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People near the site of the disaster say they’re sick. But officials haven’t recognized any link between those symptoms and the fire.

People say they can still taste the metal from the Moss Landing fire. But no one in the local, state, or federal government is able to say why.
The story of Moss Landing got little attention compared to the scale of the disaster. On January 16 — days before Trump reentered office, and as fires continued to burn in and around Los Angeles, when tempers and attention spans were already strained — the Moss Landing Power Plant ignited. We still don’t know what caused the fire, but we do know a few crucial facts: Nearly all of the batteries at the 300 megawatt facility, one of the world’s largest, burned up in the fire, sending a colossal plume of black smoke soaring up from the site for days.
Two months after the blaze was extinguished, many people who live in the vicinity of Moss Landing, a couple hours south of San Francisco, say they’re still sick from the fire. Community organizers on the ground say the number of sick people is in the hundreds, at least. The symptoms range, but there are a few commonalities. Many report having bloody noses in the days immediately following the fire. In the long weeks that followed, they’ve had headaches that don’t respond to pain medications, rashes that resemble burns, and a recurring metallic taste in their mouths. They all say their symptoms go away if they leave their homes and go further away from the site. But the U.S. Environmental Protection Agency and California state regulators have given the all clear.
I have spent weeks trying to get to the bottom of what happened at Moss Landing. I’ve interviewed people who lived in the area and say they’ve experienced breathing issues and other difficulties, many of whom have gathered on Facebook to share photos, stories, and symptoms. Others have offered testimony about these illnesses in public fora and town halls. Multiple lawsuits have been filed against Vistra, the company that runs Moss Landing, over the fire, citing these health issues. Vistra denies the existence of evidence proving pollution from the fire is making people sick, and told me in a statement that the company is “committed to doing everything we can to do right by our community.”
“Moss Landing is not only home to our facility, it’s home to our employees and neighbors,” the statement reads.
And yet, the people say, their symptoms persist. One of the people who told me about their condition is Sheryl Davidson, a former receptionist who lives in the rural nearby town of Prunedale. One of her joys used to be doing Medieval cultural re-enactments, but since the fire she’s been unable to participate.
“My nose just started bleeding. It was traumatic,” she told me. “And I had asthma, but my asthma was miniscule. My whole life, I just had an inhaler. But the inhaler wasn’t working.”
Davidson has other symptoms, including headaches. She says a lump also developed in her face beneath one of her eyes, of which she sent me photos. Despite concerns that something in the air from the fire may have made her sick, she hasn’t left her home, a house she’d lived in since she was a child.
Part of the reason: No one is telling her to leave.
Officials in Monterey County, where Moss Landing is located, acknowledged to me in a statement that they received reports from medical providers that local residents sought care for symptoms related to the battery fire. The EPA said on January 20 that air monitoring throughout the fire incident found no substantial releases of hydrogen fluoride, a fatal pollutant released from battery fires. Records indicate that EPA tested for the particulate matter as well, but there’s no evidence it monitored specifically for heavy metals in the air. Vistra told me it has been doing environmental observations since the incident and is sharing the results with regulators, but said in a statement that it “has not detected risks to public health at this time.”
Davidson may have stayed, but others have left Prunedale, including Brian Roeder, who remembers seeing the fire break out while at home and deciding to leave town with his wife and son out of an abundance of caution. When they got back days later, the fire had been put out. But Roeder told me his wife, who he said is immunocompromised, began reporting breathing issues shortly after they returned. His son started coughing, as well. They quickly left home again, and have been living out of short-term rental apartments far away from the battery plant for weeks.
“This community has been significantly damaged, and they are not coming in to help anybody,” Roeder told me. “There’s been behind the scenes efforts, there’s been some work, but nothing commensurate with the size of this disaster.”
“I know that L.A. caught on fire at the exact same time,” Roeder continued. “That was the huge focus for the state. I know that planes were going down and we had a change in administration. But the fact remains that we, here, cannot explain the absence of support for what is happening from the state. And there’s been a pronounced absence.”
Roeder also started a community organization called Never Again Moss Landing, which has been collecting its own samples of the environment in consultation with a professional lab. In doing so, Roeder became part of a broader effort in the U.S. to create public safeguards for battery storage technology in the wake of Moss Landing. Ground zero for this push is, fittingly, California, where the state Public Utility Commission has responded to the fire by requiring battery storage facility owners to make emergency response plans and adhere to modern fire codes for battery storage.
Some Democratic lawmakers in California want to go further, empowering localities to be the final decisionmakers on whether storage projects get built, as opposed to state regulators.
In some pockets of the U.S., this push for battery safety risks morphing into a threat to the energy transition. For my newsletter, The Fight, I’ve chronicled how towns and counties across the U.S., from New York City to rural Texas, are now banning battery storage, citing the Moss Landing fire and the fear another battery fire could happen in their backyards.
By many metrics, Moss Landing is an outlier. The Moss Landing facility was a giant field of batteries inside a former factory, essentially trapping all these combustible mini-bombs prone to “thermal runaway,” a phenomenon where rising heat from a fire leads to a chain reaction of chemical ignition, inside an insulated box. Concerns about thermal runaway are a reason why almost all battery storage today is installed in storage containers and with an appropriate distance between individual batteries.
But Moss Landing is also a crucial test case for the future of battery storage and public trust.
This morning, the renewables sector took a big stride towards attempting to calm the rage against battery storage. American Clean Power, the leading renewables trade group, released an analysis of 35 battery storage fires in the U.S. from 2012 through the end of last year. Many of the incidents involved “early-generation” battery tech, it said, adding that “improved safety measures, such as advanced thermal management, suppression systems, and containment enclosures, significantly reduc[ed] the likelihood of large-scale incidents.”
The analysis does not speculate as to what may have caused the fire at Moss Landing, simply noting investigations into the incident are ongoing. But at the same time, ACP released a new blueprint for safe battery storage development. In the blueprint, the association acknowledges that some of its recommendations — including a requirement that all battery storage facilities meet a new fire safety standard produced years after Moss Landing was commissioned — are aimed at “holistically addressing concerns generated by the Moss Landing Fire.”
Residents are deeply suspicious of the official assessments denying what, to them, are obvious health impacts. To be candid, I can’t blame them. It strains credulity to imagine a battery fire of this size and scope right next door to you somehow creating no pollution worthy of public concern.
“When you burn [batteries] it moves toxic chemicals into the air,” said Tracey Woodruff, a former EPA senior scientist and policy advisor specializing in chemical contamination of the environment, who now works at the University of California San Francisco. “If this is an uncontrolled burn, you can’t just say there isn’t going to be fallout from that or exposure to the population.”
There’s data making people afraid too. In late January, researchers at San Jose State University alerted the public that they’d discovered “unusually high concentrations of heavy-metal nanoparticles” and a “hundreds- to thousand-fold” increase in nickel, manganese, and cobalt — metals all present in Moss Landing’s batteries — in soil two miles from the power plant in the Elkhorn Slough Reserve, one of the state’s biggest estuaries. Exposure to these metals can cause serious health issues, some of which mirror the symptoms described by residents in the area who are sick.
Exposure to dust with heavy metals can be dangerous at even relatively low levels. A county health advisory shared with local medical professionals in February urged doctors to complete a comprehensive physical of anyone concerned about the impacts of the fire on their health. It noted that breathing or coming into direct skin contact with “heavy metal dusts and other particulate matter from smoke” can result in a metallic taste and difficulty breathing, as well as exacerbate underlying conditions like asthma.
Discovering the metals’ omnipresence in the Slough after the fire led Ivano Aiello, a researcher at SJSU who collected that data, to conclude that the contamination is probably more widespread than is publicly understood.
“I freaked out [after the study] because I was breathing the stuff. I was out there for days and I had no idea,” he told me. “Then I alerted the authorities … and they did their own investigation.”
Subsequent studies conducted by county and state environmental officials, including within the Elkhorn Slough, found no level of these heavy metals that they said could be conclusively tied to the fire. On March 19, farm advisors at the University of California Cooperative Extension undertook a “limited study” that found a “slight deposition of metals (copper and manganese) may have occurred in one agricultural field closest to the battery fire site,” but that the “concentration of metals measured were within normal ranges for all soil types evaluated.” Dole, the giant produce company, which has operations in the area, told me that on its end “no health impacts have been reported and no soil contamination has been detected as a result of the Moss Landing battery fire.”
But Roeder and many other members of the surrounding communities are worried there isn’t enough testing being done to find out whether contaminants entered the atmosphere, especially since air pollution is rarely spread evenly. Like Covid-19, the only way we will ever know the extent of the problem is with more testing, testing, testing.
Roeder is trying to do this work himself. On what he says is his own dime, he and other members of Never Again Moss Landing have collected dust samples across the region in consultation with a credentialed lab in the state, BioMax, which he told me reached out after the fire.
On Wednesday, a local NBC affiliate reported that Don Smith, a toxicologist at the University of California San Diego, confirmed elevated levels of nickel, cobalt, and manganese in the dust samples collected by Never Again Moss Landing. “There is reason to be concerned,” Smith told the TV station, adding that people living near the plant should wear masks regularly if they’re interacting with dust in their homes and be careful not to disturb soil in their yards. “Both manganese and, to a lesser extent, cobalt are known to be neurotoxins. And nickel, of course, is recognized as a carcinogen.”
Frustratingly, though, there is no solid proof to date of a conclusive link between the illnesses and metal exposure — just a lot of people with symptoms, a study that hasn’t been replicated in other pieces of research, and samples collected by residents who are also involved in litigation against the company. Still, that’s a lot of evidence of a problem. Medical mysteries are also common in environmental catastrophes like the Flint water crisis and the infamous DuPont PFOA debacle in Parkersburg, West Virginia, in which obviously sick residents butted heads with regulators for years, demanding information and testing.
What’s next for Moss Landing? The three counties most impacted — Monterey, Santa Cruz, and San Benito — just concluded a community health survey that solicited comments from potentially impacted residents and received more than 1,500 responses, according to figures I reviewed that were shared at a recent Monterey County public meeting. When that study is out, we’ll have a comprehensive view of the locations where the sick live to see where it lines up with the plume that emitted from Moss Landing.
Taking a wider view, any society that’s going to rely primarily on intermittent energy sources like solar and wind needs battery storage to keep the lights on. That will require winning the public’s trust in battery technology. The Moss Landing fire was bad, and over time risks becoming an East Palestine moment for the energy transition. But the lack of a loud, sizable government response to calm the nerves of people publicly claiming illness is likely to be even more damaging to the future of the battery sector.
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Giving up on hourly matching by 2030 doesn’t mean giving up on climate ambition — necessarily.
Microsoft celebrated a “milestone achievement” earlier this year, when it announced that it had successfully matched 100% of its 2025 electricity usage with renewable energy. This past week, however, Bloomberg reported that the company was considering delaying or abandoning its next clean energy target set for 2030.
What comes after achieving 100% renewable energy, you might ask? What Microsoft did in 2025 was tally its annual energy consumption and purchase an equal amount of solar and wind power. By 2030, the company aspired to match every kilowatt it consumes with carbon-free electricity hour by hour. That means finding clean power for all the hours when the sun isn’t shining and the wind isn’t blowing.
The news that Microsoft is revisiting this goal could be read as the beginning of the end of corporate climate ambition. Microsoft has long been a pioneer on that front, setting increasingly difficult goals and then doing the groundwork to help others follow in its footsteps. Now it appears to be accepting defeat. The news comes just weeks after my colleague Robinson Meyer broke the news that the company is also pausing its industry-leading carbon removal purchasing program.
Delaying or abandoning the clean energy target — the two options presented in the Bloomberg story — represent quite different scenarios, however.
“There’s going to be a big difference between them saying, We’re going to keep trying as hard as we can to go as far as we can, but acknowledge we may not hit it, versus saying, Well, we can’t hit this extremely ambitious goal we set for ourselves, therefore we’re just giving up on the overall mission,” Wilson Ricks, a manager in Clean Air Task Force’s electricity program, told me.
The goal was always going to be difficult, if not impossible, for Microsoft to hit, Ricks said. Yes, it’s gotten tougher as Microsoft’s electricity usage has surged with the rise of artificial intelligence, and because Congress killed subsidies for clean energy as the Trump administration has done its best to stall wind and solar development. But some of the technologies likely needed to achieve the goal, such as advanced nuclear and geothermal power plants, have yet to achieve commercial deployment, let alone reach meaningful scale, and probably won’t by 2030 — especially not across all the regions that Microsoft operates in.
Nonetheless, some clean energy advocates (including Ricks) argue that keeping hourly matching as a north star is paramount because it helps put the world on the path to fully decarbonized electric grids.
Google was the first to introduce a 24/7 carbon-free energy strategy in 2020, and for a moment, it seemed that the rest of the corporate world would follow. A handful of companies joined a coalition to support the goal, but to date, I’m aware of just two — Microsoft and the data storage company Iron Mountain — that have followed Google in committing to achieving it.
Most companies approach their clean energy claims with considerably less precision. The norm is to purchase “unbundled” renewable energy certificates, tradeable vouchers that say a certain amount of renewable energy has been generated somewhere, at some point, and that the certificate owner can lay claim to it. Many simply buy enough of these RECs to cover their annual electricity usage and call themselves “powered by 100% renewable energy.”
There’s a spectrum of quality in the RECs available for purchase, but the market is flooded with cheap, relatively meaningless certificates. A company that operates in a coal-heavy region like Indiana can buy RECs from a wind farm in Texas that was built a decade ago, which won’t do anything to change the makeup of the grid in either place.
Today, the gold standard for companies with capital to throw around is instead to seek out long-term contracts directly with wind and solar developers known as power purchase agreements. That doesn’t mean the wind and solar farms send power to the companies directly. But these types of contracts are more likely to bring new projects onto the grid by providing guaranteed future revenues, helping developers secure the financing they need to build.
Microsoft started buying unbundled RECs more than a decade ago, and in 2014, it reported it had matched all of its global electricity usage. In 2016, the company began setting goals for direct procurement of renewable energy. In 2020, it pledged to achieve 100% renewable this way by 2025 — but it wasn’t going to sign just any wind or solar agreements. It aimed to pursue contracts with projects that were in the same regions as the company’s operations and that wouldn’t have been built without the company’s support. “Where and how you buy matters,” it wrote in its 2020 sustainability report. “The closer the new wind or solar farm is to your data center, the more likely it is those zero carbon electrons are powering it.”
In 2021, Microsoft upped the ante again by establishing its 2030 hourly matching target, which it referred to as “100/100/0” — 100% of electrons, 100% of the time, zero-carbon energy.
Microsoft has never publicly reported its progress toward the 2030 goal. The company’s enthusiasm for the target has also appeared to wane. In 2020, before Microsoft even made the 100/100/0 commitment, it touted a solution it developed to track and match renewable energy generation and consumption on an hourly basis. In the years since, it has led its peers in investments in round-the-clock nuclear power, even signing a 20-year power purchase agreement with Constellation Energy to bring the shuttered Three Mile Island nuclear plant in Pennsylvania back online.
But Microsoft has stopped publicizing the goal in blog posts and press releases. It went unmentioned in the recent announcement about the 2025 renewable energy achievement, for instance. And a section in the company’s annual sustainability report listing its climate targets that had previously advertised the 2030 goal as “Replacing with 100/100/0 carbon-free energy” was re-written in 2025 as “Expanding carbon-free electricity,” fuzzier rhetoric that now reads as a harbinger of a softer approach.
Microsoft did not respond to questions about its progress toward the 2030 target. In an emailed statement, a spokesperson emphasized the company’s commitment to maintaining its annual matching goal — the one achieved in 2025. No doubt that will take a lot more investment in the years to come now that the company is gobbling up a lot more electricity for data centers — some of it directly from natural gas plants.
Microsoft also shared a statement from Melanie Nakagawa, Microsoft’s chief sustainability officer, emphasizing the company’s commitment to become carbon negative. “At times we may make adjustments to our approach toward our sustainability goals,” she said. “Any adjustments we make are part of our disciplined approach—not a change in our long-term ambition.”
Even if Microsoft axes its hourly matching target, the company might have to start reporting its clean electricity usage on an hourly basis anyway. The Greenhouse Gas Protocol, a nonprofit that sets standards for how companies should calculate their emissions, is currently considering adopting an hourly accounting requirement. While the protocol’s standards are voluntary, companies almost uniformly follow them, and they will soon become mandatory in much of the world, as governments in California and Europe plan to integrate them into corporate disclosure rules.
The accounting rule change is highly controversial, with many companies arguing that it will deter them from investing in clean energy altogether, since their purchases won’t look as good on paper. “I don’t think anybody is debating having rules and guidelines around how you do more narrow matching, we should have that,” Michael Leggett, the co-founder and chief product officer for Ever.Green, a company that sells high-impact RECs, told me. “I think the debate has largely been around, is that required?”
Leggett said he could see how Microsoft’s pullback could be twisted to support either side. Proponents of the hourly accounting method will say, “Aha! See? This is why we have to require it.” Opponents will say, “See, even Microsoft can’t do it, so how are you going to require all these other companies to do it?”
I spoke to Alex Piper, the head of U.S. policy and markets at EnergyTag, a nonprofit that advocates for reforms to enable 24/7 clean energy, who saw the news as vindicating.
“What we’re seeing right now is many of the hyperscale technology companies look to the fastest path to power, and whether it is or not, some of them are turning to gas as that solution,” he told me. Piper argued that companies are choosing natural gas in part because they can get away with clean energy claims under the protocol’s existing rules. “The proposed rules for the greenhouse gas protocol would require those companies to at least be transparent.”
But Microsoft walking back its hourly matching goal does not have to mean that it’s walking back its climate ambition. It’s possible for companies to achieve significant emissions reductions by focusing their clean energy purchases on the places where wind and solar will do the most to displace fossil fuels, rather than worrying about matching every hour. For a company that operates in California, for example, supporting the addition of solar power to a coal-heavy grid — even if it’s in a different part of the country or the world — will do more, faster, than helping to build solar locally or waiting for around-the-clock resources such as geothermal power to come online.
Critics of hourly accounting argue that it doesn’t give companies credit for this kind of approach. “What I would love to have happen is anything to incentivize, recognize, and reward companies signing 20-year contracts that enable new projects coming online,” Leggett said of the Greenhouse Gas Protocol’s forthcoming rule change.
Ricks, of Clean Air Task Force, rejects the idea that an hourly accounting requirement would deter these kinds of deals. “That doesn’t mean that they can’t report any other set of numbers they want to,” he said. “Many companies do report things that aren’t currently recognized in the Greenhouse Gas Protocol.”
Microsoft is a prime example. The company includes two measures of its renewable energy usage in its annual reports: “percentage of renewable electricity,” which includes the unbundled RECs Microsoft has continued to buy over the years, and “percentage of direct renewable electricity,” which tracks power purchase agreements and the renewable portion of the grid mix where its facilities are located. The former uses the Greenhouse Gas protocol’s current accounting method, under which Microsoft says it has hit 100% every year since 2014. But the latter is the company’s own bespoke calculation.
The company’s 2025 feat was based on this made-up methodology, and it represents the first time Microsoft has announced to the world that it used 100% renewable energy. It never previously made such claims about its REC purchases, as far as I can tell. In other words, Microsoft’s standards for what it publicizes are far more rigorous than what the Greenhouse Gas Protocol requires.
Regardless of what the protocol decides, it will determine only what companies must report. It won’t prevent them from offering up their own, additional metrics of success.
PJM Interconnection has some ideas, as does the state of New Jersey.
We’ve already talked this week about Pennsylvania asking whether the modern “regulatory compact,” which grants utilities monopoly geographical franchises and regulated returns from their capital investments, is still suitable in this era of rising prices and data-center-driven load growth.
Now America’s biggest electricity market and another one of that market’s biggest states are considering far-reaching, fundamental reforms that could alter how electricity infrastructure is planned and paid for over 65 million Americans.
New Jersey Governor Mikie Sherrill anchored her 2025 campaign on electricity prices, and for good reason — in the past four years, electricity prices in the state have gone up 48%, according to Heatmap and MIT’s Electricity Price Hub, while average bills have risen from $83 per month to $130. On her first day in office, Sherrill issued two executive orders acting on that promise, directing the state to make funds available to freeze rates and declaring a state of emergency to ease the way to building more generation.
Included in that first order was a review of utility business models to be carried out by state regulators. What that review will entail is now coming into focus.
On Wednesday, the New Jersey Board of Public Utilities issued a statement announcing that it will look specifically at “whether New Jersey’s century-old utility business model — one that rewards electric distribution companies (EDCs) for capital spending even when cheaper alternatives exist — should be replaced with a framework tied to performance, affordability, and long-term cost stability.” In case anyone was still ambiguous as to what the outcome of said study might be, the board added that it is “expected to drive the most significant restructuring of utility regulation in New Jersey in decades.”
The current system, the board’s president Christine Guhl-Savoy said at a hearing Thursday, “creates a structural incentive to favor capital intensive solutions, even when lower costs, non-wires or demand side alternatives may be available.”
This structure, she said, could help explain why “over the past decade, electric delivery charges in New Jersey have risen steadily.” Within the service territory of PSEG, one of the four major New Jersey utilities, distribution charges alone have risen from $19.24 per month in January 2020 (as far back as the Heatmap-MIT data goes) to $21.84 as of April, while transmission charges have risen from around $20 to just over $29 per month. Many critics of the utility business model point to high levels of local grid spending on distribution as a way that utilities pad their earnings with returns harvested from ratepayers.
In the system regulators explored at the hearing, new projects would get a more skeptical look and ratepayers payouts would be partially determined by utilities hitting pre-defined service goals. NJBPU executive director Bob Brabston also indicated that the review process would take a close look at utilities’ regulated returns on equity — echoing his neighbor across the Delaware River, Pennsylvania Governor Josh Shapiro, who wrote in a letter to his state’s utilities earlier this week that these returns must be “transparent” and “justifiable,” and no longer be based on “educated guesses.”
“We want to make sure that the actual cost of equity and the returns on equity are close,” Brabston said Thursday. “We don’t want there to be a significant gap between the cost of equity that you all experience and the returns that the agencies that the agency awards.”
Meanwhile, in Valley Forge, Pennsylvania, the framework within which New Jersey’s utilities exist is coming in for its own examination.
PJM Interconnection — the nation’s largest electricity market, which covers not just Pennsylvania and New Jersey but also part or all of 11 other states — released an almost 70-page paper Wednesday, in which the organization’s president David Mills wrote that “the current situation is not tenable.”
PJM has been the poster child for a host of issues plaguing the electricity markets across the country, including fast-rising prices, a failure to quickly bring on new generation, and an inability to assure the market’s preferred level of reserve reliability. This set of challenges, Mills said in the paper’s introduction, “reflects something more fundamental than a design that needs recalibration.” Instead, PJM must consider “whether the foundational assumptions of the market remain valid – and if not, what a valid set of assumptions would require.”
The problem with the electricity market, he argued, can be solved by more markets. Right now, when prices shoot up, governments intervene with price caps, suppressing the market signal necessary to bring on sufficient generation that would bring down prices.
To replace that system, the paper proposes three possible models. The first, which it calls “Stabilized Markets,” would allow capacity to be procured for several years at a time outside of the current auction system, so that utilities could make sure their basic needs were covered before they go into the annual auctions. This would provide long term security for new investment.
The second path would be a more fundamental reform. This “Differential Reliability” approach would do away with the “shared reliability compact,” under which all loads must be served by the system at all times. Instead, PJM would “develop the operational and commercial framework to explicitly differentiate reliability,” incentivizing approaches like bring your own generation or curtailing power for new large sources of demand.
The third path is an “Energy Market Transition,” which might also be called the “Texas option.” Following this path, the capacity market would shrink as a portion of revenues earned by generators, and more revenue would come from real-time or near-real-time electricity sales.
While this path isn’t “full Texas” (ERCOT doesn’t have a capacity market at all), it would mean allowing for higher prices for energy in real-time, a.k.a. “scarcity pricing” which is arguably the defining feature of the ERCOT system (though even that was scaled back when prices got too high).
“The choices embedded in these paths involve genuine trade-offs, and those trade-offs affect different stakeholders uniquely,” the paper says.If PJM has learned anything in the past few years, it’s that it doesn’t get to make decisions on its own. Those stakeholders will get their say, one way or another.
Big fundraises for Nyobolt and Skeleton Technologies, plus more of the week’s biggest money moves.
Following a quiet week for new deals, the industry is back at it with a bunch of capital flowing into some of the industry’s most active areas. My colleague Alexander C. Kaufman already told you about one of the more buzzworthy announcements from data center-land in Wednesday’s AM newsletter: Wave energy startup Panthalassa raised $140 million in a round led by Peter Thiel to “perform AI inference computing at sea” using nodes powered by the ocean’s waves.
This week also saw fresh funding for more conventional data center infrastructure, as Nyobolt and Skeleton Technologies both announced later-stage rounds for data center backup power solutions. Meanwhile, it turns out Redwood Materials is not the only company bringing in significant capital for second-life EV battery systems — Moment Energy just raised $40 million to pursue a similar approach. Elsewhere, investors backed an effort to rebuild domestic magnesium production, and, in a glimmer of hope for a sector on the outs, gave a boost to green cement startup Terra CO2.
Cambridge-based startup Nyobolt has become the latest battery company to reach a $1 billion valuation, with its expansion into the data center market helping fuel excitement around its tech. Spun out of University of Cambridge research in 2019, the company develops ultra-fast-charging batteries based on a modified lithium-ion chemistry. Its core innovation is an anode made from niobium tungsten oxide, which Nyobolt says enables its batteries to charge to 80% in less than five minutes, with a cycle life that’s 10 times longer than conventional lithium-ion, all without the risk of fire.
The company has now raised a $60 Series C, following what it describes as a period of “rapid commercial momentum,” with revenue increasing five-fold year-over-year as customers in the robotics and data center industry piled in. Symbotic, an autonomous robotics company and existing customer, led the latest round. While Symbotic previously relied on supercapacitors to power its robots, Nyobolt’s says its batteries provide six times more energy capacity in a lighter package, allowing its warehouse robots to work for retailers like Walgreens, Target, and Kroger around the clock.
Now the startup is targeting data center customers too, positioning its tech as a fast-acting fix for the sudden power surges common to large-scale artificial intelligence workloads, as well as a temporary backup power solution for outages. While it has no confirmed domestic data center customers to date, it does have a nonbinding agreement with the Indian state of Rajasthan to deploy over 100 megawatts of off-grid AI data center and power management infrastructure, part of a broader push to expand its presence across the country.
Notably, the press release made no mention of plans to sell its tech to electric vehicle automakers, though this appears to have been a central focus previously. As recently as last summer, executive vice president Ramesh Narasimhan told the BBC that he hoped Nyobolt’s batteries would “transform the experience of owning an EV.” But while its tech does enable extremely fast charging, its underlying chemistry is not optimized for long-range driving. A sports car built to test the company’s batteries had just a 155 mile range. So like many of its climate tech peers, the company appears to be betting that data centers now represent a more reliable opportunity.
This week brought additional news from another European player aiming to smooth out data center power surges. Estonia-based supercapacitor startup Skeleton Technologies raised $39 million in what it describes as the first close of a pre-IPO funding round, with a U.S. listing planned for next year. Its core tech is built around a “curved graphene” structure, which the company likens to a crumpled sheet of paper with a high surface area. The graphene’s many exposed surfaces and edges allows it to hold more electric charge, which Skeleton says delivers a 72% improvement in energy density.
Like Nyobolt, Skeleton says its tech offers faster response times and longer cycle life. But supercapacitors are a fundamentally different technology than Nyobolt’s modified lithium-ion solution. Though they offer near-instantaneous response times, they store very little energy — just enough to smooth out microsecond power spikes in GPU workloads. Nyobolt’s batteries, by contrast, aim not only to smooth out data center power spikes, but also to deliver about 90 seconds of backup power in the case of an outage, before a generator or other backup source kicks in.
Skeleton is already mass-producing supercapacitors in Germany and delivering to unnamed “major U.S. hyperscalers for AI infrastructure.” It’s also making moves to expand its U.S. footprint ahead of its pending IPO, opening an engineering facility in Houston and aiming to begin domestic manufacturing of AI data center solutions in the first half of this year.
Last year brought a wave of new climate tech coalitions, with one of the most ambitious efforts known as the All Aboard Coalition. This group of venture firms is targeting the investment gap known as the missing middle, which falls between early-stage venture rounds and infrastructure funding. The model is relatively mechanical: When three or more member firms participate in a later-stage round for a company, the coalition automatically coinvests out of its own fund, matching the members’ combined contribution.
The group made its first investment in January, supporting the AI-powered geothermal exploration and development company Zanskar’s Series C round. This week, it announced its second: a $22 million commitment to low-carbon cement startup Terra CO2, bringing the company’s Series B total to $147 million. Cement production accounts for roughly 8% of global emissions, a figure Terra aims to shrink by making so-called "supplementary cementitious materials” — which can partially displace traditional cement in concrete mixes — from abundant silicate rocks. By grinding and thermally processing these rocks into a glassy powder, Terra’s product mimics the properties of conventional cement. The company says it can replace up to 50% of the cement in typical concrete mixes, lowering associated emissions by as much as 70%.
The new funding will help Terra build its first commercial-scale plant in Texas, exactly the type of first-of-a-kind project that the coalition was designed to support. But the scale of this challenge remains clear. As noted in ImpactAlpha’s coverage, the coalition has raised just $100 million toward its goal of a $300 million fund — already a relatively modest goal considering the capital intensity of novel infrastructure projects. Bloomberg previously reported that the group aimed to raise the full amount by the end of October 2025, raising questions about the willingness of LPs to bet on projects at this crucial but capital-intensive juncture.
When I think about repurposing used electric vehicle batteries for stationary storage, I think of battery recycling giant Redwood Materials, which raised a $425 million Series E in January after moving aggressively into this promising market. But while Redwood’s well-established recycling business certainly provides it with the largest pipeline of used batteries, it’s far from the only company pursuing this business model. A smaller player with a largely similar approach underscored that this week, when it announced a $40 million Series B to scale its gigafactory in Texas and expand its facilities in British Columbia.
That’s Moment Energy, which focuses on using second-life EV batteries to power commercial and industrial sites such as data centers, hospitals, and factories. Like Redwood, it relies on proprietary software to aggregate battery packs with myriad chemistries and design specs into coordinated grid-scale systems. What the company sees as its critical differentiator, however, is its safety standards. Moment has achieved UL certification, a key safety benchmark that it says others in the industry have yet to meet.
In a shot at its competitors, the company described itself in a press release as the “only provider proven capable of deploying second-life battery storage systems in the built environment without special dispensations or regulatory loopholes.” While Moment never names names, Redwood’s first commercial-scale system sits on its own private land in an open air setting, where certification is arguably unnecessary. “What most other second life [battery] companies are now trying to say is, let’s just lobby to make second life UL certification easier, because it is impossible to get UL certification, as it stands,” the company’s CEO, Edward Chiang, told TechCrunch. “But at Moment, we say that’s not true. We got it.”
As I wrote last September, it’s a good time to be a critical minerals startup, because as you may have heard, “critical minerals are the new oil.” These materials sit at the center of modern energy infrastructure — batteries, magnets, photovoltaic cells, and electrical wiring, to name just a few uses — plus their supply is concentrated in geopolitically tense regions and subject to extreme price volatility. It also certainly doesn’t hurt that the Trump administration loves them and wants to mine and refine way more of them in the U.S.
The latest beneficiary of this enthusiasm is Magrathea, which this week raised a $24 million Series A to build what it says will be the only new magnesium smelter in the U.S., in Arkansas. The company has now raised over $100 million in total, including a $28 million grant from the Department of Defense. Its approach relies on an electrolysis-based process that’s able to extract pure magnesium from seawater and brines, which it positions as a cleaner, cheaper alternative to the high-heat, emission-intensive method that China uses to produce most of the world’s magnesium today.
The U.S. military has taken note of this potential new domestic supply. Magrathea’s 2022 seed round coincided with Russia’s invasion of Ukraine, as the military looked to scale domestic defense tech supply chains. Magnesium alloys are often used to help reduce weight in EV components, a benefit equally applicable to military helicopters, drones, and next-generation fighter jets. So while these defense applications represent somewhat of a pivot from the startup’s initial focus, a greener fighter jet is still better than a dirty fighter jet.