10% to 20% of all global electricity use by 2050. To get there, it’s aiming to put megawatts of power on the grid by 2030 and gigawatts by the mid-2030s. Its target customers include independent power producers, utilities, and data centers, and the company currently has a SpaceX launch booked for early 2028. At this point, Berte says Overview will likely be starting up its own prototype production line, which it will scale in the years to follow.
That certainly won’t be a simple undertaking. To produce a gigawatt of power, Overview will need to deploy 1,000 huge satellites, each measuring around 500 to 600 feet across and weighing about 8 to 10 tons. The largest satellites currently in space are about 100 to 150 feet across, and roughly 5 to 10 tons. “No one really mass-manufactures satellites in the kind of quantities required,” Berte explained, and nobody is producing the design and form factor that Overview requires. “So we are going to have to in-source a lot of the integration for that.”
But while the startup’s satellites will span the length of about two football fields, they fold up neatly into a package about the size of a shipping container, making it possible for them to fit on a SpaceX rocket, for example. When the satellites beam their power down to Earth, they’ll target a beacon — also shipping container-sized — that will be placed in the middle of the solar farm.
Initially, Berte told me, Overview will target deployment in places where logistical challenges make energy particularly expensive — think Alaska or island states and territories such as Guam, Hawaii, and Puerto Rico. But first, the company must demonstrate that its tech works from thousands of miles away. That’s what the funding from its forthcoming Series A, which Berte expects to close in spring of next year, is intended for.
“That is to take us to the next step, which is now do it in space. And after that, it’s now do it in space, but big,” he told me. “So it’s crawl, walk, run, but most importantly, the technology and how you do it doesn’t change.”