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Why the grid of the future might hinge on these 10 projects.

The energy transition happens one project at a time. Cutting carbon emissions is not simply a matter of shutting down coal plants or switching to electric cars. It calls for a vast number of individual construction projects to coalesce into a whole new energy system, one that can generate, transmit, and distribute new forms of clean power. Even with the right architecture of regulations and subsidies in place, each project must still conquer a series of obstacles that can require years of planning, fundraising, and cajoling, followed by exhaustive review before they can begin building, let alone operating.
These 10 projects represent the spectrum of solutions that could enable a transition to a carbon-free energy system. The list includes vastly scaled up versions of mature technologies like wind and solar power alongside the traditional energy infrastructure necessary to move that power around. Many of the most experimental or first-of-a-kind projects on this list are competing to play the role of “clean firm” power on the grid of the future. Form’s batteries, Fervo’s geothermal plants, NET Power’s natural gas with carbon capture, and TerraPower’s molten salt nuclear reactor could each — in theory — dispatch power when it’s needed and run for as long as necessary, unconstrained by the weather. Others, like Project Cypress, are geared at solving more distant problems, like cleaning up the legacy carbon in the atmosphere.
But they do not all have a clear path to success. Each one has already faced challenges, and many of them are likely to face a great number more. We call these the make-or-break energy projects because it's still unclear what the clean energy system of the future is going to look like, but the projects from this list are likely to play a big part in it — if, that is, they get there.

Type of project: Solar farm
Developer: Intersect Power
Location: Desert Center, Riverside County, California.
Size: 400 megawatts of generation and 650 megawatts of storage
Operation date: Possibly 2025
Cost: $990 million
Why it matters: Facing opposition from local retirees angered by the large number of projects popping up in the area, as well as from conservation-focused groups — such as Basin and Range Watch, which opposes many utility-scale energy projects in desert areas — Easley will be a test of whether California’s reforms to limit the timeframe of appeals to the state’s environmental reviews can actually work in getting a project approved and online faster.
The early signs are promising. A nearby solar project by the same developer, Intersect Power, recently went into operation after getting approved by the Bureau of Land Management in January 2022. Easley could be operational “as early as late 2025,” according to a Plan of Development prepared for Intersect Power.
Easley is also an example of what’s increasingly becoming standard in California, at both the residential and utility-scale level: pairing solar with storage. The California grid increasingly relies on batteries to keep the lights on as solar ramps up and down in the mornings and, especially, the evenings. The state has procured a massive amount of storage and has adjusted how utilities pay for rooftop solar in a way that encourages pairing battery systems with rooftop solar panels. This both stabilizes the grid and helps further decarbonize it, as batteries that are physically close to intermittent renewables are more likely to abate carbon emissions.

Type: Energy storage
Developer: Form Energy and Great River Energy
Location: Cambridge, Minnesota
Size: 150 megawatt hours
Operation date: End of 2025
Cost: Unknown; Goal of less than 1/10th cost of utility-scale lithium-ion batteries per megawatt hour
Why it matters: Form Energy first made waves in 2020 when it announced a contract with Great River Energy, a Minnesota electric utility, to build a battery that could store 100 hours’ worth of electricity, which was simply unheard of. Other energy storage companies were just trying to break the 4-hour limitation of lithium-ion, aiming for 8 hours or, at most, 12. Days-long energy storage would be a game changer for maintaining reliability during extreme weather events, storing renewable energy for stretches of cloudy days or windless nights or kicking in when demand peaks. At first, Form’s project was shrouded in mystery. How, exactly, would it do this? But a year later, the company revealed the secret chemistry behind its breakthrough: iron and oxygen. The batteries are filled with iron pellets that, when exposed to oxygen, rust, releasing electrons to the grid. They “charge” by running in reverse, using the electrical current from the grid to convert the rust back to iron.
Since then, the hype has continued to build. Form has raised nearly $1 billion from venture capital and been awarded tens of millions more ingovernment grants. It has signed contracts with six utilities to deploy projects in California, New York, Virginia, Georgia, and Colorado, in addition to Minnesota. All this, despite not having completed a single project yet.
The Great River Energy Project is set to be the first to come online. Originally, the company said it would be operating by the end of 2023; now it’s expected to start construction later this year and begin operating in early 2025, Vice President of Communications Sarah Bray told Heatmap. First, the company has to complete construction of its first factory in Weirton, West Virginia, where it will be producing all of the batteries. Bray said it expects to start high-volume production later this year.

Type: Onshore wind
Developer: Pattern Energy
Location: Lincoln, Torrance, and San Miguel Counties, New Mexico, with transmission into Arizona
Size: 3,500 megawatts
Operation date: 2026
Cost: The project’s developer, Pattern Energy, has secured $11 billion in financing for the wind and associated transmission project. The cost of the project is estimated to be $8 billion.
Why it matters: This would be the biggest wind project in the country and a test case for a variety of energy policy objectives at both the state and federal level. For California, it would be a key step in decarbonizing its grid, as the state right now imports a large amount of its power, not all of which is carbon-free. For the federal government, it meets several goals — using public lands for carbon-free energy development, plus long-distance transmission to spur energy development across the country and link clean power resources in rural areas to major load centers.
It would also mean an ambitious project could overcome long and concerted opposition. The project was first proposed in 2006, and its transmission line cleared environmental review back in 2015, but it has been mired in lawsuit after lawsuit. Most recently, a coalition of conservation groups and Indian tribes sued to halt construction on the power line portion of the project in Arizona’s San Pedro Valley, claiming that their cultural rights had not been adequately respected. In April, a judge allowed construction to continue, ruling that those claims were barred by the existing federal approvals, which had taken years to attain.

Type: Offshore wind
Developer: Equinor
Location: South of Long Island, New York
Size: 810 megawatts
Operation date: 2026
Cost: Not available, but an earlier estimate for developing two wind farms was $3 billion. Costs have since risen, but the second farm, Empire Wind 2, is no longer under contract.
Why it matters: The Northeast, and especially New York State, have aggressive aims for decarbonization, with a goal of 70% of the state’s electricity coming from renewables by 2030. The Biden administration also has a specific goal for 30 gigawatts of offshore wind capacity by 2030, and New York has a goal of 9 gigawatts by 2035. These types of high-capacity projects will be essential for the Northeast to decarbonize. The windy coast of the Atlantic Ocean is the most potent large-scale renewable resource in the region, and many of the region’s large load centers, such as New York City and Boston, are on the coast.
Offshore wind, while expensive, can present less permitting hassle and local opposition than onshore wind or utility-scale solar. Empire Wind 1 (along with Sunrise Wind) matters tremendously for New York’s offshore wind program, which has been in development for years but has faced escalating costs and project cancellations. Only one offshore wind project is actually operational in the state, South Fork Wind, which was contracted outside the NYSERDA process and has around 130 megawatts of capacity. If Empire manages to get steel in the water and electrons flowing to the coast, it will be a sign that the Northeast’s — and thus the country’s — decarbonization goals are at least somewhat attainable.

Type: Transmission
Developers: Transmission Developers, which is owned by the Blackstone Group
Size: 339 miles / 1,250 megawatts
Operation date: 2026
Cost: $6 billion
Why it matters: The Champlain Hudson Power Express, often referred to as CHPE (affectionately pronounced “chippy”) will deliver 1,250 megawatts of hydropower from Quebec into the New York City grid, which is currently about 90% powered by fossil fuels. It is “the most powerful project you’ll never see,” according to its developers, as it is the largest transmission line in the country to be installed entirely underground and underwater.
The project is essential to New York’s goal to build a zero-emission electricity system by 2040. The line will supply an always-available source of clean power to supplement intermittent wind and solar generation and maintain a reliable grid. It has already overcome a number of barriers, including nearly a decade of environmental reviews, uncertainty over whether New York would buy its power, and opposition from conservation advocates concerned about the negative impacts of hydroelectric dams on the environment and on Native communities in Canada.
When it begins operating, New Yorkers won’t just get cleaner power — they should also see air quality benefits almost immediately. The new line is expected to cut air pollution equivalent to that released by 15 of the city’s 16 fossil fuel-fired peaker plants.

Developer: Fervo
Type: Geothermal
Location: Beaver County, Utah
Size: 400 megawatts
Operation date: 2026, although the project isn’t expected to be finished until 2028
Cost: Not disclosed, but Fervo raised $244 million and said that the cash “will support Fervo’s continued operations at Cape Station.”
Why it matters: This enhanced geothermal project is not the first one for Fervo. The company’s Nevada site, Project Red, began providing power for Google data centers in Nevada in November 2023. This planned site, however, will be far bigger: Fervo currently has authorization from the Bureau of Land Management for up to 29 exploratory wells, while the Project Red site had just two. Cape Station broke ground in September 2023, and in the first six months of drilling, Fervo said it reduced costs from drilling by 70% compared to its Project Red wells.
As the grid decarbonizes and major power consumers like technology companies insist on having clean power for their operations, there will be massive and growing demand for so-called “clean firm” power, carbon-free power that is available all the time. Conventional wind and solar is intermittent, and existing battery technology only allows for limited output over time. Fervo’s “enhanced geothermal” technology uses techniques borrowed from the oil and gas industry to be able to produce geothermal power essentially anywhere where there are hot enough rocks underneath the surface of the Earth, as opposed to conventional geothermal, which depends on locating hot enough fluid or stream.
If Fervo can demonstrate that it can produce power at scale at costs comparable to existing conventional geothermal projects, it can expect a massive market for it and demand for more projects.

Type: Nuclear
Developer: TerraPower
Location: Kemmerrer, Wyoming
Size: 345 megawatts
Operation date: Not available, but the company said in 2021 that it plans to be operational “in the next seven years.” Updated to the 2024 application, that would put it on track for a 2030 completion date.
Cost: Not available, but TerraPower has raised around $1 billion and the federal government has pledged around $2 billion to support the project, which TerraPower has said it will “match … dollar for dollar.”
Why it matters: TerraPower is just one of many companies flogging designs for advanced nuclear reactors, which are smaller and promise to be cheaper to build than America’s existing light-water nuclear reactor fleet. The construction permit application the company submitted in March was a first for a commercial advanced reactor. TerraPower matters as much for the Nuclear Regulatory Commission as it does for anyone else, as it’s a test of whether the NRC can meet Congress and the White House’s preference for a more accelerated approval process for advanced nuclear power.
TerraPower’s design, if successful, would be a landmark for the American nuclear industry. The reactor design calls for cooling with liquid sodium instead of the standard water-cooling of American nuclear plants. This technique promises eventual lower construction costs because it requires less pressure than water (meaning less need for expensive safety systems) and can also store heat, turning the reactor into both a generator and an energy storage system.
While there are a number of existing advanced nuclear designs, several of which involve liquid sodium, Natrium could potentially play well with a renewable-heavy grid by providing steady, unchanging output like a current nuclear reactor as well as discharging stored energy in response to renewables falling off the grid.

Type: Hydrogen
Developer: Hy Stor Energy
Location: Project components located throughout Mississippi, with some in Eastern Louisiana
Size: Goal of 340,000 metric tons per year (phase one)
Operation date: 2027
Cost: Initially reported as $3 billion; recently reported as more than $10 billion. (In response to an inquiry from Heatmap, the company replied that it “will be in the multiple billions of dollars.”
Why it matters: Truly carbon-free hydrogen could unlock big emissions reductions across the economy, from fertilizer production, to steelmaking, to marine shipping. But few companies are going to the lengths that Hy Stor is gto ensure its product is really clean. The company is building the first off-grid hydrogen production facility powered entirely by wind and solar. That means Hy Stor will have no problem claiming the new hydrogen production tax credit, which requires companies to match their operations with clean energy sources by the hour — a provision that’s been contested by large portions of the hydrogen industry.
For a company that has never built anything before, the scale of Hy Stor’s Mississippi project is ambitious. The company has acquired about 70,000 acres across Mississippi and Louisiana, along with 10 underground salt domes — mounds of salt buried beneath the Earth’s surface that can be dissolved to form cavernous, skyscraper-sized storage facilities for hydrogen. Those salt domes are the key to Hy Stor’s approach, and what enables the company to rely on intermittent renewables. By storing vast amounts of hydrogen, the company will be able to deliver a steady supply to customers and will also have a backup source of energy for its own operations when wind and solar are less available.
Chief Commercial Officer Claire Behar told Heatmap the company has obtained many of the necessary permits, including for its salt caverns and the plant’s water use. It plans to begin construction at the beginning of 2025, and to have the first phase of the project “in service at scale” by 2027. Hy Stor recently announced a deal to purchase its electrolyzers, devices that split water molecules into hydrogen and oxygen, from a Norwegian company called Nel Hydrogen. It has also signed up a few customers, including a local port and a green steel company.

Type: Carbon removal
Developers: Climeworks, Heirloom, and Battelle
Location: Calcasieu Parish, Louisiana
Size: Goal of capturing 1 million metric tons per year
Operation date: About 2030
Cost: Total project cost unknown; eligible for up to $600 million from the Department of Energy for its Regional Direct Air Capture Hubs Program.
Why it matters: Project Cypress might be the most ambitious project to remove carbon from the atmosphere under development in the world. It is a collaboration by two leading direct air capture companies, Heirloom Carbon Technologies and Climeworks, which were among the first to demonstrate their ability to capture carbon directly from the air and store it at commercial scale. Now, the two will be attempting to scale up exponentially, from capturing a few thousands tons per year to a combined million.
Last August, the Department of Energy selected Project Cypress to be one of four direct air capture hubs it will support with $3.5 billion from the Bipartisan Infrastructure Law. In March, the project was awarded its first infusion of $50 million, but the developers will have to do extensive community engagement to continue receiving funding. Battelle, the project developer, told Heatmap the project has also received an additional $51 million in private investment.
Between financing, permitting challenges, renewable energy sourcing, and community opposition, the project is sure to face a bumpy road ahead. The project and its developers have no ties to the oil and gas industry, but that hasn’t done much to win over the support of environmental justice advocates, who see the project as a dangerous distraction from cutting emissions and pollution in Louisiana. But if Project Cypress is successful, it will show the world what direct air capture looks like at climate-relevant scales.

Type: Carbon capture
Developer: NET Power
Location: Ector County, Texas
Size: 300 megawatts
Operation date: Late 2027 or early 2028
Cost: About $1 billion
Why it matters: Oil and gas CEOs love to say that the problem is not fossil fuels, the problem is emissions. NET Power’s technology — a natural gas power plant with zero emissions, carbon or otherwise — could prove to be the ultimate vindication of that statement. In short, NET Power’s system recycles most of the CO2 it produces and uses it to generate more energy. It also utilizes pure oxygen, unlike typical natural gas plants that take in regular air, which is mostly nitrogen. This means that any remaining CO2 not recycled in the plant is relatively pure and easy to capture.
NET Power opened a 50 megawatt demonstration plant in La Porte, Texas, in 2018, and is developing a 300 megawatt commercial plant in Ector County, Texas, in partnership with Occidental Petroleum, Baker Hughes, and Constellation Energy. On a recent earnings call, CEO Danny Rice said the project was “expected to have a lower levelized cost per kilowatt hour than new nuclear, new geothermal, and new hydro.”
The company generated a lot of excitement among energy experts in the fall of 2021 when it announced that its La Porte project had successfully delivered power to the Texas grid. It also raised a lot of money when it went public last summer. But things have been somewhat rocky since. During a December earnings call, NET Power’s president told investors that its first commercial plant would be delayed by at least a year due to supply chain challenges. According to filings with the Securities and Exchange Commission, the company also applied for funding from the Department of Energy’s Office of Clean Energy Demonstrations last year, but was not selected. It has not yet found any third parties to license its technology or offtakers to buy energy from the Ector County plant, and noted in its recent filings that while the La Porte pilot project delivered electricity to the grid, it did not, in fact, deliver “net” power — meaning that it used more power than it generated.
A spokesperson for the company told Heatmap the La Porte facility was solely intended to “prove the technical viability of the NET Power Cycle” and not intended to produce net power. So everything’s now riding on Project Permian.
Editor’s note: This story has been updated to correct a typographical error in the amount of private investment Project Cypress has received.
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Giving up on hourly matching by 2030 doesn’t mean giving up on climate ambition — necessarily.
Microsoft celebrated a “milestone achievement” earlier this year, when it announced that it had successfully matched 100% of its 2025 electricity usage with renewable energy. This past week, however, Bloomberg reported that the company was considering delaying or abandoning its next clean energy target set for 2030.
What comes after achieving 100% renewable energy, you might ask? What Microsoft did in 2025 was tally its annual energy consumption and purchase an equal amount of solar and wind power. By 2030, the company aspired to match every kilowatt it consumes with carbon-free electricity hour by hour. That means finding clean power for all the hours when the sun isn’t shining and the wind isn’t blowing.
The news that Microsoft is revisiting this goal could be read as the beginning of the end of corporate climate ambition. Microsoft has long been a pioneer on that front, setting increasingly difficult goals and then doing the groundwork to help others follow in its footsteps. Now it appears to be accepting defeat. The news comes just weeks after my colleague Robinson Meyer broke the news that the company is also pausing its industry-leading carbon removal purchasing program.
Delaying or abandoning the clean energy target — the two options presented in the Bloomberg story — represent quite different scenarios, however.
“There’s going to be a big difference between them saying, We’re going to keep trying as hard as we can to go as far as we can, but acknowledge we may not hit it, versus saying, Well, we can’t hit this extremely ambitious goal we set for ourselves, therefore we’re just giving up on the overall mission,” Wilson Ricks, a manager in Clean Air Task Force’s electricity program, told me.
The goal was always going to be difficult, if not impossible, for Microsoft to hit, Ricks said. Yes, it’s gotten tougher as Microsoft’s electricity usage has surged with the rise of artificial intelligence, and because Congress killed subsidies for clean energy as the Trump administration has done its best to stall wind and solar development. But some of the technologies likely needed to achieve the goal, such as advanced nuclear and geothermal power plants, have yet to achieve commercial deployment, let alone reach meaningful scale, and probably won’t by 2030 — especially not across all the regions that Microsoft operates in.
Nonetheless, some clean energy advocates (including Ricks) argue that keeping hourly matching as a north star is paramount because it helps put the world on the path to fully decarbonized electric grids.
Google was the first to introduce a 24/7 carbon-free energy strategy in 2020, and for a moment, it seemed that the rest of the corporate world would follow. A handful of companies joined a coalition to support the goal, but to date, I’m aware of just two — Microsoft and the data storage company Iron Mountain — that have followed Google in committing to achieving it.
Most companies approach their clean energy claims with considerably less precision. The norm is to purchase “unbundled” renewable energy certificates, tradeable vouchers that say a certain amount of renewable energy has been generated somewhere, at some point, and that the certificate owner can lay claim to it. Many simply buy enough of these RECs to cover their annual electricity usage and call themselves “powered by 100% renewable energy.”
There’s a spectrum of quality in the RECs available for purchase, but the market is flooded with cheap, relatively meaningless certificates. A company that operates in a coal-heavy region like Indiana can buy RECs from a wind farm in Texas that was built a decade ago, which won’t do anything to change the makeup of the grid in either place.
Today, the gold standard for companies with capital to throw around is instead to seek out long-term contracts directly with wind and solar developers known as power purchase agreements. That doesn’t mean the wind and solar farms send power to the companies directly. But these types of contracts are more likely to bring new projects onto the grid by providing guaranteed future revenues, helping developers secure the financing they need to build.
Microsoft started buying unbundled RECs more than a decade ago, and in 2014, it reported it had matched all of its global electricity usage. In 2016, the company began setting goals for direct procurement of renewable energy. In 2020, it pledged to achieve 100% renewable this way by 2025 — but it wasn’t going to sign just any wind or solar agreements. It aimed to pursue contracts with projects that were in the same regions as the company’s operations and that wouldn’t have been built without the company’s support. “Where and how you buy matters,” it wrote in its 2020 sustainability report. “The closer the new wind or solar farm is to your data center, the more likely it is those zero carbon electrons are powering it.”
In 2021, Microsoft upped the ante again by establishing its 2030 hourly matching target, which it referred to as “100/100/0” — 100% of electrons, 100% of the time, zero-carbon energy.
Microsoft has never publicly reported its progress toward the 2030 goal. The company’s enthusiasm for the target has also appeared to wane. In 2020, before Microsoft even made the 100/100/0 commitment, it touted a solution it developed to track and match renewable energy generation and consumption on an hourly basis. In the years since, it has led its peers in investments in round-the-clock nuclear power, even signing a 20-year power purchase agreement with Constellation Energy to bring the shuttered Three Mile Island nuclear plant in Pennsylvania back online.
But Microsoft has stopped publicizing the goal in blog posts and press releases. It went unmentioned in the recent announcement about the 2025 renewable energy achievement, for instance. And a section in the company’s annual sustainability report listing its climate targets that had previously advertised the 2030 goal as “Replacing with 100/100/0 carbon-free energy” was re-written in 2025 as “Expanding carbon-free electricity,” fuzzier rhetoric that now reads as a harbinger of a softer approach.
Microsoft did not respond to questions about its progress toward the 2030 target. In an emailed statement, a spokesperson emphasized the company’s commitment to maintaining its annual matching goal — the one achieved in 2025. No doubt that will take a lot more investment in the years to come now that the company is gobbling up a lot more electricity for data centers — some of it directly from natural gas plants.
Microsoft also shared a statement from Melanie Nakagawa, Microsoft’s chief sustainability officer, emphasizing the company’s commitment to become carbon negative. “At times we may make adjustments to our approach toward our sustainability goals,” she said. “Any adjustments we make are part of our disciplined approach—not a change in our long-term ambition.”
Even if Microsoft axes its hourly matching target, the company might have to start reporting its clean electricity usage on an hourly basis anyway. The Greenhouse Gas Protocol, a nonprofit that sets standards for how companies should calculate their emissions, is currently considering adopting an hourly accounting requirement. While the protocol’s standards are voluntary, companies almost uniformly follow them, and they will soon become mandatory in much of the world, as governments in California and Europe plan to integrate them into corporate disclosure rules.
The accounting rule change is highly controversial, with many companies arguing that it will deter them from investing in clean energy altogether, since their purchases won’t look as good on paper. “I don’t think anybody is debating having rules and guidelines around how you do more narrow matching, we should have that,” Michael Leggett, the co-founder and chief product officer for Ever.Green, a company that sells high-impact RECs, told me. “I think the debate has largely been around, is that required?”
Leggett said he could see how Microsoft’s pullback could be twisted to support either side. Proponents of the hourly accounting method will say, “Aha! See? This is why we have to require it.” Opponents will say, “See, even Microsoft can’t do it, so how are you going to require all these other companies to do it?”
I spoke to Alex Piper, the head of U.S. policy and markets at EnergyTag, a nonprofit that advocates for reforms to enable 24/7 clean energy, who saw the news as vindicating.
“What we’re seeing right now is many of the hyperscale technology companies look to the fastest path to power, and whether it is or not, some of them are turning to gas as that solution,” he told me. Piper argued that companies are choosing natural gas in part because they can get away with clean energy claims under the protocol’s existing rules. “The proposed rules for the greenhouse gas protocol would require those companies to at least be transparent.”
But Microsoft walking back its hourly matching goal does not have to mean that it’s walking back its climate ambition. It’s possible for companies to achieve significant emissions reductions by focusing their clean energy purchases on the places where wind and solar will do the most to displace fossil fuels, rather than worrying about matching every hour. For a company that operates in California, for example, supporting the addition of solar power to a coal-heavy grid — even if it’s in a different part of the country or the world — will do more, faster, than helping to build solar locally or waiting for around-the-clock resources such as geothermal power to come online.
Critics of hourly accounting argue that it doesn’t give companies credit for this kind of approach. “What I would love to have happen is anything to incentivize, recognize, and reward companies signing 20-year contracts that enable new projects coming online,” Leggett said of the Greenhouse Gas Protocol’s forthcoming rule change.
Ricks, of Clean Air Task Force, rejects the idea that an hourly accounting requirement would deter these kinds of deals. “That doesn’t mean that they can’t report any other set of numbers they want to,” he said. “Many companies do report things that aren’t currently recognized in the Greenhouse Gas Protocol.”
Microsoft is a prime example. The company includes two measures of its renewable energy usage in its annual reports: “percentage of renewable electricity,” which includes the unbundled RECs Microsoft has continued to buy over the years, and “percentage of direct renewable electricity,” which tracks power purchase agreements and the renewable portion of the grid mix where its facilities are located. The former uses the Greenhouse Gas protocol’s current accounting method, under which Microsoft says it has hit 100% every year since 2014. But the latter is the company’s own bespoke calculation.
The company’s 2025 feat was based on this made-up methodology, and it represents the first time Microsoft has announced to the world that it used 100% renewable energy. It never previously made such claims about its REC purchases, as far as I can tell. In other words, Microsoft’s standards for what it publicizes are far more rigorous than what the Greenhouse Gas Protocol requires.
Regardless of what the protocol decides, it will determine only what companies must report. It won’t prevent them from offering up their own, additional metrics of success.
PJM Interconnection has some ideas, as does the state of New Jersey.
We’ve already talked this week about Pennsylvania asking whether the modern “regulatory compact,” which grants utilities monopoly geographical franchises and regulated returns from their capital investments, is still suitable in this era of rising prices and data-center-driven load growth.
Now America’s biggest electricity market and another one of that market’s biggest states are considering far-reaching, fundamental reforms that could alter how electricity infrastructure is planned and paid for over 65 million Americans.
New Jersey Governor Mikie Sherrill anchored her 2025 campaign on electricity prices, and for good reason — in the past four years, electricity prices in the state have gone up 48%, according to Heatmap and MIT’s Electricity Price Hub, while average bills have risen from $83 per month to $130. On her first day in office, Sherrill issued two executive orders acting on that promise, directing the state to make funds available to freeze rates and declaring a state of emergency to ease the way to building more generation.
Included in that first order was a review of utility business models to be carried out by state regulators. What that review will entail is now coming into focus.
On Wednesday, the New Jersey Board of Public Utilities issued a statement announcing that it will look specifically at “whether New Jersey’s century-old utility business model — one that rewards electric distribution companies (EDCs) for capital spending even when cheaper alternatives exist — should be replaced with a framework tied to performance, affordability, and long-term cost stability.” In case anyone was still ambiguous as to what the outcome of said study might be, the board added that it is “expected to drive the most significant restructuring of utility regulation in New Jersey in decades.”
The current system, the board’s president Christine Guhl-Savoy said at a hearing Thursday, “creates a structural incentive to favor capital intensive solutions, even when lower costs, non-wires or demand side alternatives may be available.”
This structure, she said, could help explain why “over the past decade, electric delivery charges in New Jersey have risen steadily.” Within the service territory of PSEG, one of the four major New Jersey utilities, distribution charges alone have risen from $19.24 per month in January 2020 (as far back as the Heatmap-MIT data goes) to $21.84 as of April, while transmission charges have risen from around $20 to just over $29 per month. Many critics of the utility business model point to high levels of local grid spending on distribution as a way that utilities pad their earnings with returns harvested from ratepayers.
In the system regulators explored at the hearing, new projects would get a more skeptical look and ratepayers payouts would be partially determined by utilities hitting pre-defined service goals. NJBPU executive director Bob Brabston also indicated that the review process would take a close look at utilities’ regulated returns on equity — echoing his neighbor across the Delaware River, Pennsylvania Governor Josh Shapiro, who wrote in a letter to his state’s utilities earlier this week that these returns must be “transparent” and “justifiable,” and no longer be based on “educated guesses.”
“We want to make sure that the actual cost of equity and the returns on equity are close,” Brabston said Thursday. “We don’t want there to be a significant gap between the cost of equity that you all experience and the returns that the agencies that the agency awards.”
Meanwhile, in Valley Forge, Pennsylvania, the framework within which New Jersey’s utilities exist is coming in for its own examination.
PJM Interconnection — the nation’s largest electricity market, which covers not just Pennsylvania and New Jersey but also part or all of 11 other states — released an almost 70-page paper Wednesday, in which the organization’s president David Mills wrote that “the current situation is not tenable.”
PJM has been the poster child for a host of issues plaguing the electricity markets across the country, including fast-rising prices, a failure to quickly bring on new generation, and an inability to assure the market’s preferred level of reserve reliability. This set of challenges, Mills said in the paper’s introduction, “reflects something more fundamental than a design that needs recalibration.” Instead, PJM must consider “whether the foundational assumptions of the market remain valid – and if not, what a valid set of assumptions would require.”
The problem with the electricity market, he argued, can be solved by more markets. Right now, when prices shoot up, governments intervene with price caps, suppressing the market signal necessary to bring on sufficient generation that would bring down prices.
To replace that system, the paper proposes three possible models. The first, which it calls “Stabilized Markets,” would allow capacity to be procured for several years at a time outside of the current auction system, so that utilities could make sure their basic needs were covered before they go into the annual auctions. This would provide long term security for new investment.
The second path would be a more fundamental reform. This “Differential Reliability” approach would do away with the “shared reliability compact,” under which all loads must be served by the system at all times. Instead, PJM would “develop the operational and commercial framework to explicitly differentiate reliability,” incentivizing approaches like bring your own generation or curtailing power for new large sources of demand.
The third path is an “Energy Market Transition,” which might also be called the “Texas option.” Following this path, the capacity market would shrink as a portion of revenues earned by generators, and more revenue would come from real-time or near-real-time electricity sales.
While this path isn’t “full Texas” (ERCOT doesn’t have a capacity market at all), it would mean allowing for higher prices for energy in real-time, a.k.a. “scarcity pricing” which is arguably the defining feature of the ERCOT system (though even that was scaled back when prices got too high).
“The choices embedded in these paths involve genuine trade-offs, and those trade-offs affect different stakeholders uniquely,” the paper says.If PJM has learned anything in the past few years, it’s that it doesn’t get to make decisions on its own. Those stakeholders will get their say, one way or another.
Big fundraises for Nyobolt and Skeleton Technologies, plus more of the week’s biggest money moves.
Following a quiet week for new deals, the industry is back at it with a bunch of capital flowing into some of the industry’s most active areas. My colleague Alexander C. Kaufman already told you about one of the more buzzworthy announcements from data center-land in Wednesday’s AM newsletter: Wave energy startup Panthalassa raised $140 million in a round led by Peter Thiel to “perform AI inference computing at sea” using nodes powered by the ocean’s waves.
This week also saw fresh funding for more conventional data center infrastructure, as Nyobolt and Skeleton Technologies both announced later-stage rounds for data center backup power solutions. Meanwhile, it turns out Redwood Materials is not the only company bringing in significant capital for second-life EV battery systems — Moment Energy just raised $40 million to pursue a similar approach. Elsewhere, investors backed an effort to rebuild domestic magnesium production, and, in a glimmer of hope for a sector on the outs, gave a boost to green cement startup Terra CO2.
Cambridge-based startup Nyobolt has become the latest battery company to reach a $1 billion valuation, with its expansion into the data center market helping fuel excitement around its tech. Spun out of University of Cambridge research in 2019, the company develops ultra-fast-charging batteries based on a modified lithium-ion chemistry. Its core innovation is an anode made from niobium tungsten oxide, which Nyobolt says enables its batteries to charge to 80% in less than five minutes, with a cycle life that’s 10 times longer than conventional lithium-ion, all without the risk of fire.
The company has now raised a $60 Series C, following what it describes as a period of “rapid commercial momentum,” with revenue increasing five-fold year-over-year as customers in the robotics and data center industry piled in. Symbotic, an autonomous robotics company and existing customer, led the latest round. While Symbotic previously relied on supercapacitors to power its robots, Nyobolt’s says its batteries provide six times more energy capacity in a lighter package, allowing its warehouse robots to work for retailers like Walgreens, Target, and Kroger around the clock.
Now the startup is targeting data center customers too, positioning its tech as a fast-acting fix for the sudden power surges common to large-scale artificial intelligence workloads, as well as a temporary backup power solution for outages. While it has no confirmed domestic data center customers to date, it does have a nonbinding agreement with the Indian state of Rajasthan to deploy over 100 megawatts of off-grid AI data center and power management infrastructure, part of a broader push to expand its presence across the country.
Notably, the press release made no mention of plans to sell its tech to electric vehicle automakers, though this appears to have been a central focus previously. As recently as last summer, executive vice president Ramesh Narasimhan told the BBC that he hoped Nyobolt’s batteries would “transform the experience of owning an EV.” But while its tech does enable extremely fast charging, its underlying chemistry is not optimized for long-range driving. A sports car built to test the company’s batteries had just a 155 mile range. So like many of its climate tech peers, the company appears to be betting that data centers now represent a more reliable opportunity.
This week brought additional news from another European player aiming to smooth out data center power surges. Estonia-based supercapacitor startup Skeleton Technologies raised $39 million in what it describes as the first close of a pre-IPO funding round, with a U.S. listing planned for next year. Its core tech is built around a “curved graphene” structure, which the company likens to a crumpled sheet of paper with a high surface area. The graphene’s many exposed surfaces and edges allows it to hold more electric charge, which Skeleton says delivers a 72% improvement in energy density.
Like Nyobolt, Skeleton says its tech offers faster response times and longer cycle life. But supercapacitors are a fundamentally different technology than Nyobolt’s modified lithium-ion solution. Though they offer near-instantaneous response times, they store very little energy — just enough to smooth out microsecond power spikes in GPU workloads. Nyobolt’s batteries, by contrast, aim not only to smooth out data center power spikes, but also to deliver about 90 seconds of backup power in the case of an outage, before a generator or other backup source kicks in.
Skeleton is already mass-producing supercapacitors in Germany and delivering to unnamed “major U.S. hyperscalers for AI infrastructure.” It’s also making moves to expand its U.S. footprint ahead of its pending IPO, opening an engineering facility in Houston and aiming to begin domestic manufacturing of AI data center solutions in the first half of this year.
Last year brought a wave of new climate tech coalitions, with one of the most ambitious efforts known as the All Aboard Coalition. This group of venture firms is targeting the investment gap known as the missing middle, which falls between early-stage venture rounds and infrastructure funding. The model is relatively mechanical: When three or more member firms participate in a later-stage round for a company, the coalition automatically coinvests out of its own fund, matching the members’ combined contribution.
The group made its first investment in January, supporting the AI-powered geothermal exploration and development company Zanskar’s Series C round. This week, it announced its second: a $22 million commitment to low-carbon cement startup Terra CO2, bringing the company’s Series B total to $147 million. Cement production accounts for roughly 8% of global emissions, a figure Terra aims to shrink by making so-called "supplementary cementitious materials” — which can partially displace traditional cement in concrete mixes — from abundant silicate rocks. By grinding and thermally processing these rocks into a glassy powder, Terra’s product mimics the properties of conventional cement. The company says it can replace up to 50% of the cement in typical concrete mixes, lowering associated emissions by as much as 70%.
The new funding will help Terra build its first commercial-scale plant in Texas, exactly the type of first-of-a-kind project that the coalition was designed to support. But the scale of this challenge remains clear. As noted in ImpactAlpha’s coverage, the coalition has raised just $100 million toward its goal of a $300 million fund — already a relatively modest goal considering the capital intensity of novel infrastructure projects. Bloomberg previously reported that the group aimed to raise the full amount by the end of October 2025, raising questions about the willingness of LPs to bet on projects at this crucial but capital-intensive juncture.
When I think about repurposing used electric vehicle batteries for stationary storage, I think of battery recycling giant Redwood Materials, which raised a $425 million Series E in January after moving aggressively into this promising market. But while Redwood’s well-established recycling business certainly provides it with the largest pipeline of used batteries, it’s far from the only company pursuing this business model. A smaller player with a largely similar approach underscored that this week, when it announced a $40 million Series B to scale its gigafactory in Texas and expand its facilities in British Columbia.
That’s Moment Energy, which focuses on using second-life EV batteries to power commercial and industrial sites such as data centers, hospitals, and factories. Like Redwood, it relies on proprietary software to aggregate battery packs with myriad chemistries and design specs into coordinated grid-scale systems. What the company sees as its critical differentiator, however, is its safety standards. Moment has achieved UL certification, a key safety benchmark that it says others in the industry have yet to meet.
In a shot at its competitors, the company described itself in a press release as the “only provider proven capable of deploying second-life battery storage systems in the built environment without special dispensations or regulatory loopholes.” While Moment never names names, Redwood’s first commercial-scale system sits on its own private land in an open air setting, where certification is arguably unnecessary. “What most other second life [battery] companies are now trying to say is, let’s just lobby to make second life UL certification easier, because it is impossible to get UL certification, as it stands,” the company’s CEO, Edward Chiang, told TechCrunch. “But at Moment, we say that’s not true. We got it.”
As I wrote last September, it’s a good time to be a critical minerals startup, because as you may have heard, “critical minerals are the new oil.” These materials sit at the center of modern energy infrastructure — batteries, magnets, photovoltaic cells, and electrical wiring, to name just a few uses — plus their supply is concentrated in geopolitically tense regions and subject to extreme price volatility. It also certainly doesn’t hurt that the Trump administration loves them and wants to mine and refine way more of them in the U.S.
The latest beneficiary of this enthusiasm is Magrathea, which this week raised a $24 million Series A to build what it says will be the only new magnesium smelter in the U.S., in Arkansas. The company has now raised over $100 million in total, including a $28 million grant from the Department of Defense. Its approach relies on an electrolysis-based process that’s able to extract pure magnesium from seawater and brines, which it positions as a cleaner, cheaper alternative to the high-heat, emission-intensive method that China uses to produce most of the world’s magnesium today.
The U.S. military has taken note of this potential new domestic supply. Magrathea’s 2022 seed round coincided with Russia’s invasion of Ukraine, as the military looked to scale domestic defense tech supply chains. Magnesium alloys are often used to help reduce weight in EV components, a benefit equally applicable to military helicopters, drones, and next-generation fighter jets. So while these defense applications represent somewhat of a pivot from the startup’s initial focus, a greener fighter jet is still better than a dirty fighter jet.