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From the source to the registers.

The term “heat pump” refers to any system that can extract heat from a colder space and transfer it to a warmer one. For example, refrigerators use heat pumps to remove heat from inside the fridge and expel it into your kitchen. Air conditioners use heat pumps to remove heat from inside the house and dump it outside. In this guide, the phrase “heat pump” refers specifically to HVAC equipment that is capable of both heating
and cooling the air inside a home. In other words, we’re talking about air conditioners that can also run in reverse, pulling heat from outside on a winter day and pumping it inside.
We’ve created this guide because when it comes to getting off fossil fuels, it does matter what you replace them with. Climate advocates tout electric heat pumps because they can create two to three times more heat per unit of energy than other heating equipment. Electric resistance heating, by contrast, is extremely wasteful, and if people start installing those systems en masse, that could actually increase emissions in the near term and make it more difficult to decarbonize the economy in the long term. By getting a heat pump, you won’t just be cutting emissions, you’ll be reducing the cost of cleaning up the electric grid because we’ll need less electricity overall.
That said, a poorly designed or installed system can negate many of the benefits that heat pumps have to offer. Whether you’re reading because you want to cut emissions, or save money on energy, or take advantage of the steady, quiet comfort heat pumps provide, it’s essential to do your homework and find a good contractor to work with. In this guide, we’ll cover how to know when it’s the right time to get heat pumps, the basics of understanding what your options are, common misconceptions about heat pumps, how to find and vet contractors, and more.
Larry Waters is the founder and president of Electrify My Home, a heating and air conditioning contractor in Northern California that specializes in heat pumps. Waters has worked in the HVAC industry for more than 40 years.
D.R. Richardson is the co-founder of Elephant Energy, a Boulder, Colorado-based startup that helps homeowners in Colorado and Massachusetts electrify by using building science and proprietary software to ensure good system design, and by managing all aspects of the project.
Jake Marin is the senior emerging opportunities manager for VEIC, a clean energy nonprofit that administers Vermont and D.C.’s energy efficiency programs among other decarbonization work across the country. Marin ran VEIC’s HVAC program for nearly 8 years and was recently given a “Champion of Energy Efficiency” award for his pioneering work bringing heat pumps to Vermont.
There are many, many kinds of electric heat pumps used for space heating and cooling. At a high level, there are two main categories that homeowners can typically choose from:
Within each of these are a handful of installation options:
The above designs aren’t mutually exclusive. You can install a system that’s fully ducted, fully ductless, or a combination of both. You can also combine a heat pump system with a fuel-burning furnace or boiler, known as a dual-fuel system. If aesthetics are important to you, there are also companies like Quilt that offer versions that can better integrate into the look of your home.
“Ductwork in unfinished space is easy. Ductwork in finished space is so expensive and hard that we typically don't recommend it,” said Richardson.Heat pumps also come in models with different “speeds” or “stages”:
There are also some technical specifications to be aware of, such as seasonal efficiency ratings:
The highest rated SEER2 device may have a lower HSPF2 rating, while the highest rated HSPF2 device may have a lower SEER2 rating.
Finally, heat pumps also come in many different sizes. Having a properly sized system is one of the most important factors for ensuring your heat pumps run efficiently and last a long time.
A good contractor will be able to walk you through different system designs and equipment options to find the answer that’s best suited to your house, your goals, and your budget.
“There’s a lot of companies out there that offer just what they have in the catalog and their salespeople can’t sell anything outside of that,” Waters told me. “That means the customer is going to get matched with that cookie cutter option if they go with that company. So how to choose a contractor is one of the most important things.”
Many people are used to setting their HVAC systems to different temperatures at different times of day — one temp for the morning and evening, another for when they leave for work, and another for bedtime. This makes sense with many furnaces and air conditioners because they’re usually designed to cycle on, blast hot or cold air at full capacity until they achieve the temperature you want, and then turn off, so turning down the system when you’re not home can save a lot of energy. But the most efficient “variable speed” heat pumps work differently — they use a lot of energy to reach a certain temperature, but once they hit it, they sip small amounts of energy to maintain it. Experts say a “set it and forget it” approach will give you the most efficient performance and the most consistent energy bills.
“Don’t worry about the number,” says Marin. “Just find your comfortable temperature, and then leave it alone, forget it’s even there.”
This topic can be divisive among HVAC experts, but in most of the continental U.S., you should be able to find a heat pump solution that will heat your home efficiently on the coldest winter days. The key is that the system has to be sized correctly. Richardson’s company, Elephant Energy, works in Colorado, where he says they’ve had two years in a row with days that got down to -13 degrees Fahrenheit, “and our fleet of hundreds of heat pumps have cranked out heat to keep homes nice and warm on those coldest days.”
There still may be scenarios where you
want to keep your furnace as a back-up, even if it’s not strictly necessary.
If you’re switching from fuel oil, propane, or electric resistance heating, you’re pretty much guaranteed to save money on your bills with heat pumps. But if you’re switching from natural gas, it really depends on where you live.
Richardson says that for a lot of his customers in Colorado, making the switch from gas to inverter heat pumps is cost neutral — they end up paying a bit more for heating in the winter but less for cooling in the summer, since the heat pump is often more efficient than whatever air conditioning they were replacing. At the same time, those who don't have air conditioning to start with could end up paying a bit more year-round.
Do you…
Short answer: Hold off on a heat pump, invest in weatherization.
Long answer: You may have arrived at this guide because you’re interested in decarbonizing your home, but if you have a relatively new heating and/or cooling system, it could actually be worse, emissions-wise, to replace it, due to the embedded carbon that went into manufacturing that equipment. Unless you’re really desperate to replace your existing system for comfort or financial reasons (if you have electric resistance heaters, for example, switching to heat pumps could save you a lot of money, since they use about a third of the electricity), we recommend getting a bit more life out of it first.
In the meantime, put your enthusiasm for decarbonization into making your home more efficient. Insulating and air sealing your home before you get heat pumps will help you save money in the near term and get you the best results from heat pumps later on.
Short answer: Consider a dual fuel system
Long answer: If you really need a new air conditioning system but your heater still has a lot of life left in it, consider installing a heat pump to work alongside your existing furnace or boiler. That way, you’ll get efficient cooling capacity that will save you money in the summer, and you’ll also be able to cut down on your fossil fuel consumption in the winter. You can set the heat pump to warm your home until it gets down to a certain temperature outside, at which point your furnace or boiler will kick in. (Many heat pump models can operate in very cold temperatures, so having a backup heating system like this is not necessary, but it may be a good intermediate step in certain cases.)
Short answer: It’s the perfect time to think about heat pumps!
Long answer: HVAC equipment typically lasts for 15 to 20 years, so 10 years is probably the earliest you would want to start thinking about a replacement. It’s probably safe to wait a few years longer, but you definitely don’t want to wait until your existing system breaks to start your heat pump journey. A heat pump retrofit can be a months-long process, from finding contractors, to evaluating quotes, to refining your plan, to getting permits and scheduling the work. If you’re in an emergency situation where your boiler broke and you really need heat, you could be forced to settle for a less-than-ideal solution. At the very least, start your research now and consider weatherization upgrades.
Short answer: Get a mini-split!
Long answer: Ductless mini-split heat pumps are a no-brainer to provide heating and cooling to a single room or zone. They can be very affordable — and in some cases free — with rebates and tax credits. If you want to retrofit the rest of your home to use heat pumps down the line, this will help you get familiar with the technology and will not preclude you from adding more later — though it is helpful to tell your contractor that now so they can take it into account.
Heat pumps can be a major investment. If you just want to add heating or cooling capacity to one or two rooms, it can cost $5,000 to $7,000 per room, on average, before incentives, Richardson told me. A whole-home solution averages $20,000 to $30,000 before incentives, but depending on the home and the system design can go much higher.
Do you have some rooms that are hotter in the summer or colder in the winter than others and you want to make your home more comfortable overall? Or is your goal to get better air filtration and ventilation? Or do you simply want to get off fossil fuels? It will be helpful to think through what you want to achieve and communicate that to your contractor so they can take that into account when they design your system.
The federal government offers a 30% tax credit for heat pumps, up to $2,000, not including labor, for certain energy efficient models. (Note that you can only get the full tax credit if you have $2,000 or more in tax liability the year you install the heat pumps.) The credit can’t be rolled over to the next tax year, but you can claim it in multiple years. Your state energy office, city, or utility may offer additional tax credits or rebates.
It’s important to learn about what’s available in your area before reaching out to contractors because some rebate programs require you to work only with approved partners. Also, the contractors you reach out to might not always be up to date on the latest incentive programs, so it’s a good idea to do some independent research and make sure you find someone who knows how to help you take advantage. There is, unfortunately, not yet any single directory where you can enter your zip code and find out about every possible rebate opportunity everywhere in the country, so it’s best to check multiple sources of information:
As with all home renovation projects, we strongly recommend getting at least three quotes from different contractors.
Heat pumps are common in some parts of the country, but in others it might be difficult to find a contractor who really knows their stuff. Dip your toes in a heat pump Reddit forum and you’ll find scores of homeowners asking what to do after a contractor told them that heat pumps don’t work and they should just stick with gas. Here are a few strategies for finding high quality heat pump contractors, in order of what we recommend:
Finding the right contractor is probably the most important decision you’ll make in this entire process, and it’s not uncommon to get quotes with wildly different recommendations. Here are some questions you can ask to help you get a sense of who really knows what they are talking about and is willing to go the whole nine yards to make sure you get a properly designed system:
Manual J is a formula that helps a contractor identify the right size HVAC system for your home. It requires taking detailed measurements throughout the building, inspecting your home’s insulation and other elements that will affect airflow and heat retention, and performing tests such as the “blower door” to assess how leaky your building’s envelope is. If you’re interested in using your ductwork or installing new ductwork, they should also perform a “Manual D” calculation. Waters told me that despite these calculations being industry standards, very few contractors actually go through the trouble of doing them. “What this does, it tells us exactly what size system I need for heating and cooling, and exactly how much air goes into each room,” he said.
Richards agreed, adding that you may want to ask what technology they use to size the system. “You need somebody who has a technology-driven tool that can actually measure the heating and cooling requirements of your home,” he says. “Are you doing a true Manual J, or are you sort of sticking your finger up in the air?”
If your contractor only works with one brand of equipment, you’re more likely to get a solution that’s convenient for them rather than one that’s custom designed for you.
Waters told me the registers — the vents that release air into a given room — are critical for occupant comfort. If your existing ductwork is designed to distribute air from a furnace, your registers may be designed to push air into the middle of the room. But with heat pumps, you want the air either pushed up toward the ceiling if the vents are down low or across the ceiling if they are up high, so that the house doesn’t feel drafty and you get proper circulation.
If you’re starting with heat pumps but you eventually want to electrify your stove, your clothes dryer, or your car, your home may need an electric panel upgrade or an electric service upgrade from the utility. What you don’t want is to put in heat pumps that eat up the rest of your home’s capacity and then have to deal with pricey upgrades down the line.
The Building Performance Institute and North American Technician Excellence are two organizations that train and certify contractors, auditors, and technicians in the latest building science and best practices. A certification doesn’t guarantee you’ve found the right contractor — it could mean they know a lot about installing heat pumps but still don’t know much about the models that work in the coldest climates, for instance. But it’s a helpful data point that shows they are investing in training.
After you’ve found a contractor or company to work with, settled on a system design, and secured financing, your installer is going to need to secure permits for the work. Then you’ll need to schedule the installation, which, depending on how busy your contractor is, can take several weeks to several months. The actual work should take one to three days, depending on how complicated it is.
Also — talk to your contractor about maintenance. Be sure to clean the filters regularly and do anything else they recommend to get the best performance and longest life out of your equipment.
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Investors are piling into startups that promise to solve hard problems using little energy. But that doesn’t mean the answer is ‘yes.’
Physicists have spent decades trying to apply the laws of quantum mechanics to the physical world in the form of quantum computers, devices that promise to solve some of the hardest problems in biology, chemistry, and materials science at unfathomable speed. Many experts say this technology is finally on the cusp of commercial viability. Physicists and software engineers are understandably excited. But so, too, is another group that might raise eyebrows: climate investors.
Investment in quantum startups rose to $12.6 billion in 2025, six times the prior year’s total, according to McKinsey. The consultancy forecasts that the technology could drive up to $2.7 trillion in economic value by 2035 as it spurs efficiency and revenue gains across sectors. Climate tech venture capitalists understandably want a piece of that pie.
Examples abound. Lowercarbon Capital participated in the quantum startup Oratomic’s gigantic $300 million Series A, announced earlier this month. Just a few months prior, Breakthrough Energy Ventures led quantum pioneer Sygaldry’s $139 million Series A, which also included participation from Singapore-based climate-focused investor Earth Venture Capital. And earlier this year, Planet First Partners led a $200 million later-stage round for quantum company Photonic Inc., now valued at over $2 billion.
They’re hardly the first VCs to argue that the worlds of quantum and climate are closer than they might initially appear. Prelude Ventures has backed Atom Computing since its 2018 seed round, all the way through its $100 million Series C last month, while Berlin-based VC World Fund has supported IQM Quantum Computers — which went public via SPAC about three weeks ago — since 2022. All say that quantum computers will be dramatically more energy efficient than today’s so-called “classical computers,” reducing costs and electricity usage across applications ranging from artificial intelligence workloads and transportation logistics to power grid optimization.
That advantage stems from the fundamental nature of the system’s architecture. The physics is extraordinarily complex, but the basic idea is that unlike a standard computer, which encodes information as zeros and ones, quantum computers rely on units called “qubits.” Rather than representing a single binary value, qubits can “be both a zero and a one, or any state in between at the same time,” Idalia Friedson, Sygaldry’s co-founder, told me.
That mind-bending proposition totally changes the way computers problem-solve. Rather than sequentially testing one possible solution after another, quantum computers can evaluate many possibilities simultaneously, hopefully allowing them to solve challenges such as molecular simulation, materials discovery, and drug design exponentially faster than is currently possible.
This tech won’t replace today’s computers, which experts told me will almost certainly remain more practical for everyday tasks such as browsing the internet, making spreadsheets, and word processing. Rather, the future of computing will likely be a hybrid in which classical computers handle the bulk of the work while quantum computers address specific, complex problems.
For its part, Sygaldry is building quantum-powered AI servers that can plug directly into existing data center infrastructure, combining quantum processors with classical chips in the same machine to expedite both model training and inference. The startup is also unique in its effort to combine multiple types of qubits — yes, there is more than one kind — within the same system, matching each qubit type to the problem it’s best suited to solve.
“You can create a qubit by using photons, which are actually like light particles, by trapping ions, by creating artificial atoms,” Friedson told me, explaining that each type has its pros and cons. “Some are fast, some are less expensive, some are more manufacturable or scalable. But by and large, no single type of qubit meets all of the characteristics needed for commercial high-performance computing.” Thus, Sygaldry is taking a mix-and-match approach, pairing different types of qubits with the AI workloads they’re best adapted to handle, ultimately aiming to extract more from our existing data center infrastructure and curb the AI boom’s runaway energy demands.
But as with all breakthroughs that promise faster, better, cheaper AI, the spectre of Jevon’s paradox looms large. This is the observation that as technologies become more efficient and cheaper, total resource consumption often rises rather than falls as lower costs spur demand.
When I asked BEV’s Christian Garcia, who led the firm’s investment in Sygaldry, about whether he worries that quantum companies could contribute to an uptick in overall AI energy demand, he told me it seemed a little outside his remit. “I almost feel like it’s a question for a philosopher to answer,” he said, explaining that he has no way of knowing what the advanced computing industry will look like decades down the line. Instead, he’s focused on the shorter-term problem companies like Sygaldry purport to solve: Grid bottlenecks are constraining AI growth.
“Even as algorithms get more efficient, and even as GPUs get more efficient, the demand for tokens is outstripping the ability to bring power online,” Garcia explained. “And so we view investing in new computing platforms as a way to solve power challenges in a lot of ways, and I think that’s bread and butter for us.”
Mark Cupta, the Prelude investor who has backed Atom Computing since 2018, expressed a similar sentiment. “Regardless of what [quantum computing] is used for, it will use less energy as a baseline,” he told me. “Could it discover great things? Yes. Could it also break things? Absolutely. We’ve gotten comfortable with that.” Climate-positive applications that particularly excite Cupta include designing novel compounds to better capture carbon dioxide out of the air or industrial smokestacks, discovering more efficient catalysts for the energy intensive Haber-Bosch process used to produce ammonia-based fertilizer, and perfecting the chemistry behind solid-state batteries, which could be safer, longer-lasting, and far more energy dense than standard lithium-ion cells.
But quantum computing could also break many of today’s standard encryption methods, which secure everything from online banking systems and medical records to cryptocurrencies. It could help oil and gas companies with exploration, extraction, and petrochemical processing, helping to make fossil fuel production more efficient and cost competitive with renewables. Or maybe its greatest commercial value lies in, say, helping hedge funds optimize their trading strategies and portfolios — not necessarily a climate-negative application, but a far cry from the breakthroughs many sustainability-focused investors are hoping for.
The technology’s ultimate climate impact will always depend, to some degree, on how and where it’s deployed. Yet when Cupta looks at Prelude’s portfolio of climate tech solutions, he mainly sees the ways that quantum could help them move faster and build superior products. “If you think that the things we’re inventing are going to be better for the world than what came previously, you want to supercharge those things,” he told me.
He’s betting Atom’s platform will prove to be “the most energy-efficient and lowest footprint” approach in the industry. The company builds its qubits from neutral atoms, which have an equal number of protons and electrons and thus no net electrical charge. This system traps them in mid-air using tightly focused laser beams, a setup that allows the atoms to be packed far more densely than many competing designs, which often use micron-scale wires. And because the laser traps are movable, the system can rearrange qubits on the fly to optimize for different tasks.
Neutral atom-based systems are a relative newcomer to the quantum computing landscape, but Cupta believes they have the potential to leapfrog the industry’s dominant architecture: superconducting qubits. Often described as artificial atoms, these qubits are tiny electrical circuits engineered to mimic the quantum behavior of atoms. They underpin the quantum efforts of tech giants like Google and IBM, as well as startups such as Rigetti Computing — founded by Sygaldry’s other co-founder, Chad Rigetti — and IQM Quantum Computers.
But when Cupta was first exploring the idea of a quantum investment, he said nearly everyone he spoke with admitted that if they were “starting from scratch” they wouldn’t choose to work with superconducting qubits. That suggested to him that this approach had become a legacy technology, while Atom Computers’ neutral atoms represented the future. Other investors now appear to be buying that thesis. Last month, the startup announced a $100 million Series C, and is also set to receive $100 million from the U.S. Department of Commerce as part of a $2 billion CHIPS Act investment in quantum computing and manufacturing. For its part, Oratomic — a Lowercarbon portfolio company — is also working to build a neutral atoms-based quantum computer.
Prelude has been wrong about quantum before, as have plenty of other investors. The firm also co-led the Series A and B rounds for the quantum software company Zapata Computing, which went public via SPAC in 2024. The stock quickly collapsed, and within seven months the company had run out of cash and ceased operations. It eventually restructured and reemerged as Zapata Quantum, though its shares are still only worth around $1 on the lightly traded OTCQB market.
There’s also always the possibility that a climate-focused startup could simply reinvent itself, pivoting toward a more promising market opportunity. Consider the case of Crusoe. The AI data center builder and operator now valued at over $10 billion initially pitched itself at the beginning of the decade as a climate tech startup, using natural gas that would have otherwise been flared off to power cryptocurrency mining, thereby reducing emissions. While always an unconventional thesis, sustainability-focused VCs like Lowercarbon, G2 Venture Partners, and MCJ Collective piled in. Since then, the company has greatly expanded its natural gas footprint as it’s pivoted aggressively toward building AI data centers.
All of which is to say, there’s simply no guarantee that a climate tech startup will stay true to its original mission, or that the energy savings and efficiency gains it promises will ultimately materialize. The possibility of a paradoxical outcome is just a part of investing in energy efficiency technologies.
Investors seem to have gotten comfortable with the discomfort. But the public may not have to wait too much longer to see the first signs of what a quantum-powered future could look like. Sygaldry is aiming to “have some meaningful technology by the end of the decade,” Friedson said. “Over the next couple years I expect quantum is going to start reaching these really valuable inflection points that continue to drive adoption.”
Current conditions: Tropical Storm Bertha washed out the majority of monitored sea turtle nests in the western part of the Florida Panhandle • Record rain in West Virginia swelled creeks that toppled bridges in the north central part of the state • In the Pacific, Tropical Depression Kiyapo is barreling toward the northern part of the Philippines’ Luzon island.

China just quietly upped its target for renewable energy consumption, ratcheting up the goal 53% by 2030, rising to 1.8 billion tons of coal equivalent from 1.18 billion tons last year. That’s according to the latest five-year plan for renewables the National Development and Reform Commission published on its website. Wind and solar, paired with energy storage, are expected to provide 20% of electricity during the summer and winter evening peak periods, up from 10% currently, according to Bloomberg. By 2030, Beijing wants 300 gigawatts of peak capacity from renewables. Non-electric utilization of renewables, such as for heavy industry, is projected to rise to 150 million tons of coal equivalent from 60 million in 2025. The People’s Republic is betting on novel technologies to start taking off. By the start of the next decade, China wants to increase solar thermal capacity to 15 gigawatts from just under 2 gigawatts at the end of last year. The government wants marine energy, such as tidal and wave power, to go from virtually nothing today to at least 400 megawatts.
In the meantime, Beijing’s buildout of nuclear reactors continues apace. Per my promise to keep you abreast of all the big milestones, here’s the latest: China General Nuclear just installed the “supermodule” for the CAP1000 — the Chinese version of America’s Westinghouse AP1000 — at its Unit 2 project at the Lufeng Nuclear Power Plant in Guangdong Province. The installation this week of a module that’s too big to be transported by rail or boat and thus needed to be fabricated on site “signifies that the construction of the reactor building” for the new unit “has entered a new phase.”
Meta has quit a top corporate initiative to promote clean energy as the Facebook parent company has built out at least a dozen gas-fired power stations to supply electricity to its data centers over the past year. While rivals such as Apple, Google, and Microsoft remain members of the RE100, a project of the British-headquartered nonprofit the Climate Group that former United Kingdom Prime Minister Tony Blair co-founded, Recharge News reported that Meta had left the initiative. A spokesperson for the company told TechCrunch it was a mutual decision, though Meta declined to comment on the exact reasoning.
The United States currently has a little over 70 gigawatts of capacity to manufacture solar panels each year. Tesla has plans to dramatically increase that number. “We are just going to multiply it [by] an order of magnitude,” Vaibhav Taneja, Tesla’s chief financial officer, said during an earnings call Wednesday night. “We’re going at a very rapid scale.” It was just one of the various investments the electric auto giant is banking on investors to support as billionaire CEO Elon Musk ramps up spending on manufacturing semiconductors and humanoid robots as part of its artificial intelligence buildout, while also tackling an energy source that the scale of China’s factories has largely brought down to a commodified price. The stock plunged nearly 15% on Thursday as CNBC cautioned that investors are increasingly spooked about spending on artificial intelligence. “Yes, this means that we are doing a lot of things all at the same time,” Taneja said. “And that’s why we just have to go as fast as … humanly possible, make things work in the real world.”
Adding to the company’s woes: The U.S. government is now looking to strengthen regulations on car door hands after federal filings linked electric door failures to at least 15 deaths in Tesla vehicles, Bloomberg reported.
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The price of Brent crude, the international benchmark for oil, surpassed $100 per barrel for the first time since May amid President Donald Trump’s threats to ramp up the U.S. bombing campaign against Iran and a resurgence of attacks from Yemen’s Tehran-backed Houthi rebels in the Red Sea. West Texas Intermediate, the U.S. benchmark, finished out the day of trading at a little over $92 per barrel. Murban crude, out of the United Arab Emirates, soared nearly 20% to more than $107 per barrel. On Thursday, Trump told Axios he was close to a final decision on whether to launch a “massive attack” on Iran, “bigger than ever before.” The threat comes on what the Financial Times clocked as the 12th straight night of U.S. strikes against the Islamic Republic.
A new analysis from the consultancy Wood Mackenzie, meanwhile, showed the limits of Saudi Arabia’s main bypass for the Strait of Hormuz. Riyadh redirected virtually all crude exports through its East-West Pipeline to Yanbu on the Red Sea after Iran closed the narrow waterway at the mouth of the Persian Gulf at the start of the war in February. Volumes flowing through the pipeline peaked at more than 4 million barrels per day in March. But by June, that flow declined to about 2.4 million barrels per day, a 41% decline. On the whole, crude exports out of the Persian Gulf fell 82% between January and June. That’s likely due to dropping production as the regional industry struggles to find sufficient outlets for its supply. The Red Sea corridor also also “faces a declared Houthi blockade that, if enforced, could reduce global oil supply considerably.”
The U.S. has 4.2 billion short tons of coal reserves in active mines and another 356 billion short tons in untapped deposits, according to an updated U.S. Geological Survey report the Department of the Interior released Thursday. If extracted and burned in a power plant, the coal could supply the nation’s needs for at least 600 years at the current rate of consumption, the agency said. “American Energy Dominance is more important than ever, and so is beautiful, clean coal’s role in the production of electricity needed to fuel our future prosperity,” Secretary of the Interior Doug Burgum said in a statement. “Thanks to the USGS’s rigorous and independent assessment, we’re better equipped to manage America’s vast public lands responsibly while supporting energy security and economic opportunity.” Of the 34 coal mines on federal land, 14 are located in Wyoming, followed by Colorado with six, North Dakota and Utah with four mines each, and Alabama and Montana with three mines each. But Wyoming's mines contain 87% of the reserves associated with active mines on federal lands. As I told you last month, the Trump administration put up $850 million to support a coal revival. And the Iran War, as my colleague Matthew Zeitlin wrote in March, is only fueling more demand for coal.
Last month, I told you that Japan was the other country, besides the United States, bucking the global trend toward more, not less, offshore wind. Here’s a good reminder that, in most cases, such trends are directional, not definitive. The 315-megawatt Oga-Katagami-Akita offshore wind project just received its certification from Japanese regulators, “confirming that the design of its wind power generation facilities complies with” technical standards. It’s a major step toward building the array of 21 Vestas turbines off the coast of Akita Prefecture, per offshoreWIND.biz.
Rob talks with Charm Industrial cofounder Peter Reinhardt about “liquid smoke” and how it can store greenhouse gas at gigaton scale.
Charm Industrial is a climate tech company that takes biomass and converts it into a heavy, carbon-rich oil that can be injected underground, transmuting and storing the greenhouse gas far from the atmosphere. They’re scaling up fast and recently announced a new $20 million debt facility with JP Morgan; the bank also agreed to buy more than 60,000 tons worth of removals from them.
On this episode of Shift Key, Rob is joined by Peter Reinhardt, the CEO and cofounder of Charm. (He’s also the CEO of the trucking company Revoy, a founder of the autoimmune therapeutics company Antipode, and a board member at the electricity data company Arcadia.) They talk about what makes Charm different, how it is scaling operations as a carbon removal company, and the changing politics of climate change.
Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap News.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Here is an excerpt from their conversation:
Robinson Meyer: You’ve had a very interesting career of starting in software, exiting a software company, and now working in the world of molecules. And I think there are two ... frankly, I’m gonna simplify things, but I feel like there’s two pathways that bring people into, let’s say, venture-backed climate startups. No. 1 is people worked at SpaceX or Tesla, or No. 2, people worked at a software company and then cared about climate change and got into the molecule space. And so as someone who was at a software company, exited, and now works with CO2 — works with physical things — what has surprised you most about working in molecules, and what have you brought from the land of bits to the land of molecules?
Peter Reinhardt: I think the main thing that i’ve brought is an expectation of pace, and that the pace can be faster, and the main thing that I have encountered that is new is the regulatory and policy environment. It doesn’t really exist in software — like it’s not a surprise that AI is the fastest growing sector in the economy right now. Everything else is regulated to stasis. And so you have an unregulated thing, relatively speaking; it’s growing super fast and creating all kinds of all kinds of good for people. We all use it every day because we get some value out of it. And so that has been hugely eye-opening. And the politics of deployment in hardware — politics of deployment don’t really exist. I mean, maybe they do around AI, but they don’t really exist in the software world. You deploy at your own pace and that’s it.
The politics of deployment in hard tech and climate are very complicated. And I think I went in with a very naive viewpoint, which is that in theory, Democrats are super aligned to climate and super aligned to deployment. In practice, I don’t know. If you look at like — I mean, I wrote a blog post about this, which is like, regulation is doubling the cost. It is impossible for us to get started in California. This is nominally the state that’s the champion of climate today. It’s not leading on renewable energy development. I tried to go there first in terms of deploying carbon removal. God knows the forests in California could use it, right? For the same reason that we’re here in Colorado, we were told it would be like 10 years to get the first injection while permitted.
That’s not what leadership in climate looks like, no matter how you slice it or dice it. It can’t take 10 years to try to deploy a novel technology. I would love to deploy in California. It’s my home state. I live there, and I come out to Colorado once every two weeks to be with most of the team here. But that’s not what leadership looks like. And so again, in theory, there’s a lot of talk. But particularly on the Democrat side, the gap between talk about climate and climate action versus the reality on the ground of actually trying to deploy stuff is massive, and like, deeply, deeply challenging, I would say, to my identity over the last few years. And like very, very discombobulating.
You can find a full transcript of the episode here.
Mentioned:
Charm’s new deal with JP Morgan
The ProPublica story Peter criticized
“Over-Regulation is Doubling the Cost,” by Peter
The Cantwell-Sheehy bipartisan carbon removal bill
Previously on Heatmap: Charm Is Working With the U.S. Forest Service on a Carbon Removal Pilot
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Music for Shift Key is by Adam Kromelow