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Energy

Chris Wright’s First Order of Business

On DOE directives, Orsted, and Volkswagen’s affordable EV

Chris Wright’s First Order of Business
Heatmap Illustration/Getty Images

Current conditions: Back-to-back winter storms are hammering states in the Northeast with ice and snow • Atmospheric rivers have dropped more than 2 feet of rain on parts of Northern California in recent days • Temperatures could soar above 120 degrees Fahrenheit this week in Western Australia.

THE TOP FIVE

1. Chris Wright orders DOE to ‘unleash American energy’

Energy Secretary Chris Wright signed an order yesterday telling the Department of Energy to “unleash American energy” and restore “energy dominance” in line with President Trump’s agenda. Wright, who was confirmed by the Senate on Monday, began his order by denigrating the quest for a carbon-free future, claiming that net-zero policies “threaten the reliability of our energy system, and undermine our energy and national security.” After getting that out of the way, he went on to outline the following priorities:

  • A review of DOE research and development, to ensure a focus on “affordable, reliable, and secure energy technologies including fossil fuels, advanced nuclear, geothermal, and hydropower.” He also gave a shout out to nuclear fusion here.
  • A return to “regular order” regarding liquefied natural gas exports.
  • A review of the DOE Appliance Standards Program – which issues efficiency standards for home appliances – “to ensure that American families can choose from a range of affordable home appliances and products.”
  • Refilling the Strategic Petroleum Reserve.
  • Launching an American “nuclear renaissance” and commercialize next-generation nuclear power.
  • Strengthening the grid to meet soaring energy demand.
  • Streamlining permitting for new energy infrastructure.
  • Modernizing the nuclear stockpile.

2. Key federal agency stops approving new renewables projects

The Army Corps of Engineers has paused all permitting for well over 100 actions related to renewable energy projects across the country. In a statement to Heatmap’s Jael Holzman, the Army Corps confirmed it has “temporarily paused evaluation on” 168 pending permit actions “focused on regulated activities associated with renewable energy projects.” According to the statement, the Army Corps froze work on those permitting actions “pending feedback from the Administration on the applicability” of an executive order Trump issued on his first day in office, “Unleashing American Energy,” and that the agency “anticipates feedback on or about” February 7 from administration officials. Climate advocates are already pressing the panic button. “This is a 5 alarm fire alert,” Nick Abraham, state communications director for League of Conservation Voters, wrote on Bluesky in response to Holzman’s reporting. “This could decimate all the clean energy we worked to pass under Biden.”

3. Orsted cuts investment program by 25%

The Danish wind power company Orsted, which has a number of wind projects in the United States, said yesterday that it will “reduce its investment programme” by a quarter through 2030. This planned reduction will be global, not just in the United States, where the Trump administration has put a virtual embargo on new offshore wind permitting. The company said that it will still install more than 8 gigawatts of wind capacity over the next three years. Orsted replaced its chief executive Mads Nipper last week after it took a writedown of over $1.5 billion thanks to delays on its Sunrise wind project off the coast of Long Island. The company said it was scaling back its investments in order to maintain its credit rating. “Orsted has experienced challenges, especially related to the U.S. offshore wind portfolio, which have led to further pressure on our credit metric,” the company said in a statement.

4. Carbon Mapper releases new satellite data on carbon and methane plumes

Carbon Mapper yesterday released another tranche of data from its greenhouse gas-measuring satellite, the Tanager-1, shedding light on more than 300 newly-spotted CO2 and methane plumes. The largest methane source in Carbon Mapper’s database by far remains the U.S. Permian Basin, where oil and gas operations are concentrated. The Tanager-1 satellite, launched in August 2024, has identified 707 methane plumes from 588 sources across the world. Fossil fuel production accounts for 522 of those plumes and 458 of the sources. Here is a glance at some of the methane plumes spotted in the U.S., and zooming in on part of the Permian Basin

Carbon Mapper

Carbon Mapper

5. Volkswagen teases new affordable EV model

Volkswagen gave employees a glimpse of its upcoming affordable EV model yesterday. The car is part of a new lineup that the company no doubt hopes will help it keep pace with Tesla and BYD. “We set the largest future plan in Volkswagen’s history in motion,” CEO Thomas Schäfer said. “We are pursuing an ambitious path to ensure we achieve our shared goals with full commitment. A key step in this is making e-mobility attractive for everyone – that is our brand promise.” The entry-level EV will go on sale in Europe in 2027 with a base price of €20,000, which is about $20,800. It’s not clear if the car will come to the U.S. VW recently canceled the rollout of its ID.7 in the States. VW will start showing off the car – rumored to be called the ID.ONE – to the public next month. But here’s an image released yesterday:

Volkswagen

THE KICKER

Novo Nordisk’s emissions grew by 25% last year due to increased production of its popular obesity drug, Wegovy.

Yellow

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Politics

The Climate-Smart Program Trump Didn’t Kill (Yet)

New guidelines for the clean fuel tax credit reward sustainable agriculture practices — but could lead to greater emissions anyway.

The Treasury Department and corn.
Heatmap Illustration/Getty Images

The Treasury Department published proposed guidance last week for claiming the clean fuel tax credit — one of the few energy subsidies that was expanded, rather than diminished, by Trump’s One Big Beautiful Bill Act. There was little of note in the proposal, since many of the higher-stakes climate-related decisions about the tax credit were made by Congress in the statute itself. But it did clear up one point of uncertainty: The guidance indicates that the administration will reward biofuel crops cultivated using “climate-smart agriculture” practices.

On the one hand, it’s a somewhat surprising development simply because of Trump’s record of cutting anything with climate in the title. Last April, the U.S. Department of Agriculture terminated grants from a Biden-era “Climate-Smart Commodities” program, calling it a “slush fund,” and refashioned it into the “Advancing Markets for Producers” initiative.

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Yellow
AM Briefing

Headwinds Blowing

On Tesla’s sunny picture, Chinese nuclear, and Bad Bunny’s electric halftime show

Wind turbines.
Heatmap Illustration/Orsted

Current conditions: The Seattle Seahawks returned home to a classically rainy, overcast city from their win in last night’s Super Bowl, though the sun is expected to come out for Wednesday's victory parade • Severe Tropical Cyclone Mitchell is pummeling Western Australia with as much as 8 inches of rain • Flash floods from Storm Marta have killed at least four in Morocco.


THE TOP FIVE

1. Orsted’s offshore wind projects are back on track

Orsted’s two major offshore wind projects in the United States are back on track to be completed on schedule, its chief executive said. Rasmus Errboe told the Financial Times that the Revolution Wind and Sunrise Wind projects in New England would come online in the latter half of this year and in 2027, respectively. “We are fully back to work and construction on both projects is moving forward according to plan,” Errboe said. The U.S. has lost upward of $34 billion worth of clean energy projects since President Donald Trump returned to office, as I wrote last week. A new bipartisan bill introduced in the House last week to reform the federal permitting process would bar the White House from yanking back already granted permits. For now, however, the Trump administration has signaled its plans to appeal federal courts’ decisions to rule against its actions to halt construction on offshore turbines.

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Blue
Podcast

What Senator Martin Heinrich Needs to See in a Permitting Deal

Rob talks with the lawmaker from New Mexico (and one-time mechanical engineer) about the present and future of climate policy.

Martin Heinrich.
Heatmap Illustration/Getty Images

The permitting reform conversation is heating up.

On this week’s episode of Shift Key, Rob talks to Senator Martin Heinrich about whether Republicans and Democrats will reach a permitting reform deal this year. They chat about what Democrats would need to see in such a deal, how it could help transmission projects, and why such a deal will ultimately need to constrain President Trump in some way.

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Green