You’ve reached your free article limit
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
The CEO of Cleveland-Cliffs cast doubt on a new mill funded in part by $500 million in federal grants. What does that say about corporate commitments to decarbonization?

American steelmaker Cleveland-Cliffs cast doubt last week on the country’s most important green steel project. Chief executive Lourenco Goncalves suggested in an interview that the company was considering passing up $500 million of federal grants to build a new hydrogen-powered mill at its Middletown Works facility in Ohio, blaming fears that there won’t be buyers for the lower-carbon product, which he claimed could cost 40% more to produce than steel made by conventional methods. Cleveland-Cliffs later issued a short press release walking back Goncalves’s comments and reaffirming its commitment to the “transformational” project.
It’s, of course, possible that Goncalves was just expressing personal concerns that do not reflect the company’s official position. But either way, those doubts were not only real, but revealing about our prospects for decarbonization by mid-century.
First, the episode is a stark indictment of the many attempts to create demand for cleaner products by conjuring up corporate ambition on climate change. The entire rationale for cajoling corporations to quantify the emissions in their supply chains, known as Scope 3 emissions, has been to pressure them into sourcing greener inputs. The steel sector produces 7% to 9% of emissions globally: if it were a country, it would be the world’s third-biggest emitter after the United States and China. And steel represents the biggest single source of Scope 3 emissions for many companies in other industries — on the order of 40% to 45% for auto companies and as high as 85% for construction, for example. This makes steel a litmus test for whether Scope 3 footprinting and corporate commitments to green their supply chains are delivering as promised.
Worse, these types of steel buyers have ostensibly already been organized to show demand for green inputs. Before he stepped down as President Biden’s special envoy for climate, one of John Kerry’s cornerstone initiatives was the First Mover’s Coalition, an effort to secure advanced purchasing commitments from corporate buyers for green steel and other industrial materials. The fact that the coalition’s members – many of which are major steel buyers like Ford and General Motors – were not publically jumping all over the outputs of Cleveland-Cliffs’s heavily subsidized project is itself troubling. After all, while the green premium on steel may be significant, the material is typically a relatively cheap input into much more expensive, high value-added products.
Goncalves’s comments also underscore how uncomfortable incumbent industries perceive the jump to new, low-carbon products to be. Assume that the new Cleveland-Cliffs mill does in fact pencil out at the cost originally expected and that it has a reasonable prospect of finding offtakers. The company still says it has to invest $1.1 billion to complete the project. It is not really enough, in the logic of the market, for that investment to be profitable: It has to compete against the opportunity cost of alternative investments, including manufacturing conventional steel. Even if both outputs would find buyers, conventional steel may still be more profitable.
Now imagine the company is looking at the larger direction of the industry. If they don’t do this project, they may well forestall a shift to cleaner steel and be able to keep the sector chugging along more profitably for a little longer. Complete the project, and they may bring about changes that, while maybe inevitable, are uncomfortable for the industry. After all, Cleveland-Cliffs and U.S. Steel produce the vast majority of American primary steel; they are steel production in the United States – and so they get to shape its transformation.
This behavior is similar to that of the American car industry. U.S. automakers have largely conceded that electric vehicles will eventually overtake their combustion-engine counterparts, but they are still clinging to the better margins that gas-powered SUVs provide. The short-term profits are hard to pass up, even if it means getting farther behind EV first-movers like Tesla, BYD, and Hyundai. Once the technology pathway to a sector’s transition becomes clear — even when it feels inevitable — incumbents may still have an extremely hard time ripping off the bandaid.
It’s as if decarbonization is a massive marshmallow test for corporate America, and it’s failing.
There are essentially two ways out of this dilemma.
The first is that society will need to rely on new entrants to each sector to disrupt the status quo. Companies developing entirely novel steelmaking technologies like Boston Metals become more important to the steel transition than Cleveland-Cliffs, just as Tesla has been to the American EV market. Sublime Systems may be vital for green cement, just as Fervo Energy may be for enhanced geothermal. The problem with this approach is that it is extremely expensive to build projects in heavy industries like steel, so most pathways assume that even technology developed outside of the incumbents will get deployed by them (Sublime just this week announced a tie-up with cement giant Holcim).
This leads to option two: comprehensive industrial policy. Cleveland-Cliffs may want to see not only that one green project pencils out, but that strategic opportunities and risks favor going green. This might means measures like implementing a U.S. carbon border adjustment mechanism (CBAM) to prevent foreign competitors from dumping dirty steel, the government guaranteeing offtake using public procurement programs like Buy Clean and Contracts for Difference, and ultimately policy sticks like carbon pricing that send a long-term signal favoring clean products over polluting ones, instead of relying on corporate social responsibility for a demand signal.
To decarbonize the economy, we will probably have to rely both on more robust industrial policy and the sector disruption from new entrants. While the story of this Cleveland-Cliffs project is far from over, the company’s apparent hesitancy, like that of U.S. automakers, may be teaching us a lesson that we have to learn quickly if we want to see decarbonization any time soon.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
This past weekend’s storms caused flooding and property damage up and down the coast — and it’s going to get worse.
California has around 3,400 miles of shoreline, ranging from the wild, foggy beaches of the North Coast to the sunbather-studded sands of Orange and San Diego counties. That’s a whole lot of border to share with the Pacific Ocean, especially when the water is as hot and tempestuous a neighbor as it is right now.
Just ask the city of Long Beach, which this weekend was on the receiving end of some Super El Niño mischief. Swells from the storm briefly dubbed Hurricane Rachel “annihilated” beachfront mansions and flooded city streets, causing pieces of the local boardwalk to “shred away.” “It’s never happened like this before,” one resident of 64 years told the New York Post.
But while things might look bad in California at the moment, they can still get much worse. One disaster modeler recently estimated the state could see as much as $3 billion in flooding and mudslide-related losses alone this winter — not to mention coastal erosion, king tides, and storm swell. Governor Gavin Newsom declared a state of emergency at the end of September, while many cities, including San Diego, have declared their own local emergencies.
El Niño will likely peak in December, meaning that towns and cities across the state have just a few remaining weeks to finalize projects, whether that means improving drainage in landslide-prone environments such as Rancho Palos Verdes or distributing NOAA weather radios in areas likely to lose power, as emergency managers are in Santa Cruz. The approaching winter storms, combined with El Niño, represent “a humbling reminder of the ongoing effects of climate change and the importance of emergency preparedness,” Laath Martin, the public affairs lead for the city of Long Beach, wrote to me in an email.
El Niño is a cyclical phenomenon, occurring when temperatures in a particular stretch of the Pacific Ocean rise half-a-degree Celsius above the average of the preceding 30 years. But there are signs these natural variations are happening less predictably because of climate change, and we know for sure that a warmer atmosphere makes the baseline for its impacts worse: king tides, Kelvin waves, and storm surge piggyback on top of rising sea levels to result in more severe coastal flooding and erosion. A warmer atmosphere also holds more water, which means more rain — perhaps 200% above normal — which, in turn, results in flooding and mudslides further inland, as well.
“Based on what I am seeing now, I am officially concerned,” Daniel Swain, a climate scientist at the University of California Agriculture and Natural Resources, said last week after reviewing the latest outlook. There’s a reason this year’s El Niño is being called a Godzilla.
In general, the weather pattern causes the jet stream to shift south in the winter, bringing wetter and snowier conditions to the lower U.S. while the northern part of the country stays drier and mild. (It’s also responsible for a weaker Atlantic hurricane season, as we’ve already seen this year.) In addition to El Niño-driven Kelvin waves, warm bulges of water that raise the sea level on the coast by as much as 18 inches, the state of California — and particularly southern California — sits directly in a storm track that will deliver “atmospheric rivers” of heavy rain to a region prone to landslides and flash floods.
In many parts of the state, that rain will test the best-made plans in addition to plans deferred. In Los Angeles, the Department of Sanitation and Environment, or LASAN, has told the City Council it has concerns about the ability of the aging wastewater pipes and plants to handle heavy rainfall associated with a supercharged El Niño. In San Diego, which requires some $3.3 billion to upgrade what is in some places a century-old wastewater system, emergency managers are preparing to work with what they have by clearing debris and brush that could back up in the drains, CalMatters reports. In both cases, the time required for systemwide repairs far exceeds the time remaining before the winter’s supercharged atmospheric rivers are due to arrive. (Rezende told me inland flooding affects more businesses and residents in San Diego than coastal flooding, since the population in the city is set further back from the coastline.)
The city of Roseville, northeast of Sacramento, by contrast, is leaning on decades of flood planning to get through the season. After a series of back-to-back storms in 1986 that killed 13 people and caused $400 million in damage, the city and FEMA invested $39 million to upgrade Roseville’s infrastructure, including widening streams and adding levees and stormwater bypass channels. With more accurate floodplain modeling that has “helped keep new construction at higher elevations,” Helen Dyda, the city manager’s public information officer told me that “less than 7% of the city is within a floodplain” today. Dyda added that the city prepares for winter storms every year — it has some 160 miles of creek shoreline, after all — but that the El Niño-specific preparations are, as a result, more similar to routine maintenance: “clearing more dense vegetation and fallen trees from key creek areas.”
Long Beach is caught somewhere in the middle. After swells from Hurricanes Marie and Polo hammered the city in September, Long Beach hastily developed a seven-point plan to strengthen its peninsula in the near and long term. It will also begin a $11.4 million dredging project this fall that will place 415,000 cubic yards of sand on the beach as a buffer zone. “While this effort will achieve a much-desired result, it will not stop the ocean from pulling sand from the peninsula with every wave, especially during the significant weather systems Long Beach continues to experience,” Martin, the city’s public affairs lead, wrote to me. “Back-passing will need to continue to return sand back to the peninsula each day until more permanent, long-term man-made and environmental solutions can be identified, permitted and implemented.”
In certain cities, preparations for the peak of El Niño overlap with ongoing repairs from the last bad storm season. In Santa Cruz County, the 2016 El Niño caused an estimated $9 million in damage, while many in the community of Pajaro are still recovering from the flood damage caused by a series of severe atmospheric rivers in 2023. “We have a list of hazards that the city is vulnerable to, and we plan for all of them not individually, but all together,” Meredith Albert, Santa Cruz’s emergency management manager, told me. She added that many of the city’s preparedness activities and El Niño initiatives, like urging the community to be prepared to spend 72 hours unsupported, overlap with other disasters it works year-round to prepare for, like earthquakes, landslides, and wildfires.
“El Niño turns up the volume a little bit, but it doesn’t necessarily change our hazard landscape,” is how Albert put it to me.
Santa Cruz has not declared a local state of emergency, and Albert told me they won’t until they “run out of resources.” Other cities, like San Diego, have declared one preemptively. “In the past, you’d have to go through a longer review if you wanted to make some headway on projects, and sometimes that would take many weeks or many months of permitting,” Rezende said. “With a state of emergency, we streamline that process and get projects in the queue.”
Both Rezende and Albert told me the governor's statewide emergency declaration mostly helps state agencies position themselves for a faster response or has implications for higher-level permitting processes. (In Carlsbad, for example, which has seven miles of badly eroding beach, just one mile is controlled by the city; the other six are managed by the State Parks.) The state has also teamed up with ICEYE, a satellite imaging company, to receive information about flooding even in the dark or through rain clouds.
No state of emergency, though, can make it so a city can replace a century-old sewer system by Christmas or reengineer a beach by the time January’s storms begin to make landfall. But if a Godzilla analogy fits the onslaught of a super El Niño, it also offers a classic disaster-movie lesson on how to survive it.
Albert’s advice for how to prepare? Ask a neighbor for a cup of sugar. Take their dog for a walk. Build a relationship that could prevent a tragedy. “We know that our city will be cut off for at least a couple of days,” she told me of a hypothetical major disaster, referring back to Santa Cruz’s experience after the 1989 Loma Prieta earthquake, which cut off the city’s power, communication, and supply lines. “And we also know that we can’t build those relationships during the disaster. We’re trying to build them before.”
The city is doing a lot to prepare for the storm, she said. “But the question is also, what are all of us doing?” Albert went on. “You know better than I do, at the city level, who’s not going to receive that alert,” whether that be an elderly or unhoused neighbor or a nonnative English speaker who might not receive or understand emergency communications.
“Check in on a neighbor” is easier said than done — active engagement and connection to one’s community is trending downward in most parts of the U.S. But the people and places that bounce back from disaster and tragedy are almost uniformly the ones that look after each other. Borrowing a cup of sugar, to this introvert, sounds like a nightmare. But there’s never been a better time than a Godzilla El Niño to bake a poorly resourced cake.
Heatmap News is looking for an ambitious, energetic senior editor to join our growing newsroom.
The senior editor will report to the deputy editor of the website and will be tasked with assisting in running all aspects of our coverage. This individual will be the primary editor on many of the site’s stories, including breaking news, features, and long-term projects, on topics ranging from permitting reform to decarbonized fuels to greenhouse gas accounting to the electric vehicle market. This person will also play a role in overseeing and furthering our cross-platform efforts such as newsletters, events, and podcasts. Additional duties will include managing and maintaining the site’s social media presence and digital production on stories, newsletters, and podcasts.
Candidates should be intellectually curious news junkies with a deep interest in climate change and the energy transition. They should have a proven ability to work in a fast-paced digital newsroom, spot great angles, line edit stories, and change hats quickly as needed. They should also be responsible, reliable, and a good colleague.
Candidates should have 5+ years experience editing for a digital publication. A background in climate or energy coverage is an obvious plus, but compelling candidates from other verticals, particularly politics and business, will also be considered. Heatmap is a fully remote workplace, so candidates from all U.S. locales are encouraged to apply.
Above all, candidates should be passionate about Heatmap’s mission and absolutely thrilled about building something from the ground up.
The salary minimum is $100,000 and the maximum is $120,000. Competitive benefits, unlimited paid time off, and a generous equity plan, which gives employees a real stake in the company, are also offered. This position is remote.
Interested candidates should send a brief cover letter and resume to editors@heatmap.news with the subject line ‘Senior Editor Application.’
Heatmap News is a media platform focused on the energy transition.
Heatmap News is an equal opportunity employer. All qualified applicants will receive consideration for employment without regard to sex, gender identity, sexual orientation, race, color, religion, national origin, disability, protected veteran status, age, or any other characteristic protected by applicable law.
To sample Heatmap’s work, poke around the site and sign up for our newsletter:
Current conditions: Japan is bracing for two major storms as Typhoon Nolo and the newly formed Typhoon Koguma barrel toward the country • A brief heat wave in Chicago is driving temperatures up past 85 degrees Fahrenheit today • It’s a sunny day in San Salvador Island, where the Genoan explorer Christopher Columbus first set foot in the Americas exactly 534 years ago today, when the indigenous Lucayan people called the smallest inhabited part of the Bahamas “Guanahani.”
In the Gulf of Mexico, Hurricane Isaias plunged thousands along the Alabama and Florida coastlines into darkness and left at least four dead. In the Pacific off Southern California, Tropical Storm Rachel stirred a surf that badly battered Long Beach’s iconic boardwalk. Further south in the eastern Pacific, Hurricane Simon pounded Mexico’s west coast as a Category 4 storm with sustained winds topping 150 miles per hour. Isaias, the only one of the tempête a trois in the Atlantic, forced nearly two-thirds of U.S. oil and gas production in the Gulf offline, as I told you last week.
The storm threatened to put further pressure on the fuel market as refineries went on pause. But in a post on his Truth Social platform Friday, President Donald Trump announced a surprise deal with Russian President Vladimir Putin to lift Moscow’s restrictions on diesel exports and release nearly 2 million tons of the fuel onto the market. “This is a very big and important announcement,” he wrote. On Sunday, the U.S. president posted another update that, “effectively immediate, there is an ENERGY CEASEFIRE” in the war between Russia and Ukraine, insisting “both parties have agreed.” Whether that holds longer than the last so-called energy ceasefire Trump claimed to have brokered between the two sides remains to be seen. Either way, it didn’t stop the Houthis from twice striking the main airport in Riyadh over the weekend, killing at least a dozen and injuring hundreds amid an oil industry summit in the Saudi capital, the Saudi Arabia-based Arab News reported.
Representative Jared Huffman, a progressive climate hawk from California, wants you to know that he sees your breathless defenses of the bipartisan permitting reform bill and considers them a red flag. “It’s going to be very interesting for everyone to take stock after this election and think about what it means,” he told my colleague Jael Holzman in an interview we published this morning. “I was immediately attacked by right-wing Twitter and some of the boosters of this deal for simply saying, let’s see how this election goes. To me, that’s common sense! And no one is going to vote on this until after the election, anyway! The hypersensitivity tells you something.”
When Jael asked what, exactly, it tells him, he responded: “There’s this choreographed attempt to preemptively flood the zone and prevent any kind of serious scrutiny about this. I think it should be a red flag for my colleagues and serious policymakers to have an attempt to shut down serious scrutiny and debate, or pretend there’ll never be another deal and this one can never be improved, and that it’s now or never or nothing. That’s just fishy and not intellectually honest.”
After construction, automakers buy the most steel of any industry. That makes car companies key factors in how eagerly steelmakers decarbonize. In January, research by the climate advocacy group Mighty Earth concluded that roughly 60% of primary steel made in the U.S. went to automakers who had promised to support greener steel but remained top customers for the metal made from coal-fired blast furnaces. Now the group is out with a new analysis on the European Union, shared exclusively with me for this newsletter, that traced purchases of coal from blast furnaces in France, Spain, Germany, and Italy to vehicles made by Ford, General Motors, Honda, Stellantis, Tata Motors, Toyota, and Volkswagen.
“We always talk about how Europe is leading the charge on green steel, which is true,” Matthew Groch, the senior director of decarbonization at Mighty Earth, told me. “But when you are looking at where these auto companies are being ranked, Europe is still falling behind.” The report proved more challenging than the U.S.-based research given that, in the EU, “it’s a little tougher because, with the common market, they don’t track the actual shipments like we were able to do with anything coming into the U.S.” Still, he said, the team was able to track the commercial relationships through things such as awards given out for “supplier of the year.” What the report ultimately suggests is that advocates of greener steel should seek to pressure shareholders in major automakers on both sides of the Atlantic to clean up their supply chains to spur more demand for lower-carbon materials.
Sign up to receive Heatmap AM in your inbox every morning:

Long one of the world’s top producers of uranium, Kazakhstan faced a choice with major geopolitical implications earlier this year when the Central Asian giant selected bids to build its first nuclear power station. Astana split the difference between its two powerful neighbors, inking a deal for a Chinese nuclear plant in February and another for a Russian atomic power station in March. The shareholders of the state-owned Kazatomprom, Kazakhstan’s state nuclear and uranium company, are proving less diplomatic. The firm’s stockholders voted by nearly 89% to approve a deal to supply uranium to China’s State Nuclear Uranium Resource Development Company, according to an official tally on Kazatomprom’s website. At the same general meeting, which NucNet called “extraordinary,” a deal to supply Russia’s Uranium One died with roughly 88% abstaining.
Kazakhstan has drawn unprecedented distance between itself and Moscow since the start of the Ukraine war, which Astana refused to back even though the Kremlin had helped quell domestic unrest in its Central Asian neighbor just weeks before the 2022 invasion. Beyond increased investment from China, Kazakhstan has attracted more interest from the United States, as critical mineral prospectors such as Cove Capital look to expand across the region.
China ramped up investments in hydrogen and its derivative products, such as green methanol and ammonia, late last year when the central government opened its budget for the first time to directly subsidizing an industry hitherto left to the provinces. The timing proved prescient as the Iran War put the squeeze on China’s crude imports and further accelerated the shift toward more domestic electricity-based resources. Two stories over the weekend show just how swiftly progress is underway. On Friday, Hydrogen Insight reported that the world’s first green ammonia-powered dry bulk vessel had set sail on its maiden voyage from a shipyard in China to Australia. Then, on Sunday, China Hydrogen Bulletin, a newsletter written by analyst Jian Wu, highlighted that China’s first long-distance pipeline dedicated to green hydrogen was approaching its first trial run.

In markets with a lot of wind and solar, there tends to be a lot of gas to serve as backup and keep the lights on when the weather can’t. But batteries are rapidly getting cheaper. Four-hour battery storage is now less expensive than open-cycle gas turbines in all 43 markets where both technologies were modeled, according to a new Wood Mackenzie analysis published last week. “This economic shift is decisive and widening,” Ahmed Jameel Abdullah, principal analyst at Wood Mackenzie, said in a statement. “Gas turbine shortages and rising fuel volatility are driving up peaking costs, while expanding battery manufacturing continues to push storage costs down.” A word of caution: The report is comparing levelized cost of energy, a metric that — while popular — has some real problems, as my colleague Matthew Zeitlin wrote last year.