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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.

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  • 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

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    Carbon Removal

    Tensions Mount at Greenhouse Gas Protocol as Scientist Resigns in Protest

    The move by University of Pennsylvania researcher Danny Cullenward intensifies a debate over integrity at the carbon accounting organization.

    A handshake amidst smokestacks.
    Heatmap Illustration/Getty Images

    A well-known scientist has resigned from the independent oversight board of the Greenhouse Gas Protocol, renewing questions about the integrity of one of the world’s most important arbiters of carbon emissions standards.

    Danny Cullenward, who is also an economist and lawyer, notified the organization’s leadership on Monday that he no longer has “any confidence in the Protocol’s governance structure,” according to his resignation letter, which he posted publicly. He had previously tried to sound alarms about the organization and its lack of transparency in a paper he published in April.

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    Electric Vehicles

    Rivian Did It

    The U.S. electric vehicle maker’s make-or-break model, the R2, is finally here — and it’s pretty fun to drive.

    A Rivian R2.
    Heatmap Illustration/Rivian

    The attainable Rivian is here, and not a moment too soon.

    It’s been nearly a decade since the U.S.-based startup revealed its prestige R1T pickup truck and R1S SUV, earning plenty of “the next Tesla” hype and becoming lots of people’s favorite electric car brand. But with those R1 vehicles starting around $70,000 — and with nicer versions hitting six digits — lots of would-be drivers have been waiting for R2, the scaled-down vehicle first announced in 2024 and meant to take Rivian to the masses.

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    AM Briefing

    Great Tokamak Mountains

    On Chinese nuclear, Mongolian uranium, and screwworm spreading

    A future fusion plant.
    Heatmap Illustration/Getty Images

    Current conditions: China has triggered emergency warnings across six provinces as heavy rainfall floods the countryside • A magnitude 7.8 earthquake struck the Philippines, leaving at least 32 dead and more than 100 injured in building collapses • Temperatures in Albuquerque, New Mexico, are rising near 100 degrees Fahrenheit.


    THE TOP FIVE

    1. Tennessee becomes the first state to officially regulate fusion energy

    On Tuesday, Tennessee is set to become the first state in the nation with its own regulatory framework for nuclear fusion plants. You may be wondering, why Tennessee? The two-word answer: Oak Ridge. The Volunteer State has operated as a hub for nuclear energy research and development for more than 60 years, feeding off both the Oak Ridge National Laboratory and the Tennessee Valley Authority’s capacity to help commercialize new technologies. Now state regulators are establishing the first dedicated rulebook for building future fusion plants. “Tennessee has been named the top state in the nation for nuclear energy industry growth, and for good reason,” David Salyers, the commissioner of the Tennessee Department of Environment and Conservation, said in a statement. “This latest step supercharges our reputation as the global hub for nuclear innovation and positions us as the most responsive state to new advanced nuclear companies clamoring to call Tennessee home.”

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