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On the crazy winter storm, America's carbon emissions, and deep-sea mining

Current conditions: A blizzard is slamming Turkey near Istanbul • Central and Southeast Asia are experiencing unusually high temperatures • Researchers confirmed 2023 was the hottest year ever recorded.
America’s greenhouse gas pollution from energy and industrial activities fell by 1.9% in 2023 compared to the year before, according to energy research firm the Rhodium Group. This marks the first time since the pandemic that carbon emissions have dropped. But perhaps more importantly, the reduction happened even as the broader American economy grew. “It’s the first time this decade that the United States has hit the important mark of growing its economy and cutting its climate pollution at the same time,” says Heatmap’s Robinson Meyer. Climate pollution from the power sector fell by 8% last year, a greater decline than in any other part of the economy, driven partly by the death of the coal industry, partly by an exceptionally warm winter. But there is still much work to be done: America must roughly triple its pace of pollution reductions to meet its Paris Agreement goal of cutting emissions in half by 2030. “Emissions cuts of that magnitude are probably not feasible,” Meyer says.
More than 400,000 customers are without power this morning as massive winter storm systems sweep across the country. To the east, a surface cyclone dropped torrents of rain and left more than 6 million people under flood warnings. Streets were submerged in cities along the East Coast, including Annapolis and Baltimore, Maryland; and Alexandria, Virginia. By early evening on Tuesday, the daily rain record for Washington, D.C., had been broken. The rain has tapered off but as National Weather Service meteorologist Patrick Wilson told The New York Times: “The worst time for flooding is right after the rain stops.”

The storm is also blasting states with strong wind gusts, and at least 15 tornadoes were reported in the South. More than a foot of snow fell in parts of the Central Plains. On the West Coast, a blizzard warning was issued for the Cascade and Olympic mountains – the first such warning in over a decade. That storm system will make its way east and is expected to “intensify explosively” by the weekend, bringing blizzard conditions to the Midwest, severe storms to the South, and more flooding to the East Coast. The cold snap will linger into next week.

Scientists say climate change is supercharging winter storms. Dr. Jennifer Francis, a senior scientist with the Woodwell Climate Research Center, explained to the Union of Concerned Scientists last year that warmer temperatures give weather systems “more fuel to work with in the form of water vapor and heat, more moisture, and as a result, these storms are dumping more precipitation.”
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The World Economic Forum (WEF) released its 2024 Global Risks Report today, outlining the biggest risks the world faces in the long and short term. While last year’s report focused largely on economic risks like inflation, the WEF says the top risks for the next two years are misinformation and extreme weather events. Looking a bit further into the future, over the next 10 years climate change and environmental issues account for half of the 10 top global risks, as nations are unprepared for the “triggering of long-term, potentially irreversible and self-perpetuating changes to select planetary systems [which] could be passed at or before 1.5C of global warming, currently anticipated to be reached by the early 2030s.” The report is the result of a survey of more than 1,400 global experts across government, business, and academia. The annual WEF meeting in Davos kicks off next week.

Norway’s parliament voted to allow deep-sea mining in its Arctic waters, a move that “paves the way for a new frontier in mining,” writes Adam Vaughan at the Times of London. Demand for critical minerals that help power many of our technologies – including wind turbines and electric cars – is expected to grow more than three times by 2030, and companies have been eyeing the seabed as a source. Some suggest seabed extraction could be less environmentally harmful than traditional mineral mining, but environmentalists worry it could destroy delicate ecosystems. More than 20 countries recently backed a moratorium on deep-sea mining.
The conflict between Israel and Hamas in Gaza is generating large amounts of greenhouse gas emissions, according to a recent study. The research finds that, in the first 60 days of the war, the emissions footprint of Israel’s military response – including pollution from military vehicles, exploding bombs and rockets, and aircraft missions – was “roughly the equivalent of 75 coal-fired power plants operating for a year.” The study has yet to be peer reviewed. However it is the first attempt to quantify the conflict's climate impact, The Guardian reports.
2023 was the first year in which every single day was at least 1 degree Celsius hotter than the pre-industrial average.
Editor’s note: This story has been updated to reflect the fact that Norway is not the first country to approve commercial deep-sea mining. We regret the error.
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When it comes to energy and data centers, everyone loves Texas. Its pro-business political consensus, unusually deregulated electricity market, wide-open plains, sunny skies, and large natural gas and oil deposits have attracted data center developers, renewables developers, liquefied natural gas export terminals, and battery storage entrepreneurs alike.
But this all happened under decades of unified Republican control of Texas’ government. That’s ending on January 19, when Gina Hinojosa is sworn in as governor alongside every other holder of statewide elected office who won this year. In Austin, they will join a Democratic majority Texas House of Representatives, which has been under Republican control since 2003.
Immediately following the election, stocks linked to data center development in Texas swooned — Elon Musk’s SpaceX is down 12.5% since Tuesday, data center developer CoreWeave is down almost 19%, Oracle is down 9%, Texas-based independent power producer Vistra is down 19%. Sterling Infrastructure, a civil construction company headquartered outside Houston, has seen its shares fall 32%.
On the campaign trail, Hinojosa called for a moratorium on data centers until the legislature could pass legislation putting guardrails around development, including protecting residential ratepayers from electricity price hikes and giving local communities more leeway to restrict and condition development. Two weeks before election day, she released a video criticizing Governor Greg Abbott’s “Batch Zero” review process — which had been broadly characterized as a “pause” when it was announced over the summer — for allowing new permits, and she said that she would issue a “ban” on all data center approvals until new laws could be passed.
When Abbott introduced his pause over the summer, Texas’s electricity market ERCOT had 474 gigawatts of data center interconnection requests in its queue (almost all from data centers), a figure he said was around five times the electricity market’s peak demand. That review is due to end next month, shortly before Hinojosa is due to take office, leaving little time for new projects to get approved before the moratorium goes into effect.
Some observers and investors took a sanguine view of Hinojosa’s data center policies. Gavin Baker, a longtime investor in SpaceX, said on X that Hinojosa’s policies “sound reasonable” and pointed to an interview she gave saying that the moratorium would be on new permits and would not affect the pipeline of permitted projects.
The data center and energy industry, however, is in wait-and-see mode when it comes to the severity of the moratorium.
“If she was thinking of trying to go after projects that had begun the construction process,” Brandt Vermillion, U.S. research lead at Modo Energy, said, “I think it would change the overall outlook a ton.”
According to Modo Energy analysis, there are some 25 gigawatts worth of projects under construction in Texas, another 4.6 gigawatts permitted, and another 90 gigawatts that are either just announced or have only submitted grid studies. If Hinojosa “is only going after non-permitted projects,” Vermillion added, then anyone thinking about the future path of data center development in Texas should be more concerned about supply chain constraints like obtaining enough chips to power the data centers.
That being said, the Texas legislature’s session doesn’t end until May 2027, meaning that Hinojosa’s pause could last several months before lawmakers put guardrails into law.
“I don’t think we’re going to not build another data center in the state,” Joshua Rhodes, a research scientist at the University of Texas at Austin, told me. “But I think that they’re going to be under quite a bit more scrutiny.”
That being said, analysts are now much more uncertain about the future path of electricity demand in the state. “Texas demand is difficult to project after Gina Hinojosa’s surprise win,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients on Thursday.
That means more trouble for developers in Texas, especially for storage projects, which had already been seeing extremely volatile monthly revenue.
“Batteries and energy storage have been counting on demand to go up because they’re having a rough time out there right now in terms of revenues,” Rhodes said. “Demand will have a pretty big impact on supply.”
One thing the battery storage industry, as well as solar and wind developers, can cheer is that Democratic control of the governorship and the state House means that the threat of anti-renewables bills has fallen to essentially zero.
The renewables industry is hoping that data center development does continue in Texas, but that it looks more orderly and grid-connected.
Going forward, Vermillion expects that data center developers will have a harder time getting tax abatements, which means that a “well-capitalized hyperscaler” could potentially still pursue projects.
“Project A that was going to go about development in a certain way of seeking tax abatements and buying a bunch of reciprocating engines and trying to run themselves off grid” is much less likely to be able to go forward in Hinojosa’s Texas, Vermillion told me, especially as she is able to appoint new commissioners to the Texas Public Utility Commission or the Texas Commission on Environmental Quality.
Tim Woodruff, the data center lead at Modo, told me similarly. “In the near term, if you're one of the neo clouds, maybe now you start pushing a little harder on your projects that you have in MISO or in CAISO,” he said.
Invest in Tomorrow Coalition says it took out clean energy adversaries in the midterms. Now it’s setting its sights on 2028.
A pro-renewables Super PAC – Invest in Tomorrow Coalition – is taking a victory lap, claiming it played a key role in the blue wave and announcing plans to be involved in the 2028 presidential primaries.
When I first heard of the Invest in Tomorrow Coalition, it was clearly a revenge operation. Backed by renewables companies and crypto magnate Chris Larsen, the Super PAC waded into primary elections this year to take out Republicans who voted to repeal most of the Inflation Reduction Act. Tom Matzzie, a renewables executive leading the Super PAC, described the organization to me as “focused on accountability for elected officials who decide they want to attack the clean energy industry.” Shortly afterwards, Invest in Tomorrow announced an investment in seven races before ultimately expanding to 18 races.
Now that the dust is settled, Matzzie told me that most of the races they intervened in wound up flipping red to blue: “I think we’re on track to win 12 or 13 of the 18 we invested in. We had seven or eight marquee races and we’re winning the majority of those. We were hopeful we’d get one in a tough district. We didn’t expect to get this many.”
Their favorite trophy is Indiana’s 5th congressional district in the northern Indianapolis region, where Rep. Victoria Spartz lost a historically comfortable GOP seat to J.D. Ford, a Democratic state senator. Matzzie told me the Super PAC invested $2 million in the race to beat Spartz, which he claimed is more than both campaigns spent combined. (My search of FEC records shows that may be true, if you don’t count other outside assistance.)
After Spartz was declared the loser, the Super PAC sent an email blast to the media with a short statement: “Tell Victoria Spartz. We want her to know it was us.”
The Super PAC also claims at least partial responsibility for helping oust Rep. Lauren Boebert of Colorado, who lost by just a few thousand votes. I’m told they invested $1.5 million in the race, including on a digital ad centered around an incident where Boebert was escorted out of a live stage performance of “Beetlejuice.” The ad claimed Boebert couldn’t be trusted around children. It prompted Boebert to do a whole segment bashing the Super PAC while guest hosting former Rep. Matt Gaetz’s One America News show.
“Oh, I love it when they complain about us. I love it when they whine about us. We want them to spread the word to other members of Congress about what we’re doing,” Matzzie told me. “We want to send a message that we will do what is necessary to defeat you in your next election, including getting down in the mud if needed, and we have limits on what we say and won’t say, but it has to be truthful.”
Since it is already time for 2028 discussions, I asked Matzzie if the Super PAC had any ambitions to be involved in the presidential primaries next. Absolutely, he said. First that involvement will look like education. That could look like having pro-renewables voices urging GOP candidates to be more receptive to the sector, whether they be representatives of the business community or landowners with solar on their properties.
“The accountability part of this comes later as people firm up their point of view on what they’re running on and we don’t know what that is yet. We totally invite all of the candidates to be supportive of the clean energy industry if they’re running for president. That is our ideal outcome,” Matzzie said.
But if candidates don’t get the message will they go on the attack against primary candidates? “I have no hesitation about doing it.”
On electrification’s shortfall, AI for nuclear, and Alva Energy’s big plans
Current conditions: Heavy rain is overflowing rivers in the Dominican Republic’s eastern inland towns, including Monte Plata, where floodwaters are washing away cars • With weeks to go before the Atlantic hurricane season officially ends, a new tropical storm may be forming between the Bahamas and Bermuda • It’s cloudy and 51 degrees Fahrenheit in London, where the British are marking Guy Fawkes Day, a holiday commemorating the 421st anniversary of the failed plot by English Catholics to assassinate King James VI of Scotland and I of England by blowing up the House of Parliament.
It’s a rebuke of President Donald Trump! A new era! A sign that President Lyndon B. Johnson’s prediction that the Democrats would lose the South until the end of young Bill Moyers’ lifetime (he died last year) was true! Maybe it’s all of these things. But one thing is certain: Democrats’ big victory Tuesday night halts what my colleague Robinson Meyer called “Trump’s energy revolution,” meant to defy the economics of renewables. There’s still much to dissect — we don’t even know who won shockingly competitive U.S. Senate races in Mississippi and Alaska. But my colleagues have a nice slate of stories to help us get started:
Vice President JD Vance is openly blaming the Trump administration’s war with Iran for Republicans’ midterm shellacking, and Democrats are formulating a new approach after campaigning against the conflict and its associated energy shock. Iran, meanwhile, is signaling its openness to peace talks, even as Tehran turns to guerrilla tactics to regain control over the Strait of Hormuz. All that looks to oil traders like more crude hitting the market. On Wednesday, the price of West Texas Intermediate crude, the U.S. benchmark, fell more than 8% to $88 per barrel. Brent crude, the global price measure, plunged nearly 9% to just under $95 per barrel. Murban crude, the stuff that leaves a Persian Gulf port in the United Arab Emirates, dropped 1% to just under $101 per barrel.

Big meals, big trucks, big computers — it’s the American way. Only one of those is a problem for electricity prices — a problem that’s also uniquely American. New projections from the Rhodium Group suggest that the U.S. is the only major market where data centers are the primary driver behind surging electricity demand, constituting between 62% and 77% of gross demand growth. In China, Europe, India, and the Middle East, residential and commercial buildings are by far the biggest new sources of demand for electricity to power air conditioning, heating, and appliances. Meanwhile, according to data from the consultancy Cleanview, upward of 41% of planned data centers in the U.S. are in states where newly elected governors are considering moratoria on new projects
.

The Rhodium forecast also shows big global challenges for the fight to slow global warming. Electricity serves just 21% of the world’s end-use energy; by 2035, countries pledged to raise that figure to 35%. But the global average for electrification is on track to hit just 28% in the next nine years, threatening to maintain planet-heating pollution levels even as renewables surge and power emissions fall. Low-carbon sources of electricity are on track to generate upward of 80% of the power in China and the world’s richest economies, with variable renewables such as wind and solar producing the bulk of the output. Clean firm sources such as nuclear power and geothermal maintain a steady share of total output as variable sources eat into fossil fuels’ market. As a result, emissions shift to the parts of the world where fossil fuels will remain dominant. China and rich countries will account for 37% of emissions in 2050, down from 54% in 2024. India’s emissions will rise 26% by the middle of the century, and the entire African continent’s output by 37%. Worldwide industrial emissions are on track to stay static as the benefits of low-carbon steel are offset by the spike in production from coal-fired blast furnaces.
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Whenever OpenAI or Anthropic releases a new model, the healthcare industry, say, can measure its capabilities by seeing how quickly it can pass a medical board test. Last year, the AI startup Atomic Canyon — which formed to help nuclear plant operators sift through mountains of documents using large language models — inked a deal with the Idaho National Laboratory to create a test that can check the software’s ability to work with a nuclear plant. Fourteen months later, the partnership has yielded results. On Thursday, I can report exclusively for this newsletter, Atomic Canyon is set to launch what it calls NuclearBench, the first open-source benchmark designed specifically to evaluate how LLMs perform on questions related to nuclear energy. “Think about it like an open-book exam for AI models,” Trey Lauderdale, Atomic Canyon’s founder and chief executive, told me. The company worked with INL to design a 280-question exam, which can then be administered to AI models, whose answers are judged by accuracy and context.
“As you’d expect, the more advanced models perform better. You’ve got OpenAI, Google, and Anthropic all vying at the top,” Lauderdale said. “Nothing we wouldn’t expect, but it’s nice to have actual metrics and information that validate general hypotheses you might have. You could instinctively say, This model is doing better. But it’s really important as an industry that you start benchmarking what these models can do.” Atomic Canyon’s test is not yet at the level of a medical board exam, he said. But the company plans to continuously update its exam to account for the growing sophistication of LLMs. Eventually, Lauderdale hopes to roll out more targeted tests focusing on safety and risk, reactor engineering, emergency preparedness, radiation, and other factors. “It’s the equivalent of the tests to become a general physician or those to become a cardiologist, dermatologist, or gastroenterologist,” he said.
Last month, I told you when tech giants announced a series of deals to help fund “uprates” at existing nuclear plants, renovations that potentially squeeze hundreds of megawatts of new generation out of reactors that are already running. The deals with Google and Amazon looked to generate more than a gigawatt of new power through uprates across PJM Interconnection, the most stressed grid system in the U.S. Now a startup specifically designed to affordably uprate reactors is considering projects to generate as much as 1.2 gigawatts of new power out of existing plants — and it just received a major endorsement from a utility industry heavyweight. I can exclusively report that, on Thursday, the developer Alva Energy plans to announce that Jeff Lyash, the former chief executive of the Tennessee Valley Authority and Ontario Power Generation, would join its board of directors. Lyash has plenty of nuclear experience. OPG, owned by Canada’s most populous province, operates the second-largest nuclear fleet in North America after the U.S.-based Constellation Energy. It’s also building the continent’s first small modular reactor, the first of GE Vernova Hitachi Nuclear Energy’s 300-megawatt units. The federally owned TVA, from which Lyash retired last year following Trump’s return to the White House, operates three nuclear plants and is building what’s expected to be America’s first SMR, the second GE-Hitachi BWRX-300 after OPG’s project at its Darlington plant. Lyash will be the fifth member of Alva’s board. After former Intel CEO Pat Gelsinger, he’s the second to come from outside the company; the other three board members are Alva’s co-founders.
“What’s been pretty amazing is that we’re starting to attract top-tier industry talent,” James Krellenstein, Alva’s chief executive and co-founder, told me. “Jeff joining the board has been pretty transformational because he brings a massive amount of experience in modifying existing plants.” At OPG in particular, Krellenstein said, Lyash oversaw refurbishments of the utility’s CANDU reactors. He also sits on the boards of the utility Dominion Energy, the Canadian construction giant Aecon, the industrial conglomerate Curtiss-Wright, and the European reactor startup Newcleo, which Krellenstein said lends Alva greater insight into other sectors’ large-scale project management. “What the economy of the United States is looking for is sources of clean, 24/7 power. Nuclear power uprates are a way in the short term to get that demand fulfilled in the United States while simultaneously rebuilding the execution capability necessary to create new plants. That’s the exact scaling strategy that Alva is working on.”
It’s no Norway, where electric vehicles make up nearly 99% of new car sales. But EVs’ share of Germany’s new car market soared to a record 37% last month, according to data from the country’s national motor vehicle authority, the Kraftfahrt-Bundesamt. That, according to Electrek, equates to 94,086 new battery-electric vehicles, up nearly 80% from the 53,425 sold a year earlier.