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Inside Climeworks’ big experiment to wrest carbon from the air

In the spring of 2021, the world’s leading authority on energy published a “roadmap” for preventing the most catastrophic climate change scenarios. One of its conclusions was particularly daunting. Getting energy-related emissions down to net zero by 2050, the International Energy Agency said, would require “huge leaps in innovation.”
Existing technologies would be mostly sufficient to carry us down the carbon curve over the next decade. But after that, nearly half of the remaining work would have to come from solutions that, for all intents and purposes, did not exist yet. Some would only require retooling existing industries, like developing electric long-haul trucks and carbon-free steel. But others would have to be built from almost nothing and brought to market in record time.
What will it take to rapidly develop new solutions, especially those that involve costly physical infrastructure and which have essentially no commercial value today?
That’s the challenge facing Climeworks, the Swiss company developing machines to wrest carbon dioxide molecules directly from the air. In September 2021, a few months after the IEA’s landmark report came out, Climeworks switched on its first commercial-scale “direct air capture” facility, a feat of engineering it dubbed “Orca,” in Iceland.
The technology behind Orca is one of the top candidates to clean up the carbon already blanketing the Earth. It could also be used to balance out any stubborn, residual sources of greenhouse gases in the future, such as from agriculture or air travel, providing the “net” in net-zero. If we manage to scale up technologies like Orca to the point where we remove more carbon than we release, we could even begin cooling the planet.
As the largest carbon removal plant operating in the world, Orca is either trivial or one of the most important climate projects built in the last decade, depending on how you look at it. It was designed to capture approximately 4,000 metric tons of carbon from the air per year, which, as one climate scientist, David Ho, put it, is the equivalent of rolling back the clock on just 3 seconds of global emissions. But the learnings gleaned from Orca could surpass any quantitative assessment of its impact. How well do these “direct air capture” machines work in the real world? How much does it really cost to run them? And can they get better?
The company — and its funders — are betting they can. Climeworks has made major deals with banks, insurers, and other companies trying to go green to eventually remove carbon from the atmosphere on their behalf. Last year, the company raised $650 million in equity that will “unlock the next phase of its growth,” scaling the technology “up to multi-million-ton capacity … as carbon removal becomes a trillion-dollar market.” And just last month, the U.S. Department of Energy selected Climeworks, along with another carbon removal company, Heirloom, to receive up to $600 million to build a direct air capture “hub” in Louisiana, with the goal of removing one million tons of carbon annually.
Two years after powering up Orca, Climeworks has yet to reveal how effective the technology has proven to be. But in extensive interviews, top executives painted a picture of innovation in progress.
Chief marketing officer Julie Gosalvez told me that Orca is small and climatically insignificant on purpose. The goal is not to make a dent in climate change — yet — but to maximize learning at minimal cost. “You want to learn when you're small, right?” Gosalvez said. “It’s really de-risking the technology. It’s not like Tesla doing EVs when we have been building cars for 70 years and the margin of learning and risk is much smaller. It’s completely new.”
From the ground, Orca looks sort of like a warehouse or a server farm with a massive air conditioning system out back. The plant consists of eight shipping container-sized boxes arranged in a U-shape around a central building, each one equipped with an array of fans. When the plant is running, which is more or less all the time, the fans suck air into the containers where it makes contact with a porous filter known as a “sorbent” which attracts CO2 molecules.

When the filters become totally saturated with CO2, the vents on the containers snap shut, and the containers are heated to more than 212 degrees Fahrenheit. This releases the CO2, which is then delivered through a pipe to a secondary process called “liquefaction,” where it is compressed into a liquid. Finally, the liquid CO2 is piped into basalt rock formations underground, where it slowly mineralizes into stone. The process requires a little bit of electricity and a lot of heat, all of which comes from a carbon-free source — a geothermal power plant nearby.
A day at Orca begins with the morning huddle. The total number on the team is often in flux, but it typically has a staff of about 15 people, Climeworks’ head of operations Benjamin Keusch told me. Ten work in a virtual control room 1,600 miles away in Zurich, taking turns monitoring the plant on a laptop and managing its operations remotely. The remainder work on site, taking orders from the control room, repairing equipment, and helping to run tests.
During the huddle, the team discusses any maintenance that needs to be done. If there’s an issue, the control room will shut down part of the plant while the on-site workers investigate. So far, they’ve dealt with snow piling up around the plant that had to be shoveled, broken and corroded equipment that had to be replaced, and sediment build-up that had to be removed.

The air is more humid and sulfurous at the site in Iceland than in Switzerland, where Climeworks had built an earlier, smaller-scale model, so the team is also learning how to optimize the technology for different weather. Within all this troubleshooting, there’s additional trade-offs to explore and lessons to learn. If a part keeps breaking, does it make more sense to plan to replace it periodically, or to redesign it? How do supply chain constraints play into that calculus?
The company is also performing tests regularly, said Keusch. For example, the team has tested new component designs at Orca that it now plans to incorporate into Climeworks’ next project from the start. (Last year, the company began construction on “Mammoth,” a new plant that will be nine times larger than Orca, on a neighboring site.) At a summit that Climeworks hosted in June, co-founder Jan Wurzbacher said the company believes that over the next decade, it will be able to make its direct air capture system twice as small and cut its energy consumption in half.
“In innovation lingo, the jargon is we haven’t converged on a dominant design,” Gregory Nemet, a professor at the University of Wisconsin who studies technological development, told me. For example, in the wind industry, turbines with three blades, upwind design, and a horizontal axis, are now standard. “There were lots of other experiments before that convergence happened in the late 1980s,” he said. “So that’s kind of where we are with direct air capture. There’s lots of different ways that are being tried right now, even within a company like Climeworks."
Although Climeworks was willing to tell me about the goings-on at Orca over the last two years, the company declined to share how much carbon it has captured or how much energy, on average, the process has used.
Gosalvez told me that the plant’s performance has improved month after month, and that more detailed information was shared with investors. But she was hesitant to make the data public, concerned that it could be misinterpreted, because tests and maintenance at Orca require the plant to shut down regularly.
“Expectations are not in line with the stage of the technology development we are at. People expect this to be turnkey,” she said. “What does success look like? Is it the absolute numbers, or the learnings and ability to scale?”
Danny Cullenward, a climate economist and consultant who has studied the integrity of various carbon removal methods, did not find the company’s reluctance to share data especially concerning. “For these earliest demonstration facilities, you might expect people to hit roadblocks or to have to shut the plant down for a couple of weeks, or do all sorts of things that are going to make it hard to transparently report the efficiency of your process, the number of tons you’re getting at different times,” he told me.
But he acknowledged that there was an inherent tension to the stance, because ultimately, Climeworks’ business model — and the technology’s effectiveness as a climate solution — depend entirely on the ability to make precise, transparent, carbon accounting claims.
Nemet was also of two minds about it. Carbon removal needs to go from almost nothing today to something like a billion tons of carbon removed per year in just three decades, he said. That’s a pace on the upper end of what’s been observed historically with other technologies, like solar panels. So it’s important to understand whether Climeworks’ tech has any chance of meeting the moment. Especially since the company faces competition from a number of others developing direct air capture technologies, like Heirloom and Occidental Petroleum, that may be able to do it cheaper, or faster.
However, Nemet was also sympathetic to the position the company was in. “It’s relatively incremental how these technologies develop,” he said. “I have heard this criticism that this is not a real technology because we haven’t built it at scale, so we shouldn’t depend on it. Or that one of these plants not doing the removal that it said it would do shows that it doesn’t work and that we therefore shouldn’t plan on having it available. To me, that’s a pretty high bar to cross with a climate mitigation technology that could be really useful.”
More data on Orca is coming. Climeworks recently announced that it will work with the company Puro.Earth to certify every ton of CO2 that it removes from the atmosphere and stores underground, in order to sell carbon credits based on this service. The credits will be listed on a public registry.
But even if Orca eventually runs at full capacity, Climeworks will never be able to sell 4,000 carbon credits per year from the plant. Gosalvez clarified that 4,000 tons is the amount of carbon the plant is designed to suck up annually, but the more important number is the amount of “net” carbon removal it can produce. “That might be the first bit of education you need to get out there,” she said, “because it really invites everyone to look at what are the key drivers to be paid attention to.”
She walked me through a chart that illustrated the various ways in which some of Orca’s potential to remove carbon can be lost. First, there’s the question of availability — how often does the plant have to shut down due to maintenance or power shortages? Climeworks aims to limit those losses to 10%. Next, there’s the recovery stage, where the CO2 is separated from the sorbent, purified, and liquified. Gosalvez said it’s basically impossible to do this without losing some CO2. At best, the company hopes to limit that to 5%.
Finally, the company also takes into account “gray emissions,” or the carbon footprint associated with the business, like the materials, the construction, and the eventual decommissioning of the plant and restoration of the site to its former state. If one of Climeworks’ plants ever uses energy from fossil fuels (which the company has said it does not plan to do) it would incorporate any emissions from that energy. Climeworks aims to limit gray emissions to 15%.
In the end, Orca’s net annual carbon removal capacity — the amount Climeworks can sell to customers — is really closer to 3,000 tons. Gosalvez hopes other carbon removal companies adopt the same approach. “Ultimately what counts is your net impact on the planet and the atmosphere,” she said.
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Despite being a first-of-its-kind demonstration plant — and an active research site — Orca is also a commercial project. In fact, Gosalvez told me that Orca’s entire estimated capacity for carbon removal, over the 12 years that the plant is expected to run, sold out shortly after it began operating. The company is now selling carbon removal services from its yet-to-be-built Mammoth plant.
In January, Climeworks announced that Orca had officially fulfilled orders from Microsoft, Stripe, and Shopify. Those companies have collectively asked Climeworks to remove more than 16,000 tons of carbon, according to the deal-tracking site cdr.fyi, but it’s unclear what portion of that was delivered. The achievement was verified by a third party, but the total amount removed was not made public.
Climeworks has also not disclosed how much it has charged companies per ton of carbon, a metric that will eventually be an important indicator of whether the technology can scale to a climate-relevant level. But it has provided rough estimates of how much it expects each ton of carbon removal to cost as the technology scales — expectations which seem to have shifted after two years of operating Orca.
In 2021, Climeworks co-founder Jan Wurzbacher said the company aimed to get the cost down to $200 to $300 per ton removed by the end of the decade, with steeper declines in subsequent years. But at the summit in June, he presented a new cost curve chart showing that the price was currently more than $1,000, and that by the end of the decade, it would fall to somewhere between $400 to $700. The range was so large because the cost of labor, energy, and storing the CO2 varied widely by location, he said. The company aims to get the price down to $100 to $300 per ton by 2050, when the technology has significantly matured.
Critics of carbon removal technologies often point to the vast sums flowing into direct air capture tech like Orca, which are unlikely to make a meaningful difference in climate change for decades to come. During a time when worsening disasters make action feel increasingly urgent, many are skeptical of the value of investing limited funds and political energy into these future solutions. Carbon removal won’t make much of a difference if the world doesn’t deploy the tools already available to reduce emissions as rapidly as possible — and there’s certainly not enough money or effort going into that yet.
But we’ll never have the option to fully halt climate change, let alone begin reversing it, if we don’t develop solutions like Orca. In September, the International Energy Agency released an update to its seminal net-zero report. The new analysis said that in the last two years, the world had, in fact, made significant progress on innovation. Now, some 65% of emission reductions after 2030 could be accounted for with technologies that had reached market uptake. It even included a line about the launch of Orca, noting that Climeworks’ direct air capture technology had moved from the prototype to the demonstration stage.
But it cautioned that DAC needs “to be scaled up dramatically to play the role envisaged,” in the net zero scenario. Climeworks’ experience with Orca offers a glimpse of how much work is yet to be done.
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Talking with SVP of strategy Sarah Jewett about the competition, expansion plans, and how to get more Americans informed and onboard.
Just three years ago, enthusiasm for geothermal energy was lukewarm at best. In a sign of just how marginal it seemed, the firehose of federal money directed at clean energy investments under the Biden administration contained just $84 million for geothermal, specifically for next-generation technologies. By contrast, the next-generation nuclear industry received roughly 40 times more.
Geothermal electricity generation uses heat from the Earth’s molten core to spin turbines that generate carbon-free, 24/7, renewable energy — a pretty attractive offer in today’s age of rampant climate change and soaring demand. Though the technology has been in use since 1913, it’s been stymied since then by the industry’s dependence on finding rare and unique underground reservoirs of hot water.
Then in 2023, a little-known startup backed by Bill Gates, among others, achieved a breakthrough at a pilot project in Nevada, showing that fracking technology could be used to harvest energy from hot, dry rocks, which can be found virtually anywhere in the world.
Fervo Energy’s announcement hit the geothermal industry’s smoldering embers like a splash of gasoline. Investors saw a reliable new source of carbon-free electricity that could tap into existing oil and gas supply chains and workforces and clamored to put their money into the startup, which had raised roughly $1.5 billion from private investors prior to the IPO. As the need for more energy to power data centers for artificial intelligence has grown, that interest has only intensified. Case in point: The company actually upsized its initial public offering on the Nasdaq stock exchange this week.
The money from the IPO, the company said in its initial filing with the Securities and Exchange Commission, would go to Fervo’s flagship installation at its debut 500-megawatt Cape Station plant in Utah. When all was said and done after the company’s Tuesday debut, it had netted nearly $1.9 billion — about 50% more than the initially planned $1.3 billion. When trading picked up again on Wednesday, the price soared more than 30%, to over $36 per share.
Late Wednesday afternoon, I spoke to Sarah Jewett, Fervo’s senior vice president of strategy, to discuss the IPO and what’s next for the company. The transcript of our conversation, conducted over Zoom, has been lightly edited for clarity and length.
Congratulations, Fervo has just made quite the stock market debut. Just a few days ago, the company upsized its initial public offering. Then yesterday, when the FRVO ticker officially launched at the Nasdaq, you ended up raising nearly $1.9 billion, beyond the $1.3 billion you initially anticipated. You must be feeling pretty good today.
I’m teeing you up for the pun here, Alexander: Geothermal is so hot right now. The IPO is not a finish line for Fervo. It is a financing milestone that facilitates the build out of more clean, firm, reliable, affordable energy. That is what we are most excited about as we ring the bell in Nasdaq. As we celebrate, we are more excited than anything to get back to work, to put clean megawatts in the grid.
Well then, let’s drill down on that. What were you seeing from investors before the IPO?
Investors, when we went around to sell, sell, sell , they were familiar with the need for energy. They were familiar with what’s happening in tech and AI. They were familiar with the existing solutions for power. They saw us as a new entrant into the scene that is highly capable of bearing the weight of resolving this intense energy crunch. Because of that, as we sold our story over the IPO roadshow, we just saw insane demand and decided it was the right idea to upsize the round.
Beyond the big player in conventional geothermal, Ormat Technologies, there haven’t really been many pure-play options in the retail market for people who want a piece of the action more broadly within geothermal. Where do you draw the line between where investors are buying into Fervo, specifically, and where they are buying into geothermal, generally?
These are really sophisticated investors. It’s overly reductive to say they’re just investing in us because we are a leading contender in an interesting industry to them. These are sophisticated investors who have vetted our technology, our performance, our execution to date, how we think about growth. They really bought into that story, specifically, as being a story that they believe to have real sustainability.
Where do you see the biggest potential competition? Do you think it will come from an incumbent player who makes a pivot into the next-generation market? Or do you think one of these other startups in the mix such as Sage Geosystems or XGS Energy or Quaise Energy could find similar success to Fervo?
We’re driving a rising tide that should lift all boats. I’m not going to publicly place bets on who I think will be the closest follower. But I’m hopeful that we will start to see more successful competitors in the years to come. The market that we’re addressing is massive right now. Because of that, we should see enhanced competition going forward. In some ways, we would be disappointed if that weren’t the case. We have developed a technological solution that is really meaningful. It should encourage others to come try to do the same.
Fervo is really differentiated in the years of execution that we have under our belt. At this point in time, we’ve drilled 40 horizontal geothermal wells. That is a huge differentiating factor at this point in time. The demand is here now. We are well positioned to meet that demand in a way that is rapidly scalable. We are in the right place at the right time.
We like to say internally that, coming to this point, we didn’t have to contend with Fervo. Now competitors will have to contend with Fervo. We obviously believe in the geothermal energy industry, which is why we’ve been so public with publishing our data and talking about what we’re trying to do. But we do really think that we have a substantial lead on the market, just in execution. And then, of course, we have immense amounts of IP and data and learnings to go with it.
Do you plan for the primary business to remain electricity production? Do you foresee going into industrial heat, or district heating in Europe?
We will pursue all of those as business lines in the future. Right now, we are proving ourselves to be uniquely good at delivering power projects. That will be our focus for the near term.
I know you have been focused on the U.S. Where are you looking internationally?
The U.S. is a substantial market at this point in time, so while we do plenty of business development outside of the United States, right now we’re focused on developing at home.
How long will it take for the company and for the industry more broadly to start developing overseas projects in a big way?
We’re close to that already. It’s just a question of what is smart from a business model perspective, and when the timing is right. I’m probably not at liberty to say right now when the timing will be right to really lean into a thriving export side of the business.
If you had to estimate, what would you say is the share of your investors now who are classic energy investors — the types of people who would have been buying into or did buy into shale — versus the share you think are motivated by climate concerns and the clean energy potential of what geothermal is doing? Obviously I realize there’s plenty of overlap. But if you had to discern between those camps, where would you say you’re more indexed?
I would say the majority of energy sector specialists who are investing in this deal are either technology agnostic or are focused on the clean energy side of the business. We do have some marquee shale investors that we will be bringing on as part of the public offering that we’re really, really excited about. So, it’s probably a healthy mix.
Is the shale industry the best analog for how you expect geothermal to scale?
Certainly on the subsurface side it is the closest analog to what we’re doing. We are taking technology that was developed for the shale industry in the subsurface, then we’re deploying it in a similar fashion, which is just over and over and over repeated wells to ensure that we are learning at a really rapid rate and then achieving cost reduction on a learning curve in a single basin. That is a big part of our cost reduction story.
The other thing that we talk a lot about internally is bringing a manufacturing mindset to geothermal energy. It is an industry that has historically been much more akin to a construction industry, building bespoke projects that are tailored for a bespoke commercial need. That is not what we’re trying to do. We’re trying to build a much more scalable business. In order to build a scalable business, you have to establish what is the unit that you are standardizing around and iterating upon. We intend to standardize our design, and iterate and optimize off of a standardized design to allow us to move really fast and to get a lot better, to pull costs out of the business and to be able to scale.
Given how much faster you guys are coming to market, obviously, you have an advantage here over some of the new nuclear technologies being promoted right now. Do you think geothermal is mostly going to eat into the potential market that those could serve? Or do you see nuclear as having different use cases than what geothermal can do?
It’s an overlapping use case, for sure. We don’t talk a lot about eating market share, because the pie is really, really large right now.
How soon before we can anticipate building enhanced geothermal systems on the East Coast and in the Northeast, places where the subsurface heat is not as easily accessible as in the Southwest?
We like to remind people that the demand in the West is massive right now. Probably 18 months ago, we weren’t having as productive conversations with hyperscalers about siting the West as we are today. Today we are having tons and tons of conversations about siting and co-locating alongside geothermal projects in the Western U.S. So the market is really big. We like to mention that just to remind people that expansion is not the only marker of success here.
That said, there is hot rock everywhere, it’s just a question of how deep that hot rock is. We, through our standardized and iterative and repetitive approach in the subsurface, are meaningfully driving cost out of the subsurface, making depth much more of an economic question. If it is more expensive to drill to a certain depth but you already pulled an immense amount of cost per foot out of your drilling, then temperature at depth becomes more accessible even when it’s deeper.
Because drilling is just a portion of the capex of these projects, and a power plant doesn’t care whether it’s located in the West or the East, we basically think that we can move into the Eastern U.S. sooner than we probably had originally thought. It is our goal to do that sometime in the next decade.
In the scant polling I have seen on partisan attitudes on geothermal, most American voters are unaware of it, but among those who are, there seems to be a pretty close match to nuclear in terms of emerging as a rare purple form of energy with closely aligned support between Democrats and Republicans. As you grow, how are you thinking about maintaining that broad appeal and reaching more of those Americans still in the dark?
We benefit from being in an incredibly bipartisan seat right now, and that has been so helpful for our growth and development and is very important to us to maintain going forward. There’s no reason why it shouldn’t be bipartisan. It is a story that is relatable to all. We are highly adjacent to the oil and gas supply chain and oil and gas workforce. We are reliable energy. We are driving towards affordability. We are a clean energy industry with no operating emissions. And really, more than anything, we’re trying to build in a sustainable fashion. We’re trying to deliver projects the right way. It’s something that we have really been able to gain support on both sides of the aisle.
Obviously, that’s been hugely beneficial as we think about extending tax credits. Geothermal energy benefited from increasing tax credits under the Inflation Reduction Act, under President Biden. Then President Trump preserved geothermal energies tax credits in the One Big Beautiful Bill Act. That was hugely helpful to Fervo’s early development.
As we look to bring the cost of the technology down, we hope to continue educating a large group of stakeholders about this technology going forward, and continuing to bring people along with the story, no matter which side of the aisle they sit on.
The Secretary of the Interior said he “absolutely” planned to appeal a ruling that lifted blocks on wind and solar approvals.
The Trump administration is not backing down from its discriminatory policies for approving wind and solar projects. Interior Secretary Doug Burgum testified to Congress on Wednesday that his agency would appeal a recent district court ruling blocking it from enforcing these policies.
“We reject the whole premise,” Burgum said during a House Natural Resources Committee hearing.
Since Trump took office, the Interior Department has issued a series of memos and secretarial orders that systematically disadvantage wind and solar projects. Last July, it issued a memo requiring that nearly all approvals in the wind and solar permitting process be subject to additional reviews by the secretary’s office. A subsequent order required the agency to prioritize permitting projects with greater energy density, meaning ones that produce more power per acre of land, and deemed wind and solar “highly inefficient” compared with coal, nuclear, and natural gas projects.
The policies amounted to an effective freeze on wind and solar development on public lands, while also stalling projects on private lands that require federal consultations, affecting hundreds of clean energy projects. By the end of last year, Democrats saw no point in negotiating on permitting reform if the executive branch could simply make up its own permitting rules. They insisted on limits to executive power before they’d agree to a deal.
Around the same time, a coalition of clean energy groups, including the Clean Grid Alliance, Alliance for Clean Energy New York, and the Southern Renewable Energy Association, challenged the agency’s actions in the U.S. District court for the District of Massachusetts. The Interior’s permitting policies “place wind and solar technologies into second-class status without providing any rational justification for such disparate treatment or drastic policy shifts — unlawfully picking winners and losers among energy sources, contrary to Congress’ intent,” the lawsuit claimed. The groups argued the policies were arbitrary and capricious, in violation of the Administrative Procedures Act. In April, Judge Denise Casper sided with the plaintiffs, putting a temporary injunction on the agency’s wind and solar-hobbling memos.
During Wednesday’s hearing, Representative Susie Lee of Nevada told Burgum that his policies have “created a total permitting mess” in her sunny home state, and asked him what the immediate impact of the court’s order was within his agency. When Burgum responded by denigrating the judge’s decision, Lee asked if he was planning to appeal the order.
“Yeah, absolutely,” he said, asserting that “the idea that a single judge could decide” how the agency conducts permitting “is absurd.”
At the end of her questioning, Lee reaffirmed that the July 15 memo was the single thing stalling a permitting reform deal in Congress. “If you would just rescind that memo, we could get permitting reform passed this Congress, and we can start to talk about permitting all forms of energy.”
Later in the hearing, Burgum also defended another of the administration’s controversial actions regarding renewables. California Representative Dave Min questioned Burgum on his deal to pay the French energy company Total nearly $1 billion to walk away from its offshore wind leases. Was that an appropriate use of money, Min asked, considering so many Americans were struggling with high energy bills? Burgum rejected the premise, asserting several times that the agency merely “refunded” Total’s money.
Current conditions: The heat wave driving temperatures into the triple digits in the Southwest is moving northward to the Mountain West • Temperatures in Timbuktu are forecast to hit 115 degrees Fahrenheit as Mali devolves into a civil war between the government and Islamist militants • Malé, the Maldives’ densely packed island capital often called the Manhattan of the Indian Ocean, is facing days of intense thunderstorms.
Ever since South Korea built the United Arab Emirates’ first nuclear plant as close to on time and on budget as any democratic country has come in recent years, the East Asian nation has been considered one of the only real rivals to China and Russia on construction of new fission reactors. That’s in no small part because many American engineers whose projects dried up in the late 20th century took their skills there, building out more than two dozen commercial reactors and helping to vault Seoul to the vanguard of technological civilizations. Recently, Washington has wanted to re-shore that nuclear knowhow and learn the new project management tricks perfected by South Korea’s state-owned nuclear firm. But Korea Hydro & Nuclear Power’s flagship reactor mirrors the technology covered under the U.S. nuclear giant Westinghouse’s intellectual property. The yearslong standoff between the two companies came to a head last year with a global settlement that, in a controversial move, barred the Koreans from competing against Westinghouse on projects in Europe or North America. Still, the Trump administration has been trying to court Korean investment in the U.S. nuclear sector.
Now it’s coming closer. On Tuesday, KHNP inked a memorandum of understanding with the nuclear division of U.S. utility giant Southern Company to work together on engineering atomic power stations. It’s not a financing deal. Signed at KHNP’s headquarters in Gyeongju, the companies said the partnership would involve technology exchanges, workshops, and sharing best practices. “This agreement is expected to serve as an opportunity for KHNP engineers to expand their horizons globally and provide a growth chance for the domestic engineering system to take a leap forward,” Kim Young-seung, the head of KHNP’s engineering division, World Nuclear News. “We will continue to do our utmost to complete the Korean-style engineering system through close cooperation with overseas operators and international organisations.”
The Environmental Protection Agency has come up with a new way to speed up construction of data centers, power plants, and other industrial facilities: Let them start building before they obtain required federal air permits. The proposal would “bring flexibility to building non-emitting components or structures,” including cement pads and wiring, piping, and support structures. “Today’s proposal works to provide solutions to issues that have held up critical American infrastructure and advance the next great technological forefront,” EPA Administrator Lee Zeldin said in a statement. “Through commonsense permitting reform, the Trump EPA is fixing the broken system of government interference, while continuing to uphold our core mission to protect human health and the environment.”
Surging demand and shortages of raw materials are pushing lead times for high-capacity electrical transformers to as long as four years, PricewaterhouseCooper analysts said at a Reuters event this week. Demand for step-up transformers, which increase the voltage of electricity as it travels across power lines, increased by 274% between 2019 and 2025, while demand for substation transformers soared by 116%. Prices for essential components, meanwhile, have jumped by roughly 80% in five years. As a result, according to PV magazine, some firms are now paying premiums for production slots on projects that aren’t even finalized yet, while others buy refurbished as a stopgap until newer units arrive.
Transformers aren’t the only grid equipment attracting investment. Just this morning, TS Conductor, a manufacturer of advanced conductors that can bolster the capacity of existing power lines, announced the grand opening of its newest factory in South Carolina. The $134 million facility is now “poised to strengthen U.S. domestic supply chains as utilities work toward building a stronger, higher-capacity, more-efficient power grid — all with the speed that American industry needs and the affordability that American ratepayers deserve,” the company said.
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The Trump administration has removed the acting head of the Federal Emergency Management Agency, replacing the political appointee with a 30-year agency veteran who held senior positions in several previous administrations. On Tuesday, E&E News reported that the exit of Karen Evans, a political appointee put in charge of the embattled agency in December, would be the third such departure since President Donald Trump returned to the White House. Her temporary replacement as acting administrator is Robert Fenton, who began work as a regional administrator in 1996 and held the acting chief job twice under the first Trump and Biden administrations — for six months in 2017 and four months in 2021. “I know this year has been challenging for many across the agency,” Fenton wrote in a staff memo Tuesday, a copy of which the newswire obtained.
FEMA has struggled under Trump. As I told you last summer, the agency cracked down aggressively on internal dissent from staffers. Meanwhile, the funding shutdown at the Department of Homeland Security, where FEMA is housed alongside Immigration and Customs Enforcement, “starved” local disaster responses, Heatmap’s Jeva Lange reported in February..
Alsym Energy, as Heatmap’s Katie Brigham reported last year, “thinks it can break the U.S. battery manufacturing curse.” And not just by besting the incumbents already producing the market’s lithium-ion packs, but actually commercializing a whole new type of battery chemistry that instead relies on cheaper and far more abundant sodium as the main energy carrier. On Tuesday, the Massachusetts-headquartered startup inked a deal with the renewable developer Juniper Energy to deploy 500 megawatt-hours of Alsym’s battery systems in California. The deal, the companies said in a press release, “marks a significant shift away from fire-prone lithium-ion dependencies, prioritizing safety, domestic production, and operational efficiency in some of the United States’ most demanding climates.”

If you thought building batteries or transformers was tricky, how about an electricity distribution network in space? That’s what Star Catcher Industries is promising to do. The Jacksonville, Florida-based startup said Tuesday it had raised $65 million in an oversubscribed Series A round. The investment — led by venture capital firms B Capital, Shield Capital, and Cerberus Ventures — brings Star Catcher’s total capital raised so far to $88 million. Founded less than two years ago, the company is developing space-based infrastructure that can deliver electricity on demand to satellites and spacecraft using optical power beaming, a wireless technology involving high-intensity laser light. “This investment underscores the conviction that orbital infrastructure is now as fundamental as terrestrial infrastructure,” Andrew Rush, co-founder and chief executive of Star Catcher, said in a statement. “Every major application driving the space economy — connectivity, computing, security, sensing — is power-limited today. Star Catcher is lifting that ceiling — making it possible to build in orbit at the scale the next century of life on Earth will demand.”
Editor’s note: This story has been updated to correct the location of Terrapower’s isotope plant.