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Heat pumps are cool. Neighborhood geothermal might be cooler.

A landmark project with major implications for how Americans could cleanly heat and cool their homes broke ground in Framingham, Massachusetts, on Monday.
Eversource, the largest gas and electric utility in New England, began construction on its first “networked geothermal” system. The company will connect 32 residential and five commercial buildings in a single neighborhood to underground water pipes, which will draw on the steady temperature of the ground beneath the earth’s surface to air condition and heat the buildings without fossil fuels.
Clean energy advocates across the country are looking to the demonstration as a test of the idea that natural gas utilities can remain in business in a decarbonized world by managing a network of pipes filled with water instead of climate-warming gas.
“I would say it's not just being watched nationally, it's being watched globally,” Zeyneb Magavi, the co-executive director of the Massachusetts-based clean energy nonprofit HEET, told me. Magavi and her partner, Audrey Schulman, dreamed up the idea of transforming gas utilities into geothermal utilities several years ago, and were instrumental in getting Eversource to consider the project.
“If they succeed enough, and I have no doubt they will, they're gonna be the founding install of a new utility that's going to be the foundation of our future energy system,” she said. “It's not that often that you get to give birth to a new utility.”
Geothermal heating systems have been around for nearly a century, and are known for being incredibly efficient. You may have heard of air-source heat pumps, commonly referred to simply as heat pumps, which function like an air conditioner in the summer and a furnace in the winter by transferring heat inside and outside the building. Geothermal heat pumps work similarly, but they use the ground as a source and sink for heat, rather than the ambient air. (They are different, but related to geothermal power plants, which tap into much hotter reservoirs underground to generate electricity.) Since the ground is a more stable temperature than the air, geothermal heat pumps require less energy. Networked geothermal systems have the potential to reduce energy use even more.
Many individual homes and buildings run on geothermal heating systems today, but all the drilling and piping translates into big upfront costs. Magavi told me the spark of HEET’s idea for a neighborhood-wide system dates back to 2008, when she wanted to install geothermal at her own home, but couldn’t afford it. Later, when she joined HEET and began thinking about what a future without gas could look like, she and Schulman discovered geothermal projects elsewhere in the country, such as a small town in Iowa, and a college campus in Colorado, where multiple buildings were linked to the same pipes. The systems didn’t seem all that different from the gas distribution networks they were looking to replace.
The project in Framingham involves building a new set of pipelines alongside the gas system. Each participating building will get a service pipe connecting it to a main horizontal line that runs through the neighborhood, which is in turn connected to a series of vertical lines that go about 500 feet deep. Water runs through the system, bringing heat up from the ground and delivering it to heat pumps inside the buildings in the winter, or absorbing heat from the homes and dumping it back underground in the summer.

The whole system is expected to be up and running by the fall. Eversource estimates the project will cost $14.7 million, and has received approval from regulators to pay for it with ratepayer funds, spread across its entire customer base. Participants will not pay any additional fees on top of the cost to run the heat pump equipment on their electricity bill. They will retain their existing heating and cooling systems, and will have the option to go back to them after the two-year pilot period.
Residents could see a 20% reduction in energy costs, according to Eversource, and around a 60% decrease in carbon emissions, taking into account the current electricity supply. The company will be gathering data throughout the pilot to confirm the actual cost, energy, and carbon savings of the project. “We also want to make a strong business case for why this should be done by the utility and why it makes sense for us to be building out systems like this,” said Eric Bosworth, the senior program manager for clean technologies at Eversource.
Magavi and Schulman see networked geothermal as an elegant solution to one of the biggest challenges of tackling climate change: avoiding what’s known as the utility death-spiral. If people begin swapping out their natural gas heaters for electric heat pumps, they will drive up costs for remaining gas customers, which will motivate more people to go electric, and inflate gas bills even more.
Geothermal presents a path for utilities to retain their customers. They already have the expertise to build and manage underground pipelines and heating equipment. And Magavi argues that if utilities take on the up front costs, it would give people more equitable access to clean energy. “You can just sign up with the utility — you don't have to have upfront capital, knowledge, or time,” she said. “That equity of access is something that is necessary for a just transition.”
If geothermal heating and cooling were to really take off, it could also help with another major climate challenge — the electric grid. The switch to electric vehicles and heat pumps is going to require a massive expansion of clean electricity resources and transmission and distribution wires. Widespread adoption of geothermal heat pumps could minimize that buildout. Boswoth told me that geothermal networks could be strategically deployed in areas that are electrically constrained.
Many climate advocates also like the idea because it presents a clear transition opportunity for natural gas workers, like those in the Plumbers and Pipefitters Union that build and maintain gas pipelines. “Networked geothermal systems could be a promising option for providing high road job opportunities to these workers,” Jenna Tatum of the Building Electrification Institute told me.
But that’s one aspect of the promise of networked geothermal that the Framingham project won’t be demonstrating. Eversource hired a third party construction company and hasn’t entered an agreement with any unions yet, although Bosworth said the company was actively engaged with the Pipefitters Union regarding longer-term geothermal plans.
The pilot in Framingham will be the first networked geothermal system operated by a utility, but it definitely won’t be the last. Massachusetts regulators have approved a handful of additional networked geothermal projects to be owned and operated by Eversource and another gas utility, National Grid. New York State is also moving forward on a number of utility-owned pilots. Several other states, like Minnesota, have also passed laws that encourage gas utilities to pursue geothermal.
“We expect that we're going to see a pretty significant pilot proposal in [utility] plans modeled after the work that's been done out East,” Joe Dammel, managing director of buildings for Fresh Energy, a Minnesota-based clean energy nonprofit, told me.
One challenge that’s come up as the idea has taken off is that no one can seem to agree about what it should be called. While the term is “networked geothermal” in Massachusetts, New York is using “thermal energy network.” Magavi said it’s also been referred to as “community geothermal,” a “thermal highway,” an ATL or “ambient temperature loop,” a “heatnet” and a “5G” network. All of this is further complicated by the fact that the terms “geothermal energy,” “heat pumps,” and “district energy,” can all refer to fundamentally different technologies.
“It’s a nightmare,” she told me. She said she’s initiated a campaign with the National Renewable Energy Laboratory and the Department of Energy to set language standards. “There’s a survey currently going out to everyone to ask them what they think about all the different names.”
The Framingham pilot could be significantly expanded if all goes well. HEET collaborated with Eversource to apply for funding from the Department of Energy for a second networked geothermal system in the city that would be connected to the first one, and was recently awarded a $717,000 grant.
Advocates like Magavi hope these projects will turn into a full-on transition strategy for utilities to move away from a business model based on gas or other fuels. At the groundbreaking on Monday, Eversource chairman, president, and CEO Joe Nolan made a bold statement that seemed to support that notion. “As we transition to a carbon-free future, this is going to be the answer for everybody,” he said. “And it’s all starting right here.”
But when I talked to Bosworth, he qualified that at this point the company sees geothermal as one “tool in the proverbial toolbelt.” Like many utilities, Eversource is also exploring the potential to deliver lower-carbon fuels like biogas and hydrogen through its gas lines.
“We want to take a look at any and all potential pathways and really vet them for what is viable, and what works where,” Bosworth told me. “We will use a combined approach to get to our carbon neutrality goals.”
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Current conditions: The Pacific has officially entered El Niño, and the warmer-than-average weather pattern is expected to be stronger than usual • Heavy rains are deluging China’s Hunan and Guangxi provinces • While Puerto Ricans living in New York just threw the diaspora’s annual parade, thousands of Boricuas living on the island are enduring days of water shortages so severe the U.S. territory’s governor activated the National Guard.
In a pair of Sunday evening posts on Truth Social, President Donald Trump said a “great deal” with Iran to end the conflict and reopen the Strait of Hormuz without any tolls was “now complete.” As part of the truce, Trump said he would “authorize the immediate removal of the United States Naval blockade” at the mouth of the Persian Gulf. The waterway through which up to a quarter of the global seaborne oil trade travels will remain closed until the deal is signed on Friday, Trump said, “for purposes of mine removal,” meaning Iran will collect the explosives its military planted around the strait to prevent vessels from passing. “Ships of the World, start your engines,” Trump wrote. “Let the oil flow!”
My colleague Emily Pontecorvo had a big scoop on Friday: The Trump administration is no longer defending the president’s moratorium on permitting wind projects. The Department of Justice filed a motion last week to dismiss its appeal of a federal court’s December decision vacating the order to halt wind energy approvals. Ending the White House’s all-of-government assault on wind and solar projects has been a key demand from Democrats seeking compromise for a permitting reform package. Experts say the procedural move in this case is a bullish sign for the various bills before Congress now. “The door to federal permitting is now unlocked again and each developer will be able to make the case for permitting their individual project based on the facts and the law,” Kit Kennedy, the managing director for power, climate, and energy at the Natural Resources Defense Council, told Emily.
The thaw in the permitting freeze comes as the SunZia Wind Project, the largest wind farm in the United States, is preparing to begin commercial operations in the coming days. The development in New Mexico, which has a total net summer generating capacity of 3,650 megawatts, is made up of 916 turbines.

Trump wants to temporarily suspend the federal tax on gasoline to ease surging fuel prices caused by the war with Iran. His proposal would waive the tax of $0.184 per gallon, but doing so requires an act of Congress. According to a new analysis from the Budget Lab at Yale University shared exclusively with Heatmap, lifting the levy would pay Americans back about $37 of the roughly $250 in higher gasoline costs paid over the course of three months. While richer households would spend a smaller share of total income on fuel, they would accrue more per-dollar benefits than lower-income Americans. Likewise, the gas tax holiday would afford more rewards to heavy drivers.
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It started out as a British nonprofit devoted to documenting, standardizing, and tracking how much carbon dioxide various partner organizations produce. Dubbed the Carbon Disclosure Project, the group, founded in 2000, had emerged as one of the central authorities on an issue increasingly baked into financial reporting rules. Now known only by its acronym, CDP said last week it would split its organization in two, segmenting a charitable, science-focused nonprofit called the CDP Foundation from a new commercial entity designed to deliver environmental data and disclosure services for a fee. The London private equity giant Permira will back the for-profit CDP’s launch. “For 25 years, CDP has been at the forefront of environmental disclosure, transforming it from the sidelines to the centre of decision-making,” the organization said in a statement. “To meet the scale and speed of today’s environmental challenges and market expectations, CDP is sharpening its focus, enabling stronger science-led disclosure and greater investment in technology to simplify the disclosure experience and deliver more decision-useful insights.”
Tennessee Senator Marsha Blackburn, a key GOP tech policy reform voice in the Senate running for governor in her home state, just came out against a data center next to Nashville Zoo. “Tennessee should be thoughtful and considerate when deciding where data centers are located. The proposed site near the Nashville Zoo is neither,” she wrote in a post on X. “Let’s revisit this placement.” It’s yet another sign that the backlash against data centers is, as Heatmap’s Jael Holzman wrote, splintering the right.
The geothermal industry is gearing up for a next-generation boom. Until Fervo Energy’s big stock market debut last month, the big publicly-traded player in the business was Ormat Technologies, a conventional geothermal giant that both builds power stations and manufactures the parts needed for plants. Now, at the industry’s big trade show in Calgary this week, Ormat is unveiling a 100-megawatt power generation system designed for unconventional wells like those Fervo or Ormat’s partner Sage Geosystems are drilling. It’s a sign, Think GeoEnergy reported, that Ormat is seeking “to accelerate the commercial deployment of next-generation geothermal projects.”
Welcoming the world’s first clean energy trillionaire.
SpaceX is now a public company. The rocket and satellite maker’s shares began trading this morning, surging 19% from their initial price of $135 to more than $160 at the market close. With the sale, Elon Musk became the world’s first trillionaire; his wealth has roughly tripled since President Donald Trump won re-election in 2024.
I’ll let other observers judge the IPO’s success, the firm’s long-term prospects, and the meaning of a world where we now have trillionaires. So I will make a few other points:
I remain agog at Musk’s ability to raise enormous amounts of cash from public equity markets to do hardware and manufacturing development. To some degree, the idea of a venture-backed firm doing hardware engineering — or what some now call “deep tech” — is Musk’s most impressive creation. The SpaceX IPO raised $75 billion today. That money will now go in part to scaling and commercializing rockets, factory equipment, and allegedly, at some point in the future, orbiting data centers.
Let’s not forget how crucial the U.S. government is to Musk’s story. In the world of climate, energy and manufacturing, we wail about financing’s “missing middle,” the elusive type of investment that can help scale and deploy early-stage technologies by bridging the gap between expensive venture capital and cheap bank lending. But this is at least partially a solved problem. SpaceX and Tesla survived the valley of death with government help: The Energy Department’s Loan Programs Office (which the Trump administration has dubbed the Office of Energy Dominance Financing) extended a $465 million loan to Tesla to build its Fremont, California, factory in 2010; NASA’s 2008 commercial resupply contract gave SpaceX guaranteed offtake for its Falcon rocket. Neither firm would likely have survived without those key injections of financial certainty.
To some degree, Musk has already made his mark on the American economy by creating a new culture of manufacturing engineering. I cannot recommend enough my colleagues Matthew Zeitlin and Emily Pontecorvo’s report on the new cadre of climate tech founders who came up at SpaceX and Tesla. As it happens, I spent Wednesday touring a clean energy factory founded by a Tesla alumnus, and I was struck by how many signs of Musk’s bottlenecks-focused management approach were visible, even at a company seemingly run more humanely than Musk’s famously “hardcore” firms.
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To that point, Emily and Matt asked a number of clean tech executives who worked for SpaceX or Tesla what they learned from the experience. Their responses are fascinating; you can read them in full here. These comments from Justin Lopas, the COO of Base Power, stuck out — he was asked the “one thing” he learned from working for Musk:
You can get way more done in a day and can move way faster than you think. This does not mean necessarily more hours (although solving any hard problem requires that too), but instead being thoughtful about sequencing work, not accepting delays from suppliers or external counterparties without solid rationale, parallel pathing, accelerating critical learnings to early in the project, etc
To step back, one irony of Elon Musk’s situation — at least to me — is that relatively few American politicians are eager to talk about what has actually driven his wealth. I’m not just talking about his firms’ reliance on public financing, although that counts too. I mean Tesla itself. Although Musk now describes that business as a “robotics company,” it is and remains an electric vehicle and battery manufacturer. (It recently began high-volume production of the Tesla Semi, a potentially game-changing long-haul electric truck.) After today, Musk’s Tesla stake makes up less than half of his wealth, but, still, he would not be a trillionaire without EVs, solar panels, and batteries.
But that is not a particularly convenient fact. That Musk is a clean energy trillionaire remains unpalatable to Republicans, who would prefer to cast EVs as an inferior substitute made to satisfy government mandates. And Musk’s antisemitism, far-right politics, and gleeful destruction of the U.S. Agency for International Development — not to mention Tesla’s violation of labor law — have obviously destroyed his reputation among Democrats.
Yet his elevation to a 13-digit net worth nonetheless marks a new era in American capitalism. The richest Americans in history have almost always been oilmen: John D. Rockefeller became the country’s first billionaire by creating the Standard Oil trust; when he died in 1937, his net worth of $1.4 billion represented 1% to 2% of the country’s gross domestic product. In the 1960s, J. Paul Getty became the country’s richest person by negotiating Saudi and Kuwaiti oil concessions. Yet Musk became a billionaire not by harnessing commodities, but through his mastery of software, hardware, and clean energy.
Musk’s fortune now exceeds 3% of U.S. GDP. He is the richest American in history, judged as a share of national production. And it was electricity, lithium, and modern factory production — and, if you wish, the kerosene and methane that fuel SpaceX’s rockets — that got him there. As the science fiction writer William Gibson almost said, the future is already here; it’s just not evenly distributed in your retirement portfolio yet.
Many thanks for reading, and have a wonderful weekend.
Plus SAF, another SPAC, and more of the week’s biggest money moves.
With SpaceX’s historic IPO dominating headlines this week, Heatmap turned its attention to the impact Elon Musk’s protégés have had on the climate tech landscape. Right after we published the story, an underwater geothermal startup founded and staffed by SpaceX alumni announced a sizable Series A, with its founder telling TechCrunch that his “experience at a very hardcore company like SpaceX” helped shape his approach to this new endeavor.
In other news, one of the biggest players in the sustainable aviation space, Twelve, opened its first commercial fuels plant and is preparing to begin supplying low-carbon jet fuel to Alaska Airlines later this month. Meanwhile, the battery sector saw two SPAC announcements: In a bid for survival, Factorial Energy officially went public this week through a SPAC merger, while ZincFive announced plans to do the same later this year. And finally there was some positive news for Germany’s heat pump market, as the startup Galvany raised fresh funding to simplify the end-to-end process of buying, installing, and operating a heat pump.
Drawing from an increasingly familiar playbook for Musk alumni, Endurance Energy founder and former SpaceX engineer Andrew Redd applied the lessons he learned from the rocket company’s notoriously “hardcore” culture and rapid pace of development to something completely different. Now that he’s pivoted away from rocket tech, Redd wants to harness geothermal energy from underwater volcanic activity, and his startup just raised a $54 million Series A to make it happen While a growing crop of geothermal startups including Fervo and Zanskar are focused on tapping into the heat beneath our feet, no other company in the sector has sought to develop the resource beneath the ocean floor.
There are good reasons for that, of course. Offshore infrastructure is notoriously difficult and expensive to build, maintain, and repair, and saltwater is corrosive. But if Endurance can crack the code, Redd told TechCrunch he thinks the company could unlock about 6 terawatts of geothermal energy in the coming decade.
Investors seem to be convinced: Peter Thiel’s Founders Fund led the startup’s latest funding roundSeries A, its second capital raise since launching less than two years ago. Other backers include First Round Capital, Felicis Ventures, and Voyager Ventures. EnduranceThe startup is initially targeting remote islands, where electricity costs are often far higher than on the mainland. It’s already launched an initial pilot off the coast of Tonga, which still gets about 80% of its electricity from imported diesel.
Twelve, one of the best capitalized sustainable aviation fuel startups, opened its first e-fuel facility in Washington State this week. The demo plant has officially started production, and the company’s strategic partner and investor, Alaska Airlines, expects to begin using it on commercial flights as soon as this month. The plant’s launch comes roughly two years later than originally planned, a delay that’s hardly unusual for first-of-a-kind industrial projects like this. Last September, Twelve raised $645 million to complete buildout of the facility, as well as to jumpstart development of future plants, which it says will be orders of magnitude larger.
The company’s process begins with renewable-powered electrolysis. Using a proprietary catalyst, Twelve’s electrolyzer splits apart CO2 captured from a nearby ethanol plant at a lower temperature than conventional approaches, making it better suited to running on renewable energy. The company combines the resulting carbon monoxide with hydrogen to create a syngas, which gets refined into sustainable jet fuel. Airlines can blend the resulting product with conventional jet fuel (the Federal Aviation Administration allows a maximum 50% blend) to create a drop-in replacement that requires no engine modifications.
To cover the cost premium of SAF, Twelve and Alaska partnered with Microsoft. The tech giant is buying SAF certificates — essentially carbon credits — from the project to help offset Scope 3 emissions associated with employee travel. “We are seeing strong demand from the corporate offtake side, not only for employee travel, but also for freight and logistics,” Twelve’s CEO, Nicholas Flanders, told me. “Everything from pharmaceuticals to data centers use a lot of air travel.” There are also some policy tailwinds — the European Union now has a sustainable fuels mandate that requires the use of synthetic e-fuels like Twelve’s beginning in 2030.
The plant also comes online at a moment of heightened volatility in the jet fuel market. As my colleague Alexander C. Kaufman noted in Wednesday’s morning newsletter, the closure of the Strait of Hormuz has led to soaring fuel prices, prompting domestic refiners to ramp production to record highs. By contrast, Flanders argues that SAF offers customers greater price certainty via long-term offtake agreements. “You can fix the cost of our key inputs like electricity and CO2 and so that actually makes it a more attractive project from a project financing perspective,” he explained.
SPACs are back. But this week, it’s not just another pre-revenue nuclear company that’s looking to get to market as quickly as possible. Solid-state battery startup Factorial Energy, which has yet to develop a commercial product, has merged with the blank check company Cartesian Growth Corporation III, netting it $100 billion at a $1.3 billion valuation.
The company was upfront about needing the SPAC to stay afloat after racking up losses since its founding in 2013. Factorial’s SEC filing states that prior to this new capital, “its liquidity wasn’t sufficient to fund twelve months of operations.” Yet it does have real traction in the industry — Mercedes-Benz, Stellantis, Hyundai, and Kia have all made strategic investments, looking to use Factorial’s tech in their electric vehicles to achieve higher energy density, longer range, and faster charging.
Solid state batteries typically use a solid electrolyte in place of the flammable liquid electrolytes found in conventional lithium-ion cells, but Factorial is starting with more of a hybrid approach. Its initial design relies on a “quasi-solid” gel-like electrolyte, which allows it to use an energy dense lithium metal anode while preventing the needle-like dendrite growth that predisposes solid-state batteries to short circuit. Factorial is manufacturing these cells at a pilot plant in Massachusetts, while working on a prototype with a fully solid electrolyte that could offer even greater performance gains.
Factorial isn’t the only battery company with SPAC news this week. ZincFive, a nickel-zinc battery producer, also announced plans to go public via SPAC in a deal expected to close in the second half of this year. Unlike Factorial, however, ZincFive is already making money, selling its batteries to hyperscalers and other data center operators as a backup power solution to bridge the gap in between when the power goes out and when the backup generator turns on. As the company’s CEO Tod Higinbotham told Bloomberg, “We have the backlog. We have the capacity. We have the demand. We really need capital.”
Navigating the maze of consumer clean energy incentives and coordinating home energy upgrades is hardly a U.S.-specific challenge. Just a few years ago, heat pump sales in Germany were falling precipitously despite generous subsidies and proven tech. One startup, Galvany, theorized the problem wasn’t the heat pumps themselves, but rather the unnecessary complexity of the surrounding ecosystem. Now it’s raised roughly $11.5 million to help streamline the process of getting heat pumps into consumers’ homes and apartments.
“In Germany, heat pumps do not fail because of the technology, but because of the gap between subsidy bureaucracy, installation capacity, and economic viability for the end customer,” the company’s CEO, Raik Belka, said in a press release. This is exactly the gap we are closing.” The approach is already paying off — Galvany has installed more than 2,500 heat pumps to date and became profitable last year after increasing its revenue sevenfold.
The startup produces its heat pump in partnership with Panasonic, but its real innovation lies in the way it streamlines sales, procurement, installation, and ongoing heat pump operations into a single platform. Potential customers enter their building data online and, after a feasibility check, get a quick quote that factors in subsidies. They can then purchase a standardized kit that’s simple for installers to assemble. Once operational, the heat pump’s energy management system, which launches this summer, will automatically adjust heating loads based on the cost of electricity, saving customers money without them having to actively manage the system.