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Climate

Interior Plans to Rescind Drilling Ban in Alaska’s National Petroleum Reserve

On Alaskan oil, CCS, and ‘zombie plants’

Interior Plans to Rescind Drilling Ban in Alaska’s National Petroleum Reserve
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Current conditions: Flights have resumed to and from Sicily after Mt. Etna’s most powerful eruption in four years on MondayThere have already been almost half as many wildfire ignitions in the U.S. in 2025 as there were in all of 2024More than 700 people are feared dead in central Nigeria after heavy rains and flash floods.

THE TOP FIVE

1. Interior plans to reverse Biden ban on drilling in Alaskan wilderness

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The Department of the Interior announced Monday that it plans to rescind President Biden’s 2024 ban on drilling in more than half of the 23 million-acre National Petroleum Reserve-Alaska. The reserve holds an estimated 8.7 billion barrels of recoverable oil, but it is also some of the “last remaining pristine wilderness in the country,” The New York Times writes.

“Congress was clear: the National Petroleum Reserve in Alaska was set aside to support America’s energy security through responsible development,” Secretary Doug Burgum said in a statement announcing the proposed rule, further arguing that Biden’s ban had “ignored that mandate, prioritizing obstruction over production and undermining our ability to harness domestic resources at a time when American energy independence has never been more critical.” While the department’s announcement — which Burgum shared on Sunday at a heritage center in Utqiagvik, the largest city of the North Slope — was greeted with applause by attendees, Alaska’s senior manager for the Wilderness Society, Matt Jackson, said, “Everyone who cares about public lands and is concerned about the climate crisis should be outraged by this move to exploit America’s public lands for the benefit of corporations and the president’s wealthy donors.”

2. Carbon capture and storage applications have fallen 50% under Trump

Applications for carbon capture and storage projects fell by 50% in the first quarter of the year as compared to last year, with no new permits having been approved since President Trump took office, the Financial Times reports. Industry experts blamed the uncertainty over the fate of federal grants and tax credits for the lowest application submissions since 2022 — a concern that isn’t likely to go away anytime soon, since the Energy Department canceled nearly $4 billion in clean energy grants last week, including carbon capture and sequestration projects proposed by Heidelberg Materials and Calpine, as my colleague Emily Pontecorvo has reported. By BloombergNEF’s projections, an estimated 35% of the 152 million metric tons of announced carbon capture capacity expected to come online by 2035 will be canceled before then.

3. Trump admin orders another power plant to stay open to prevent summer blackouts

The Department of Energy has ordered Constellation Energy to continue operating its Eddystone power plant through the end of the summer to prevent potential electricity shortfalls on the mid-Atlantic grid, the Associated Press reports. The oil and gas plant, located south of Philadelphia, had been scheduled to shut down its last remaining units this weekend, before Constellation received the DOE’s emergency order.

Late last month, the DOE similarly ordered a coal-fired plant in Michigan to continue operating past its planned May 31 shutdown date, although the chair of the Michigan Public Service Commission said at the time that no energy emergency existed, Bloomberg reports. By contrast, the decision to order Eddystone’s continued operation followed PJM Interconnection expressing concerns about summer grid reliability; the operator has since voiced support for the DOE’s order. But the move also has its critics: “The Department of Energy’s move to keep these zombie plants online will have significant public health impacts and increase electricity costs for people in Michigan and Pennsylvania,” argued Kit Kennedy, a managing director at the Natural Resources Defense Council.

4. EU warned not to tiptoe on 2040 emissions goal

The European Union’s climate science advisers have warned the bloc against softening its 2040 emission goals, arguing that such a move could “undermine domestic value creation by diverting resources from the necessary transformation of the EU’s economy.” The European Commission is set to propose a binding target for member nations to cut emissions by 90% by 2040 from 1990 levels, but it is also considering allowing countries to set lower targets for their domestic industries and make up the gap using carbon credits, Reuters reports. The European Scientific Advisory Board on Climate Change, which issued its warning against the carbon credit loophole on Monday, described the original 90% emission reduction goal as achievable and necessary for both the health of Europeans as well as improving security by limiting the bloc’s reliance on foreign fossil fuel sources.

5. Battery storage integrator Powin warns it may cease operations before August

Oregon-based battery energy storage system integrator Powin has filed a notice with the state warning that it could lay off 250 employees and shut down operations by the end of July. Per the notification, the layoffs would include the company’s chief executives, and “it is presently contemplated that the affected employees will be permanently terminated.”

Powin has the third most gigawatt-hours of batteries installed in the U.S. and the fourth most worldwide. Still, turbulence due to tariffs and the Inflation Reduction Act incentives has reverberated through the industry, Latitude notes. In a statement provided to the publication, Powin described “navigating a period of significant financial challenge, reflective of ongoing headwinds in the broader energy storage industry.”

THE KICKER

The partial shading of Colorado grasslands by solar arrays could decrease water stress and increase plant growth during dry years by 20% or more, a new study in Environmental Research Letters has found.

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Spotlight

The Data Center Transmission Brawls Are Just Getting Started

What happens when one of energy’s oldest bottlenecks meets its newest demand driver?

Power line construction.
Heatmap Illustration/Getty Images

Often the biggest impediment to building renewable energy projects or data center infrastructure isn’t getting government approvals, it’s overcoming local opposition. When it comes to the transmission that connects energy to the grid, however, companies and politicians of all stripes are used to being most concerned about those at the top – the politicians and regulators at every level who can’t seem to get their acts together.

What will happen when the fiery fights on each end of the wire meet the broken, unplanned spaghetti monster of grid development our country struggles with today? Nothing great.

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Hotspots

Will Maine Veto the First State-Wide Data Center Ban?

Plus more of the week’s biggest development fights.

The United States.
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1. Franklin County, Maine – The fate of the first statewide data center ban hinges on whether a governor running for a Democratic Senate nomination is willing to veto over a single town’s project.

  • On Wednesday, the Maine legislature passed a total ban on new data center projects through the end of 2027, making it the first legislative body to send such a bill to a governor’s desk. Governor Janet Mills, who is running for Democrats’ nomination to the Senate, opposed the bill prior to the vote on the grounds that it would halt a single data center project in a small town. Between $10 million and $12 million has already been sunk into renovating the site of a former paper mill in Jay, population 4,600, into a future data center. Mills implored lawmakers to put an exemption into the bill for that site specifically, stating it would otherwise cost too many jobs.
  • It’s unclear whether Mills will sign or veto the bill. Her office has not said whether she would sign the bill without the Jay exemption and did not reply to a request for comment. Neither did the campaign for Graham Platner, an Iraq War veteran and political novice running competitively against Mills for the Senate nomination. Platner has said little about data centers so far on the campaign trail.
  • It’s safe to say that the course of Democratic policy may shift if Mills – seen as the more moderate candidate of the two running for this nomination – signs the first state-wide data center ban. Should she do so and embrace that tack, it will send a signal to other Democratic politicians and likely accelerate a further shift into supporting wide-scale moratoria.

2. Jerome County, Idaho – The county home to the now-defunct Lava Ridge wind farm just restricted solar energy, too.

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Q&A

Why Data Centers Need Battery Storage

A chat with Scott Blalock of Australian energy company Wärtsilä.

Scott Blalock.
Heatmap Illustration/Getty Images

This week’s conversation is with Scott Blalock of Australian energy company Wärtsilä. I spoke with Blalock this week amidst my reporting on transmission after getting an email asking whether I understood that data centers don’t really know how much battery storage they need. Upon hearing this, I realized I didn’t even really understand how data centers – still a novel phenomenon to me – were incorporating large-scale battery storage at all. How does that work when AI power demand can be so dynamic?

Blalock helped me realize that in some ways, it’s more of the same, and in others, it’s a whole new ballgame.

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