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Carbon removal would seem to have a pretty clear definition. It’s the reverse of carbon emissions. It means taking carbon out of the atmosphere and putting it somewhere else — underground, into products, into the ocean — where it won’t warm the planet. But a new kind of carbon removal project shows how this formula can conceal consequential differences between approaches.
A few months ago, Puro.earth, a carbon removal registry, certified a small ethanol refinery in North Dakota to sell carbon removal credits — the first ethanol plant to earn this privilege. Red Trail Energy, which owns the facility, captures the CO2 released from the plant when corn is fermented into ethanol, and injects it into a porous section of rock more than 6,000 feet underground. Since Red Trail started doing this in June of 2022, it’s prevented some 300,000 metric tons of CO2 from entering the atmosphere, according to data published by the North Dakota Department of Mineral Resources.
There are two ways to look at what’s happening here.
If you just follow the carbon, it started in the atmosphere and ended up underground. In between, the corn sucked up carbon through photosynthesis; when it was processed into ethanol, about a third of that carbon went into the fuel, a third was left behind as dried grain, and the remainder was captured as it wafted out of the fermentation tank and stashed underground. “That is, in a broad sense, how that looks like carbon removal,” Daniel Sanchez, an assistant professor at the University of California, Berkeley who studies biomass carbon removal, told me.
But if you zoom out, the picture changes. For the carbon to get from the atmosphere to the ground, a few other things had to happen. The corn had to be grown, harvested, and transported in trucks to the plant. It had to be put through a mill, cooked, and then liquified using heat from a natural gas boiler. And this was all in service, first and foremost, of producing ethanol to be burned, ultimately, in a car engine. If you account for the CO2 emitted during these other steps, the process as a whole is putting more into the atmosphere than it’s taking out.
So, is Red Trail Energy really doing carbon removal?
Puro.earth takes the first view — the registry’s rules essentially draw a box around the carbon capture and storage, or CCS, part of the process. Red Trail has to count the emissions from the energy it took to capture and liquify and inject the carbon, but not from anything else that happened before that. So far, Puro has issued just over 157,000 carbon removal credits for Red Trail to sell.
This is, essentially, industry consensus. Other carbon market registries including Gold Standard, Verra, and Isometric more or less take the same approach for any projects involving biomass, though they haven’t certified any ethanol projects yet. (Isometric’s current rules disqualify ethanol plants because they only allow projects that use waste biomass.)
But the nonprofit CarbonPlan, a watchdog for the carbon removal industry, argues that it’s a mistake to call this carbon removal. In a blog post published in December, program lead Freya Chay wrote that because the carbon storage is “contingent upon the continued production of ethanol,” it’s wrong to separate the two processes. The project reduces the facility’s overall emissions, Chay argued, but it’s not “carbon removal.”
This debate may sound semantic, and to some extent, it is. As long as an action results in less pollution warming the planet, does it matter whether we label it “carbon removal” or “emission reduction”?
The point of carbon credits is that they are paying for an intervention that wouldn’t have happened otherwise. “You have to look at, what part of the project is being built because they receive carbon removal credits?” Marianne Tikkanen, the co-founder and head of standard at Puro told me. “In this case, it was the capture part.” Previously, the emissions from the fermentation tank were considered to be zero, since the carbon started in the atmosphere and ended up back in the atmosphere. If you just look at the change that the sale of credits supported, those emissions are now negative.
But the logic of carbon credits may not be totally aligned with the point of carbon removal. Scientists generally see three roles for technologies that remove carbon from the atmosphere. The first is to reduce net emissions in the near term — Red Trail’s project checks that box. In the medium term, carbon removal can counteract any remaining emissions that we don’t know how to eliminate. That’s how we’ll “achieve net-zero” and stop the planet from warming.
But those who say these labels really matter are thinking of the third role. In the distant future, if we achieve net-zero emissions, but global average temperatures have reached dangerous heights, doing additional carbon removal — and lowering the total concentration of CO2 in the atmosphere — will be our only hope of cooling the planet. If this is the long term goal, there is a “clear conceptual problem” with calling a holistic process that emits more than it removes “carbon removal,” Chay told me.
“I think the point of definitions is to help us navigate the world,” she said. “It will be kind of a miracle if we get there, but that is the lighthouse.”
Red Trail may have been the first ethanol company to get certified to sell carbon removal credits, but others are looking to follow in its footsteps. Chay’s blog post, written in December, was responding to news of another project: Summit Carbon Solutions, a company trying to build a major pipeline through the midwest that will transport CO2 captured from ethanol refineries and deliver it to an underground well in North Dakota, announced a deal to pre-sell $30 million worth of carbon removal credits from the project; it plans to certify the credits through Gold Standard. In May, Summit announced it planned to sell more than 160 million tons of carbon removal credits over the next decade.
Decarbonization experts often refer to the emissions from ethanol plants as low-hanging fruit. Out of all the polluting industries that we could be capturing carbon from, ethanol is one of the easiest. The CO2 released when corn sugar is fermented is nearly 100% pure, whereas the CO2 that comes from fossil fuel combustion is filled with all kinds of chemicals that need to be scrubbed out first.
Even if it’s relatively easy, though, it’s not free, and the ethanol industry has historically ignored the opportunity. But in the past few years, federal tax credits and carbon markets have made the idea more attractive.
Red Trail’s CCS project has been a long time in the making. The company began looking into CCS in 2016, partnering with the Energy and Environmental Research Center, the North Dakota Industrial Commission Renewable Energy Council, and the U.S. Department of Energy on a five-year feasibility study. Jodi Johnson, Red Trail’s CEO, answered questions about the project by email. “Building a first-of-its-kind CCS project involved significant financial, technical, and regulatory risks,” she told me. “The technology, while promising, required substantial upfront investment and a commitment to navigating uncharted regulatory frameworks.”
The primary motivation for the project was the company’s “commitment to environmental stewardship and sustainability,” Johnson said, but low-carbon fuel markets in California and Oregon were also a “strategic incentive.” Ethanol companies that sell into those states earn carbon credits based on how much cleaner their fuel is than gasoline. They can sell those credits to dirtier-fuel makers who need to comply with state laws. The carbon capture project would enable Red Trail to earn more credits — a revenue stream that at first, looked good enough to justify the cost. A 2017 economic assessment of the project found that it “may be economically viable,” depending on the specific requirements in the two states.
But today, two years after Red Trail began capturing carbon, the company’s application to participate in California’s low-carbon fuel market is still pending. Though the company does sell some ethanol into the Oregon market, it decided to try and sell carbon removal credits through Puro to support “broader decarbonization and sequestration efforts while awaiting regulatory approvals,” Johnson said. Red Trail had already built its carbon capture system prior to working with Puro, but it may not have operated the equipment unless it had an incentive to do so.
Puro didn’t just take Red Trail’s word for it. The project underwent a “financial additionality test” including an evaluation of other incentives for Red Trail to sequester carbon. For example, the company can earn up to $50 in tax credits for each ton of CO2 it puts underground. (The Inflation Reduction Act increased this subsidy to $85 per ton, but Red Trail is not eligible for the higher amount because it started building the project before the law went into effect.) In theory, this tax credit alone could be enough to finance the project. A recent report from the Energy Futures Initiative concluded that a first-of-a-kind CCS project at an ethanol plant should cost between $36 and $41 per ton of CO2 captured and stored.
Johnson told me Red Trail does not pay income tax at the corporate level, however — it is taxed as a partnership. That means individual investors can take advantage of the credit, but it’s not a big enough benefit to secure project finance. The project “requires significant capital expenditure, operating expense, regulatory, and long-term monitoring for compliance,” she said. “Access to the carbon market was the needed incentive to secure the investment and the continuous project operation.”
Ultimately, after an independent audit of Red Trail’s claims, Puro concluded that the company did, in fact, need to sell carbon removal credits to justify operating the CCS project. (Red Trail is currently also earning carbon credits for fuel sold in Oregon, but Puro is accounting for these and deducting credits from its registry accordingly.)
All this helps make the case that it’s reasonable to support projects like Red Trail’s through the sale of carbon credits. But it doesn’t explain why we should call it carbon removal.
When I put the question to Tikkanen, she said that the project interrupts the “short cycle” of carbon: The CO2 is captured during photosynthesis, it’s transferred into food or fuel, and then it’s released back into the air in a continuous loop — all in a matter of months. Red Trail is turning that loop into a one-way street from the atmosphere to the ground, taking more and more carbon out of the air over time. That’s different from capturing carbon at a fossil fuel plant, where the carbon in question had previously been trapped underground for millennia.
Robert Hoglund, a carbon removal advisor who co-founded the database CDR.fyi, had a similar explanation. He told me that it didn’t make sense to categorize this project as “reducing emissions” from the plant because the fossil fuel-burning trucks that deliver the corn and the natural gas boilers cooking it are still releasing the same amount of carbon into the atmosphere. “If we say only processes that, if they're scaled up, lead to lower emissions in the atmosphere are carbon removal, that's looking at it from a system perspective,” he said. “I can understand where they come from, but I think it does add some confusion.”
Red Trail Energy and Summit Carbon Solutions defended the label, noting that this is the way carbon market registries have decided to treat biomass-based carbon sequestration projects. “The fact that emissions remain from the lifecycle of the corn itself is not the focus of the removal activity,” Johnson told me. “The biogenic CO2 is clearly removed from the atmosphere permanently.”
Sanchez, the Berkeley professor, argued that Puro’s rules are adequate because there’s a path for ethanol plants to eventually achieve net-negative emissions. They will have to capture emissions from the boiler, in addition to the fermentation process, and make a few other tweaks, like using renewable natural gas, according to a recent peer-reviewed study Sanchez authored. “That's not what's happening here,” he told me, “but I view that as indicative that this is part of the basket of technologies that we use to reach net-zero and to suck CO2 out of the air.”
(Red Trail is working on reducing its emissions even more, Johnson told me. The company is finishing engineering on a new combined heat and power system that will improve efficiency at the plant.)
In addition to teaching at Berkeley, Sanchez is a principal scientist for the firm Carbon Direct, which helps corporate buyers find “high quality” carbon removal credits. He added that he felt the project was “worthy" of the dollars companies are designating for carbon removal because of the risk it involved, and the fact that it would blaze a trail for others to follow. Ethanol CCS projects will help build up carbon storage infrastructure and expertise, enabling other carbon removal projects in the future.
Though there is seeming consensus among carbon market participants that this is carbon removal, scientists outside the industry are more skeptical. Katherine Maher, an Earth systems scientist who studies the carbon cycle at Stanford University, said she understood the argument for calling ethanol with CCS carbon removal, but she also couldn’t ignore the fact that capturing the carbon requires energy to grow the corn, transport it, and so on. “You really need to be conscious about, what are the other emissions in the project, and are those being accounted for in the calculation of the CO2 removed?”
Carbon180, a nonprofit that advocates for carbon removal policy, shares that perspective. “When it comes to ethanol with CCS, we want to see the actual net negativity,” Sifang Chen, the group’s managing science and innovation advisor, told me.
In the U.S. Department of Energy’s Road to Removals report, a 221-page document that highlights all of the opportunities for carbon removal in the United States, the agency specifically chose not to analyze ethanol with CCS “due largely to its inability to achieve a negative [carbon intensity] without substantial retrofitting of existing corn-ethanol facilities.”
It’s possible to say that both views are correct. Each follows a clear logic — one more rooted in creating practical rules for a market in order to drive innovation, the other in the uncompromising math of atmospheric science.
At times throughout writing this, I wondered if I was making something out of nothing. But the debate has significance beyond ethanol. Sanchez pointed out to me that you could ask the same question about any so-called carbon removal process that’s tied to an existing industry. Take enhanced rock weathering, for example, which involves crushing up special kinds of rocks that are especially good at absorbing carbon from the air. A lot of the companies trying to do this get their rocks from mining waste, but they don’t include all the emissions from mining in their carbon removal calculation.
Similarly, Summit Carbon Solutions noted that CarbonPlan supports claims of carbon removal by Charm Industrial, a company that takes the biomass left behind in corn fields, turns it into oil, and sequesters the oil underground. In that case, the company is not counting emissions from corn production or the downstream uses of corn.
Chay admitted that she didn’t have a great answer for why she drew the boundaries differently for one versus the other. “We don’t claim to have all the answers, and this back-and-forth illustrates just how much ambiguity there is and why it’s important to work through these issues,” she told me in an email. But she suggested that one point of comparison is to look at how dependent the carbon removal activity is on “the ongoing operation of a net emitting industry, and how one thinks about the role of that emitting industry in a net-zero world.” There is no apparent version of the future where we no longer have mining as an industry, or no longer grow corn for food. But there is a path to eliminating the use of ethanol by electrifying transportation.
It’s worth mentioning that this niche debate about carbon removal is taking place within a much larger and longer controversy about whether ethanol belongs in a low-carbon future at all.
Red Trail told me the company sees the adoption of electric vehicles as an opportunity to diversify into making fuels for aviation and heavy-duty transportation, which are more difficult to electrify. But some environmental groups, like the World Resources Institute, argue that a more sustainable approach would be to develop synthetic fuels from captured carbon and hydrogen. I should note that experts from both sides of this debate told me that carbon credit sales should not justify keeping an ethanol plant open or building a new one if the economics of the fuel don’t work on their own.
In Chay’s blog post, she presented real stakes for this rhetorical debate. If we call net-emitting processes carbon removal, we could develop an inflated sense of how much progress we’ve made toward our overall capacity to remove carbon from the atmosphere, which in turn could warp perceptions of how quickly we need to reduce emissions.
Peter Minor, the former director of science and innovation at Carbon180 who is starting a company focused on measurement and verification, raised the same concern. “When the definition of what it means to remove a ton of CO2 from the air is subjective, what happens is you get a bunch of projects that might have quite different climate impacts,” he told me. “And you may or may not realize it until after the fact.”
There’s also a risk of diverting funding that could go toward scaling up more challenging, more expensive, but truly net-negative solutions such as direct air capture. This risk is compounded by the growing pressure on carbon market players like Puro and Carbon Direct to identify new, more affordable carbon removal projects. Over the past several years, influential groups like the Science Based Targets initiative and corporate sustainability thought leaders like Stripe and Microsoft have decided that old-school carbon credits — the cheaper so-called “offsets” that represent emissions reductions — are not good enough. Now companies are expected to buy carbon removal credits to fulfill their climate promises to customers, lest they be accused of greenwashing.
As a result, the industry has backed itself into a corner, Minor told me. “We have come out as a society and said, the only thing that is worth it, the only thing that is allowed to be used is carbon removal,” he said. “So if that's the only thing with economics behind it, then yeah, like, magic! Everything is now all of a sudden carbon removal! Who would have predicted that this could have happened?”
The success of carbon removal depends, ultimately, on integrity — the industry’s favorite word these days. From the companies trying to remove carbon, to the carbon credit registries validating those efforts, to the nonprofits, brokers, and buyers that want to see the market scale, everyone is talking about developing transparent and trustworthy processes for measuring how much carbon is removed from the atmosphere by a given intervention. But how good is good measurement if experts don’t agree on what should be measured?
“There hasn't been a way to standardize the climate impacts that are being promised,” said Minor. “And so I think unless we solve that problem, I just don't see how we're going to build the trust we need, to create the economics that we need and justify an industry that can’t really exist outside of the millions or billions of tons scale.”
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The FREEDOM Act aims to protect energy developments from changing political winds.
A specter is haunting permitting reform talks — the specter of regulatory uncertainty. That seemingly anodyne two-word term has become Beltway shorthand for President Donald Trump’s unrelenting campaign to rescind federal permits for offshore wind projects. The repeated failure of the administration’s anti-wind policies to hold up in court aside, the precedent the president is setting has spooked oil and gas executives, who warn that a future Democratic government could try to yank back fossil fuel projects’ permits.
A new bipartisan bill set to be introduced in the House Tuesday morning seeks to curb the executive branch’s power to claw back previously-granted permits, protecting energy projects of all kinds from whiplash every time the political winds change.
Dubbed the FREEDOM Act, the legislation — a copy of which Heatmap obtained exclusively — is the latest attempt by Congress to speed up construction of major energy and mining projects as the United States’ electricity demand rapidly eclipses new supply and Chinese export controls send the price of key critical minerals skyrocketing.
Two California Democrats, Representatives Josh Harder and Adam Gray, joined three Republicans, Representatives Mike Lawler of New York, Don Bacon of Nebraska, and Chuck Edwards of North Carolina, to sponsor the bill.
While green groups have criticized past proposals to reform federal permitting as a way to further entrench fossil fuels by allowing oil and gas to qualify for the new shortcuts, Harder pitched the bill as relief to ratepayers who “are facing soaring energy prices because we’ve made it too hard to build new energy projects.”
“The FREEDOM Act delivers the smart, pro-growth certainty that critical energy projects desperately need by cutting delays, fast-tracking approvals, and holding federal agencies accountable,” he told me in a statement. “This is a common sense solution that will mean more energy projects being brought online in the short term and lower energy costs for our families for the long run.”
The most significant clause in the 77-page proposal lands on page 59. The legislation prohibits federal agencies and officials from issuing “any order or directive terminating the construction or operation of a fully permitted project, revoke any permit or authorization for a fully permitted project, or take any other action to halt, suspend, delay, or terminate an authorized activity carried out to support a fully permitted project.”
There are, of course, exceptions. Permits could still be pulled if a project poses “a clear, immediate, and substantiated harm for which the federal order, directive, or action is required to prevent, mitigate, or repair.” But there must be “no other viable alternative.”
Such a law on the books would not have prevented the Trump administration from de-designating millions of acres of federal waters to offshore wind development, to pick just one example. But the legislation would explicitly bar Trump’s various attempts to halt individual projects with stop work orders. Even the sweeping order the Department of the Interior issued in December that tried to stop work on all offshore wind turbines currently under construction on the grounds of national security would have needed to prove that the administration exhausted all other avenues first before taking such a step.
Had the administration attempted something similar anyway, the legislation has a mechanism to compensate companies for the costs racked up by delays. The so-called De-Risking Compensation Fund, which the bill would establish at the Treasury Department, would kick in if the government revoked a permit, canceled a project, failed to meet deadlines set out in the law for timely responses to applications, or ran out the clock on a project such that it’s rendered commercially unviable.
The maximum payout is equal to the company’s capital contribution, with a $5 million minimum threshold, according to a fact-sheet summarizing the bill for other lawmakers who might consider joining as co-sponsors. “Claims cannot be denied based on project permits or energy technology type,” the document reads. A company that would have benefited from a payout, for example, would be TC Energy, the developer behind the Keystone XL oil pipeline the Biden administration canceled shortly after taking office.
Like other permitting reform legislation, the FREEDOM Act sets new rules to keep applications moving through the federal bureaucracy. Specifically, it gives courts the right to decide whether agencies that miss deadlines should have to pay for companies to hire qualified contractors to complete review work.
The FREEDOM Act also learned an important lesson from the SPEED Act, another bipartisan bill to overhaul federal permitting that passed the House in December but has since become mired in the Senate. The SPEED Act lost Democratic support — ultimately passing the House with just 11 Democratic votes — after far-right Republicans and opponents of offshore wind leveraged a special carveout to continue allowing the administration to commence its attacks on seaborne turbine projects.
The amendment was a poison pill. In the Senate, a trio of key Democrats pushing for permitting reform, Senate Energy and Natural Resources ranking member Martin Heinrich, Environment and Public Works ranking member Sheldon Whitehouse, and Hawaii senator Brian Schatz, previously told Heatmap’s Jael Holzman that their support hinged on curbing Trump’s offshore wind blitz.
Those Senate Democrats “have made it clear that they expect protections against permitting abuses as part of this deal — the FREEDOM Act looks to provide that protection,” Thomas Hochman, the director of energy and infrastructure policy at the Foundation for American Innovation, told me. A go-to policy expert on clearing permitting blockages for energy projects, Hochman and his center-right think tank have been in talks with the lawmakers who drafted the bill.
A handful of clean-energy trade groups I contacted did not get back to me before publication time. But American Clean Power, one of the industry’s dominant associations, withdrew its support for the SPEED Act after Republicans won their carveout. The FREEDOM Act would solve for that objection.
The proponents of the FREEDOM Act aim for the bill to restart the debate and potentially merge with parts of the previous legislation.
“The FREEDOM Act has all the critical elements you’d hope to see in a permitting certainty bill,” Hochman said. “It’s tech-neutral, it covers both fully permitted projects and projects still in the pipeline, and it provides for monetary compensation to help cover losses for developers who have been subject to permitting abuses.”
Maybe utilities’ “natural monopoly” isn’t so natural after all.
Debates over electricity policy usually have a common starting point: the “natural monopoly” of the transmission system, wherein the poles and wires that connect power plants to homes and businesses have exclusive franchises in a certain territory and charge regulated rates to access them.
The thinking is that without a monopoly franchise, no one would make the necessary capital expenditures to build and maintain the power lines and grid infrastructure necessary to connect the whole system, especially if they thought someone would build a new transmission line nearby. So while a government body oversees investment and prices, the utility itself is not subject to market-based competition.
But what if someone really did want to build their own wires?
“There are at least two of us who do not think that electricity is a natural monopoly,” Glen Lyons, the founder of Advocates for Consumer Regulated Electricity, told me.
The other one is Travis Fisher, an energy scholar at the Cato Institute, who corrected his friend and colleague.
“Between me, and Joseph Schumpeter, and Wayne Cruz, and Glen Lyons, there’s at least four of us. Only three of us are alive,” Fisher said, referencing the Austrian economist Schumpeter, who died in 1950, and the libertarian scholar Cruz, who was a critic of the restructuring of the electricity market in the 1990s.
Fisher and Lyons, however, are the team behind a proposal put out on Tuesday by the libertarian Cato Institute calling for “consumer-regulated electricity.” Instead of a transmission system with a monopoly franchise that independent generators can connect to and sell power to utilities in a process regulated by a combination of a public utility commission and regional transmission organization or independent system operators, CRE systems would be physically islanded electricity systems that customers would privately and voluntarily sign up for.
Crucially, CRE would not be regulated under existing federal law, and would have no connection to the existing grid, allowing for novel price structures and even physical set-ups, like running on different frequencies or even direct current, Fisher said.
They would also, Fisher and Lyons argue, help solve the dilemma haunting electricity policymakers: how to bring new load on the grid quickly without saddling existing ratepayers with the cost of paying for utility upgrades.
“If enabled, CRE utilities would generate, transmit, and sell electricity directly to customers under voluntary contracts, without interconnecting to the existing regulated grid or seeking permission from economic regulators at the state or federal level,” the Cato proposal reads.
This idea has a natural audience among political conservatives, as it’s essentially a bet that more entrepreneurship and less regulation will solve some of our biggest energy system problems. On the other hand, utilities tend to be a powerful force in conservative politics at both the state and federal levels, which is one reason why these kinds of ideas are still marginal.
But less marginal than they have been.
Consumer-regulated electricity is more than just another think tank white paper. It has also won the approval of the influential American Legislative Exchange Council, better known as ALEC, a conservative group that writes model legislation for state legislatures to adopt. Fisher proposed version of the consumer-regulated utilities plan to the network in December of last year, and ALEC approved it in January.
A few days after the group finalized the model policy to allow CRE at the state level, Arkansas Senator Tom Cotton proposed his own version in the form of the DATA Act, which would “amend the Federal Power Act to exempt consumer-regulated electric utilities from Federal regulation.”
While the CRE proposal is a big conceptual departure from about a century of electricity regulation, the actual reform is modest. Fisher and Lyons propose a structure would apply solely to “sophisticated customers … who voluntarily contract for service and can manage their own risks,” i.e. big industrial users like data centers, not your home.
While this sounds like behind the meter generation, whereby large electricity users such as, say, xAI in Memphis, simply set up their own electricity plants, CRE goes further. The idea is to capture the self-regulation benefits of building your own power within a structure that still allows for the economies of scale of a grid. Or in the words of Cato’s proposal, CRE “would enable third-party utilities to serve many customers, resulting in lower costs, higher reliability, and a smaller environmental footprint compared to self-supply options.”
Fisher and Lyons argue that CRE would also have an advantage over so-called co-location, where data centers are built adjacent to generation and share interconnection with the grid, which still requires interacting with public utility commissions and utilities. The pair have also suggested that the Department of Energy and the Federal Energy Regulatory Commission use its existing rulemaking process on data center interconnection to encourage states to pass the necessary laws to allow islanded utility systems.
While allowing totally private utility systems may be a radical — and certainly a libertarian — departure from the utility regulation system as it exists today, proposals are popping up on both the left and the right to try to reduce utility influence over the electricity system.
Tom Steyer, the hedge fund billionaire and climate investor who is running for governor of California, has said that he would “break up the utility monopolies to lower electric bills by 25%.” In a January press conference, Steyer clarified that he “wants to force utility companies to choose cheaper ways of wildfire-proofing their infrastructure and give customers other options for buying power, including making it easier to build neighborhood-level solar projects or allowing more communities to operate their own local grids,” according to CalMatters. California already has some degree of retail choice, although a more expansive version of a retail competition model infamously collapsed during the 2001 rolling blackouts.
To Fisher, while his and Lyons’ proposal is in some ways radical, it is also not a particularly big risk. If there’s truly no demand for private electricity networks, none will be built and nothing will change, even if there’s regulatory reform to allow for it.“I’m not surprised to see it get traction,” Fisher said of the plan, “just because there’s no downside, and the upside could be absolutely nothing — or it could be a breakthrough.”
On offshore wind wins, China’s ‘strong energy nation,’ and Japan’s deep-sea mining
Current conditions: Yet another snow storm is set to powder parts of the Ohio Valley and the Mid-Atlantic • Cyclone Fytia is deluging Madagascar, causing flooding that left at least three dead and 30,000 displaced in a country still reeling from the recent overthrow of its government • Scotland and England are bracing for a gusty 33-hour blizzard, during which temperatures are forecast to drop below freezing.
He’s fashioned the military’s Defense Logistics Agency into a tool to fund mineral refineries. He’s gone on a shopping spree that made Biden administration officials “jealous,” taking strategic equity stakes in more than half a dozen mining companies. Now President Donald Trump is preparing to launch a strategic stockpile for critical minerals in what Bloomberg billed as “a bid to insulate manufacturers from supply shocks as the U.S. works to slash its reliance on Chinese rare earths and other metals.” Dubbed Project Vault, the venture will be seeded with a $10 billion loan from the Export-Import Bank of the U.S. and another $1.67 billion in private capital. More than a dozen companies have committed to work on the stockpile, including General Motors, Stellantis, Boeing, Google, and GE Vernova.
The shale industry, meanwhile, showed it’s matured enough to go through some consolidation. Oklahoma City-based gas giant Devon Energy is merging with Houston-headquartered Coterra Energy in an all-stock deal that CNBC said would create “a large-cap producer with a top position in the Permian Basin. The deal would establish a combined company with an enterprise value of $58 billion, marking the largest merger in the sector since Diamondback bought Endeavor Energy Resources for $26 billion in 2024. The deal comes as low prices from the global oil glut squeeze U.S. shale drillers — and as the possibility of more oil from Venezuela threatens the sector with fresh competition.
Offshore wind is now five-for-five in its legal brawls with Trump. With Orsted’s latest victory in the Sunrise Wind case on Monday, I’ll let Heatmap’s Jael Holzman serve as the ring announcer spelling out the stakes of the legal victory: “If the government were to somehow prevail in one or more of these cases, it would potentially allow agencies to shut down any construction project underway using even the vaguest of national security claims. But as I have previously explained, that behavior is often a textbook violation of federal administrative procedure law.”
Germany is set to quadruple its installed solar capacity to 425 gigawatts by 2045, according to a forecast from a trade group representing utilities and grid operators. The projections, Renewables Now reported, mean the country needs to expand its transmission system. Installed onshore wind capacity should triple to around 175 gigawatts by that same year. Battery storage is on track to rise about 68 gigawatts, from roughly 2 gigawatts today. Demand is also set to grow. Data centers, which make up just 2 gigawatts of demand on the grid today, are forecast to balloon to nearly 37 gigawatts in the next 19 years.
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In October, the Chinese Communist Party published the framework of its next Five-Year Plan, the 15th such industrial strategy. The National People’s Congress is set to formally approve the proposal next month. But on Monday, the energy analyst John Kemp called the latest five-word phrase, articulated in the form of “formal input” from the party’s Central Committee, “the most succinct statement of China’s energy policy.” Those words: “Building a strong energy nation.” The suggested edits from the committee described “accelerating the construction of a strong energy nation” as “extremely important and timely” and called its “main shortcomings” the ongoing reliance on imported oil and gas.
Unlike in the U.S., where the Trump administration is working to halt construction of renewables, the officials in Beijing boast that China’s “installed capacity of wind and solar has ranked first in the world for many consecutive years.” Like the U.S., the Central Committee pitched the plan as “an urgent requirement” for “gaining the initiative in great power competition.”
Japan is mounting a new push to implement a decade-old plan to extract rare earths from the ocean floor. A state-owned research vessel just completed a test mission to retrieve an initial sample of mineral-rich mud from a location 20,000 feet below the surface, the South China Morning Post reported. The government of Sanae Takaichi wants to start processing metal-bearing mud from the seabed for tests within a year. “It’s about economic security,” Shoichi Ishii, program director for Japan’s National Platform for Innovative Ocean Developments, told Bloomberg. “The country needs to secure a supply chain of rare earths. However expensive they may be, the industry needs them.”
With global negotiations over a licensing framework for legalizing deep sea mining in international waters has stalled, the U.S. just finalized a rule to speed up American permitting for the nascent sector, clearing the way for Washington to fulfill Trump’s pledge to go it alone if the United Nations’ International Seabed Authority didn’t act first.
A week after signing an historic trade agreement with the European Union, India has inked another deal with the U.S. That means the world’s two largest consumer markets are now wide open to Indian industry, which relies heavily on coal. New Delhi isn’t just going to scrap all those coal-fired factories and forges. But the government’s latest budget earmarks about $2.4 billion over five years to speed up deployment of carbon capture equipment across heavy industry, Carbon Herald reported. The plan focuses on steel, cement, power, refining, and chemicals.