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On power plant emissions, Fervo, and a UK nuclear plant
Current conditions: A week into Atlantic hurricane season, development in the basin looks “unfavorable through June” • Canadian wildfires have already burned more land than the annual average, at over 3.1 million hectares so far • Rescue efforts resumed Wednesday in the search for a school bus swept away by flash floods in the Eastern Cape province of South Africa.
EPA
The Environmental Protection Agency plans to announce on Wednesday the rollback of two major Biden-era power plant regulations, administration insiders told Bloomberg and Politico. The EPA will reportedly argue that the prior administration’s rules curbing carbon dioxide emissions at coal and gas plants were misplaced because the emissions “do not contribute significantly to dangerous pollution,” per The Guardian, despite research showing that the U.S. power sector has contributed 5% of all planet-warming pollution since 1990. The government will also reportedly argue that the carbon capture technology proposed by the prior administration to curb CO2 emissions at power plants is unproven and costly.
Similarly, the administration plans to soften limits on mercury emissions, which are released by burning coal, arguing that the Biden administration “improperly targeted coal-fire power plants” when it strengthened existing regulations in 2024. Per a document reviewed by The New York Times, the EPA’s proposal will “loosen emissions limits for toxic substances such as lead, nickel, and arsenic by 67%,” and for mercury at some coal power plants by as much as 70%. “Reversing these protections will take lives, drive up costs, and worsen the climate crisis,” Climate Action Campaign Director Margie Alt said in a statement. “Instead of protecting American families, [President] Trump and [EPA Administrator Lee] Zeldin are turning their backs on science and the public to side with big polluters.”
Fervo Energy announced Wednesday morning that it has secured $206 million in financing for its 400-megawatt Cape Station geothermal project in southwest Utah. The bulk of the new funding, $100 million, comes from the Breakthrough Energy Catalyst program.
Fervo’s announcement follows on the heels of the company’s Tuesday announcement that it had drilled its hottest and deepest well yet — at 15,000 feet and 500 degrees Fahrenheit — in just 16 days. As my colleague Katie Brigham reports, Fervo’s progress represents “an all too rare phenomenon: A first-of-a-kind clean energy project that has remained on track to hit its deadlines while securing the trust of institutional investors, who are often wary of betting on novel infrastructure projects.” Read her full report on the clean energy startup’s news here.
The United Kingdom said Tuesday that it will move forward with plans to construct a $19 billion nuclear power station in southwest England. Sizewell C, planned for coastal Suffolk, is expected to create 10,000 jobs and power 6 million homes, The New York Times reports. Sizewell would be only the second nuclear power plant to be built in the UK in over two decades; the country generates approximately 14% of its total electricity supply through nuclear energy. Critics, however, have pointed unfavorably to the other nuclear plant under construction in the UK, Hinkley Point C, which has experienced multiple delays and escalating costs throughout its development. “For those who have followed Sizewell’s progress over the years, there was a glaring omission in the announcement,” one columnist wrote for The Guardian. “What will consumers pay for Sizewell’s electricity? Will it still be substantially cheaper in real terms than the juice that will be generated at Hinkley Point C in Somerset?” The UK additionally announced this week that it has chosen Rolls-Royce as the “preferred bidder” to build the country’s first three small modular nuclear reactors.
The European Union on Tuesday proposed a ban on transactions with Nord Stream 1 and 2 as part of a new package of sanctions aimed at Russia, Bloomberg reports. “We want peace for Ukraine,” the president of the European Commission, Ursula von der Leyen, said at a news conference in Brussels. “Therefore, we are ramping up pressure on Russia, because strength is the only language that Russia will understand.” The package would also lower the price cap on Russian oil to $45 a barrel, down from $60 a barrel, von der Leyen said, as well as crack down on Moscow’s “shadow fleet” of vessels used to transport sanctioned products like crude oil. The EU’s 27 member states need to unanimously agree to the package for it to be adopted; their next meeting is on June 23.
The world’s oceans hit their second-highest temperature ever in May, according to the European Union’s Earth observation program Copernicus. The average sea surface temperature for the month was 20.79 degrees Celsius, just 0.14 degrees below May 2024’s record. Last year’s marine heat had been partly driven by El Niño in the Pacific, so the fact that the oceans remain warm in 2025 is alarming, Copernicus senior scientist Julien Nicolas told the Financial Times. “As sea surface temperatures rise, the ocean’s capacity to absorb carbon diminishes, potentially accelerating the build-up of greenhouse gases in the atmosphere and intensifying future climate warming,” he said. In some areas around the UK and Ireland, the sea surface temperature is as high as 4 degrees Celsius above average.
Image: Todd Cravens/Unsplash
The Pacific Island nation of Tonga is poised to become the first country to recognize whales as legal persons — including by appointing them (human) representatives in court. “The time has come to recognize whales not merely as resources but as sentient beings with inherent rights,” Tongan Princess Angelika Lātūfuipeka Tukuʻaho said in comments delivered ahead of the U.N. Ocean Conference in Nice, France.
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Renewables developers may yet be able to start construction before the One Big Beautiful Bill deadlines hit.
The Trump administration issued new rules for the wind and solar tax credits on Friday, closing the loop on a question that has been giving developers anxiety since the One Big Beautiful Bill Act passed in early July.
For decades, developers have been able to lock in tax credit eligibility by establishing that they have officially started construction on a project in one of two ways. They could complete “physical work of a significant nature,” such as excavating the project site or installing foundational equipment, or they could simply spend 5% of the total project budget, for instance by purchasing key components and putting them in a warehouse. After that, they had at least four years to start shipping power to the grid before stricter work requirements kicked in.
Shortly after signing the OBBBA, however, Trump issued an executive order directing the Treasury Department to revise its definition of the “beginning of construction” of a wind or solar project. Under the new law, this definition can make or break a project. OBBBA established new deadlines for wind and solar development, allowing projects that start construction before the end of this year to qualify for the tax credits as they currently stand. But projects that start construction between January 1 and July 4 of 2026 will have to follow stringent new rules limiting the use of materials with ties to China in order to qualify.
The start construction date also affects how long a developer has to complete a project and still qualify for credits. Projects that start before July 4 of next year have at least four years, while those that start after must meet an impossibly short timeline of being up and running in just a year and a half, by the end of 2027.
Some worried the new guidance would narrow that four year timeframe or affect project eligibility retroactively. Neither happened. The only major change the Treasury department made to the existing guidance was to get rid of the 5% safe harbor provision. While this is not nothing, and will certainly disqualify some projects that might otherwise have been able to claim the credits, it is nowhere near as calamitous for renewables as it could have been.
Projects can still establish they have started construction by completing “physical work of a significant nature,” and the definition of physical work still includes off-site work, such as the manufacturing of equipment. That means it’s still possible for a company to simply place an order for a custom piece of equipment, like a transformer, to establish their start date — as long as they have a binding contract in place and can demonstrate that the physical production of the equipment is underway.
The new guidance also contains a carve-out that allows solar projects that are less than 1.5 megawatts to use the 5% rule, which will help rooftop solar and smaller community-scale installations.
Trump’s executive order came after a reported deal he made with House Freedom Caucus Republicans who wanted to axe the tax credits altogether. The order directed the Treasury to prevent “the artificial acceleration or manipulation of eligibility” and restrict “the use of broad safe harbors unless a substantial portion of a subject facility has been built.”
Treasury’s relative restraint, then, comes as something of a relief. “It’s not good, it’s not helpful, but from my perspective, the guidance could have been a lot worse,” David Burton, a partner at Norton Rose Fulbright who specializes in energy tax credits, told me. “Utility-scale solar and wind developers should be able to plan around this and not be that harmed.”
That doesn’t mean clean energy groups are happy about the changes, though. “At a time when we need energy abundance, these rules create new federal red tape,” Heather O’Neill, president and CEO of the industry group Advanced Energy United, said in a statement. “These rules will make it more difficult and expensive to build and finance critical energy projects in the U.S.”
The changes don’t go into effect until September 2, so for the next two weeks, all projects can still utilize the 5% safe harbor.
Even though the rules are not the death-blow for projects that some anticipated, there’s still one big unknown that could squeeze development further: The Treasury department has yet to put out guidance related to the new foreign sourcing rules created by the OBBB. One of the big fears there is that companies will have to prove their lack of ties to China so far up their supply chains that compliance becomes impossible.
We probably won’t be left wondering for long, though. Trump’s executive order asked for those rules within 45 days, putting the due date on Monday.
On the worsening transformer shortage, China’s patent boom, and New York’s nuclear embrace
Current conditions: Tropical Storm Erin is still intensifying as it approaches the Caribbean • Rare August rainstorms are deluging the Pacific Northwest with a month’s worth of precipitation in 24 hours, threatening floods • Hong Kong has issued its highest-level “black” rainstorm warning multiple times this month as Tropical Storm Podul lashes southern China.
President Donald Trump’s order to keep large fossil-fueled power stations scheduled to retire between now and 2028 operating indefinitely will cost ratepayers across the United States $3.1 billion per year, according to new research from the consultancy Grid Strategies on behalf of four large environmental groups. If the Department of Energy expands the order to cover all 54 fossil fuel plants slated for closure in the next three years, the price tag for Americans whose rates fund the subsidies to keep the stations running would rise to $6 billion per year.
The problem may only grow. The agency’s existing mandates “perversely incentivize plant owners to claim they plan to retire so they can receive a ratepayer subsidy to remain open,” the report points out.
With electricity consumption hitting new records in the U.S., demand for transformers is surging. The years-long supply shortage for power and distribution transformers is now set to hit a deficit below demand of 30% and 10%, respectively, in 2025, according to a new report from the energy consultancy Wood Mackenzie. Complicating matters further for manufacturers scrambling to ramp up supply, Trump’s One Big Beautiful Bill Act is throwing clean-energy projects into jeopardy and sending mixed signals to factories on what kinds of transformers to produce. At the same time, tariffs are raising the price of materials needed to make more transformers.
“The U.S. transformer market stands at a critical juncture, with supply constraints threatening to undermine the nation's energy transition and grid reliability goals,” Ben Boucher, a senior supply chain analyst at Wood Mackenzie, said in a statement. “The convergence of accelerating electricity demand, aging infrastructure and supply chain vulnerabilities has created constraints that will persist well into the 2030s.”
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A worker in a Chinese electric vehicle factory. Kevin Frayer/Getty Images
For years, China was known for ripping off the West’s technology and patenting cheaper but more easily manufactured copies. Not anymore. China applied for twice as many high-quality clean energy patents as the U.S. in 2022, according to a New York Times analysis of the most recently available public data. The European Patent Office, which supplied data to the Times, defines a “high quality” patent as one that has been filed in two or more countries, indicating that the company or individual involved has a strong competitive interest in protecting its idea.
The growth in China’s intellectual property ambitions is a sign that Beijing’s strategic push to ramp up academic research and industrial innovation is maturing. “It is the opposite of an accident,” said Jenny Wong Leung, an analyst and data scientist at the Australian Strategic Policy Institute, which created a database of global research on technologies that are critical to nations’ economic and military security, including clean energy.
In June, New York Governor Kathy Hochul directed the New York Power Authority, the nation’s second-largest government-owned utility after the federal Tennessee Valley Authority, to support the construction of the state’s first new nuclear plant since the 1980s. Albany has plenty to sort out between now and the 15-year deadline for completing the project, including selecting a site, picking from one of the many new reactor designs, and finding a private partner. But one thing isn’t a problem, at least for now: Public support.
New Siena polling I covered in my Substack newsletter yesterday shows that 49% of registered voters in New York support the effort, with just 26% opposed. Both sides of the political spectrum are largely in lockstep, with Republican support outpacing that of Democrats by a margin of 55% to 49%. That’s lucky for Hochul, who will need support from the more politically conservative upper reaches of the state where the facility is likely to be built. For more on the technical and political considerations in play, here’s Heatmap’s Matthew Zeitlin on the plan.
It seems like everyone is abandoning their net zero goals. But not insurer Aviva. The company’s chief executive, Amanda Blanc, said the British giant remained committed to its carbon-cutting goals in the U.S. and the United Kingdom, The Guardian reported. With rising profits propelling shares in the company to their highest level since the 2008 financial crisis, Blanc said, “extreme weather conditions, climate change, and the impact that that has on our insurance business that actually insures properties” meant Aviva needed to “remain committed to our ambition.”
The red-headed wood pigeon once seemed on the verge of extinction. The population, endemic to Japan’s Ogasawara Islands, fell to below 80 individuals in the 2000s. But once its main predator, the feral cat, was removed, the bird made a remarkable comeback. A team of researchers at Kyoto University set out to find out why the expected problems from inbreeding never occurred. Per a press release: “Their results revealed that the frequency of highly deleterious mutations in the red-headed wood pigeon was lower than in the more widespread Japanese wood pigeon. This suggests that, rather than hindering it, the pigeon's success was likely rooted in its long-term persistence in a small population size prior to human impact.”
And more on the week’s most important conflicts around renewable energy projects.
1. Lawrence County, Alabama – We now have a rare case of a large solar farm getting federal approval.
2. Virginia Beach, Virginia – It’s time to follow up on the Coastal Virginia offshore wind project.
3. Fairfield County, Ohio – The red shirts are beating the greens out in Ohio, and it isn’t looking pretty.
4. Allen County, Indiana – Sometimes a setback can really set someone back.
5. Adams County, Illinois – Hope you like boomerangs because this county has approved a solar project it previously denied.
6. Solano County, California – Yet another battery storage fight is breaking out in California. This time, it’s north of San Francisco.