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Now back at the University of Pennsylvania, she talks to Heatmap about community engagement, gaps in the decarbonization market, and goats.

In November of 2020, Jennifer Wilcox had just moved to Philadelphia and was preparing to start a new chapter in her career as a tenured “Presidential Distinguished Professor” at the University of Pennsylvania. Then she got the call: Wilcox was asked to join the incoming Biden administration as the principal deputy assistant secretary for the Office of Fossil Energy, a division of the Department of Energy.
Wilcox had never even heard of the Office of Fossil Energy and was somewhat uneasy about the title. A chemical engineer by training, Wilcox had dedicated her work to climate solutions. She was widely known for having written the first textbook on carbon capture, published in 2012, and for her trailblazing research into removing carbon dioxide from the atmosphere. With Penn’s blessing, she decided to take the job. And in the just over three years she was in office, she may have altered the course of U.S. climate action forever.
First, Wilcox led a total transformation of the department to align it with the Biden administration’s climate goals. She started by arranging 15-minute meetings with each of the nearly 150 employees who worked with her at the D.C. office to understand their perspectives on their work, whether they were happy, and their fears and challenges. She admits she can be intense.
“I took all that information, and I sat on it with many weekends and a blank piece of paper and a pencil and drew crazy diagrams,” she told me, trying to funnel everyone’s feedback into a new vision for the department.
Previously, the Office of Fossil Energy’s primary function was to support research into oil, gas, and coal extraction and use. Wilcox flipped the mission on its head, reorganizing the department into one that would support research, development, and deployment of solutions that reduced dependency on those resources and minimized their environmental impacts. By July, she had codified that mission in a new name — the Office of Fossil Energy and Carbon Management.
Wilcox maxed out her leave this spring. I caught up with her about a week after she left the DOE, as she was picking up where she left off — preparing for her first semester as a professor of chemical engineering and energy policy at Penn. She’s also starting a new side gig as chief scientist at Isometric, a carbon credit certification company that’s trying to improve trust in carbon removal measurement and verification through rigorous standards and transparency.
I asked her to reflect on her time at the Department of Energy, the changes she oversaw, and what she’s looking to do next. Our conversation has been edited for length and clarity.
When was your last day at DOE? Did you leave because you had an obligation to come back to Penn?
My last day was Friday, May 31, so just a week or so ago. Typically, when you’re in an academic tenured position, you can have a maximum of a two-year leave. Within the first year of my appointment at DOE, the Bipartisan Infrastructure Law went through, and then in the second year, the IRA went through — the Inflation Reduction Act. And I was like, this is big stuff. It felt like just a defining moment — in my career, but also in terms of climate legislation. And I thought, how could I possibly leave now? So I went back to Penn and I wrote, I thought, a pretty thoughtful letter of the impact that I could have if I could stay just a year and a half longer. And they said yes.
Could you share the story of how you were asked to go work for the department in the first place?
Sure, it’s pretty funny. Something that many people don’t know is we have a small farm — we had 22 acres in Massachusetts, and goats and a pig and chickens and oh my goodness. Penn was like, “We’ll move your goats, too,” and so we moved everybody. And here I am at the kitchen table amidst boxes, and the goats are outside, and I’m on my laptop, and I get this email from the Biden-Harris transition team. I was like, ain’t nobody got time for that. That’s spam. Delete! And then a couple days go by and I get another one, and I was like, come on. Is this real? And I forwarded it to my husband. He’s an ER doctor, and he’s like, “Honey, that’s real. You have to respond!” And so I sent my CV.
One of the first things you did was rename the department. How did that happen?
When I came in, it was really early days of, okay, net zero by 2050, and there was a question of, what does that mean for our office? Should this office exist in a net zero world? I knew that I was being recruited to think about reshaping, rethinking the portfolio.
We only had two R&D offices at the time. One was called Oil and Gas — we renamed that Office of Resource Sustainability. The other was literally the Office of Coal. What I decided to do was take that program and move it over. That whole office is all about, if you’re choosing to extract energy resources from the Earth, how do you do it in a way that’s minimal impact?
Now, what’s left is how you manage the pollution of how we use fossil fuels — that’s the carbon dioxide. And so we built out a whole new division on carbon removal. We teased out a whole program on hydrogen, and then we also separated out carbon conversion into its own division, and then carbon transport and storage. And so rather than one program focused on carbon, we had five, which is pretty cool. I mean, the amount that I was empowered and supported — and by the way, we got it all through without a single pushback, in nine months. So that was huge.
How would you characterize how the field changed from the time that you entered the office until now? Have research questions changed? Have policy priorities changed?
I think things are starting to change. One of the things from these last few years of having the resources that have started to become mobilized, it’s helping us to recognize where the gaps really are. When you have money to be able to put out for certain topic areas, you get to see who’s going to apply, and who applies gives you an indication of where the technology is at and how much of it’s ready.
For instance, if you look at the $3.5 billion for direct air capture hubs, we had to write the funding opportunity announcement to meet industry where they’re at. There’s only a couple of companies that are really even at a stage where they can start to think about demonstration on the tens of thousands of tons of removal, let alone a million tons per year.
Some of the gaps that we saw were, in direct air capture, making sure that there’s enough companies that are supported to be able to get us to the scale that we need to. And then for the other approaches to carbon removal, making sure that if we want these projects to be durable, in terms of carbon removed on a time scale that impacts climate, we need to figure out how to quantify the net carbon that’s removed.
And then one significant gap that we saw that we are trying to fill with this funding: When we think about corporations and net zero pledges, a lot of times the carbon removal purchasing is associated with Scope 3 emissions that companies don’t have the ability to control. These are supply chains. It could be paper, it could be fuel, food, glass, cement, steel. And so looking at that whole sector, it’s about 10 different industrial sectors that we need to figure out how to decarbonize. If we can think about decarbonizing these supply chains, it’ll take some of the pressure off of the carbon removals to counterbalance those.
The last piece that I feel like gets forgotten is, in the infrastructure law, we had $2.5 billion for building out geologic storage. That’s an issue because you can do the carbon capture, but the big question is, where are you going to put it? And can you get it from point A to point B? We have a whole program called CarbonSAFE that essentially shepherds the industry through the process, starting with characterization all the way to a class six permit from EPA. Building that capacity out means that’s one less thing that industry has to worry about as they’re looking at carbon capture.
During your time there, the department was interfacing with hundreds of researchers and startup founders who were all trying to get new projects or companies off the ground. I’m curious, what are some of the most common misunderstandings you saw from applicants?
There’s a couple of things, but one that stands out — and maybe this is because I have a background in academia — there’s a lot of technologies out there that are actually pretty far along, especially in point source capture [technologies that capture carbon from the smokestacks of industrial facilities before it enters the atmosphere]. Yet, at universities, they’re still trying to develop the next solvent or solid sorbent. It’s like, we can stop doing that.
Where the R&D comes in is actually getting data over a long period of time. How does the material behave? How can we recycle it and reuse it over and over again? How can we design it in a way that reduces NOx, SOx pollution, particulate matter, making the air cleaner? But it’s not about how do we just develop a new technology, because there’s a lot out there.
It seems like one of the hardest things the department was trying to do under your leadership was to strengthen its work on community engagement and community benefits — hard because many advocates for fenceline communities are so skeptical of the solutions you were working on. How did you navigate that tension?
Well, one thing is, I know what I don’t know, and I’m usually pretty willing to say what I’m good at and what I’m not good at. In the early days, I knew that this was going to be a challenge for our office and so I recruited a social scientist: Holly Jean Buck, she’s a professor at the University of Buffalo. We brought Holly in to help us develop some of the language around … it started off with community benefits, but some of our investments don’t always lead to benefits, so let’s be honest, right? And so what we wanted to think about is, what are the societal considerations and impacts of our investments? We ended up recruiting a few others, and now we have a team that’s focused on domestic engagement, and also communications and outreach.
What do you think it could mean for some of what you’ve accomplished and other things you’ve set in motion if Biden is not reelected?
I feel pretty good about what we’ve put in place, that it’s sustainable. The other thing about what I saw is that industry is really leaning in on doing these things. The low-carbon supply chains — a lot of glassmakers, cement facilities — are very interested in improving energy efficiency, are interested in carbon capture or using hydrogen as a heat source. And so what we have done is really looking at making sure they’re economic. All of these efforts that we’ve put in place are extremely bipartisan, and they’re essentially just supporting industry in a way such that they’re achievable because they’re economic.
Let’s talk a little bit about what’s next. Why did you want to work with Isometric? What are you going to be doing there?
When I was at DOE, from the beginning, we were looking at, you know, there’s a lot of the carbon removal portfolio where we don’t have the rigor in place to be able to determine the durability of the removals, the additionality of them, the time scale on which the carbon is actually removed, quantifying net removed. And so we started a commercialization effort, leveraging our national labs to help us to develop the framework. Isometric is working toward establishing rigorous frameworks, and I’m hoping to leverage the efforts ongoing at DOE — and with transparency, so that others may follow, which could lead to more durable removals and greater impact at the end of the day.
What about on the academic side of your career. Where do you plan to focus your research?
Some of the work that we were doing, or the team has been continuing to do while I’m at DOE, is mineralization, looking at different waste feedstocks that have alkalinity [a property that’s useful for carbon removal], like magnesium and calcium. One of the things that we’re going to focus a little bit more on is asking the question of, what else is there? You know, if there’s rare earth elements or critical minerals that could be used for clean energy technologies, EV motors, magnets for wind turbines. And so, I’m really excited about looking at these materials and seeing what value is there.
I’m also really excited about helping with the measurement and quantification of some of the more natural systems of removal, like forests. One of the new majors at Penn is artificial intelligence. I think there’s an opportunity right now to think about, how can we take data, whether it’s from drones or whether it’s from Lidar and airplanes or satellite data, bringing it together in an integrated way again, so that we have more robust databases that are also transparent.
There’s so many debates going on around carbon removal right now, and it feels like they often come down to philosophical differences. Are these debates important? Or do we just need to decide what we’re going to do and then reevaluate it later?
We’re not in a position anymore to think we can just decarbonize and not do greenhouse gas removals. We know we need to do both. And so I think that there are some kind of “no regrets” things that we can do — opportunities, as we’re scaling up both in the near term, to think about them in a coordinated way. In communities that don’t have solar today, imagine you have a direct air capture facility going in, and then they’re bringing clean energy that they’re using for direct air capture, but they’re bringing it for the first time ever to a community that wouldn’t otherwise have access.
But it really is regional. I think it’s regional in that there’s limited resources in any given region, whether it’s low-carbon energy, land, clean water, even geologic pore space. You have it in some states and not others. And so we really need to look at those resources and always prioritize decarbonizing, but recognize that it’s not necessarily one or the other.
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On ‘precariously low’ oil stockpiles, China’s ammonia milestone, and a PFAS destroyer
Current conditions: The wildfires in France and Europe are slowing, but three firefighters have died and the looming heat wave could bring yet more disaster • New York and New Jersey are facing flash floods as a storm system makes its way across the Northeast United States • Days of thunderstorms are causing floods across Vientiane, Laos’ sprawling capital.
Last month, I toured Commonwealth Fusion Systems’ headquarters in small-town central Massachusetts. The place was abuzz in activity. On the factory floor side, workers were assembling the magnets needed to ultimately form the torus-shaped reactor — think a giant doughnut with an interior that curves like the core of an apple — called the tokamak. On the actual reactor side, SPARC — the prototype that CFS expects will make history next year as the first private enterprise and only tokamak to ever generate more energy that it took to start the fusion reaction — was starting to look like a functional machine from my view on a second-story walkway overlooking the sterile assembly room. The old joke that fusion is the energy source of tomorrow — and always will be — certainly didn’t ring as funny now. I’ll tell you who isn’t laughing: All the new investors that just poured another $1 billion into CFS. The company announced its latest funding round early this morning, which brings the startup’s total fundraising since its launch as a spinout from the Massachusetts Institute of Technology in 2018 to $4 billion. CFS now accounts for 30% of all the private capital that has flowed into fusion. What distinguishes this round, my colleague Katie Brigham wrote, is that the money is coming from a bunch of institutional investors, such as pension funds and sovereign wealth funds, rather than venture capitalists. On a call with reporters this week, CFS’s newly-named chief financial officer, Lorence Kim, said it’s the first-time institutional investors comprised the majority of the new funding. When I asked the company’s spokeswoman for a percentage estimate breaking down the new versus old investors in this round, she declined to comment. Kim cautioned that the funding isn’t the kind of capital you raise before launching on a stock market. But his hire is notable. The former Goldman Sachs banker famously helped take the pharmaceutical giant Moderna public and held the top financial role through the start of the Covid-19 pandemic.
Meanwhile, a federal Superfund site at a facility in Kentucky once used to enrich uranium for atomic bombs is being transformed into a data center. On Wednesday, the Department of Energy announced a deal between investment giant Brookfield, utility behemoth NextEra Energy, and three local power providers to redevelop portions of the Paducah site into a $100 billion data center campus. “By transforming former DOE sites into engines of innovation and economic growth, we can revitalize communities with increased tax revenue and thousands of jobs, while also strengthening America’s energy security,” Secretary of Energy Chris Wright said in a press release.
The Federal Reserve held the country’s benchmark interest rate steady at Wednesday’s meeting of the U.S. central bank’s top brass. But three bank presidents voted to increase rates as renewed fighting in Iran sent energy prices upward. The dissent “underscored officials’ fraying patience with looking past another price shock on the heels of tariff-related increases last year and with robust demand stemming from the artificial-intelligence buildout,” The Wall Street Journal reported. That is, of course, bad news for renewables and other clean energy developers who rely on cheap upfront money to build, as my colleague Matthew Zeitlin has written.
But there are potentially bigger problems afoot for American energy consumers. U.S. crude stockpiles fell sharply last week as American refineries ramped up production to seize on surging fuel prices as fighting erupted in Iran. The stocks have now reached “precariously low” levels, analysts told the Financial Times, meaning there’s far less cushion if the war worsens the supply shock.
Last month, the energy team at the liberal policy shop Third Way assembled 100 swing voters from across the country to talk about the data centers that poll after poll shows are becoming less and less popular, to put it mildly. The conclusion of the discussions was this: “America’s opposition to data centers has less to do with their feelings about artificial intelligence and more to do with their anger and distrust of large corporations and government.” The findings, shared with me exclusively in advance, showed that most participants were open to a new data center if they believed it would come with tangible benefits for their communities. While some investors, such as “Shark Tank” star Kevin O’Leary, have tried to present those offerings, “the trust isn’t there.” While Emily Becker, the director of Communications for Third Way’s Climate and Energy Program, told me she was “not surprised by how much opposition there was, what was heartening is people understood that benefits were possible. They just didn’t think they would receive them.”
Speaking of data centers and the public trust: NV Energy has accused one of the biggest developers of data centers in Nevada of attempting to illegally bypass state regulators to determine through private arbitration how and when the Berkshire Hathaway-owned utility should provide power to its operations. The lawsuit, filed Friday in Washoe County’s Second Judicial District Court, alleges that the developer, Tract, is trying to skirt the usual process by which the state Public Utilities Commission determines what share of the utility’s electricity should go to the large power user. Tract, according to the complaint, “wants NV Energy to reserve and provide enormous amounts of power for Tract's private development while shifting the infrastructure and energy costs to Nevada families, small businesses, and existing customers who did not cause them.” Sorting out those questions through arbitration would help to “keep these issues hidden” from state regulators and the public, NV Energy said, according to The Nevada Independent.
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When the Biden administration attempted to overhaul regulations on electrical transformers to make the key grid components more efficient, the proposal drew fierce bipartisan pushback amid a years-long nationwide shortage of the equipment. Ultimately, the Biden administration backed down and changed the proposal after receiving public comments. That would have seemed to provide some certainty for factories. But just two years after the final rule won acclaim from across the industry, the Trump administration is now considering revising the requirements for rules set to take effect in 2029. “We’re not aware of anyone asking for this,” Andrew deLaski, executive director of the Appliance Standards Awareness Project, told Utility Dive. The group supported the 2024 transformer rule and other stricter efficiency requirements DOE finalized during the Biden administration.
China has signaled it’s planning to take on what Bloomberg described as a bigger role in steering global negotiations over climate change. The 15th five-year plan published Monday by the Ministry of Ecology and Environment and other key agencies outlines how Beijing “will constructively lead the multilateral governance process to address climate change” and states that “China’s influence, guiding capacity, shaping power, and moral appeal in global climate governance will be significantly enhanced” through the end of the decade. Beijing is already looking to increase how much renewable energy it consumes, as I told you last week.
As you may recall, China is going all in on figuring out how to make green hydrogen work, especially now that the People’s Republic is throwing everything at the wall to diversify its domestic supply of fuels as the Iran War chokes off its regular supply of hydrocarbons. One of the trickier questions with green hydrogen is how to ship the world’s small molecules without leaks. A popular solution is to convert the hydrogen into green ammonia. On Tuesday, SPIC Green Energy announced the successful loading of 3,750 metric tons of green ammonia produced in Jilin Province onto a vessel at the Lianyungang Port in Jiangsu Province and shipped to South Korea. “The shipment represents the world’s largest single-batch delivery of green ammonia,” analyst Jian Wu wrote in his China Hydrogen Bulletin newsletter. “It marks China’s transition from technical demonstration to large-scale international commercial delivery.”
A company promising to put an expiration date on so-called forever chemicals just raised a bunch of money to bring its technology to market. Claros Technologies is developing a proprietary system that can break down the per- and polyfluoroalkyl substances, or PFAS, contaminating millions of Americans’ drinking water systems. This week, the startup closed a $55 million Series B financing round. “Over the past year, Claros has crossed the threshold from breakthrough technology to successful commercial reality,” CEO Michelle Bellanca said in a statement.
Risk-averse but deep-pocked institutional investors join the party.
When the Fusion Industry Association surveyed the sector earlier this month, it found that the industry’s 56 active companies had collectively raised more than $14.2 billion over the past five years. But an ever-larger share of that money is ending up in the hands of one startup: Commonwealth Fusion Systems.
With its latest $1 billion funding round, announced today, the MIT spinout now accounts for nearly 30% of all capital in the industry. The new financing, led by a wave of institutional investors entering the sector for the first time, will support construction of the company’s first commercial power plant in Chesterfield County, Virginia, which CEO Bob Mumgaard says is on track to come online in the early 2030s.
In a media briefing, Mumgaard noted that this latest raise marks “the largest single funding round among fusion energy companies since our last large round of $1.8 billion in 2021.” It brings the total capital raised by CFS to an even $4 billion as the company races to complete construction of SPARC, its demo reactor. If all goes according to plan, it should begin operating sometime next year, proving out the physics and engineering approach underpinning ARC, the planned commercial plant.
The new financing deviates from the typical venture capital round, as it brings in a broad but unnamed mix of “large pension funds, sovereign wealth funds, infrastructure funds doing project finance, and industrial corporates.” These risk-averse investors would typically steer clear of expensive, first-of-a-kind facilities, demonstrating the degree to which CFS has succeeded in building confidence in an industry long critiqued for overpromising and underdelivering.
The company credits the trust it built to its extensive peer-reviewed research as well as its decision to build a tokamak — widely regarded as the most mature fusion reactor design. “I don’t think there’s any other company that’s been as transparent and open with their physics and how it actually works,” Katie Rae, CEO and managing partner at Engine Ventures, told me. Rae has participated in every one of CFS’s funding rounds, and while she says her firm has evaluated virtually every startup in the sector, the company remains its only fusion investment.
But even flush with institutional capital, Mumgaard is clear that the company will need billions more to fully finance ARC and the numerous reactors to follow. It’s unclear where exactly that money will come from, though he’s pushing for government involvement. Alongside the Fusion Industry Association, Mumgaard is advocating for a one-time, roughly $10 billion federal infusion of cash into the broader industry to expand public-private partnerships, build shared research infrastructure, and help finance first-of-a-kind plants in an effort to keep pace with China’s rapidly growing fusion program.
According to reporting from Politico, a Department of Energy official told CFS and other fusion companies that such a level of federal funding is “unrealistic in this environment.” But though insiders argue it’s what the industry needs to scale, Rae says CFS doesn’t depend on it. “I think it is the right kind of investment to make, but we didn’t count on it from an investor perspective,” she told me.
One obvious alternative is the public markets. The IPO window for climate tech has reopened, with geothermal giant Fervo and nuclear fission startup X-energy both completing successful public offerings in recent months. SPACs have also made a comeback, as numerous nuclear companies are opting for this faster, though riskier, path to the public markets. But CFS’s newly appointed CFO, Lorence Kim, said during the briefing that this latest round proves “that the private markets have a lot of capital to deploy toward our mission.” Whether an IPO is in the company’s near future remains an open question, though he cautioned against interpreting his hiring as any indication of “IPO prep in a specific way.”
For what it’s worth though, Kim has taken another high-profile, pre-revenue startup public before: Moderna. As CFO from 2014 to 2020, he helped the company scale its mRNA platform and lead its blockbuster $600 million IPO in late 2018 — the largest ever in the biotech industry at the time. Notably, this all happened before Moderna had an approved product or the Covid pandemic made its signature vaccine a household name, similar to where Commonwealth finds itself today.
“Moderna was in this moment in time where the science worked, and the strategy was focused on execution and scale and deploying capital in a way that could enable real impact on the world,” Kim explained. CFS is now at the same juncture, he said. “And so in the same way that Moderna industrialized mRNA and made it inevitable and made it ubiquitous, it was really clear to me that CFS could do the same for fusion.”
Of course, CFS is not alone in its confidence — other fusion companies are equally bullish on their own approach. Take Inertia Enterprises, a Lawrence Livermore National Laboratory spinout, which last week unveiled its own commercial roadmap for a laser-driven fusion reactor. The company emphasized it’s the only one to have definitively demonstrated the viability of its underlying physics in a real-world experiment, rather than through theoretical work or simulations.
Or take Helion, which has raised $1.5 billion and secured a highly ambitious power purchase agreement with Microsoft to supply electricity to the tech giant by 2028. Or Pacific Fusion, which netted a staggering $900 million Series A to be doled out in milestone-based tranches. There are dozens of others — many with hundreds of millions in funding — pursuing a range of approaches that some of the field’s brightest minds consider technically feasible.
But when I mused to Rae about how exciting it is that institutional investors now appear willing to back an industry once viewed as bordering on science fiction, she was quick to correct me.
“They’re willing to bet on Commonwealth Fusion — that’s what you mean.”
At least one hyperscaler’s big bets seem to be paying off.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
Good evening. Let’s start with the news. Meta and Microsoft released their most recent quarterly earnings this evening, and Wall Street was watching to figure out if their enormous AI spending plans are paying off. We were watching because those proposals are shaping one of the most important energy stories today: the data center boom and the sharp return of electricity demand.
The returns were … mixed. Meta missed analysts’ estimates, and its profit fell 14% from the same quarter a year earlier. It increased the lower bound of how much it plans to spend on capital expenditures such as data centers this year, from $125 billion to $130 billion, but left the upper bound of $145 billion unchanged.
Microsoft, meanwhile, said its AI investments are starting to pay off. Revenue at its cloud business, which uses its data center space, increased by 43%, more than analysts expected. It spent $41 billion on capital expenses in the three months ending in June.
Meta’s stock was down 7% in after-hours trading, while Microsoft is up 8%. When Heatmap surveyed climate insiders last year, they ranked Microsoft as among the most decarbonization-friendly hyperscaler and Meta as among the worst.
Permitting odds up — thanks to Shift Key?
I do not regularly follow such things, but this afternoon I was told that the Kalshi market for “Will permitting reform become law this year?” surged to 77% today after trading for days around 50%:
I have no idea why it budged today, but perhaps what moved the market was our new episode of the Shift Key podcast (Apple, Spotify). On today’s show, I spoke with Daniel Palken, a former Capitol Hill policy staffer now at Arnold Ventures, about the current state of permitting reform negotiations in Congress. While we don’t know the exact shape of a deal yet, permitting reform is likely to be the biggest new policy for clean energy that we could get by the end of the year.
Daniel is a fantastic guide to the negotiations, and if you’re curious about the policy at all, I recommend that you listen. Here are few of my takeaways from the conversation:
1. A permitting reform deal will probably have six buckets.
They are (1) changes to the National Environmental Policy Act and the judicial review process that environmental studies face after completion; (2) reforms to the transmission process; (3) changes to the Clean Water Act; (4) a deal to make it harder for presidents to yank permits from approved projects; (5) changes to the National Historic Preservation Act, and (6) “everything else,” a grab bag of smaller fixes including to geothermal energy.
2. Wonky committee politics are shaping the deal.
The National Historic Preservation Act, for instance, is an archeological law that hasn’t been in the mix for previous reform proposals. It’s up for discussion now because Senator Mike Lee of Utah chairs the Senate Energy and Natural Resources Committee — and the NHPA is the major environmental bill under his jurisdiction. Likewise, observers think that a permitting deal has a much better shot of passing during this Congress (as compared to next year) because of an expected series of changes to committee chairs.
3. It’s way, way better to hook data centers to the power grid than run them off behind-the-meter power plants — even if they run off 100% natural gas.
Any permitting reform proposal will seek to expand the transmission system. That could have big benefits for the emissions intensity of data centers. Why? I’ll let Daniel explain:
If you look at the data centers that are hooking up off grid — when they’re not using repurposed jet engines, they’re using 20% thermally efficient gas plants. Whereas if you’re hooked up to the grid, there’s really two types of gas plants that live on the grid. There’s like 60% efficient combined-cycle gas turbines, which are most of the gas power that’s generated, and then there’s peaker [plants], which have low efficiency, but are run at capacity factors of like 5% — so from an emissions perspective, they don’t matter all that much.
So even if solar and wind didn’t exist at all, and nuclear didn’t exist, and hydro didn’t exist, it would still be a much, much cleaner option [to connect data centers to the power grid]. Like we’re talking factors of three in efficiency to connect your data center to the grid if it was purely powered by gas, which is, I think, an important point to understand.
I thought that was an interesting point, and while I’d seen some of those ideas in isolation, I’d never seen them laid out in one place. (And even if grid-scale gas plants are much more efficient than behind-the-meter plants, it’s still even better to power data centers with solar, batteries, and other clean firm power plants — which is also easier when they’re hooked up to the grid.)
I’ll stop glossing the episode and just link to it one more time. Thanks for reading.