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On a surprise agreement, DOE loans, and pipeline permitting
Current conditions: More than 7 million Americans are under risk of tornadoes Tuesday, including in the Mississippi, Ohio, and Tennessee valleys • There is “dreary” weather ahead for the Northeast as rain and cold return • It will feel like 107 degrees Fahrenheit today in Xingtai, China, where the average this time of year is 86 degrees.
The Trump administration has lifted its stop-work order on Empire Wind, an offshore wind project by Equinor that had already started construction south of New York’s Long Island when the Department of the Interior ordered it paused on April 16. New York’s governor, Democrat Kathy Hochul, apparently secured the agreement for construction to resume after three “roughly one-hour calls with President Donald Trump, the most recent on Sunday,” in which she emphasized the energy and job-creating benefits of the project, The Washington Post reports. In a statement, Marguerite Wells, executive director of the Alliance for Clean Energy, cheered the move, saying, “Today, I am reminded how proud I am to be a New Yorker. We thank Governor Hochul for being an early and continuous champion for offshore wind and for bringing her advocacy to the highest levels of government.”
As my colleagues Emily Pontecorvo and Jael Holzman previously reported, the stop-work order on Empire Wind had seriously jeopardized New York State’s chance of meeting its climate and clean energy goals, with offshore wind viewed as the route away from New York City’s reliance on fossil fuels. In AM yesterday, I also covered a report that the offshore wind industry was preparing to respond “with strength” to the roadblocks and opposition from the Trump administration. It reportedly cost Equinor $50 million per week to hold the project while the Trump administration deliberated its merits.
The Department of Energy plans to cancel seven major loans and loan guarantees, including a New Jersey transmission project and a low-income rooftop solar program, Semafor reports, per a “former DOE official close to the process.” The programs had all been conditionally approved under Biden, and also included a low-carbon ammonia factory by Monolith Nebraska, as well as a battery factory, a plastics recycling facility, and two others that had already been canceled by their developers. In sum, the canceled financing amounts to nearly $8.5 billion — which admittedly isn’t much of the roughly $41 billion in Biden-era LPO agreements that were yet unfinalized when Trump took office. At the same time, “it’s revealing that the administration would let these projects — most of which are in sectors where the U.S. is already far behind China — fall by the wayside, rather than take steps to prop them up,” Semafor’s Tim McDonnell notes.
A House Rules Committee document points to potential changes to the reconciliation bill as negotiations continue — including, perhaps, to permitting. The original bill stipulated that CO2, hydrogen, and petroleum pipelines could pay a $10 million fee to bypass the standard permitting process, a move that critics decried as a “pay-to-play privilege for gas pipelines.” Activists and Democrats had slammed the provision, with Evergreen Action arguing it “makes a farce of our permitting process and essentially legalizes corruption,” and that “Americans will be severely impacted by gas pipelines built through their communities.” But in the new version of the bill, the language describing the expedited pipeline permitting “is gone,” Notus writes.
There is still a long way to go in negotiations, as hardliners and moderates remain at odds. The Rules Committee’s vote on a final version of the reconciliation bill is scheduled for 1 a.m. Wednesday morning, in order to stay on track for a possible floor vote this week — although others are skeptical of the feasibility of that timeline.
Clean power manufacturing is expected to grow from supporting 122,000 American jobs today to more than 575,000 by 2030 if all announced manufacturing facilities become operational, a new report by the American Clean Power Association found. The report similarly expects the economic output generated by those facilities to grow from contributing $18 billion to the U.S. GDP today to $86 billion by the end of the decade. “Today’s report shows that the manufacturing activities across the clean energy sector drive a ripple effect of economic growth that extends far beyond factory walls, reaching every corner of the country,” Jason Grumet, the CEO of ACP, said in a statement.
While clean energy manufacturing has taken a hit under the Trump administration, with more than $8 billion in projects canceled, closed, or downsized in the first quarter of 2025 due to concerns about access to Inflation Reduction Act tax credits and loan financing, as well as greater economic turbulence, ACP found that many investments are concentrated in rural areas and Republican states. With 200 manufacturing facilities in the pipeline, the report calls for preserving energy tax credits, “facilitating a true all-of-the-above energy strategy,” and creating “a stable and strategic trade environment,” among other policies.
An anti-nuclear protest near Lingen, Germany, in 2023.David Hecker/Getty Images
Germany’s longtime opposition to treating nuclear power on par with renewables in EU energy policy appears to have ended. France, which gets about 70% of its power from atomic energy, had long pushed for broader adoption in Europe — and been stymied by Germany’s former chancellor, Olaf Scholz, who was skeptical of labeling atomic energy “green.” But the nation will pivot to join France under Germany’s new conservative chancellor, Friedrich Merz, leaving Austria as the last remaining holdout in the EU, Reuters reports. “When France and Germany agree, it is much easier for Europe to move forward,” Lars-Hendrik Röller, who served as chief economic adviser to former German Chancellor Angela Merkel, told the Financial Times. The pivot is not just about meeting energy needs, however; as one German official also told FT, “We are now actually finally open to talk to France about nuclear deterrence for Europe. Better late than never.”
“I only drained about 25 miles of range from the battery after powering my fridge and other devices for days.” —Scooter Doll, writing for Electrek about how he used his Rivian R1S as a backup energy source for three days after last week’s tornadoes knocked out his power.
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A conversation with Spencer Hanes of EnerVenue
Today’s conversation is with Spencer Hanes, vice president of international business development for long-duration battery firm EnerVenue and a veteran in clean energy infrastructure development. I reached out to Hanes for two reasons: One, I wanted to gab about solutions, for once, and also because he expressed an interest in discussing how data center companies are approaching the media-driven battery safety panic sweeping renewable energy development. EnerVenue doesn’t use lithium-ion batteries – it uses metal-hydrogen, which Hanes told me may have a much lower risk of thermal runaway (a.k.a. unstoppable fire).
I really appreciated our conversation because, well, it left me feeling like battery alternatives might become an easy way for folks to dodge the fire freakout permeating headlines and local government hearing rooms.
This conversation has been lightly edited for clarity.
From a developer’s perspective, if you’re working in utility-scale battery development, why ditch lithium-ion batteries?
My first battery project was at Duke Energy in 2010. It was a lead-acid battery project in Texas. It was the first time we’d incorporated batteries into a renewables project, and it was probably the biggest in the northern hemisphere. Now I don’t even think it is the biggest in Texas, but it was a big step forward.
What developers are finding is that lithium batteries don’t last as long as the developers would like them to. That means they’ve got a shelf life of 7,000 cycles, maybe 8,000 cycles, and it depends on how you use them – lithium ion batteries have to perform under the perfect environment or they can be damaged. Our batteries, on the other hand, are incredibly flexible, and we have a much more robust product that we think is safer and longer lasting than lithium – which has its place, but there are more and more safety issues around it. [There’s] virtually no risk of thermal runaway with our battery.
So I recently had a lithium-ion battery explode on me for the first time – it sparked up and fused to an electrical cable. It was very surprising, and as someone who writes about this stuff a lot, it still took me aback. As someone who is interacting with folks in data center development spaces, seeking battery storage for their operations, how are they digesting the anxieties around battery failures?
Well, the good news is that the data center developers are just trying to get electrons where they can find them. It's hard to find any sort of generation resource right now. Solar and batteries are just the easiest to find.
The safety piece is always going to be top of mind, though. They’re going to build redundancies into their battery projects, wall them off and containerize different batteries so if there’s a spark it doesn’t propagate.
Because data centers need electrons quickly right now, these companies are immune to the battery safety anxieties percolating in the public right now?
Yeah. They’ve been using them for a long time, they’re familiar with them. But the data centers and the big power users are sometimes stressing the lithium-ion batteries in ways they can no longer handle.
Do you feel like data center companies, big power users, do they get the inherent risks from a social license perspective and a siting perspective in using big lithium-ion batteries?
I think a lot of battery projects are being developed in containers because of fire issues, so if there is an issue it’s contained, and that’s a best practice right now.
What would be better is if there was a zero risk of thermal runaway. I think there’s a growing need for other technologies to come along that are safer and more utility-grade, able to serve multiple purposes. But the data center companies are very smart about how they’re developing, and they’re not going to do it in a way that creates problems for other parts of the data center.
Are there ways to avoid building out a lot of batteries? Maybe minimizing how many batteries are used on site, or how much infrastructure needs to be put on site to minimize fire risk?
I think unfortunately it's largely a case by case determination in where you are. I’m running across more and more engineering firms that aren’t comfortable with even the safest batteries being inside a building. Now, everyone wants them containerized because a thermal runaway event is a catastrophic risk no one wants to take.
EnerVenue has a product that fits that profile. There are many others that fit that profile, as well. We need many more options of technologies that can fit the bill. Lithium has a really important role in our society, doing well enough in phones and laptops, but we think we have a competitive offering for grid scale energy storage.
From your vantage point, do you see data center development as the growth area for storage in the U.S. right now?
A year ago I’d get a call once a quarter, and now I’m fielding calls every month. It's because there’s such a crunch on generation. If you put a battery with a data center … everybody wants to say the centers are operating 99.9% of the time, but they’re also not operating at 100% capacity all day, so if they can generate electricity and store it in a battery to use when rates are cheaper or when there’s a constraint on the grid, that’s a benefit to them.
On the Chevy Bolt’s return, China’s rare earth crackdown, and Nestle’s spoiled climate push
Current conditions: A possible nor’easter is barreling toward New York City with this weekend with heavy rain, flooding, and winds of up to 50 miles per hour • While Hurricane Priscilla has weakened to a tropical storm, it’s still battering Baja California with winds of up to 70 miles per hour • A heatwave in Iran is raising temperatures so much that even elevations of more than 6,500 feet are nearly 90 degrees Fahrenheit.
The Bureau of Land Management has canceled Nevada’s largest solar megaproject, Esmeralda 7, Heatmap’s Jael Holzman scooped late Thursday. The sprawling network of panels and batteries in the state’s western desert was set to produce a gargantuan 6.2 gigawatts of power — equal to nearly all the power supplied to the southern part of the state by the state’s main public utility. At maximum output, the project could have churned out more power than the country’s largest nuclear plant, the nearly 5 gigawatts from Plant Vogtle’s four reactors in Georgia, and just under the nearly 7.1-gigawatt Grand Coulee hydroelectric dam in Washington, the nation’s most powerful electrical station. It would have been one of the largest solar projects in the world.
Backed by NextEra Energy, Invenergy, ConnectGen, and other renewables developers, the project was moving forward at what Jael called “a relatively smooth pace under the Biden administration, albeit with significant concerns raised by environmentalists about its impacts on wildlife and fauna.” The solar farm notched a rare procedural win in the early days of the Trump administration when the Bureau of Land Management advanced its draft environmental impact statement. When the environmental review came out, BLM said the record of decision would arrive in July. “But that never happened,” Jael wrote. Instead, as part of a deal with conservative harderliners in Congress to pass his tax megabill, Trump issued an executive order that, among other actions aimed at curtailing renewables development, directed the Department of the Interior to review its policies toward wind and solar. A series of departmental orders followed that effectively froze all permitting decisions for solar. Fast forward to today, when Esmeralda 7’s status on the BLM website was changed to “cancelled,” normally an indication that the developers pulled the plug.
The Coastal Virginia Offshore Wind project, a 2.6-gigawatt giant that’s nearly triple the size of the nation’s current largest operating seaborne wind farm, is just six months from coming online, its leadership said. In an August earnings call, Dominion Energy CEO Robert Blue said the project would start producing electricity in “early 2026.” But on Thursday, the company told Canary Media’s Clare Fieseler that “first power will occur in Q1 of next year,” and “we are still on schedule to complete by late 2026.” As of the end of last month, Dominion had installed all 176 turbine foundations.
Since returning to office, President Donald Trump has waged what Jael called a “total war on wind power,” halting work on projects that were nearly 80% complete and ordering a half dozen federal agencies to join the effort. But the industry has fought back. Two weeks ago, as I reported in this newsletter, a federal judge lifted the administration’s stop-work order. While Secretary of Energy Chris Wright last month brushed off the targeting of offshore wind as a “one-off complication,” the assault has alarmed even the administration's favored sectors of the energy industry. Earlier this week, Shell’s top executive raised the alarm over what she said could set a precedent that blows back to big oil in the future.
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A fresh jolt for the Bolt. Justin Sullivan/Getty Images
Elon Musk’s promise to deliver a Tesla for under $30,000 may — as I wrote here yesterday — remains unfulfilled, but one of his biggest rivals is bringing back its popular affordable electric vehicle. General Motors announced on Thursday that it’s rolling out a new line of Chevrolet Bolts in 2027, starting at $29,990 and later introducing a $28,995 model. “The Chevrolet Bolt was the industry’s first affordable mass-market, long-range EV and it commanded one of GM’s most loyal customer bases thanks to its price, versatility and practicality,” Scott Bell, Chevrolet’s global vice president, said in a statement. “After production ended, we heard our customer’s feedback and their love for this product. So the Bolt is coming back — by popular demand and better than ever — for a limited time.” When Chevy discontinued the Bolt in 2023, the car was popular but had some problems, Andrew Moseman wrote Thursday in Heatmap. And while the 2027 Bolt “is virtually indistinguishable from the old car,” he wrote, “what’s inside is a welcome leap forward.” Notably, the new Bolt’s lithium-ion-phosphate battery delivers a max range of 255 miles and can handle a 100% charge without risking long-term damage to the battery’s lifespan.
Though the $7,500 federal tax credit for electric vehicles expired last month, it’s morning in America for battery-powered car drivers. The U.S. is adding charging stations at a record clip, Bloomberg reported Thursday.
China’s Commerce Ministry announced a new edict Thursday requiring foreign suppliers to obtain approval from Beijing to export some products with certain rare earths if the metals account for 0.1% of the goods’ total value. Export applications for products with military uses “generally won’t be approved,” The Wall Street Journal reported, and licenses related to semiconductors or artificial intelligence will be granted on a case-by-case basis. “This is a very big deal,” Dean W. Bell, a senior fellow at the Foundation for American Innovation, wrote in a post on X. “China has asserted sweeping control over the entire global semiconductor supply chain, putting export license requirements on all rare earths used to manufacture advanced chips. If enforced aggressively, this policy could mean ‘lights out’ for the US AI boom, and likely lead to a recession/economic crisis in the US in the short term.” The new restrictions even apply to some lithium batteries and equipment used to make them.
Less than two years ago, Nestle formed an industry alliance with food giants Danone and Kraft Heinz to cut methane emissions from the dairy industry’s hundreds of thousands of suppliers. But last month, Nestle’s logo vanished from the initiative's website. On Wednesday, Bloomberg reported that the Swiss behemoth had abandoned the effort. “We have decided to discontinue our membership of the Dairy Methane Action Alliance,” a company spokesperson told the newswire.
The exit comes as sustainability executives, academics, and carbon-accounting experts spar over how to measure companies’ emissions in what Heatmap’s Emily Pontecorvo called an “obscure philosophical battle that could reshape the clean energy economy.” With the Trump administration phasing out wind and solar tax credits next year, Emily wrote, “voluntary action by companies will take on even greater importance in shaping the clean energy transition. While in theory, the Greenhouse Gas Protocol solely develops accounting rules and does not force companies to take any particular action, it’s undeniable that its decisions will set the stage for the next chapter of decarbonization.”
Increasingly extreme weather is driving up insurance costs all over the world, making homes almost impossible to underwrite in fire- or flood-prone places such as California or Florida where climate change is raising recovery costs. But Japan’s largest non-life insurer is taking a different approach than just canceling policies. As the Financial Times reported Thursday, Tokio Marine purchased Integrated Design & Engineering this year for roughly $642 million in a bid to offer the design consultancy’s services to “Japanese companies at risk of landslides, flooding, and natural disasters related to climate change” to upgrade facilities before destruction occurs.
It would have delivered a gargantuan 6.2 gigawatts of power.
The Bureau of Land Management says the largest solar project in Nevada has been canceled amidst the Trump administration’s federal permitting freeze.
Esmeralda 7 was supposed to produce a gargantuan 6.2 gigawatts of power – equal to nearly all the power supplied to southern Nevada by the state’s primary public utility. It would do so with a sprawling web of solar panels and batteries across the western Nevada desert. Backed by NextEra Energy, Invenergy, ConnectGen and other renewables developers, the project was moving forward at a relatively smooth pace under the Biden administration, albeit with significant concerns raised by environmentalists about its impacts on wildlife and fauna. And Esmeralda 7 even received a rare procedural win in the early days of the Trump administration when the Bureau of Land Management released the draft environmental impact statement for the project.
When Esmeralda 7’s environmental review was released, BLM said the record of decision would arrive in July. But that never happened. Instead, Donald Trump issued an executive order as part of a deal with conservative hardliners in Congress to pass his tax megabill, which also effectively repealed the Inflation Reduction Act’s renewable electricity tax credits. This led to subsequent actions by Interior Secretary Doug Burgum to freeze all federal permitting decisions for solar energy.
Flash forward to today, when BLM quietly updated its website for Esmeralda 7 permitting to explicitly say the project’s status is “cancelled.” Normally when the agency says this, it means developers pulled the plug.
I’ve reached out to some of the companies behind Esmeralda 7 but was unable to reach them in time for publication. If I hear from them confirming the project is canceled – or that BLM is wrong in some way – I will let you know.