You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
That’s how much the U.S. should be spending per year by 2050 to achieve net zero, according to a new Rhodium Group report.

Money seems to be pouring into the field of carbon removal from every direction. Every other week there’s an announcement about a new project. Multimillion dollar carbon removal procurement deals are on the rise. The Department of Energy is rolling out grants as part of its $3.5 billion “direct air capture” hubs program and also funding research and development. Some carbon removal companies can even start claiming a $130 tax credit for every ton of CO2 they suck up and store underground.
The federal government alone spends just under $1 billion per year on carbon removal research, development, and deployment. According to a new report from the Rhodium Group, however, the U.S. is going to have to spend a lot more — roughly $100 billion per year by 2050 — if carbon dioxide removal, or CDR, is ever going to become a viable climate solution.
“The current level of policy support is nowhere near what's needed for CDR to play the role that people say it needs to play in solving climate change,” Jonathan Larsen, one of the authors, told me. “We wanted to reset the policy conversation with that in mind.”
Carbon removal is what’s implied by the “net” in net-zero — a way to compensate for whatever polluting activities are going to take longer to replace with clean solutions. It will be impossible to achieve net-zero emissions by 2050, either at the national or global level, without removing carbon from the atmosphere. But how much carbon removal will we need, and how do we make sure we’re ready to deploy it?
These questions are, in a sense, unique to the field. When we talk about cutting carbon emissions from buildings or transportation, experts are relatively confident in the set of solutions and the scale of the task — they know how many buildings and cars there are and can make reasonable estimates of growth rates.
But carbon removal is a moving target. We know how much we’re removing today — roughly 5 million metric tons, mostly from nature-based solutions like planting trees. Based on current policies, Rhodium estimates we could scale that up to about 50 million metric tons by 2035. But figuring out how much we need depends entirely on how successful we are at decarbonizing everything else. Even if we know we need to electrify all our cars, for example, no one can say whether that will happen by 2050, or at least not with any meaningful degree of certainty.
The Rhodium Group report attempts to narrow the range of this uncertainty so that policymakers can better attack the problem. The authors looked at a handful of different decarbonization roadmaps for the U.S. and found that the minimum amount of carbon removal needed to compensate for residual emissions in 2050 is 1 gigaton, which is the same as one billion metric tons, or a 20x increase from where current policies will get us. It's also equal to about 20% of the carbon that the U.S. emitted last year. “There's a very likely scenario where we need a lot more than that,” said Larsen. “There's scenarios where we need less. But most of the studies out there say at least a gigaton.”
Even if it’s only a rough estimate, landing on a number is useful, he told me. Rhodium Group spends a lot of time answering questions about, for example, what some new policy means for achieving Biden’s goal of cutting emissions in half by 2030. “I don't know if we’d get those questions if there wasn't a 50% target to shoot for,” he said. “So I think this way, people can be like, what does this next wave of policy support for CDR do for getting the U.S. on track for a gigaton?”
The level of investment it will take to get there is also highly uncertain. The authors did a quick back-of-the-envelope calculation to land on $100 billion by 2050: We need to be removing a minimum of one billion tons by then, and the Department of Energy has a goal to bring the cost of carbon removal down to $100 per ton.
The meat of the new report focuses on how to bridge the gap between the roughly $1 billion we spend today and $100 billion, which starts, according to the authors, with treating carbon removal as a public service. It’s not like other climate solutions such as wind turbines or heat pumps, they write, which can rely on private markets to provide predictable demand or to stimulate innovation. “There are very few pathways one can envision where the private sector is going to both scale and deliver those tons,” Larsen told me. Voluntary carbon removal purchases by companies could play a role, he said, but it will not be big enough to get to a gigaton.
Rhodium recommends expanding and extending many of the federal policy programs that already exist — by, for example, providing more R&D funding, doing more government procurement, handing out more loan guarantees, and creating more “hubs” centered on other approaches besides direct air capture, like enhanced weathering or biomass burial. Right now, the tax credit for capturing carbon from the air and burying it underground can only be claimed for 12 years, and projects have to start construction by 2032. The authors call for extending the claim period and moving up the construction start deadline. They also recommend expanding the program to apply to a wider range of carbon removal methods.
A common criticism of government support for carbon removal is that policy makers will over-rely on it. If we aim to do 1 gigaton of carbon removal, does that mean we won’t cut emissions as much as we could have? What happens if, for whatever reason, we can’t achieve the 1 gigaton?
Larsen disagreed with that framing. For one, it’s easy to turn it around: If we don’t scale up the capacity to remove carbon, and we also don’t eliminate emissions by mid-century, we’re not even going to have the option to halt climate change at that point.
But also, decarbonization shouldn’t stop in 2050, he said. If we can achieve that 1 gigaton of annual removal and then keep cutting emissions from remaining sources, we could eventually get to net-negative emissions — even without more CDR. In other words, if we reach a point where we’re removing more than we’re emitting, we could start to reverse global warming, not just stop it.
“I know that's, like, sci-fi,” he told me. “But that's ultimately where we as a species have to go and that’s why setting a target here of at least a gigaton, to me, does not take away the need to reduce elsewhere.”
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
The companies just launched a major VPP play.
For all the hype surrounding virtual power plants, they’re still a niche player on the U.S. electric grid. A new partnership between three of the biggest residential energy companies in the country — Tesla, Sunrun, and Renew Home — aims to recast VPPs into a leading role.
The companies announced on Wednesday that they have more than 16 gigawatts of dispatchable VPP capacity available today to deliver to utilities and data center developers throughout the country. That’s about the same as 16 nuclear reactors, except instead of generating power round the clock from a central plant, the companies aggregate unused electricity capacity from thousands of individual home solar and battery systems and programmable thermostats, and can make it available for several hours at a time.
Today, the companies bid these resources into electricity markets as a sort of bespoke grid service. A few times per year — often in the summer months when demand spikes — the grid operator in California might ask Sunrun to switch on its VPP to prevent a blackout. That means Sunrun’s rooftop solar and battery customers all either begin exporting excess power to the grid or rely more on their energy storage systems for their own power needs, reducing strain on the grid. Tesla operates similar programs, some in partnership with Sunrun. Renew Home, which spun out of Google Nest, does the same thing but with thermostats and water heaters, nudging temperatures on thousands of devices up or down during peak demand hours.
“A lot of our assets are enrolled in a contract where they can be used up to 20 times per year,” Paul Dickson, the president and chief revenue officer of Sunrun, told me. Now the company, along with its partners, are making the pitch to utilities and hyperscalers to view VPPs as 365-day resources, and more fully integrate them into their grid planning.
It’s a “turnkey” solution, the companies wrote in a press release, “deployable in months, not years,” that requires “no additional hardware, software, interconnection, water, or land usage for offtaking parties.”
VPPs also typically kick back some of the proceeds they earn from the electricity market to the residential customers hosting the solar panels, batteries, and programmable thermostats providing the power, meaning they can meet growing energy demand while helping to lower household energy bills. Sunrun and Renew Home paid out a combined $67 million in customer rewards last year.
About 60% of the 16 gigawatts the companies have available are tied to Renew Home’s enrolled devices, with the remaining 40% coming from Sunrun and Tesla’s solar and battery assets, Dickson told me. The capacity is also spread out geographically. There’s about 1.7 gigawatts available in Texas — the second largest data center market in the country, Dickson pointed out. There’s 300 megawatts available in Virginia, which the companies expect to grow to 500 megawatts by 2030.
“Unlike a traditional power plant that's fixed in size, this number grows every single day as the combined three companies continue to add additional capacity,” Dickson said. Sunrun alone plans to more than double its energy storage capacity by the end of 2028.
If utilities and large industrial customers buy the VPP pitch, the companies will be able to expand even more quickly, he added. If regulators or utilities come back and say, we’ll take your existing capacity today, and if you can add another gigawatt in the next year, here’s what we’ll pay, Sunrun could potentially reduce the upfront cost to customers to host the solar and battery installations, driving faster adoption.
The new partnership follows a similar announcement earlier this month from the VPP company Voltus, which signed a three-year agreement with Google. Voltus will provide up to 100 megawatts per year of capacity for Google in PJM, the country’s largest (and most constrained) electricity market covering much of the Midwest and mid-Atlantic. In that case, however, Voltus is using the deal with Google to finance the VPP, with the capacity set to come online by 2027.
The Tesla/Sunrun/Renew Home group is simply announcing they are open for business — they haven’t signed up any offtakers yet. Dickson told me the companies wanted to “make everybody aware that there is this uncontracted capacity, and make sure that it goes to the place that it can be most impactful.” Wednesday’s announcement is accompanied by a live map that shows where the capacity is. The companies did, however, already bid over a gigawatt of capacity into PJM, the larger energy market that Virginia is a part of, as part of its emergency procurement to meet near-term load growth in the region, and are waiting to hear if they were selected.
Last year, the electrification advocacy group Rewiring America published a paper arguing that hyperscalers could free up grid capacity for at least a third of the load growth expected from data centers if they paid for residential households to get heat pumps. All of that capacity would simply be the result of swapping inefficient appliances for more efficient versions, reducing the overall energy use of the homes. If hyperscalers also financed residential solar and storage upgrades, they could more than meet data center demand, the report posited.
That’s not how these VPP proposals are going to work — residential customers will still have to pay something to Sunrun and Tesla for their solar panels and batteries. But Ari Matusiak, the executive director of Rewiring America, told me he viewed these new VPP partnerships as a step in that direction. Today, energy markets are largely bifurcated between residential market activity and large industrial customers. “Where we are going is toward a world where we think about the household as actual energy infrastructure and not simply an end of the line billpayer,” he said. “Once you start doing that, it changes the economics of how those household upgrades are treated and what the opportunities are.”
Current conditions: The warehouse fire in Boyle Heights is raging for a third day, spewing dark smoke over the Downtown Los Angeles skyline • The death toll from Western Europe’s heatwave has reached into the dozens • An 18-wheeler carrying more than 400 beehives overturned in eastern Texas and filled a small neighborhood with more than 2 million honeybees.
Wally World is soon to be powered by the atom. On Tuesday, Walmart announced a 15-year deal with Constellation, the nation’s largest operator of nuclear plants, for a chunk of the electricity coming from the Dresden Clean Energy Center in Illinois. The agreement included about 176 megawatts of wholesale supply from the two-reactor station southwest of Chicago, including 30 megawatts of expanded generating capacity through “uprates” — upgrades that allow operators to get more power out of an existing unit. Over the past two years, tech giants such as Google, Microsoft, and Meta, have bought shares of the power coming from nuclear power stations as the companies sought steady supplies of clean electricity for their burgeoning data centers. But the Walmart deal stands out as one of the first to involve a major brick-and-mortar retailer. “We’re constantly evaluating new capabilities and energy solutions that help ensure the electricity we rely on is dependable, responsibly produced, and built to support long-term growth,” Shayne Wahlmeier, Walmart’s senior vice president of energy, said in a statement.
The Trump administration just unveiled one of its biggest bets on nuclear power yet. The Department of Energy announced $17.5 billion in low-interest loans for utilities to pay for the equipment needed to order new Westinghouse AP1000 reactors. The program marks arguably the most significant effort yet to reclaim U.S. control over its flagship reactor design. While the two 1,100-megawatt units completed at Southern Company’s Alvin W. Vogtle Generating Station in 2023 and 2024 were the first installed in the U.S., China has been building its own version of the reactors at an industrial scale for years. The program will support up to 10 reactors, including two per venture with as many as five utilities. The power companies, currently in talks with the administration, have not yet been named. But Dan Sumner, the chief executive of Westinghouse Electric, told The Wall Street Journal the deal “really kick-starts fleet-scale nuclear development in the United States.” As my colleague Robinson Meyer wrote last night: “I hesitate to praise the project's climate bonafides at the risk of discouraging the Trump administration, but it is worth noting that if this project were to succeed, it would be one of the largest state-assisted build-outs of zero-carbon electricity in recent American history. But it would still take some time to arrive: These reactors aren’t forecast to come online til 2035.”
Yet another behemoth solar farm has come online. On Tuesday, the developer rPlus Energies said its Green River Energy Center had started operations. The facility in central Utah with 400-megawatts of solar panels and 1,600 megawatt-hours of batteries is now the largest solar-and-storage plant within PacifiCorp’s six-state territory out west, including Oregon, Washington, California, Utah, Wyoming, and Idaho. “Operation Gigawatt is about ensuring Utah has the reliable, homegrown energy needed to power opportunity for generations,” Utah Governor Spencer Cox, a Republican, said in a statement. “Green River Energy Center represents the kind of large-scale energy investment we need to deliver reliable energy, support rural Utah, and help power the next generation of prosperity across our state.”
The opening comes as solar is now generating more U.S. power than coal, as I told you recently.
Sign up to receive Heatmap AM in your inbox every morning:

The Supreme Court ruled Tuesday that Exxon Mobil has the right to sue a Cuban-owned company to recoup more than $70 million in 1960 dollars from an oil complex seized by the Cuban government after Fidel Castro’s revolution. Havana later transferred the ownership of the refinery, terminals, plants, and service stations to Corporación Cimex, the state-owned conglomerate. The lawsuit could now see the oil major try to recover more than $1 billion in losses. “Today’s decision is a critical moment in a 60 year effort to be compensated for what the Cuban government illegally seized,” Exxon spokesperson Todd Spitler told E&E News in an emailed statement. “It reflects two things: the merits of our argument and the fact that our company will fight a good fight for as long as it takes.”
The Trump administration understands the importance of refining cobalt — that’s why, as I reported last year, the Pentagon’s Defense Logistics Agency is pumping money into a startup that promises a new and cheap way to process the mineral. Canada’s Sherritt International started shutting down its Fort Saskatchewan refinery after the U.S. expanded sanctions on Cuba, halting exports of a feedstock supply needed for the plant in Alberta, Canada. The move, in addition to the Supreme Court ruling, come amid intensifying pressure by Washington on the Cuban regime.
California is once again following a New York trend. Just weeks after Albany sued to stop the Trump administration’s bid to pay TotalEnergies to give up its offshore wind projects, Sacramento is joining the litigation. “At a time when the country needs more reliable and sustainable power supply, the Trump Administration is busy using taxpayer money to strike backroom buyouts that make clean-energy projects disappear,” California Attorney General Rob Bonta said in a statement. “California won’t stand idly by as the Trump Administration illegally strikes deals to kill offshore wind projects and replace them with more windfalls for his fossil fuel friends; we’re putting the Administration on notice that we intend to sue.”
Rob checks in with Commodity Context’s Rory Johnston as the Iran War (hopefully) draws to a close.
When Iran closed the Strait of Hormuz earlier this year, experts projected oil prices would go to $200 a barrel. But then… they didn’t. In fact, while gasoline prices rose in the United States, and Europe and Asia suffered higher costs, the resulting energy crisis wasn’t even as bad as what followed Russia’s 2022 invasion of Ukraine.
Why? China. The country seems to have absorbed the costs of Trump’s war of choice by releasing hundreds of millions of barrels from its strategic stockpile. On this episode of Shift Key, Rob is joined by Rory Johnston, an oil markets researcher and the author of the Commodity Context newsletter. They discuss China’s massive (and quiet) intervention, why it’s “the most important thing we learned” from the Iran War, and what it means for the future of energy and geopolitics. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap News.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Mentioned:
China Oil Demand Doubts, Rory’s 2023 article about Chinese strategic stockbuilding
Previously on Shift Key: Why the Iran Ceasefire Hasn’t Ended the Energy Crisis, featuring Rory
This episode of Shift Key is sponsored by ...
Heatmap Pro brings all of our research, reporting, and insights down to the local level. The software platform tracks all local opposition to clean energy and data centers, forecasts community sentiment, and guides data-driven engagement campaigns. Book a demo today to see the premier intelligence platform for project permitting and community engagement.
Music for Shift Key is by Adam Kromelow.