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:
“It’s Confederate Disneyland, and it’s about to be SeaWorld,” says Susan Crawford, the author of a new book about the city.

In the last few years, climate change has made its impact known in violent, eye-grabbing ways. Heat waves and drought slowly roll across the planet; hurricanes and floods and wildfires bring sudden devastation to communities that were once safe. But there are also slower, more insidious impacts that we can easily forget about in the wake of those disasters, including the most classic impact of them all: sea-level rise.
The East Coast is particularly vulnerable to rising seas, and in her new book Charleston: Race, Water, and the Coming Storm (Pegasus Books, April 4, 2023), Susan Crawford, a writer and professor at Harvard Law School, explores how the historic city, the largest in South Carolina, is preparing — or failing to prepare — for what’s to come. Flooding has become increasingly commonplace in Charleston, Crawford writes, and the city’s racial history has meant that low-income communities of color are bearing the worst of the impact, with little hope for relief.
Charleston is a bellwether for what the rest of the East Coast can expect as the waters of the Atlantic creep ever higher. When we spoke, Crawford, author of the books Fiber and The Responsive City, among others, began by describing her book as a survival story rather than a climate story. Our conversation has been edited for length and clarity.
Things are pigeonholed as climate inappropriately. This is more about the question of: Can we overcome our polarization and limitations as human beings and plan ahead for a rapidly accelerating cataclysm that will, in particular, hit the East Coast at three or four times the rate of speed it goes the rest of the world? Can we plan ahead? Can we think about what anybody with a belly button needs to thrive? Because after all, isn’t that the role of government?
I came to Charleston initially on a solo vacation in December 2017. I went there for Christmas. And it’s an interesting place, but I didn’t really know what the history of it was. And I decided to go back in February 2018 to interview the man who’d recently stepped down as mayor, Joe Riley. He had been mayor for 40 years. His tagline was America’s favorite mayor. And he had transformed Charleston over his tenure into a tourist magnet, seven million tourists a year. Lots of development. It became a food and arts destination. And I was just curious about Mayor Riley. So I contacted a local journalist named Jack Hitt, and he suggested that I ask the mayor about the water.
So, when I interviewed Riley, I asked him about flooding. And he’s a very charming guy, little bowtie, little khaki suit. And he clammed up. All he said was that it was going to be very expensive. That was it.
And I said, “huh, maybe there’s a story here.” And this became a quest to try to figure out what the Charleston story was. At first, I thought it was going to be a story of local government heroism. And in a sense, it still is. I think the city is, in a sense, doing what it can. But then I was lucky enough to be introduced to several Black resident leaders at Charleston who were very generous to me and explained what it’s like to be Black in Charleston, and the ongoing lack of a Black professional class in Charleston. There’s sort of the idea that the civil war never ended in Charleston: There’s a lack of Black advisors near the mayor, although there are Black members of city council.
Charleston’s successes and failures are just harbingers of what we will be seeing up and down the East Coast. They’re more visible in Charleston, and Charleston lives in the dreams of millions of people who want to visit. The failures of the structures around Charleston and inside Charleston are fractal in nature. They are replicated across the globe. It’s Confederate Disneyland, and it’s about to be SeaWorld.

Charleston is extremely low in terms of its topography. The peninsula itself was built on fill, like much of Boston. Enslaved people filled in the perimeter of what is now today’s peninsula. So about a third of that peninsula — the lower part where these gorgeous historical houses are — is five feet or less above sea level. And then these outlying suburbs, many of which were annexed into Charleston’s property tax base by Mayor Riley over the course of his mayoralty, were historically marshy wetlands. There’s very little high land in the entire city of Charleston. A lot of the area outside off the peninsula is about 10 feet or less above sea level. So Charleston’s topography sets it up for the threat of rising waters.
It’s actually more exposed than the Netherlands, because it’s not as if there are defined waterways that lead inland — it’s actually a gazillion interconnected tiny watersheds across a flat area. So water can just roll over the place unimpeded when it rises.
Charlestonians have almost gotten used to ongoing flooding, there’s a sort of complacency that sets in. And there’s also, I think, a sense in Charleston, that they’ve missed a lot of big storms recently, and maybe they believe it’s not going to happen to them. But they’re just one storm away from being flattened, basically.
Right now the city has a single planning horizon in mind, which is 2050, and a single level of sea level rise, which is 18 inches. That might be fine up until 2050. But after that we’re going to see very rapidly accelerating sea level rise — scientists are predicting more like three feet by 2070. And then at least five by the end of the century.
Get the best of Heatmap delivered to your inbox:
Charleston was the place where 40% of the enslaved people forcibly brought to America first step foot. It’s the place where, after the slave trade was outlawed in 1808, a great deal of the domestic slave trade was carried out. Its entire economy, initially, was based on extractive labor from enslaved people.
After the Civil War, a lot of free Black people moved onto the peninsula seeking work. Charleston in the 1970s was a majority Black peninsula, with 75% Black residents. Today, it’s at most 12 percent on the peninsula: That whole population has been displaced and moved to North Charleston, which has one of the highest eviction rates in the country, or off in far flung suburban areas where it’s cheaper. There are still some concentrated areas of Black residents on the peninsula on the east side, which floods all the time and has been a lower income area for all of Charleston’s history. And then there are public housing areas, mostly inhabited by Black residents.
Well, for a long time, Charleston, simply lived with flooding and let its sewage go right into the water. But in the late 19th century, a brilliant and energetic engineer figured out how to install tunnels underneath the streets of the peninsula that would drain sewage away from the houses and also take water out of the streets. It’s a gravity driven tunnel system, and a lot of that system is still in place.
But gravity isn’t going to help as the seas rise. The peninsula will be at the same level as the sea, so the gravity-based system won’t function. The city’s hard working stormwater manager is working on upgrading that system substantially, furnishing them with pumps, so they don’t have to rely just on gravity. But they’re going to need a lot of pumping to get the water off the streets in order to make life possible on the peninsula.
Mayor Riley, to his credit, developed a stormwater plan in 1984. But it was all very expensive, and many of the projects have not yet been completed, in particular on the west side of the peninsula. And all of that planning is premised on the idea that you’re supposed to pump the water off the peninsula, that no matter how much water there is, you’re going to take it away. That kind of money has not been invested in the outlying suburbs. When water comes there it just sits.
The other factor is that the groundwater in Charleston is very close to the surface. So as seas rise, the groundwater is also going to be rising and it will have nowhere to go. You know, they’re doing their best to think of ways to get that water away. But as rainwater gets heavier and seas rise, groundwater rises, and you’ll have a situation of chronic inundation.

This is gradually shifting, but at the state level, certainly, you’re better off not talking about the human causes of climate change. There’s no point. Because then you look as if you’re Al Gore, bringing the heavy hand of government everywhere, and that’s not a good look. And the state government makes it impossible for cities to include the idea of retreating in their comprehensive plans.
When I first interviewed current Mayor Tecklenburg about this whole subject, he said, “do you want to talk about climate change or sea level rise?” And at first I was befuddled, but then I understood what he was saying: Let’s not talk about why it’s happening. But we can talk about the fact that it is happening, because we see it every day.
And so that that’s the approach: Don’t talk about the causes, talk about what’s going on. And in fact, that is, for me, the entire approach of this book. I, of course, fully accept that humans are causing the forcing of temperatures to their stratospheric heights these days, and we need to lower emissions and do whatever we can to decarbonize our economy. But I’m concerned that even if we do that, the changes in the climate that are already baked in are going to have disastrous effects on human beings’ lives. So we need to be planning in both directions at once, both planning to reduce missions and planning to help people survive.
One of the leading characters here is Reverend Joseph Darby, who is a senior AME minister, and also the co chair of the local NAACP branch in Charleston. He’s in his 70s, very wise, and he has, of course, personally experienced flooding, and in particular, flooding that makes his church inaccessible since he’s a preacher on the peninsula.
He told me he learned early in his career that it was important never to be surprised by anything he heard in Charleston. He could be shocked, he could be astonished, but he couldn’t be surprised. He continues to feel that way in the absence of powerful Black voices advising the mayor.
His two boys moved away from Charleston, as much as he might have hoped that they would stay. The Black professional class doesn’t stay in Charleston because it’s just too hard. It’s just not worth it. He feels that there’s a sort of a benevolent paternalism from political leaders, a sense of “we know what’s best for you folks.”
The Black leaders I talked to pointed out that nobody is talking about how we’re going to help low income and Black residents of the region who have nowhere to go when the flooding hits in a big way. Nobody’s talking about the kind of holistic support services that are going to be needed, and this will just further entrench and amplify the inequality and unfairness. They also point out that this is a regional problem and national problem. And they just don’t see that kind of coordination happening.
Yeah, the big plan in Charleston is to work with the Army Corps of Engineers on building a 12-foot-tall wall around the peninsula with gates in it, that would, in theory, protect the peninsula from storm surges. The wall wouldn’t be designed to protect the 90% of people who don’t live on the peninsula. Nor would it be designed to do anything about the heavy rain or the constant high tides. It’s just for storm surges.
It’s a plan to protect the high property values on the peninsula, and in particular the areas that are good for tourism. You know, pillars of the Charleston economy. It’s fair to say that that if it’s ever built, that wall will be outmoded by the time it’s finished, because it’s built to a very low standard — 18 inches of sea level rise by 2050. The reason it’s built to such a low standard is that if it was any higher the wall would mess with the freeways that come onto the peninsula from the airport. And the Army Corps of Engineers representative was pretty frank about that. He said that just wouldn’t pencil out, that wouldn’t make sense economically to build anything higher.
So I mean, Charleston is stuck, because the only vessel for money right now is coming through these armoring projects being built by the Army Corps. And the plan is for that wall to be built in very slow sections, gradually protecting parts of the peninsula. As planned, it would take 30 years to build. So the underlying plan is for Charleston to be hit by a disaster that then causes enormous concern and empathy for Charleston, and a huge congressional appropriation bill. That’s what happened after Katrina. And then that wall would be finished quickly,
The wall as designed would not protect a couple of Black settlements farther up the peninsula, because the cost benefit analysis doesn’t work out. But it’s not Charleston’s fault that it’s planning on a disaster, because our entire approach to this survival question is premising on disaster recovery, not on proactive planning. There are 30 federal agencies that have all these scattershot programs that are aimed at disaster recovery, and there is very little advanced planning going on.
Well, in our country, we’ve had decades of exclusion through segregation and redlining and soft processes not quite understood by a lot of people that have pushed Black citizens into lower, more rapidly-flooding areas. And that history then plays out into what we decide to value. If our history has put Black Americans into more flood-prone, lower value housing over time, then it’s a garbage-in, garbage-out algorithm. If we then decide to only protect the places that are high property value, we will inevitably, yet again, exclude Black residents from the benefit of federal planning.
So it’s a pattern that was set a long time ago and did not arise by accident, playing out in the way we make decisions today.
And to its credit, the Biden administration just issued a terrific Economic Report of the President that said inequality and property values and ownership in the U.S. reflects decades of exclusion of racial minorities from home ownership and public investment, and we need different criteria to capture the differential vulnerability of these populations. So yeah, they’re on it. They understand.
No, Congress has already voted on the Charleston project. They say they’ve got this great benefit-cost ratio, one of the best in the nation, they’re really trumpeting it. It feels strange that we would pump billions of dollars into short sighted armoring of coastline that doesn’t protect against the daily harms we know are going to happen.
Well, people’s attachment to their homes is very deep. Not just for Black residents who can’t afford to leave, but for white residents and rich people as well. It’s likely it will take a series of disasters separated by very few months to convince everybody that this place really isn’t going to be livable. For decades, we already know that you can show maps to city planners, you can talk about the data to people until you’re blue in the face. This is especially true when it comes to coastal properties. It’s not rational. People are highly reluctant to leave.
It also could be a sudden cliff in property valuation, which is likely to happen in the next few years as there are actors in the financial system who fully understand this. Private flood insurers walked away from selling insurance there, leaving the federal government providing 95% or more of the flood insurance in Charleston. At some point, the fact that coastal real estate is now overvalued in the United States to the tune of $200 billion will be reflected in residential property markets up and down, and people will be unable to sell their houses. And then we might see a change in behavior.
The only country in the world that is actively talking about relocation is the Netherlands. They are planning or at least talking about needing to keep options open to move large populations away from Amsterdam, Rotterdam, towards Germany. But for everybody else, it is extremely difficult to talk about it. And you would hope that we wouldn’t have to have a global economic crisis to force planning, because that’s what this would amount to. It would be worse than 2008 if this overvaluation is suddenly corrected, because the loss of property value is permanent, and it’s not coming back. And it would be too bad if it took that kind of market crash to force planning in this direction.
If we had a president who was able to engage in long term planning, we could, with dignity and respect, change the financial drivers and levers and incentives to encourage people to understand this risk and move away from it without having to lose all their wealth. And without having to be cast into the role of migrants.
We absolutely can do this. We built the Hoover Dam, and we built the Interstate Highway System. We can afford what we care about. And if this was a priority, we could do this. But for me, the moment of redemption, the first moment of redemption will be when it’s somebody’s job in the White House to speak publicly about this constantly in league with the best scientists in the world.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Cities across the state are adopting building codes that heavily incentivize homeowners to make the switch.
A quiet revolution in California’s building codes could turn many of the state’s summer-only air conditioners into all-season heat pumps.
Over the past few months, 12 California cities have adopted rules that strongly incentivize homeowners who are installing central air conditioning or replacing broken AC systems to get energy-efficient heat pumps that provide both heating and cooling. Households with separate natural gas or propane furnaces will be allowed to retain and use them, but the rules require that the heat pump becomes the primary heating system, with the furnace providing backup heat only on especially cold days, reducing fossil fuel use.
These “AC2HP” rules, as proponents call them, were included in a routine update of California building codes in 2024. Rather than make it mandatory, regulators put the heat pump rule in a package of “stretch codes” that cities could adopt as they saw fit. Moreno Valley, a city in Riverside County, east of Los Angeles, was the first to pass an ordinance adopting the AC2HP code back in August. A steady stream of cities have followed, with Los Gatos and Portola Valley joining the party just last week. Dylan Plummer, a campaign advisor for Sierra Club's Building Electrification Campaign, expects more will follow in the months to come — “conversations are moving” in Los Angeles and Sacramento, as well, he told me.
“This is a consumer protection and climate policy in one,” he said. As California gets hotter, more households in the state are getting air conditioners for the first time. “Every time a household installs a one-way AC unit, it’s a missed opportunity to install a heat pump and seamlessly equip homes with zero-emission heating.”
This policy domino effect is not unlike what happened in California after the city of Berkeley passed an ordinance in 2019 that would have prohibited new buildings from installing natural gas. The Sierra Club and other environmental groups helped lead more than 70 cities to follow in Berkeley’s footsteps. Ultimately, a federal court overturned Berkeley’s ordinance, finding that it violated a law giving the federal government authority over appliance energy usage. Many of the other cities have since suspended their gas bans.
Since then, however, California has adopted state-wide energy codes that strongly encourage new buildings to be all-electric anyway. In 2023, more than 70% of requests for service lines from developers to Pacific Gas & Electric, the biggest utility in the state, were for new all-electric buildings. The AC2HP codes tackle the other half of the equation — decarbonizing existing buildings.
A coalition of environmental groups including the Sierra Club, Earthjustice, and the Building Decarbonization Coalition are working to seed AC2HP rules throughout the state, although it may not be easy as cost-of-living concerns grow more politically charged.
Even in some of the cities that have adopted the code, members of the public worried about the expense. In Moreno Valley, for instance, a comparatively low-income community, six out of the seven locals who spoke on the measure at a meeting in August urged elected officials to reject it, and not just because of cost — some were also skeptical of the technology.
In Glendale, a suburb of Los Angeles which has more socioeconomic diversity, all four commenters who spoke also urged the council to reject the measure. In addition to cost concerns, they questioned why the city would rush to do something like this when the state didn’t make it mandatory, arguing that the council should have held a full public hearing on the change.
In Menlo Park, on the other hand, which is a wealthy Silicon Valley suburb, all five speakers were in support of the measure, although each of them was affiliated with an environmental group.
Heat pumps are more expensive than air conditioners by a couple of thousands of dollars, depending on the model. With state and local incentives, the upfront cost can often be comparable. When you take into account the fact that you’re moving from using two appliances for heating and cooling to one, the equipment tends to be cheaper in the long run.
The impacts of heat pumps on energy bills are more complicated. Heat pumps are almost always cheaper to operate in the winter than furnaces that use propane or electric resistance. Compared to natural gas heating, though, it mostly depends on the relative cost of gas versus electricity. Low-income customers in California have access to lower electricity rates that make heat pumps more likely to pencil out. The state also recently implemented a new electricity rate scheme that will see utilities charge customers higher fixed fees and lower rates per kilowatt-hour of electricity used, which may also help heat pump economics.
Matthew Vespa, an senior attorney at Earthjustice described the AC2HP policy as a way to help customers “hedge against gas rates going up,” noting that gas prices are likely to rise as the U.S. exports more of the fuel as liquified natural gas, and also as gas companies lose customers. “It’s really a small incremental cost to getting an AC replaced with a lot of potential benefits.”
The AC2HP idea dates back to a 2021 Twitter thread by Nate Adams, a heat pump installer who goes by the handle “Nate the House Whisperer.” Adams proposed that the federal government should pay manufacturers to stop producing air conditioners and only produce heat pumps. Central heat pumps are exactly the same as air conditioners, except they provide heating in addition to cooling thanks to “a few valves or ~$100-300 in parts,” Adam said at the time.
The problem is, most homeowners and installers are either unfamiliar with the technology or skeptical of it. While heat pumps have been around for decades and are widespread in other parts of the world, especially in Asia, they have been slower to take off in the United States. One reason is the common misconception that they don’t work as well as furnaces for heating. Part of the issue is also that furnaces themselves are less expensive, so heat pumps are a tougher sell in the moment when someone’s furnace has broken down. Adams’ policy pitch would have given people no choice but to start installing heat pumps — even if they didn’t use them for heating — getting a key decarbonization technology into homes faster than any rebate or consumer incentive could, and getting the market better acquainted with the tech.
The idea gained traction quickly. An energy efficiency research and advocacy organization called CLASP published a series of reports looking at the potential cost and benefits, and a manufacturer-focused heat pump tax credit even made its way into a bill proposal from Senator Amy Klobuchar in the runup to the 2022 Inflation Reduction Act. While rules that target California homeowners obviously won’t have the nation-wide effect that Adams’ would have, they still have the potential to send a strong market signal, considering California is the fifth largest economy in the world.
The AC2HP codes, which start going into effect next year, will help smooth the road to another set of building electrification rules that will apply in some parts of the state beginning in 2029. At that point, households in the Bay Area will be subject to new air quality standards that require all newly installed heating equipment to be zero-emissions — in other words, if a family’s furnace breaks down, they’ll have to replace it with a heat pump. State regulators are developing similar standards that would apply statewide starting in 2035. The AC2HP rule ensures that if that same family’s air conditioner breaks between now and then, they won’t end up with a new air conditioner, which would eventually become redundant.
The rule is just one of a bunch of new tools cities are using to decarbonize existing buildings. San Francisco, for example, adopted an even stricter building code in September that requires full, whole-home electrification when a building is undergoing a major renovation that includes upgrades to its mechanical systems. Many cities are also adopting an “electrical readiness” code that requires building owners to upgrade their electrical panels and add wiring for electric vehicle charging and induction stoves when they make additions or alterations to an existing building.
To be clear, homeowners in cities with AC2HP laws will not be forced to buy heat pumps. The code permits the installation of an air conditioner, but requires that it be supplemented with efficiency upgrades such as insulating air ducts and attics — which may ultimately be more costly than the heat pump route.
“I don’t think most people understand that these units exist, and they’re kind of plug and play with the AC,” said Vespa.
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.
Sign up to receive Heatmap AM in your inbox every morning:
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.