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Residents of Hawaii may see their bill grow by as much as 30%.

While the gasoline that powers Americans’ cars has seen dramatic price hikes following the effective closure of the Strait of Hormuz, the price of the natural gas that provides the bulk of the electricity that powers Americans’ homes, office buildings, factories (and, indirectly, some cars) has actually been roughly flat since the war began, meaning that a huge portion of American energy consumption remains unaffected by the global energy crisis.
Except in Hawaii.
The state has a series of (literally) islanded electrical grids that rely heavily on burning oil to generate electricity, unlike the other 49 states whose grid-connected power plants are largely natural gas, coal, or nuclear. This puts Hawaii ratepayers at the mercy of the global oil market — and it will be exacting a higher price.
“Hawaiian Electric customers should prepare for potential increases in energy costs in the coming months, driven by rising global oil prices linked to escalating geopolitical tensions, including the ongoing conflict involving Iran,” the utility Hawaiian Electric said in a statement last week.
The utility, which serves the vast majority of Hawaii’s residents, said that typical residential bills “may rise between 20% and 30% over the next several months,” with customers on Oahu seeing hikes in April and the rest of the state seeing hikes in May and June.
On Oahu, the utility owns two oil-fired plants with around 1,000 megawatts of capacity, alongside diesel and biodiesel plants. It also buys power from other oil, biomass, and biofuel plants.
About two-thirds of Hawaii’s electricity comes from oil, with the balance coming from renewables, according to the Energy Information Administration. The state — uniquely among the 50 — has no natural gas-fired power or nuclear power, and its last coal-fired power plant shut down in 2022. It has accordingly high electricity prices, with the highest average price of any state, according to the EIA, but also the lowest per-capita electricity demand. (Hawaii isn’t exactly a center of electricity-intensive industrial production.)
The average electricity bill in Hawaii in March was around $195 a month, according to Heatmap and MIT’s Electricity Price Hub, compared to $158 in California, $189 in Texas, and $144 in New York. The average price of electricity of $0.42 per kilowatt-hour is well above California’s $0.36, New York’s $0.24, or Texas’s $0.21.
Hawaii’s crude oil largely comes from Libya, Argentina, Nigeria, and Brazil, according to the Energy Information Administration, before being processed at the state’s sole refinery on Oahu.
With the United States and Israeli war with Iran now well into its second month, that oil is getting more expensive. Benchmark oil prices have jumped from $67 to $115 per barrel since the war began on February 28. Gasoline prices in Hawaii average $5.60 per gallon, according to Triple AAA, compared to $4.48 a month ago.
The state’s dependence on oil for both electricity and transportation has driven residents to use its electricity efficiently, and lawmakers to attempt to transition to locally produced, non-fossil sources of energy. The state has a net-negative carbon target for 2045, and two of its islands, Kauai and Hawaii, already get at least half of their electricity generation from renewable sources, including solar, geothermal, and hydropower. However Oahu, the state’s most populous island, gets only around 30% of its electricity from renewables.
The electricity price spike could also imperil Hawaiian Electric’s ability to get out from under its substantial liabilities related to the 2023 Maui wildfires. The utility was named as a party to a $4 billion settlement for wildfire damages that has been inching towards completion since the state Supreme Court ruled in February that insurers couldn’t “go directly after Hawaiian Electric Industries, the parent company of Hawaiian Electric Co., and other parties at fault for the fire who agreed to fund the settlement,” Honolulu Civil Beat reported.
The settlement “is closer to resolution than ever,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients Tuesday. The investment bank has maintained a negative rating on the stock, he wrote, in part because “the affordability backdrop is deteriorating at the worst possible time.”
Hawaiian Electric “remains one of the most oil-exposed electric utilities in the United States, and the recent Iran-related oil spike could begin pressuring customer bills in late spring, subject to procurement timing and fuel inventory drawdown,” he wrote. The price hike could affect the utility’s ability to “rebase” — i.e. increase — its rates, as it has proposed to state regulators.
The utility has argued that it needs to increase prices to deal with inflation, including the price of electrical transformers, which have more than doubled since 2020. The proposed rate hike would raise bills by between $8 and $12 next year. The utility has said that “fortifying the reliability and resilience of the electric grid and power generation assets requires investments that keep pace with the costs of maintaining and improving the systems serving five islands,” pointing to $183 million it plans to spend on grid improvements in Honolulu by the end of the decade, which outstrips the revenue request of $170 million. It has also said it needs higher revenue to deal with higher insurance premiums following the Maui fires.
Hawaii’s wholesale dependence on oil for electricity generation is almost completely anomalous in the 50 states. About 90% of its total energy usage comes from petroleum, according to the EIA, compared to about 38% for the country as a whole.
While much of the United States electricity system is at least somewhat insulated from shockwaves emanating throughout the global economy, there are two notable exceptions in the country’s far west and far east.
The only other region where oil plays a key role in the electric grid is Hawaii’s geographic opposite: New England.
New England has several dual-fuel power plants that can use oil when demand for natural gas for heat spikes in the winter. And like Hawaii, New England is hooked into global energy markets, though in the latter case that has more to do with liquified natural gas, which the region is forced to import due to its sparse natural gas pipeline network.
But if the war with Iran ends up spiking electricity prices in New England this winter, the world will have far larger problems than Bostonians’ electric bills.
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The bill is part of a package now sitting on Governor Mikie Sherrill’s desk.
Data center politics are continuing to evolve rapidly, and almost always in the direction of increasing costs and restrictions for data center development.
In New Jersey, which has become ground zero for the political backlash to high electricity prices, a gaggle of bills relating to data centers and electricity prices just hit the desk of newly elected Governor Mikie Sherrill, including a large load tariff bill, a water and energy reporting bill, and a bill to scale back tax credits available to data center projects.
All of these pieces of legislation are consistent with national and local trends (federal regulators are encouraging regional electricity markets to come up with large load tariffs, for example), with tax credits getting an especially close look in statehouses across the country.
Thirty-eight states have “ dedicated tax incentives for data centers,” according to an April study by the National Conference on State Legislatures. These often include exemptions from sales taxes for data center equipment like servers and routers, or property tax abatements for newly constructed data centers.
In Virginia, which last year elected Sherrill’s former House colleague Abigail Spanberger as governor, the sales tax exemption has become a hot issue of political contestation, as powerful Virginia State Senator Louise Lucas has come out in opposition to it. A budget deal recently reached in the state’s General Assembly included a tax on data center electricity consumption, while the data center tax exemption question will be kicked to a working group for now, according to the Virginia Mercury.
The New Jersey bill currently on the governor’s desk targets a tax credit program called Next New Jersey, which has some $500 million to disburse for tax credits. Half of that has been allocated for a CoreWeave data center project on the site of an existing laboratory, State Senator Joseph Cryan told me. The remaining $250 million would be used to bolster a number of existing state programs.
“The reason for eliminating it was, frankly, because people are outraged over the amount of money CoreWeave got,” Cryan said.
CoreWeave did not respond to a request for comment. A Sherill spokesperson didn’t comment on the record about when or whether the bills would be signed.
New Jersey and Virginia’s examination of tax credits comes after another state with a Democratic governor, Illinois, paused tax incentives for data centers that had been worth almost $1 billion in the first five years of this decade.
The turn against tax incentives for data centers comes as the public is increasingly wary of the latter and their perceived effect on electricity prices. This turn in sentiment has forced governors — like, say, Indiana Governor Mike Braun — to pivot away from their typical cheerleading for new businesses.
“States are very focused on attracting industries of the future, attracting jobs for their residents, attracting business,” Justin Balik, a former economic development official in New Jersey and vice president for states at the climate group Evergreen Action, told me. But, he asked, “Does the economic development strategy for a state reflect its other policy priorities?”
New Jersey itself is an example of how quickly the politics of economic development can turn. When the bill establishing the Next New Jersey program passed in 2024, then-Governor Phil Murphy trumpeted the bill for “capitalizing on this moment to ensure we establish ourselves as a frontrunner in generative AI innovation.”
“AI has already started to revolutionize our everyday lives, and New Jersey is capitalizing on this moment to ensure we establish ourselves as a frontrunner in generative AI innovation,” Murphy said in a statement typical of the more boosterist era of, uhhh, two years ago. “AI will be a transformative industry that will change lives and grow our economy and New Jersey is ready to take the lead.”
That was in July 2024. Now it’s July 2026. Electricity bills in New Jersey have gone up from $108 per month in May 2024 to $140 this past May, according to the Heatmap-MIT Electricity Price Hub, while rates have gone up some 38%. And while it’s often difficult to attribute electricity rate hikes directly to data center development — or even determine whether data centers raise rates at all — New Jersey, which is part of the PJM Interconnection electricity market, is almost certainly seeing hikes due to data center construction. PJM has struggled to bring on new generation or adequate transmission, and its own market monitor said in March that “data center load growth is the primary reason for recent and expected capacity market conditions, including total forecast load growth, the tight supply and demand balance, and high prices.”
The conditions have forced lawmakers to reconsider their typical bias toward economic development, Balik told me. “I think we’re seeing a moment where there’s a reckoning with the energy affordability conversation,” he said, “Where folks are rightly saying, hey, we care about clean energy in some cases, and in a lot of cases we care about energy affordability. Does our economic development strategy match those priorities, or are these two things at odds with each other?”
Cryan, the state senator, put it more bluntly: “The reason for doing it was to show the public that we hear their outrage and can do something about it,” he said. “The governor and the legislature have heard the voices of the people of New Jersey.”
What the heck is “surficial mineralization”?
According to one of the world’s leading carbon removal buyers, the sector’s future lies in piles of industrial waste.
When Frontier, the Stripe-led coalition of carbon removal supporters, announced its latest $915 million funding commitment, it took the opportunity to lay out the five technologies it views as most promising. I was familiar with four of them — ocean alkalinity enhancement, biomass carbon removal and storage, enhanced rock weathering, and direct air capture. Heatmap has covered them all. But the name on the very top of the list stumped me: surficial mineralization.
It sounds technical, and like all methods of carbon removal, it is — sort of. The idea is to take advantage of the tailings ponds and slag heaps left behind by the mining and steelmaking industries. These piles of calcium- or magnesium-rich debris naturally capture and store carbon from the air — not enough to change the trajectory of our warming planet without any human intervention, but managed well, they could one day capture carbon at a significant scale.
How significant, exactly? While there’s been very little action in the space to date, Frontier says surficial mineralization has the potential to remove over 10 gigatons of carbon from the atmosphere per year — as much or more than any other pathway — at an eventual cost of $80 to $120 per ton. That would put it among the cheapest approaches on Frontier’s list, in part because those heaps of industrial waste alone could absorb anywhere from a gigaton to 4 gigatons of carbon before there’s a need to mine rocks solely for carbon removal purposes.
“The beauty of surficial mineralization is twofold,” Hannah Bebbington Valori, who heads the Frontier coalition, told me. “One, we are working with an abundant source of highly reactive rock, and so there is a significant opportunity for carbon dioxide drawdown. And two, it is carbonating in place, and so sufficient mineralization technologies can be considered closed system approaches, and have generally more straightforward measurement reporting and verification infrastructure.”
At a chemical level, the process resembles other carbon removal pathways Frontier champions, such as enhanced rock weathering and ocean alkalinity enhancement. All three rely on alkaline minerals reacting with moisture and ambient carbon dioxide to form stable carbonate compounds that permanently lock away the gas. The difference is exactly where this reaction takes place: While surficial mineralization contains it to waste piles at industrial sites, the other approaches disperse the reaction across open, difficult-to-monitor systems such as farmland soils and the ocean.
That makes measurement, reporting, and verification — known as MRV — far more challenging and expensive for ocean- and soil-based systems, as scientists must track carbon uptake across ecologically complex environments where countless biological and chemical processes are unfolding simultaneously. These intersecting processes makes it difficult to demonstrate that human intervention was responsible for any given ton of carbon removed, as opposed to natural variability. MRV for these pathways thus relies heavily on modeling, which can never provide the same level of certainty as direct measurement.
Surficial mineralization, however, can be measured much more directly. On-site sensors continuously monitor CO2 concentrations above mine tailings or steel slag, providing a real-time signal of how quickly and to what degree the materials are drawing down carbon. Scientists can then validate these measurements in the lab by comparing physical samples of the material taken before and after the reaction, quantifying exactly how much solid carbonate formed as a result of various engineered interventions. The primary tool for this is X-ray diffraction — a well-established geological technique that identifies a sample’s mineral composition like a chemical fingerprint, making it possible to directly measure how much carbon the material locked away.
Don’t mistake the relative simplicity of the MRV framework for evidence that surficial mineralization is a proven carbon removal pathway — the reality is far from it. While mineralization may look simpler than, say, direct air capture, which typically uses giant fans and specialized sorbents to pull CO2 from the air, there are very few companies working in this space today. All are extremely early stage, and the time and capital required to secure feedstock partnerships, gain site access, and acquire necessary industrial equipment remain significant barriers to getting these projects off the ground.
Why is this heavy equipment needed in the first place? Because these waste piles won’t do much carbon capture work if they’re simply left untouched. That’s because the minerals at the pile’s surface will begin to slowly carbonate, eventually becoming fully saturated and acting as a seal that blocks carbon from reaching the reactive minerals below. As yet there’s no consensus on how to most quickly and cost-effectively break through this natural process to maximize carbon uptake — companies are testing a range of approaches, from crushing and spreading material to maximize air exposure (similar to enhanced rock weathering) to actively churning piles of waste to constantly reveal fresh reactive surfaces.
“Understanding exactly what is the best system to use to maximize your carbon removal efficiency and minimize your cost — this is what we need real-world deployment to do, and to understand,” Bebbington Valori told me.
One of the seed-stage startups Frontier has supported with a small pre-purchase agreement, Arca, spun out of the University of British Columbia to commercialize its approach to carbon removal from mine tailings. The company’s focus is ultramafic waste — magnesium- and iron-rich rock that locks away carbon dioxide as stable magnesium carbonate. “My pathway for interest on that was knowing that there was already about 2 billion tons of ultramafic mine waste sitting on the surface of the Earth in Canada alone,” Greg Dipple, Arca’s co-founder and head of science, told me.
Arca proposes to increase the surface area available for carbon capture in two ways. The first is by using customized robots to continuously till and churn tailings piles, constantly exposing fresh feedstock to the air to maximize carbon uptake before the next layer of tailings is deposited on top. That strategy, Dipple told me, “can give us a five- to 10-fold increase in the rate of CO2 capture” at active mine sites.
It successfully demonstrated this approach in an 18-month pilot project with Australian mining giant BHP at an active mine in the country's Northern Goldfields region where Arca says it increased the tailings’ mineralization rate by an order of magnitude. But the startup plans to push the efficacy of its tech further through what it calls “mineral activation.” This technique uses industrial-scale microwaves to heat the minerals rapidly enough to drive off the water that’s chemically bound within their crystal structure. This essentially blows apart the minerals from the inside out, exposing fresh magnesium-rich surfaces primed to react with carbon dioxide. The expected result is faster mineralization and more carbon captured per ton of mine tailings — but the startup has yet to test it in the field.
“Essentially we’re making microwave popcorn out of silicate minerals,” Dipple explained. “The microwaves cause the release of that water in the same way that when you make popcorn, you’re essentially boiling the water out of the center of the kernel, and that’s what blows the kernel up and creates this high surface area.” The idea is to eventually integrate this step into the mine’s tailings processing stream, with minerals moving through the giant microwave before they’re deposited at the storage facility.
Dipple told me that mineral activation will be a core part of Arca’s future projects, including those intended to fulfill the company’s 10-year carbon removal offtake agreement with Microsoft. Signed last October, the deal calls for Arca to deliver nearly 300,000 metric tons of carbon removal to the software giant.
While no other startup in the space has landed an offtake agreement of that scale, several have secured early backing from Frontier through pre-purchase agreements. One of them, Karbonetiq, is working to capture carbon from steel slag, the calcium-rich byproduct of steel production that accumulates in large piles at processing sites. Like the magnesium-rich minerals in mine tailings, calcium compounds in steel slag naturally react with moisture and carbon dioxide to form a stable calcium carbonate — a.k.a. limestone — permanently locking up the CO2.
Unlike mine tailings however, slag doesn’t begin as a fine powder. Instead, the molten byproducts poured off from high-temperature steel furnaces cool into chunks the size of large rocks, leaving only their outer surfaces exposed to the air and able to react with CO2. Karbonetiq’s strategy is essentially to crush and disperse those rocks to increase their reactive surface area. As the company’s commercial vice president, Luke Rondel, explained, “We crush [the slag] down so you get smaller particle sizes. We then spread that out in a field of material, and we till that material with a tractor and plow, which is just turning over new surfaces.”
Each pathway has its advantages — while Arca’s magnesium-rich mine tailings are the most abundant feedstock, Rondel told me that the calcium-based reactions in slag happen significantly faster. For its part, Frontier hopes to test and evaluate a range of approaches at its new Surficial Mineralization Hub in Quebec, which it announced at the end of April. Located at a former asbestos mine, the hub will give participating startups access to “10,000 tons of serpentinite tailings and space for pilot scale testing,” Bebbington Valori told me, as well as local labs with specialized equipment.
This should eliminate some of the hurdles facing the nascent sector, chief among them being access to the right kinds of reactive rocks. Small startups “really need to either partner with large academic labs or with large mining companies to get access to that feedstock,” Bebbington Valori told me — a difficult and expensive proposition for a company that’s just getting off the ground.
While Frontier has yet to announce the cohort of participating startups, both Arca and Karbonetiq told me they hope to test their technology there, with the latter planning what would be one of its first mine tailings pilots through the program. Ultimately the goal is to generate the proof points needed to give both the startups and Frontier a clearer roadmap for which approaches can realistically scale — and what kind of support they’ll need to get there.
It certainly won’t be a straightforward process — bringing new technology into old-school industries never is — and the economics will only start to pencil if their operations reach meaningful scale. In theory, mining companies could benefit from hosting surficial mineralization projects, whether through site access fees, outsourcing elements of waste management, or even critical minerals recovery. Miners could even develop and scale the technology themselves, if they so desire. But the sector has historically been reluctant to adopt new tech. “The classic quote is, in mining you always want to be No. 2, you don’t want to be the first one,” Dipple told me. “You don’t want to put up a $2 billion plant that doesn’t work.”
So like nearly everything in the carbon removal space, early execution is falling to the startups that aren’t afraid of a little risk. “They’re watching for sure,” Dipple said of the mining industry at large. “But they want to be No. 2. We’re going to have to be No. 1.”
On New York’s solar farmland, German nuclear, and Argentinian gas
Current conditions: As a dangerous heat dome settles over the central and eastern United States, evapotranspirate, or “sweat,” from corn has rendered Iowa and Illinois more humid than the Amazon • Temperatures just topped 100 degrees Fahrenheit in Zagreb, where intense thunderstorms are deluging the Croatian capital today • Hanoi, Vietnam, is in the midst of a week of severe thunderstorms.
In May 2025, Reuters broke news that the U.S. government had discovered rogue communications devices in the inverters that converted the direct current flow of electricity from certain Chinese-made solar panels to the alternating current needed to patch the generators onto the grid. Now, more than a year later, Reuters is out with another scoop indicating that the Trump administration is preparing to slap new import restrictions on foreign-made inverters, particularly from China. The prohibition being drafted by the Federal Communications Commission would apply to all new foreign models of inverters and could be published as early as this year, unnamed sources told the newswire.
Chinese manufacturers such as Huawei and Sungrow currently dominate the inverter market. Earlier this year, SolarEdge started shipping inverters from its factory in Austin to buyers in Europe. But the global inverter market was on track to contract by 2% this year as policy changes in China, the U.S., and Europe created more uncertainty for solar.
The self-described “free state” of Florida has stripped municipalities of their right to set targets for bringing the local economy’s planet-heating emissions to net zero. A new law known as HB 1217 prohibits local governments from pursuing net-zero goals, though legal experts said the legislation will not necessarily upend existing climate targets in at least 10 cities and counties including Fort Lauderdale, Miami, Orlando, and Leon County, where the capital city of Tallahassee is located. “It’s certainly meant to scare municipalities and local governments from trying to do things to further net-zero policies,” Bradley Marshall, senior attorney at the advocacy group Earthjustice, told Inside Climate News. “Now, its exact impact and what it exactly prohibits is probably up for some debate. Things that are adjacent to it — emissions reductions and even climate change reduction policies — on their face will not run afoul at all of a ban on adopting a net zero policy.” The move comes two years after Florida’s governor, Ron DeSantis, signed a bill stripping the words “climate change” from state policies.
The Trump administration, meanwhile, has accused New York State of violating U.S. Department of Agriculture standards to make prime farmland available for large-scale solar development. In a letter sent last week to New York Governor Kathy Hochul, Secretary of Agriculture Brooke Rollins warned the state against fast-tracking solar projects on prime farmland, and gave Albany 30 days to “explain why New York is moving away from USDA’s prime farmland standards and what it’s doing to protect these irreplaceable agricultural resources.”
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The pain in Spain is felt mainly by the investors who paid to build out all the solar panels now harvesting the sun on the plain. In just the past six months, the European country has already surpassed its annual record for the number of hours when the owners of solar farms must pay users to take electricity during sunny peak hours, when the sheer volume of panels now turning sunshine into power pushes midday prices well below zero. The glut has kept electricity prices in Spain among the lowest in Europe, with rates roughly half of what Germans pay. But at least four Spanish projects or companies have gone up for sale, according to a Bloomberg tally. The head of Catalonia’s regional utility, L’Energètica, said: “The economics have deteriorated so sharply that investors are trying to exit at steep discounts.”
Investors in the sector had expected that Spain would upgrade its grid and deploy more batteries as the country’s solar sector boomed. But the mismatch between the volume of generation and the capacity of wires, batteries, and offtakers to distribute or make use of that electricity has only grown since the April 2025 blackout that plunged most of Spain and Portugal into darkness. Since then, Spain’s national grid operator, Red Eléctrica, has grown more aggressive in ordering solar farms offline to avoid disruptions to the frequency and voltage of the distribution system. The country has vowed to undertake more than $34 billion in grid upgrades by 2030.

In the three years since Germany shut down its last nuclear power station, the country’s leaders have repeatedly called the phase out a mistake, but seesawed on whether the plants that haven’t yet seen the wrecking ball could be restored to operation. A new study by the nuclear consultancy Radiant Energy Group has found that the most recently shuttered five reactors, all pressurized water reactors, could be returned to service in 2031. “Germany’s nuclear phaseout was presented as permanent and irreversible. In reality, it is neither,” the report concludes. “The shuttered fleet remains to a large degree intact, with most of the value in each site preserved; every major component can be repaired or replaced using procedures demonstrated at comparable plants worldwide; and the economic case for restart is strong.”
Well over half of Argentinians claim Italian ancestry. The South American nation’s future natural gas molecules might now declare a similar background. Eni, the Milan-based national oil company of Italy, inked a deal last week to buy a 32% stake in three upstream blocks of Argentina’s Vaca Muerta basin. Located in the mountainous western province of Neuquén, the discovery is widely considered the most promising natural gas find in Latin America, so vast The Rio Times said it could “reshape South America’s energy map.” In a statement, Eni’s chief operating officer, Guido Brusco, said: “Vaca Muerta is one of the world's richest unconventional basins in terms of resources: our participation positions us across the entire value chain, from Argentine upstream to the supply of LNG to international customers, creating value while contributing to global energy security.”
Meanwhile, Brazil’s national oil company just notched a record output from at the flagship field of its Santos Basin offshore basin. The field is now producing a record 1.1 million barrels of oil daily, surpassing the previous peak set in October of a million barrels per day, according to Oil Price. The milestone comes as Brazil ramps up production of oil and gas, despite its left-wing government’s expressed concern over climate change.

New analysis by the Energy Information Administration shows this nation was founded on … renewables. Now, of course, that was primarily wood until hydropower came around in roughly the 1880s. But coal, which surpassed wood in 1885, was the real innovation behind the energy transition away from chopped trees. At a combined 18% of total energy consumption in the U.S., non-fossil sources such as wind, water, and nuclear reached what appears to be the highest point since 1900 last year.
Editor’s note: This story has been updated to correct the description of Solaredge.