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A counter-proposal for the country’s energy future.

American electricity consumption is growing for the first time in generations. And though low-carbon technologies such as solar and wind have scaled impressively over the past decade, many observers are concerned that all this new demand will provide “a lifeline for more fossil fuel production,” as Senator Martin Heinrich put it.
In response, a few policy entrepreneurs have proposed novel regulations known as “additionality” requirements to handle new sources of electric load. First suggested for electrolytic hydrogen, additionality standards would require that subsidized hydrogen producers source their electricity directly from newly built low-carbon power plants; in a Heatmap piece from September, Brian Deese and Lisa Hansmann proposed similar requirements for new artificial intelligence. And while AI data centers were their focus, the two argued that additionality “is a model that can be extended to address other sectors facing growing energy demand.”
There is some merit to additionality standards, particularly for commercial customers seeking to reduce their emissions profile. But we should be skeptical of writing these requirements into policy. Strict federal additionality regulations will dampen investment in new industries and electrification, reduce the efficiency of the electrical grid through the balkanization of supply and demand, and could become weapons as rotating government officials impose their views on which sources of demand or supply are eligible for the standards. The grid and the nation need a regulatory framework for energy abundance, not burdensome additionality rules.
After decades of end-use efficiency improvements, offshoring of manufacturing, and shifts toward less material-intensive economies, a confluence of emerging factors are pushing electricity demand back up again. For one, the nation is electrifying personal vehicles, home heating, and may do the same for industrial processes like steel production in the not-too-distant future, sparked by a combination of policy and commercial investment. Hydrogen, which has long been a marginal fuel, is attracting substantial interest. And technological innovation is leading to whole new sources of electric load — compute-hungry artificial intelligence being the most immediate example, but also large-scale critical minerals refining, indoor agriculture like alternative protein cultivation and aquaculture, and so on.
In recent years, clean energy has seemed to be on an unstoppable path toward dominating the power sector. Coal-fired generation has been in terminal decline in the United States as natural gas power plants and solar and wind farms have become more competitive. Flexible gas generation, likewise, is increasingly crowded out by renewables when the wind is blowing and the sun shining. These trends persisted in the context of stable electricity load. But even as deployment accelerates, low-carbon electricity supply may not be able to keep up with the surprisingly robust growth in demand. The most obvious — though not the exclusive — way for utilities and large corporates to meet that demand is often with new or existing natural gas capacity. Even a few coal plants have delayed retirement, reportedly in response to rising demand and reliability concerns.
Given the durable competitiveness of coal and especially natural gas, some form of additionality requirement might make sense for hydrogen production in particular, since hydrogen is not just a nascent form of electric load but a novel fuel in its own right. Simply installing an electrolyzer at an existing coal or natural gas plant could produce hydrogen that, from a lifecycle perspective, would result in higher carbon emissions, even if it displaces fossil fuels like gas or oil in final consumption. Even so, many experts caution that overly strict additionality standards for hydrogen at this stage are overkill, and may smother the industry in its crib.
Likewise, large corporate entities and electricity customers adopting additionality requirements for their own operations can bolster investment in so-called “clean firm” generation like nuclear, geothermal, and fossil fuels with carbon capture. In just the past month, Google announced plans to back the construction of new small nuclear reactors, and Microsoft announced plans to purchase electricity for new data centers from the shuttered Three Mile Island power plant, the plant made famous by the 1979 meltdown but which only closed down in 2019. Three Mile Island’s $100-per-megawatt-hour price tag would have been unthinkable just a few years ago but is newly attractive.
Notice the problem Microsoft is trying to solve here: a lack of abundant, reliable electricity generation. Outdated technology licensing, onerous environmental permitting processes, and other regulatory barriers are obstructing the deployment of renewables, advanced nuclear energy, new enhanced geothermal technologies, and low-carbon sources. Additionality fixes none of these issues. Of course, Deese and Hansmann propose “a dedicated fast-track approval process” for verifiably additional low-carbon generation supplying new sources of AI load. Yet this should be the central effort, not the after-the-fact add-on. The back and forth over additionality rules for the clean hydrogen tax credit is a case in point. The rules for the tax credit will (likely) be finalized by January, but lawsuits already loom over them. Expanding this contentious additionality requirement to apply to broad use cases will be even more contentious without solving the actual shortage data center companies care about. Conversations about additionality are a distraction and misplace the energies of policymakers and staff.
Substituting one regulatory thicket for another is a recipe for stasis. Instead of adding more red tape, we should be working to cut through it, fast-tracking the energy transition and fostering abundance.
With such broad requirements, what’s to stop future administrations from expanding them to cover electric vehicle charging, electric arc furnace steelmaking, alternative protein production, or any politically disfavored source of new demand? Could a second Trump Administration use additionality to punish political enemies in the tech industry? Could a Harris Administration do the same? What if a future administration maintained additionality standards for new sources of load, but required that the electricity come from fossil fuels instead of low-carbon sources?
Zero-sum regulatory contracts between sources of electricity supply and demand are not simply at risk of becoming a tool for handing out favors on a partisan basis — they already are one. Two pieces of model legislation proposed at the July meeting of the American Legislative Exchange Council, an organization of conservative state legislators that collaborate to write off-the-shelf legislative measures, would require public utility commissions to prioritize dispatchable generation and formally discourage intermittent renewable sources like solar and wind. One of the proposals suggests leaning on state attorneys general to extend the lifespans of coal plants threatened with retirement.
These proposals did not move forward this year, but it is unlikely that the motivating force behind them is exhausted. And whatever one thinks of the relative merits of intermittent versus firm generation, ALEC’s proposals demonstrate just how easily gamed regulations like additionality could be and the risks of relying on administrative discretion instead of universal, pragmatic rules.
This is not how the electric grid is supposed to work. The grid is, if not an according-to-Hoyle public good, a shared public resource, providing essential services to customers large and small. Homeowners don’t have to sign additionality contracts with suppliers when they buy an electric car or replace their gas furnace with an electric heat pump. Everyone understands that such requirements would slow the pace of electrification and investment in new industries. The same holds for corporate customers and novel sources of load.
The real problem facing the AI, hydrogen, nuclear, geothermal, and renewables industries is an inability to build. There are more than enough clean generators queueing to enter the system — 2.6 terawatts at last count, according to the Lawrence Berkeley National Laboratory. The unfortunate reality, however, is that just one in five of these projects will make it through — and those represent just 14% of the capacity waiting to connect. Still, this totals about 360 gigawatts of new energy generation over the next few years, much more than the predicted demand from AI data centers. Obstacles to technology licensing, permitting, interconnection, and transmission are the key bottlenecks here.
Would foregoing additionality requirements and loosening regulatory strictures on technology licensing and permitting increase the commercial viability of new or existing fossil fuel capacity, as Deese and Hansmann warn? Perhaps, on some margin. But for the foreseeable future, the energy projects and infrastructure most burdened by regulatory requirements will be low-carbon ones. Batteries, solar, and wind projects make up more than 80% of the queue added in 2023. Meanwhile, oil and gas benefit from categorical exclusions under the National Environmental Policy Act, while low-carbon technologies are subject to stricter standards (although three permitting bills recently passed the House, including one that waives these requirements for new geothermal projects).
Consider that 40% of projects supported by the Inflation Reduction Act are caught up in delays. That is $84 billion of economic activity just waiting for the paperwork to be figured out, according to the Financial Times. Additionality requirements are additional boxes to check that almost necessarily imply additional delays. Permitting reform makes them redundant and unnecessary for a cleaner future.
This underscores perhaps the most essential conflict between strict additionality requirements and clean energy abundance. Ensuring that every new policy and every new source of demand allows for absolutely zero additional fossil fuel consumption or emissions will prove counterproductive to global decarbonization in the long run. Natural gas is still reducing emissions on the margin in the United States. Over the past decade, in years with higher natural gas prices, coal generation has ticked up, indicating that the so-called “natural gas bridge” has not yet reached its terminus. Even aggressive decarbonization scenarios now expect a substantial role for natural gas over the coming decades. And in the long term, natural gas plants may prove wholly compatible with abundant, low-carbon electricity systems if next-generation carbon capture technologies prove scalable.
The United States is the world’s energy technology R&D and demonstration laboratory. If policies to prune marginal fossil fuel consumption here stall domestic investment and scaling of low-carbon technologies — as current permitting regulations already do, and proposed additionality requirements would do — then we will not only slow U.S. decarbonization, but also inhibit our ability to export affordable and scalable low-carbon technologies abroad.
Environmental progress’s surest path is in speeding up. For that to happen, we need processes that allow for rapid deployment of clean energy solutions. Expediting technology licensing, fast-tracking federal infrastructure permitting, and finding opportunities for quicker and more rational interconnections should be first and foremost.
The real solution lies in building a regulatory environment where energy abundance can flourish. Clearing the path for clean energy development, we can achieve a future where energy is affordable, reliable, and abundant—a future where the United States leads in both decarbonization and economic growth. It’s time to stop adding barriers and start speeding up progress.
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How China emerged the victor of the war with Iran.
The Strait of Hormuz appears to maybe be opening up eventually — and the price of oil is collapsing.
Iranian Foreign Minister Abbas Araghchi said Friday morning that the waterway was “completely open,” shortly before President Trump declared on Truth Social that the strait was “COMPLETELY OPEN AND READY FOR BUSINESS AND FULL PASSAGE,” though the president also clarified that “THE NAVAL BLOCKADE WILL REMAIN IN FULL FORCE AND EFFECT AS IT PERTAINS TO IRAN.”
Eurasia Group analyst Greg Brew cautioned me that, as was the case when Trump announced a ceasefire last week, the actual status of the Strait of Hormuz has remained unchanged. Iran’s position is that traffic from non-hostile countries can go through the strait as long as ships coordinate with its government and follow a route that hugs its coastline; the U.S. has insisted for over a week that the strait is open, and has been blockading traffic from Iran.
That’s not to say today’s announcement was meaningless. “There has been movement from both the U.S. and Iran on the issues that matter — namely, Iran’s nuclear program,” Brew told me. Meanwhile, “there’s a lot of ambiguity, and there’s a lack of clarification on the status of the strait. The upshot of that is shippers don’t feel secure in using the strait.”
As for the mutual statements, Brew said they were a sign that “both sides have acknowledged a mutual interest in having the strait reopen.” The market, meanwhile “is responding to the positive vibes that the president and, to some extent, the Iranians are putting out regarding the status of Hormuz moving forward.” Oil prices fell substantially Friday, with the West Texas Intermediate benchmark price down 10.5% to around $85 per barrel.
While the final disposition of the conflict between the U.S. and Iran — and thus the flow of traffic through the Strait of Hormuz — remains unclear, the global energy system may be at the beginning of the end of the crisis that started at the end of February.
This doesn’t mean an immediate return to the status quo from the beginning of the year, however, which saw a glut of fossil fuels depressing global prices. Several hundred million barrels of oil that would otherwise have been pumped in the Persian Gulf remain in the ground after producers shut in production, temporarily suspending operations to protect their infrastructure and minimize their exposure to the conflict. This has created what Morgan Stanley oil analyst Martijn Rats called an “air pocket” in the market — and anyone who’s watched a hospital drama knows how dangerous an air pocket can be.
As happened with Russia’s war against Ukraine, the consequences of the Hormuz closure cannot simply be undone. That leaves countries — especially poorer countries dependent on fossil fuel imports — with a stark choice about how to fuel their future economic growth. The crisis may have tipped the balance towards renewable and storage technology from China over oil and natural gas from the Persian Gulf, Russia, or the United States.
“There is a huge shift in total supply available in the fossil system,” Jeremy Wallace, a professor of China studies at Johns Hopkins University, told me. “I think the fossil system has been demonstrated to be vastly less reliable, riskier than it was seen to be in February.”
For gas specifically, recovering from Iranian attacks on Qatar could take years, not just the weeks and months necessary to clear the backlog in the Persian Gulf.
That will serve to reinforce China’s dominant position as a producer and exporter of solar panels, batteries, and electric vehicles. “It’s hard for me to not see this as a huge win for Chinese firms that produce these products, upstream and downstream in those supply chains — as well, arguably, for the Chinese government itself,” Wallace said.
There’s already been some institutional movement away from fossil fuel investments and towards clean energy as well. A Vietnamese conglomerate, for instance, has proposed scrapping a planned liquified natural gas terminal for a solar and renewables project, while the county has also signed a deal with Russia to build the region’s first operational nuclear plant. And even as electric vehicle sales in China have slowed down, the share price of the battery giant CATL has surged since the war began despite rising costs of metals due to disruptions of chemicals necessary for refining from the closure of the strait.
Kyle Chan, a fellow at the Brookings Institution who studies Chinese technology and economic policy, summed up the situation by calling the energy shock of the war “the best marketing program you could possibly imagine for China’s clean tech sector.”
It’s not just China’s technology that is likely to be more attractive in light of this latest energy crisis, but also its energy model, which fuses energy security and decreasing dependence on imported fossil fuel (thanks, in part, to domestic coal supplies and hydropower) with a vast buildout of renewables and nuclear energy.
“The way that China has weathered the Iran war energy shock so far has really validated its strategy of investing heavily in alternative energy,” Chan said.
Going forward, Asian countries will have to decide on future investments in energy infrastructure, especially the extent they want to build out infrastructure for importing and processing oil and especially liquefied natural gas.
While the United States, especially under Trump, is more than happy to sell LNG to any taker, the fact that oil and LNG are global markets could make countries leery of depending on it at all if it’s risky to supply and price shocks, even if U.S. exports are dramatically less likely to get bottled up in the Gulf of Mexico.
“It seems like once in 100-year storms happen every year. Now it feels like that in the fossil energy system,” Wallace told me. “We’ve been talking about the crises of the 1970s for 50 years afterwards. We don’t need to be talking about those now.”
The 1970s saw major investments in non-oil energy generation, especially nuclear power, in Japan and France and large scale investments in energy efficiency. Today, Wallace said, “the alternatives are much more attractive.”
“In the months to come, I think we will see a lot of bottom up industrialists and probably wealthy consumers in Southeast Asia and South Asia who are going to vote for energy security of their own as best they can,” he told me, pointing to the mass adoption of solar in Pakistan since 2022.
But Asian countries embracing renewables and storage will not have entirely freed themselves from geopolitics. While batteries, solar panels, and electric vehicles do not require a flow of fuel from abroad the same way oil and gas infrastructure does, China has shown itself to be perfectly willing to use economic leverage to achieve political ends.
Relations between China and Japan, the second largest Asian economy and a close American ally, quickly devolved into crisis following the ascent of Sanae Takaichi to Prime Minister of Japan in October, after the new leader suggested that if China were to blockade Taiwan, it would constitute “an existential threat.” China responded with an array of economic punishments, including discouraging Chinese tourism in Japan and restricting shipments of rare earths elements and magnets.
China’s economic coercion, Chan told me, “reminds everyone that while you can buy all this really affordable, highly scaled-up clean energy equipment, China has been able to and has been willing to leverage that supply chain dominance in certain ways. There’s a degree of trust that you can’t really make up for.”
Countries embracing Chinese energy technology will “always have to have a Chinese-hedging discount in the back of their minds,” he said.
On Breakthrough Energy Ventures’ quantum computing investment, plus more of the week’s biggest money moves.
It’s been a busy week for funding, with several of the most high-profile deals featured in our daily AM newsletter, including Slate Auto’s $650 million fundraise for its stripped-down electric truck and Rivian’s partnership with Redwood Materials to repurpose the electric automaker’s battery packs for grid-scale storage.
These are clearly companies with direct decarbonization implications, but one of the week’s other biggest announcements raises the question: Is this really climate tech? That would be quantum computing startup Sygaldry, which recently nabbed $139 million in a round led by Breakthrough Energy Ventures to build quantum AI infrastructure. Huh.
Elsewhere in the ecosystem, the climate connection is a little more straightforward, with new funding for advanced surface materials designed to improve insulation and fire-protection, capital for microgrids that can integrate a diverse mix of generation and storage assets, and federal support for next-generation geothermal tech.
Quantum computing offers a futuristic paradigm for high-powered information processing and problem solving. By leveraging the principles of quantum mechanics, these systems operate in fundamentally different ways than even today’s most advanced supercomputers, encoding information not as ones and zeros, but as quantum units called “qubits.” Naturally, there is significant interest in applying this novel tech — which today remains error-prone and not ready for prime time — to artificial intelligence, with the aim of exponentially accelerating certain training and inference workloads.
Perhaps less intuitively, however, these next-generation computers are now viewed, at least by one prominent venture capital firm, as a key climate technology.
This week, quantum computing startup Sygaldry raised a $139 million Series A round led by Bill Gates’ climate tech VC firm Breakthrough Energy Ventures to build “quantum-acclerated AI servers” for data centers, which could reduce the cost and power required to train and operate large models. “The AI industry is advancing faster than ever and needs a breakthrough in performance per watt,” Carmichael Roberts, Breakthrough Energy Ventures’ chief investment officer said in the press release. “Sygaldry’s vision for bringing quantum directly to the AI data center has the potential to deliver exactly that, bending the cost and energy curve at the moment it matters most."
Certainly Sygaldry’s ultra-high-powered computers could help lower the energy intensity of AI workloads, but that is no guarantee that it will reduce AI and data center emissions overall. As was widely discussed when the Chinese AI firm DeepSeek released its cheaper, more energy-efficient model early last year, efficiency gains could reduce emissions in the sector at large, but they are perhaps just as likely — or some argue even more likely — to drive greater proliferation of AI across a wide array of industries. This unfettered growth could offset efficiency gains entirely, leading to a net increase in AI power demand.
Buildings account for nearly 37% of domestic energy consumption, with heating and cooling representing the largest share of that load. But while energy efficiency strategies typically focus on upgrading insulation or adjusting the thermostat, there’s another approach — essentially painting the roof with sunlight-reflecting material — that has the potential to reduce AC demand and thus cut a building’s cooling-related energy use by up to 50%.
Just such a “paint” is one of the unique ceramic coatings developed by NanoTech Materials, which this week raised a $29.4 million Series A to scale its infrastructure materials business. Beyond roofing, the company also offers a fire-protective coating for wooden infrastructure such as utility poles, fences, highway retaining walls, and other transportation assets, as well as an insulative coating for high-heat industrial equipment such as pipes and storage tanks designed to slow heat loss and prevent burn risk.
“Today’s built environment demands materials that don’t just meet code, but can also outperform the extreme conditions we’re now facing,” said D. Kent Lance, a partner at HPI Real Estate Services & Investments, which led the Series A. Nanotech Materials currently operates a manufacturing facility in Texas and plans to use this new capital to further expand its operations as it conducts market research for its various product lines.
Interconnection delays aren’t just a data center problem. Industrial developers working on everything from real estate and electric vehicle charging to manufacturing and aviation are also struggling to get timely and reliable access to power when building or expanding their operations. Enter Critical Loop. This modular microgrid company is building battery energy storage systems that can integrate batteries of varying sizes and specifications with a variety of power sources, including onsite solar, diesel generators, and grid power.
This week, the startup announced a $26 million Series A round, bringing total funding to $49 million across all equity and debt financing. Critical Loop’s approach combines a software platform with proprietary hardware — what it calls a “combiner” — which reduces the need for the many custom components typically required to connect a diverse mix of batteries and generation sources. “There’s a lot of power problems that are not getting solved because of limitations on an understanding of how to integrate different systems at a site,” Critical Loop’s CEO Balachandar Ramamurthy, told me last month.
The company’s initial product is a modular single-megawatt battery system that can be transported in shipping containers for rapid deployment in capacity-constrained locations. To date, Critical Loop has deployed about 50 megawatt-hours of microgrid assets, with plans to scale to over 100 megawatt-hours by year’s end.
It’s been another exciting week for one of the few bipartisan bright spots in clean energy — geothermal development. My colleague Alexander C. Kaufman reported in this morning’s AM newsletter that the AI-native geothermal company Zanskar secured $40 million through one of the first development capital facilities for early-stage geothermal development, and now the technology has secured fresh capital from the fickle U.S. Department of Energy. Today, the DOE announced a $14 million grant to support an enhanced geothermal demonstration project in Pennsylvania that will convert an old shale gas well into a geothermal pilot plant.
Conventional geothermal systems depend on a highly specific set of subsurface conditions to be commercially viable, which includes naturally occurring underground reservoirs where fluid flows among hot rocks. By contrast, developers of enhanced geothermal systems effectively engineer their own reservoirs, hydraulically fracturing rock formations and then circulating water through those man-made fractures to extract heat that’s then used to generate electricity. A number of well-funded startups are advancing this approach using drilling techniques adapted from the oil and gas industry, such as Fervo Energy — which has an agreement with Google to supply electricity for its data centers — and Sage Geosystems, which has a similar tie-up with Meta.
“As the first enhanced geothermal systems demonstration site located in the eastern United States, this project offers an important opportunity to assess the ability of such systems to deliver reliable, affordable geothermal electricity to Americans nationwide,” Kyle Haustveit, the Assistant Secretary of the Hydrocarbons and Geothermal Energy Office, said in the DOE release. If successful, the Energy Department says the project could provide a replicable model for scaling the deployment of enhanced geothermal systems across a broader range of geographies.
This week, the nonprofit XPRIZE organization announced that it’s partnering with Amazon to launch a new global competition focused on critical mineral circularity — redesigning how minerals such as lithium, cobalt, and nickel are recovered, processed, and reused. Demand for these minerals is projected to quadruple by 2040, but their supply chains remain largely concentrated in China, especially across refining, processing, and battery manufacturing.
The competition aims to catalyze breakthroughs in mineral recovery and recycling, materials solutions, and lower-impact extraction methods. It’s not yet open to submissions as organizers are still seeking philanthropic and corporate funding before entrepreneurs, startups, and research teams can submit their ideas for consideration. XPRIZE has been running challenges for three decades now, with past competitions revolving around carbon removal, adult literacy, and lunar exploration.
Current conditions: A broad swath of the United States stretching from South Texas to Chicago is being bombarded by the Central U.S. with severe storms and more than two dozen tornadoes so far • The thunderstorms pummeling Puerto Rico and the U.S. Virgin Islands are expected to stretch into the weekend • Kigali is also in the midst of a days-long stretch of heavy storms, testing the Rwandan capital’s recent wetland overhaul.
SunZia Wind, the largest renewable energy project of its kind ever built in the U.S., has started generating electricity, nearly capping off a two-decade effort to supply Californians with wind power generated in New Mexico. The developer has begun testing the project’s 916 turbines ahead of planned full-scale commercial operations later this quarter, unnamed sources told E&E News. The project includes 3.5 gigawatts of wind and 550 miles of transmission line to funnel the electricity west from the desert state to the coast. “The impact is already evident,” the newswire wrote. “California broke its record for wind generation eight times in the last four weeks.”
When Heatmap’s Robinson Meyer visited SunZia’s construction site in August 2024, he observed that, once it started running at full blast, the project would “generate roughly 1% of the country’s electricity needs.” Its success in the face of the Trump administration’s attacks on wind could “lay the model” for a new paradigm in which “clean energy buildings and environmental protectors work together to find the best solution for the environment and the climate,” Rob wrote. “We will need many more success stories like it if America is to meet its climate goals — 99 more, to be exact.”
The U.S. Senate voted 50-49 on Thursday to repeal a mining ban on land near the Minnesota’s Boundary Waters Canoe Area Wilderness, declaring what Heatmap’s Jeva Lange called “open season” on public lands. In what the public lands news site Public Domain called “an unprecedented use of the Congressional Review Act,” the vote slashes protections for the iconic nature preserve. Inspiring even fiercer political pushback is the fact that Republicans championed the effort largely to benefit an overseas corporation: Twin Metals Minnesota, a subsidiary of the Chilean mining conglomerate Antofagasta, which has for years sought to establish a copper-nickel mine on national forest land near the wilderness area. “The Boundary Waters belong to everyone,” Julie Goodwin, a senior attorney at Earthjustice, said in a statement. “They should be protected and enjoyed by all, not jeopardized to benefit a wealthy foreign company.”
At the same time, global demand for both nickel and copper are surging — and a successful effort to decarbonize the world economy through greater electrification will require a lot more of both metals.
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The good news: The Department of Energy is allowing the Direct Air Capture hub program started under the Biden administration to move forward. In documents submitted to Congress this week, the agency listed as approved the up to $1.2 billion the program awarded to two projects: Occidental Petroleum’s South Texas DAC Hub, and Climeworks and Heirloom’s joint Project Cypress in Louisiana. As Heatmap’s Emily Pontecorvo noted: “This fate was far from certain.” After the Energy Department cut funding for 10 of the original 21 projects last fall, a leaked list of projects suggested the Louisiana and Texas hubs would be targeted in a second wave of rescissions. The bad news: Last week, Rob had a scoop that Microsoft — whose carbon removal buying made up roughly 80% of the industry — was pausing its purchases. And as he wrote yesterday, even if it’s just temporary, the pause will ripple through the nascent market.
Other technologies that once seemed like science fiction are, in fact, moving forward. In an exclusive for Heatmap, I reported that Clean Core Thorium Energy, a Chicago-based company designing thorium fuel bundles that works in existing reactors, inked a deal to manufacture its first four units. In addition to assembling the bundles, the Canadian National Laboratories will supply the small amount of a special kind of uranium fuel needed to be blended into Clean Core’s mix and that serves as a spark plug for the reaction.
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Last October, the Energy Department asked the Federal Energy Regulatory Commission to set rules for patching data centers, advanced factories, and other large loads onto the grid. The move, as Utility Dive reported at the time, sparked controversy over whether it represented a Washington power grab given that the landmark Federal Power Act gives states jurisdiction over retail electricity interconnections. Now FERC has said it plans to respond. On Thursday, Robin Millican, a researcher at Columbia University’s Center on Global Energy Policy, posted on X that FERC announced a notice of intent to act on the Energy Department’s request, with a ruling expected in June. “Good,” she wrote. “Ensuring interconnection costs from data centers, advanced manufacturing, and big electrification projects aren’t passed to retail customers is overdue.”
Back in January, I told you that two geothermal startups raised a combined $212 million: Zanskar, which uses artificial intelligence to hunt down previously undetected conventional geothermal resources underground; and Sage Geosystems, a next-generation startup using fracking technology to drill for geothermal heat in places that conventional resources can’t tap. This week we saw two geothermal companies once again net a nine-digit number. Once again, Zanskar — considered by experts Heatmap surveyed to be one of the most promising climate-tech companies in the game right now for a reason, after all — announced the closing of another $40 million fundraise. Just Capital and Spring Lane Capital led the round, with an additional investment from Tierra Adentro Growth Capital. Zanskar said the round was a development capital facility, a type of deal that usually involves equity or debt to fund a company’s growth. It is “among the first ever structured for early-stage geothermal development, drawing on the best practices from the renewables and natural resource sectors,” the company said Thursday in a press release. The financing will help establish a revolving line of credit “designed to accelerate project development.”
On Wednesday, another competitor in the next-generation geothermal space, Mazama Energy, pulled in a fresh round of capital. The Frisco, Texas-based company, which last year boasted a system that reached hotter temperatures than any other geothermal company, just raised $100 million, according to Axios.

San Diego, once the poster child for a drought-parched Southern Californian city, is now looking to become a water exporter, The Wall Street Journal reported. North America’s largest desalination plant is producing so much freshwater for the San Diego County Water Authority that the city is working on a deal to sell millions of gallons to Arizona and Nevada. The Claude “Bud” Lewis Carlsbad Desalination Plant, which opened in 2015 and is owned by an infrastructure investment firm, may produce more expensive than average water, but “it is important to note that it is more reliable than other sources,” Keith R. Solar, a water attorney from the seaside neighborhood of Point Loma, wrote in the Voice of San Diego last year. “Its value as insurance against disruption of supplies from other sources makes it a critical part of our future.”