Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Climate

2 Climate Removal Deals, 1 Final Tax Credit Rule

On ocean-based CO2, Grizzly 399, and the 45X tax credit.

2 Climate Removal Deals, 1 Final Tax Credit Rule
Heatmap Illustration/Getty Images

Current conditions:Tropical Storm Trami brought widespread flooding to the Philippines, killing at least 24 people • The Southwestern U.S. is experiencing a heatwave, with temperatures as high as 25 degrees Fahrenheit above normal • The three NASA astronauts stuck at the International Space Station due to inclement weather are finally on their way home.

THE TOP FIVE

1. Climeworks 🤝 Morgan Stanley

The Swiss direct air capture company Climeworks has found a new, deep-pocketed partner in Morgan Stanley. The financial services company will pay an undisclosed amount to Climeworks to suck 40,000 tons of CO2 from the air and store the greenhouse gas underground on its behalf. This is the second largest deal Climeworks has secured to date, following an 80,000-ton sale to Boston Consulting Group, and the company says the purchase will help accelerate progress on its first project in the United States, a direct air capture hub in Louisiana called Project Cypress.

2. Microsoft goes big on ocean CDR

Meanwhile, Microsoft is rounding out its already extensive carbon removal portfolio with its first major investment in ocean-based technology. The tech giant agreed to buy up to 350,000 tons of CO2 removal from a startup called Ebb Carbon over the next 10 years, slightly more than its deal with the direct air capture company Heirloom.

Ebb uses electricity to separate seawater into acidic and basic streams, then returns the basic stream back to the ocean, where it reacts with carbon in the water and promotes faster CO2 absorption from the air. The company must achieve and verify an initial 1,300 tons of CO2 removal before Microsoft commits to buying the remainder. The company has a small pilot project up and running at the Pacific Northwest National Laboratory in Washington, and is working with federal scientists and the University of Washington to measure and model the results.

3. The IRA’s X-Factor is in full effect

The Treasury Department issued final rules this morning for the Advanced Manufacturing Production Tax Credit, also known as 45X. The program is the backbone of the Inflation Reduction Act, offering incentives for domestic manufacturing of the components of solar panels, wind turbines, and batteries, subsidizing every step of the supply chain for these technologies. During a call with reporters on Wednesday, Deputy Secretary of the Treasury Wally Adeyemo said the tax credit has already driven more than $126 billion in private sector clean energy manufacturing investments.

The biggest change introduced in the final rule that the administration highlighted was allowing critical mineral extraction — separately and in addition to mineral processing — to qualify for a 10% tax credit. “The U.S. has major deposits of critical minerals like lithium and palladium. Extracting and processing them here in America, as opposed to relying on China, Russia, and other countries with weak worker and environmental protection, is an economic and national security priority for us,” Adeyemo said.

Get Heatmap AM directly in your inbox every morning:

* indicates required
  • 4. An update on Vineyard Wind

    Engineers at GE Vernova, the manufacturer of the Vineyard Wind offshore turbine blade that crashed into the ocean this summer, have been poring over ultrasound images of its other blades and conducting physical inspections with drones to figure out whether the fiasco was a one-off or a more widespread issue. During an earnings call on Wednesday, CEO Scott Strazik revealed that the company did, in fact, find a similar “manufacturing deviation” in “a very small proportion, low single-digit proportion” of the blades. The company now intends to “remove some blades from the Vineyard Wind farm while strengthening other blades as needed,” according to an update from Vineyard Wind.

    5. Another (potential) nuclear revival

    The 600 megawatt Duane Arnold Energy Center just outside Cedar Rapids, Iowa could be the next shuttered nuclear plant to come back from the dead. The plant’s owner, NextEra, is evaluating a restart, CEO John Ketchum told investors on an earnings call yesterday. “It goes without saying, there’s very strong interest from customers, data-center customers in particular, in that site,” Ketchum said. “We’re in a period of substantial power demand.”

    THE KICKER

    Grizzly 399, the world-renowned, 400-pound bear that roamed Grand Teton National Park for nearly 30 years, died tragically on Tuesday after being hit by a Subaru on the highway. She leaves behind more than a dozen offspring, including a cub born just last year that fans have nicknamed “Spirit.”

    Jonathan Steele/Getty Images

    Yellow

    You’re out of free articles.

    Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
    To continue reading
    Create a free account or sign in to unlock more free articles.
    or
    Please enter an email address
    By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
    Politics

    The EPA Won’t Even Say Which Grants It’s Canceled

    Lee Zeldin is upending the mission of the agency largely in secret.

    Lee Zeldin.
    Heatmap Illustration/Getty Images

    Environmental Protection Agency Administrator Lee Zeldin said earlier this week that he had canceled more than 400 grants “across nine unnecessary programs.”

    What were those unnecessary programs? Why were they deemed unnecessary? The Trump administration refuses to say.

    Keep reading...Show less
    Politics

    AM Briefing: The EPA’s Big Rollback

    On deregulation, climate grants, and green infrastructure

    The EPA Wants to Roll Back Dozens of Environmental Regulations
    Heatmap Illustration/Getty Images

    Current conditions: Health officials in Mumbai are warning vulnerable residents to take care as temperatures hover around 104 degrees Fahrenheit • Storm Konrad is battering Portugal and Spain with torrential rain • Cloudy weather is likely to spoil many Americans’ plans to catch tomorrow morning’s lunar eclipse.

    THE TOP FIVE

    1. EPA moves to roll back dozens of environmental regulations

    Environmental Protection Agency Administrator Lee Zeldin yesterday launched an attack on U.S. environmental regulations, announcing a review of dozens of agency rules aimed at safeguarding the water and air, and the health of all Americans. In what he called the “biggest deregulation action in U.S. history,” Zeldin said he was “driving a dagger straight into the heart of the climate change religion” in the name of unleashing American energy and bringing down costs. As The New York Timesnoted, Zeldin’s announcement did not once refer to protecting the environment or public health, “twin tenets that have guided the agency since its founding in 1970.”

    Keep reading...Show less
    Yellow
    Climate

    The Bill Gates Era of Climate Giving Has Ended

    Breakthrough Energy is winding down its policy and advocacy office, depriving the Inflation Reduction Act of a powerful defender.

    Bill Gates.
    Heatmap Illustration/Getty Images

    This is part of a Heatmap series on the “green freeze under Trump.

    A major chapter in climate giving has ended.

    Keep reading...Show less
    Blue