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If there’s one climate policy you’re likely to hear about in the debt ceiling deal, it’s the Mountain Valley Pipeline.
The 304-mile pipeline, which will link West Virginia’s booming gas fields to the East Coast and Texas, essentially received automatic approval under the bipartisan deal. The bill compels federal agencies to approve the pipeline and then shields those permits from judicial review, all but guaranteeing the project’s eventual completion.
If nothing else, the deal brings the saga over the Mountain Valley Pipeline to a close almost a year after it began: The White House initially agreed to support the project last year in exchange for Senator Joe Manchin of West Virginia’s support for Biden’s climate law. But neither Manchin nor Biden could get a bill containing the pipeline through Congress last year as part of a larger package of permitting reforms. Manchin persevered, and the pipeline wriggled into the deal over the weekend thanks to House Republicans and oil-and-gas lobbyists. Manchin, it seems, finally has his pipeline.
The project isn’t the most important climate item in the deal. That distinction has to go to the deal’s preservation of the Inflation Reduction Act, which will ensure hundreds of billions of dollars go to clean energy and infrastructure over the next decade. Nor is it the deal’s worst blow to the climate: As I wrote yesterday, Democrats’ failure to secure any power-grid reform takes that title.
Yet the Mountain Valley Pipeline, or MVP, is the item that environmental groups have focused on the most. “Allowing this deal to advance sets a dangerous precedent,” Ben Jealous, the Sierra Club’s executive director, said in a statement. “We can pay America’s bills without undermining bedrock environmental protections or fast tracking the fracked gas Mountain Valley Pipeline.”
So I was curious: How big a deal is the MVP? When completed, it will transmit 2 billion cubic feet of natural gas a day: What does that actually mean for the country’s natural gas transmission?
Well, here’s a potentially helpful chart:

This is the Energy Information Administration’s chart of new natural-gas pipeline capacity from 1995 to 2022 with my addition. I’ve added the MVP’s capacity at the right. As you can see, the MVP alone will add more pipeline capacity than the entire U.S. added last year — but that’s partially because the country added much less capacity in 2022 than it has in any year since records began in 1995.
I’ll be honest that the chart helps me think more clearly about the project, but not in a way that’s easy to describe. The Mountain Valley Pipeline is a medium-largeish pipeline — big enough to single-handedly expand the country’s ability to move natural gas, but not so big that it will change the fundamental trend that fewer new pipelines are getting built every year.
The MVP’s most important effect may not be its size, but its strategic location: By connecting the productive Utica and Marcellus shale fields in Appalachia to the Transcontinental pipeline, a massive backbone conduit that links New Jersey to the Rio Grande Valley, it will make it easier for cheap natural gas to reach the population centers — and export terminals — of the Eastern Seaboard and Gulf Coast. That will, in turn, spur a modest increase in natural-gas drilling, which could increase American emissions by roughly 6 to 16 million metric tons a year, according to an estimate from The Washington Post.
The Inflation Reduction Act, by comparison, will eliminate roughly 660 million tons a year by 2030. So preserving the IRA is worth the carbon cost of this pipeline — but it would be better, of course, not to have to make such a choice at all.
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Why America’s environmental institutions should embrace a solutions mindset
Innovation has always been core to the American story — and now, it is core to any story that successfully addresses climate. The International Energy Agency estimates that 35% to 46% of the emissions reductions we’ll need by 2050 will come from technologies that still require innovation in order to scale.
Yet there’s a gap between what society urgently needs and what our institutions are built to do. Environmentalism, especially, must evolve from a movement that merely protects to a movement that also builds and innovates.
As an environmentalist, I am profoundly grateful for the hard-won battles of the environmental movement over the past 50 years; fighting pollution, toxicity, deforestation, and community harm has been essential to the health of our families and ecosystems. Yet in this moment, we need to complement these efforts by cultivating a new generation of environmental organizations who have the drive to build in their DNA.
Today’s environmental leaders can drive innovation forward, or they can stand in its way.
I founded Elemental Impact 15 years ago to invest in bold entrepreneurs who are building and scaling the next generation of critical technologies. As a nonprofit investor, we pair catalytic capital with deep expertise to create lasting environmental and local impact, supported by philanthropic and government funders. We recycle any returns back into our nonprofit to invest in future companies.
We’ve seen a common pattern in many discussions where philanthropic and environmental priorities are being set: Most nonprofit organizations remain structurally oriented toward preventing harm — not innovating on solutions. The world needs vigorous efforts to speed and spread clean energy technology, and we must find a way to do this in partnership with traditional environmental protection.
Here’s an example of how the dynamics often play out today: One entrepreneur we know is building a carbon dioxide removal facility, and we’ve been partnering with her on community engagement. While she has seen strong support from local businesses, policymakers, and labor leaders, she has also encountered early resistance from one unexpected group: environmental advocates. “This experience has been eye-opening and disheartening,” the entrepreneur told me over gingerbread cookies. “I became an entrepreneur to change the world — and now I’m facing a barrier I didn’t expect.”
We see this story again and again as entrepreneurs trying to deploy new technologies face pushback from those with largely the same goal: to slow down and ultimately reverse global climate change while supporting human health and well-being.
For instance, my team recently engaged in a planning session with large environmental philanthropies to talk about the future of data centers. With global investments in data centers expected to reach nearly $7 trillion by 2030, we know that meeting their energy, water, and material needs — and the needs of the communities they’re in — will be essential. Yet the conversation focused solely on how to stop data centers from being built. Building new infrastructure at this scale requires solving for numerous complexities, and we need a strategy for community and company engagement that is just as nuanced — one that prioritizes local benefits and leverages the market momentum to accelerate clean energy and sustainable materials faster than would otherwise be possible.
This dynamic also shows up in policy designs that operate too slowly to keep up with the race to address climate change. At times, we see the environmental policy agenda working against environmental innovation. This has real consequences, in some cases doubling the cost of the very solutions we need to build.
There are many ways technological innovation can provide tangible benefits across both communities and the environment. Elemental’s investment in a geothermal company helped support a local university in creating an apprenticeship program in rural Utah, leading to good jobs and economic development while also providing clean power. This is an example of philanthropy, through our nonprofit investor model, working in concert with technology in a way that is highly catalytic.
Philanthropy has often stepped in to seed new movements, empower new leadership, and provide risk capital when there are market or policy challenges. However many funders we talk to are not yet leveraging philanthropic capital to shape markets, which is exactly what’s required to accelerate climate innovation.
The research backs this up. More than 90% of philanthropic leaders believe climate change will negatively affect the people and places they serve, according to a 2022 study by the Center for Effective Philanthropy. But less than 2% of foundation dollars have gone to advance climate solutions, per a separate analysis last year by Climateworks Foundation. And based on our conversations with researchers and funders in the space, we estimate that only a fraction of that goes to organizations that are focused on accelerating new technologies.
It’s important to remember that solar, batteries, and electric vehicles were once considered risky, untested, and controversial. Now they’re proven to be better, cheaper, and faster than their alternatives in large part due to philanthropic and government support in their early days. But to address today’s environmental challenges, those solutions are not enough. New breakthroughs in critical minerals, fertilizers, wildfire management, industrial efficiency, carbon utilization, next-generation energy systems, and so many more need the same catalytic support.
“Enhanced geothermal is only where it is today because of backing from philanthropy-funded initiatives that took risks where others didn’t,” Tim Latimer, the CEO of next-generation geothermal company Fervo Energy, an Elemental portfolio company, told us. This capital is particularly essential now, when government funding has been ripped away and hundreds of critical technologies are seeing their financing gap widen as they attempt to scale.
At Elemental, we work with influential philanthropists and foundations that are leading the way by funding innovation and new technology deployment. These organizations and others like them are the ones pushing the art of what’s possible with philanthropic capital and showing entrepreneurs that they are the solution — not the problem.
We know market interventions from philanthropy work. With catalytic capital, Elemental companies are 2.5x more likely to scale from early to late stage, and for every dollar we invest, our companies unlock an additional $100 of follow-on capital. Working every day with entrepreneurs, we have unique visibility into how innovations succeed, fail, or get blocked.
In the age of artificial intelligence, unprecedented technological change, and an affordability challenge brewing in the U.S. energy sector, we need leaders who understand the leverage points in technology and are finding creative opportunities to make the biggest environmental and social impact. We know that new technologies carry risk, and not all will drive social progress. But the way forward is to help shape and accelerate the ones that will contribute the most to the communities where they operate. That includes being a responsible participant in our changing climate.
This is the best time in history to have a front row seat to innovation. Magic can happen when entrepreneurs, philanthropy, government, corporate leaders, and communities come together to drive speed, scale, and impact. Let’s be bold and build.
Current conditions: Days after atmospheric rivers deluged the Pacific Northwest, similar precipitation is headed for Northern California, albeit with less than an inch of rain expected in the foothills of the Bay Area • Australia is facing a heatwave, temperatures hovering around 90 degrees Fahrenheit this week • Heavy rains threaten flash floods in Ghana, Togo, Benin, and southern Nigeria.
Three Senate Democrats considered top progressives announced Tuesday a probe into whether and how data centers are driving up residential electricity bills. In letters sent Monday to Google, Microsoft, Amazon, Meta, and three other companies, the lawmakers accused the server farms powering artificial intelligence software of “forcing utilities to spend billions of dollars to upgrade the power grid,” expenses then passed on to Americans “through the rates they charge all users of electricity,” The New York Times wrote. The senators — Elizabeth Warren of Massachusetts, Chris Van Hollen of Maryland, and Richard Blumenthal of Connecticut — warned that ratepayers will be left holding the bag when the AI bubble bursts, a possibility Friday’s stock plunge (which Heatmap’s Matthew Zeitlin covered) has made investors all too aware of.
Opposing data centers is emerging as a touchstone political test on the left. On Tuesday afternoon, Senator Bernie Sanders, the democratic socialist independent from Vermont, posted a video on his X account in which he argued that “a moratorium” on building new data centers nationwide “will give democracy a chance to catch up, and ensure that the benefits of technology work for all of us, not just the 1%.” Polling suggests the political issue has populist appeal. Just 44% of Americans said they would support a data center built nearby in a September survey from Heatmap Pro.
The House of Representatives voted 215-209 Tuesday to advance the bipartisan permitting reform bill known as the SPEED Act, despite mounting opposition from Republicans to provisions meant to protect already-licensed projects from the type of legal assault the Trump administration has unleashed on offshore wind. Republican critics of the bill, including Maryland Congressman Andy Harris and New Jersey Congressman Jeff Van Drew, vowed to vote against any legislation that included measures that might defend offshore turbine developers from Trump’s “total war on wind.”
Yet, “while the bill is alive for now, the outcome casts a pall over the prospects for any permitting deal this Congress,” as Heatmap’s Jael Holzman wrote last night, because “there is little shot of a grand deal on NEPA reform without exactly the sort of executive power restrictions Republican objectors feared.”
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The nationwide transformer shortage is getting worse as extreme weather destroys the existing grid and data centers demand the buildout of power infrastructure at a rate not seen in decades. A new Wall Street Journal feature on the manufacturers racing to churn out the big transformers featured a fresh statistic from the consultancy Wood Mackenzie that illustrates just how bad the problem has become. Orders for large transformers exceeded supply by about 14,000 units so far this year. The Biden administration made the transformer crisis worse by proposing — then revoking — a regulation to increase the energy efficiency of the equipment at the cost of requiring manufacturers to decide between investing in compliant assembly lines by 2027 or additional output to match today’s demand. The Trump administration has made the problem worse still by imposing strict trade tariffs on the very material transformers need most, as Heatmap’s Emily Pontecorvo wrote.

In the race to build the nation’s first small modular reactor, there are startups that developed designs based on less-powerful models of existing light water reactors and startups that are pursuing next-generation technologies shrunken down to a tiny fraction of a normal atomic power plant’s size. Washington, D.C.-based Last Energy is doing both. The company, founded by the entrepreneur and nuclear podcaster Bret Kugelmass, started out by proposing to build 20-megawatt light water reactors in Europe, before embarking on a U.S. project after the Trump administration vowed to ease the way for new nuclear reactors. On Tuesday, in a sign of investors’ confidence in the new trans-Atlantic direction, Last Energy announced a $100 million fundraising round. “For the first half a decade that I was telling people I was doing nuclear, I had to convince them, ‘Hey, here’s why nuclear is important,’” Kugelmass told TechCrunch. “Now everyone just comes to us saying, ‘Oh yeah, of course nuclear is a key part of the solution.’ I’m like, okay, great, I’m glad everyone’s caught up now.” The company is among the 10 startups in the Department of Energy’s reactor pilot program, meant to speed up deployments of new technologies by bringing at least three to the atom-splitting phase of development by next July 4.
The fundraising news came as the Trump administration took yet another stake in a private minerals company. On Tuesday, the military announced a deal to take a 40% share of the nearly $8 billion mineral processing plant the South Korean industrial company Korea Zinc promised to build in Tennessee.
BlackRock’s retreat from sustainable investing has cost the world’s largest asset manager the business of at least two European pension funds. On Tuesday, the PME group, which manages more than $69 billion in retirement savings for Dutch workers in the metal and technologies sectors, said it had “decided to end our relationship with BlackRock,” the Financial Times reported. The move comes after the Dutch healthcare workers pension group PFZW withdrew about more than $16 billion from the financial giant, though its money-market funds are still under BlackRock’s management. It’s not just BlackRock facing backlash for its softening position on emissions. In February, the United Kingdom-based People’s Pension yanked nearly $38 billion from State Street, saying it was prioritizing “sustainability, active stewardship, and long-term value creation.”
For penguins, bad weather is good news. In a new study in Nature Geoscience, researchers from the University of Gothenburg showed that storms in the Southern Ocean that encircles Antarctica regulate the Earth’s climate by moving heat, carbon, and nutrients out in the world’s oceans. The effect amounts to what scientists called “a critical climate service” marked by “absorbing 75% of the excess heat generated by humans globally.”
Rob and Jesse catch up with Mark Fitzgerald, CEO of the closed-loop geothermal startup Eavor.
Over the past decade, the oil and gas industry has sharpened its drilling skills, extracting fossil fuels at greater depths — and with more precision — than ever before. What if there was a way to tap those advances to generate zero-carbon energy?
The Canadian company Eavor (pronounced “ever”) says it can do so. Its closed-loop geothermal system is already producing heat at competitive prices in Europe, and it says it will soon be able to drill deep enough to fuel the electricity system, too. It just opened a first-of-its-kind demonstration facility in Germany, which is successfully heating and powering the small hamlet of Geretsreid, Bavaria.
On this week’s episode of Shift Key, Rob and Jesse chat with Mark Fitzgerald, the president and CEO of Eavor, about how its new technology works, how it differs from other forms of advanced geothermal, and why Europe is a good test bed for heat-generating projects. We also chat about what Mark, who previously ran Petronas Canada, learned in his 35 years in the oil industry.
Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap, and Jesse Jenkins, a professor of energy systems engineering at Princeton University.
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Here is an excerpt from our conversation:
Jesse Jenkins: So at the surface, this is a very limited footprint, right? It’s a fairly small power plant, and then underground, you’ve got this kilometer-scale heat exchanger effectively that you’ve built without fracturing, but with a lot of drilling involved, right? So the key, I think, for making that work is to continually advance the economics of drilling.
What is Eavor’s strategy there for bringing down the cost of drilling these closed loops so that they become cost competitive despite the large amount of total miles drilled that you have to — or kilometers drilled that you have to put down?
Mark Fitzgerald: That’s a great point, Jesse, and I would reinforce that drilling technology, or drilling efficiency, has been something that’s been talked about and understood across the globe for a hundred-plus years. So we are not creating a new method of drilling. We are not looking for something that hasn’t been already done across any of the unconventional players in North America, any of the big drilling or service companies or operators around the globe.
What we are doing is changing the trajectory, and changing the application of that drilling methodology to create the underground radiator, as you would talk about. My background — I spent 36 years in oil and gas, a great proportion of that in the unconventional space before I had this amazing opportunity to join Eavor. And so I understand how, through sound engineering, sound geoscience, proper modeling, that cost compression will occur. One of the best examples that I point to is, we completed six laterals — so six of these horizontal wells, or these forks, at a time, connected them in Geretsreid, our first facility in Germany. The fourth and fifth laterals were done at 50% of the cost of the first two. And so already, in moving from lateral one to lateral six, we’ve seen a reduction of 50% in the cost structure.
The second is that in terms of pace of drilling, the faster you drill the lower costs you incur. The pace of drilling for us on those fifth and six laterals was three times what it was on lateral one and two.
Mentioned:
Previously on Shift Key: Why Geothermal Is So Hot Right Now
Jesse’s upshift; Rob’s downshift.
This episode of Shift Key is sponsored by …
Heatmap Pro brings all of our research, reporting, and insights down to the local level. The software platform tracks all local opposition to clean energy and data centers, forecasts community sentiment, and guides data-driven engagement campaigns. Book a demo today to see the premier intelligence platform for project permitting and community engagement.
Music for Shift Key is by Adam Kromelow.