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Hell is shopping for eco poop bags.
As much as I’m aware that blaming the climate crisis on individual consumer choices is a favorite smokescreen of large corporations and fossil fuel companies, it still totally kills me to buy single-use plastic bags. So when my household recently ran out of the 900 black disposable litter bags we’d bought on Wirecutter’s recommendation eons ago, I decided to be a Good Person and replace them with the most environmentally friendly option I could find. I mean, how hard could it be?
Hoo boy.
What started out as a naïve quest to find the greenest pet waste receptacle has become my Joker origin story. It’s turned me into Mark Ruffalo in Dark Water, except instead of taking on Dupont, I’m hounding companies with names like The Original Poop Bag and Doggy Do Good for the chemical makeup of their “green” bags. I’ve been red-pilled on advanced recycling. And, worst of all, I still haven’t actually bought a replacement — because the entire “green,” “biodegradable,” “plant-based,” “compostable” pet waste bag industry is built on misdirections, half-truths, and outright lies.
This might seem like a ridiculous thing to have spent my time obsessing over (and I don’t entirely disagree with you). But the greenwashing and obfuscation around these bags is part of a bigger story. Plastics are the fossil fuel industry’s last stand. The renewable energy transition, albeit in fits and starts, is here. Seeing the writing on the wall, companies like ExxonMobil, Shell, and Saudi Aramco are heavily investing in petrochemicals, which are used to make plastic and are expected to make up half of oil demand growth between now and 2050, according to the International Energy Agency (IEA). As Armco president and CEO Amin Nasser has reassured his cohorts, oil demand from petrochemicals is expected to remain high “no matter which energy transition scenario plays out.”
But I’m getting ahead of myself.
This story starts with much cuter villains: my cats.
Meet the adorable antiheroes of this story, Marinka and Virginia:
This whole piece is just an excuse to show you a picture of my cats.Jeva Lange/Heatmap
These two cutie pies don’t know it, but they diligently contribute to the 5.1 million tons of feces produced by America’s dogs and cats every year. One estimate of the dog sector alone found that disposing of all that waste adds some 500 million single-use bags to U.S. landfills annually.
The evils of single-use plastic bags have already been drilled into most of our heads by now: They take years to break down and when they do, they don’t decompose but rather turn into tiny microplastics that end up in the soil, waterways, food chain, and even our bloodstreams and breast milk. There is one seemingly great and trendy way to get around this: compostable bags!
Alas, if something sounds too good to be true, it is. For one thing, the “compostable” claims made by eco-friendly pet companies are wildly misleading. Though brands like to imply that their bags decompose and disappear like any other yard waste, these products only break down within a year under the extremely specific conditions of a commercial composting facility — very, very few of which even accept pet waste in the first place. As a result, the FTC has flagged that “compostable claims for these products are generally untrue.”
A "compostable" poop bag available on Chewy.com...Chewy.com
...and why you should always read the fine print.Chewy.com
Companies love to exploit consumers’ lack of knowledge around these terms and processes, though, and are mostly free to do so since the language isn’t strongly regulated. Often brands will brag that their compostable bags meet the “ASTM D6400 standard,” which just means they meet the industrial composting standard — again, pretty useless for us in this context. (Touting the ASTM D6400 standard is also often a way for brands to hide that their bags are made with virgin fossil fuels … more on that soon).
The bigger question when it comes to composting pet waste is, do we even want to? Dogs and cats are meat eaters, which means their poop contains parasites and bacteria like roundworms and hookworms, which can last for years in the soil and even be passed onto humans if used as a fertilizer for edible plants. While maybe this doesn’t sound like it could be that big of a problem, it is: “A study by the Bureau of Sanitation found that 60% of the bacteria in a Marina Del Rey, [California,] waterway was because of animals, domesticated and feral,” the Los Angeles Times reports. Gross.
This is one time you’ll ever hear me say that dog people have it better, though. Done correctly, dog owners actually can home compost dog waste if they’re so inclined. That said, a major downside of compostable bags is that they seem to lead some people to the impression that they can litter trails and parks with their “green” bags since the bags will eventually “go away.” As previously discussed: No, they won’t.
Cat waste, however, never basically should end up in your garden: Felines carry the parasite Toxoplasma gondii, which can be passed onto humans via compost but has been found to kill wildlife, including the sea otters in California. “Toxoplasma infections contribute to the deaths of 8 percent of otters that are found dead, and is the primary cause of death in 3 percent,” The New York Times explains. While feral cats used to be blamed for spreading the parasite, new evidence shows house cats almost certainly are, too — through their waste.
So compostable pet waste bags are out. As one municipality put it, dog and cat poop should be treated like what it is: not a fertilizer, but a pollutant. That means it needs to be sequestered, one way or another, in a landfill.
Just going to nip this one in the bud. For the same reason that composting pet waste isn’t advisable due to parasites and bacteria in four-legged meat-eaters’ feces, flushable pet waste bags and litter aren’t a safe or responsible choice, either.
Many waste treatment facilities don’t kill Toxoplasma, so putting cat poop in the toilet just expedites its journey into your local waterway. Indeed, in responding to an utterly unhinged email I sent them about cat waste, the California Association of Sanitation Agencies confirmed that “the only thing that should be flushed is human waste and toilet paper.”
Biodegradable pet waste bags are what radicalized me.
At first glance, these bags appear to be the best option. A number of them come on the recommendation of the sustainability website Treehugger. The product websites usually feature blogs full of reassuring information about how harmful plastic waste is, or boast 1% for the Planet certifications, or mention something about being made of cornstarch. Even the bags are green!
And almost all of them, despite their lofty claims, are made using virgin fossil fuels.
Polybutylene Adipate Terephthalate, or “PBAT,” is a biodegradable plastic made from the petrochemicals butanediol, purified terephthalic acid (PTA), and adipic acid. Translation: Fossil fuels must be extracted in order to make any bag that contains PBAT, which is virtually all of them.
Companies are exceptionally sneaky about this, though. Some of the brands boast outright about using PBAT as a traditional plastic alternative, likely assuming customers have no idea what the acronym means and won’t bother looking it up. Yet as Alice Judge, a former veterinarian and co-founder of the U.K.-based sustainable pet website Pet Impact, found in her own investigation, PBAT rarely makes up less than 60% of these supposedly “plant-based” pet waste bags. “There is some really concerning greenwashing and outright lying” going on in the industry, she told me. “We’ve found brands that are very big, reputable brands even saying explicitly ‘100% plant-based’ and in the same sentence saying ‘made from cornstarch and PBAT.’”
"Zero plastic" — but contains a fossil fuel-derived chemical called PBAT.Sirwaggingtons.com
PBAT is typically combined with cornstarch or sugarcane, so a “plant-based” bag advertising those ingredients can often be a tip-off that a fossil fuel product is also involved. Additionally, companies will frequently flag on their packaging that they meet the ASTM D6400 or BPI standards, though these have no provisions against certifying biodegradable products that contain PBAT.
Pet waste bag companies appear to go out of their way to avoid these admissions. Doggy Do Good, a popular sustainable pet waste company, told me in an email they use a “proprietary bio-based material” for “60.9% of the composition of their bags” — that is, the expected amount of PBAT — and added that “this fully biodegradable copolymer is an excellent alternative to polyethylene.” When I pressed to clarify if their proprietary “biodegradable copolymer” in question was PBAT, as I suspected, they stopped replying to my emails. The Original Poop Bag, another green bag company, didn’t answer me at all when I asked if their bags contained the fossil fuel product.
Despite these avoidance tactics, biodegradable bag companies aren’t using PBAT because they nefariously want to ruin the planet. It’s just the dirty secret of the pet waste bag business. As Judge explained in a blog post, “All poo bags have to include PBAT for strength and structure. If they were 100% plant-based, they would turn to mush very quickly when wet, lack strength, and tear easily (some qualities you really don’t want in a poo bag!).”
Fair enough. It’s the lack of transparency that is the problem: Most of these companies are selling fossil fuel-based products to customers who think they’re buying bags made from corn.
What's the other 62%?Doggydogood.com
Ultimately, there are two ways to think about the impact of the pet waste bags you buy: the impact of the materials used to make them and the impact of their disposal. If the latter is your biggest concern — what happens to bags after they’ve been used — biodegradable and “plant-based” bags are still probably the best, if imperfect, option available on the market. You can throw them in the trash (where they belong because again, pet poop is a pollutant) but also know at least that they’ll eventually biodegrade in a landfill (it should be noted, though, that everything is technically biodegradable, and the word means nothing without specification about the timeline and conditions).
From an “input” perspective — what the bags are made of, and how — biodegradable and “plant-based” bags are a little less exciting. They require less virgin fossil fuel than buying a bag entirely made out of traditional single-use plastic, though some research has suggested there is “no real difference in lifetime emissions between” products made with traditional plastic and those made from bioplastics. By another estimate, greenhouse gas emissions “are typically higher for bio-based plastics than recycled and virgin plastics” because “corn requires large amounts of energy, space, and water to grow industrially” and “turning the corn starch (once cultivated) into a polymer requires considerable energy.”
There is one major exception to all of this: Avoid “oxo-biodegradable” products. These are banned in the EU because they break down, sure — but into toxic microplastics.
Though they’re comparatively rare, you can find “recycled plastic” pet waste bags on the market. They apparently cut down on virgin fossil fuels by recycling plastic that’s already been extracted. (Judge’s company, Pet Impact, sells its own poo bag made from recycled ocean plastic, oyster shell waste, and “about 25 to 30%” virgin fossil fuels).
Even 100% recycled materials have their problems.
But while recycled plastic sounds great, it has — you guessed it — its own complications.
“Chemical” or “advanced” plastic recycling is the current sweetheart of the oil and gas industry, despite evidence that recycling plastic isn’t nearly as good as it’s chalked up to be. For one thing, the process of converting old plastics into new plastics is incredibly emissions-intensive and thus requires the burning of fossil fuels to generate the required energy. The recycling process can also spew cancer-causing chemicals into the air that disproportionately poison low-income communities of color, like those in “Cancer Alley.”
This is a problem that stretches far beyond the humble poo bags: Hundreds of companies now sell everything from clothes to shoes to shampoo bottles on the boast that they’re made from recycled plastics. Yet “by feigning ‘recycling’ (really, downcycling) of plastic pollution, companies can divert attention from their role in perpetuating this crisis while pulling in profits,” stresses the advocacy group Plastic Pollution Coalition. Recycled plastic can be just another smokescreen when what’s really needed is a reduction of single-use plastics altogether.
But it was reducing single-use plastics that got me into this whole mess in the first place.
In March 2020, a month when nothing else of note was happening, New York City banned single-use carryout plastic bags, joining San Francisco and a number of other towns around the country. But like many pet owners, grocery store plastic bags had been our go-to litter scooping bags. As we became more conscious of single-use plastics in some parts of our lives, it led us to buy … a bunch of single-use plastics to use for our pets.
As the pandemic wore on, my husband and I eventually decided to fly across the country with Marinka and Virginia in order to be with our families. There, my stepmother introduced us to a revolutionary new poop bag. It didn’t require the extraction of any new fossil fuels, and while it doesn’t break down in a landfill, it also won’t poison any otters.
The name of this holy grail of poop bags? Trash.
Empty bread bags can become the perfect chutes for scoops of litter. Plastic packaging gets a second life as a final resting place for kitty unmentionables. Bags of dry cat food, once exhausted, can be refilled.
This isn’t a perfect solution, either (for example, “produce bags aren’t engineered to be particularly durable, nor to hold in liquids or odors,” Wirecutter warns with the confidence of experience). But if I’ve learned anything in this mad, scatological journey, it’s that there is no perfect solution. What satisfies one person’s environmental concerns — about greenhouse gas emissions, fossil fuel extraction, or waste and pollution — might not satisfy someone else’s. And at a certain point, you have to make a choice, and likely a compromise, and then move on to focusing on the things that make a bigger difference, like what you drive, where you get your power from, or what you eat.
All this is to say, the trash method works for me because it makes single-use plastics destined for the landfill anyway into twice-use plastics. And at least it allows me not to think about cat poop anymore.
I think I’ve done enough of that to last me a lifetime.
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On the cobalt conundrum, Madagascar’s mining mess, and Antarctica’s ‘Greenlandification’
Current conditions: Severe storms are sweeping through the central Great Plains states this weekend, whipping up winds of up to 75 miles per hour • Freezing temperatures are settling over Kazakhstan and Mongolia • A record heat wave in Australia is raising temperatures as high as 113 degrees Fahrenheit.
Nearly two dozen states signed onto two lawsuits Thursday to stop the Trump administration from ending the $7 billion grant program that funded solar panels in low-income communities. The first complaint, filed Wednesday, seeks monetary damages over the Environmental Protection Agency’s bid to eliminate the so-called Solar for All program. A second lawsuit, filed Thursday, seeks to reinstate the program. Arizona Attorney General Kris Mayes told Reuters the cancellation affected 900,000 low-income households nationwide, including some 11,000 in Arizona that the state expected to see a 20% spike in bills after losing access to the $156 million in funding from Solar for All. California would lose $250 million in funding. The litigation comes days after Harris County, which encompasses most of Houston, Texas, filed suit against the EPA over its own loss of $250 million due to the program’s termination. Earlier this month, a coalition of solar energy companies, labor unions, nonprofit groups, and homeowners also sued the EPA over the cancellation.
It remains to be seen whether other countries are willing to balk at the Trump administration’s push to gut key carbon-cutting policies. But at least in theory, later today, the drafting group for the International Maritime Organization, the United Nations agency overseeing global shipping, will vote on an emissions pricing mechanism meant to slash greenhouse gas output from an industry that still relies on some of the most heavily polluting fuels. The scheduled vote comes a day after President Donald Trump pressed the international body to reject the proposal, calling it “the Global Green New Scam Tax on Shipping” and vowing to ignore the rules.
The maritime shipping industry accounts for about 3% of global emissions. But the impact of shipping fuels is substantial. As Heatmap’s Robinson Meyer wrote in December, a study found that, when the IMO began enforcing rules to remove a toxic pollutant, sulfur dioxide from shipping fuels, the planet’s temperatures spiked. That’s because, in addition to inflaming the heart and lungs, triggering asthma attacks, and causing acid rain, sulfur dioxide can also reflect heat back into space, artificially cooling the Earth. When that fuel went away, the warming effects of all the carbon in the atmosphere became more apparent.
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A child worker at a cobalt mine in the Democratic Republic of the Congo. Michel Lunanga/Getty Images
The Department of Defense canceled a tender to buy cobalt, in what the trade publication Mining.com called “a fresh sign of the challenges facing Western countries trying to bolster domestic supplies of the battery metal.” In mid-August, the Defense Logistics Agency first sought offers for up to 7,500 tons of the bluish metal used in batteries and alloys for jet engines over the next five years, in a contract worth as much as $500 million. It was, according to Bloomberg, the U.S. government’s first attempt to acquire the metal since 1990. When no deals came in by the original due date of August 29, the offer was extended to October 15. But a notice published on a government website Wednesday indicated that the offer had been pulled. The move marks an apparent setback for the Pentagon’s effort to stockpile critical minerals, as I reported in this newsletter earlier this week.
While the funding doesn’t produce raw cobalt from mining, as I reported for Heatmap last month, the DLA has backed an Ohio-based startup called Xerion that’s commercializing a novel approach to processing both that metal and gallium, another mineral over which China has tightened export controls recently. It’s not alone. As Heatmap’s Katie Brigham wrote last month, “everybody wants to invest in critical mineral startups.”
The British rare earths processor Pensana has canceled plans for a refinery in East Yorkshire, England, in favor of investing in an American project instead. The company spent the past seven years developing a $268 million rare earths mine in Angola. One of the largest of its kind in the world, the project is scheduled to begin delivering raw materials in 2027. To turn that ore into industrial-grade materials, Pensana had planned to build a processing facility at the Saltend Chemicals Plant near Hull, England, that would have turned the metals into powerful magnets. The project won about $6.7 million in support from the British government. But Pensana’s founder and chairman, Paul Atherley, told the BBC that was “nowhere near enough.” He compared the deal to the Trump administration’s direct investment of billions of dollars into MP Materials, the country’s only rare earths mine. Pensana instead announced plans to work with the U.S. refiner ReElement to develop a domestic American supply chain, and plans to list its shares on the Nasdaq. As I wrote in Tuesday morning’s newsletter, the world’s top metals trader warned this week that the West’s mineral weakness is a lack of refining capacity, not mining. “Mining is not critical,” Trafigura CEO Richard Holtum said in London on Monday, according to Mining Journal. “True supply chain security comes from processing investment, not just extraction.”
But even the increased supply of ore from overseas projects could be in jeopardy. I have a scoop this morning in Heatmap that highlights the geopolitical challenges U.S. mining projects face overseas. On Sunday, following weeks of youth-led protests over electricity and water outages, Madagascar’s military overthrew its government in a coup. Now the new self-declared leaders have pulled support for Denver-based mining developer Energy Fuels’ plans for a giant mine that would produce rare earths, uranium, and other metals. The so-called Toliara mine, worth an estimated $2 billion, had won approval from the previous government last winter. But a consultant on the ground in Madagascar’s capital of Antananarivo told me the new leaders had “announced the definitive cancellation” of what was previously described as the future “crown jewel” of an economy where 75% of people live on less than $3 per day and less than 40% of the population has access to electricity.
As recently as the 1990s, the Greenland Ice Sheet and the Arctic were melting at a measurable pace thanks to global warming, but Antarctica’s ice cap seemed securely frozen. But, as Inside Climate News reported Thursday, “not anymore.” New satellite data and field observations show the only unpopulated continent is thawing at an alarming rate, leading to what some scientists are now calling the “Greenlandification” of Antarctica, turning it into an environment that’s melting at a rate closer to the Arctic.
There’s little question as to what is causing the meltdown. More than 100 countries now experience at least 10 more “hot days” per year than a decade ago, when the Paris climate accord was first drafted, according to new data analysis from the research groups Climate Central and World Weather Attribution published Thursday in the Financial Times. In 10 countries, the warming over the past decade added roughly a month of additional “hot days.”
The good climate news, reported by Bloomberg: the Bay Area startup Rondo Energy has turned on the world’s largest industrial heat battery, a giant cubic structure that heats clay bricks with electricity from a 20-megawatt solar array to generate steam.
The bad climate news? That steam is used to force more oil out of the ground as part of Holmes Western Oil Corp.’s enhanced oil recovery system.
The mitigating factors to consider: The battery replaced a natural gas-fired boiler at the Kern County, California, facility. And proponents of enhanced oil recovery say the approach meets lasting demand for petroleum by extracting more fuel from existing wells rather than encouraging new drilling.
Denver-based Energy Fuels was poised to move forward on the $2 billion project before the country's leadership upheaval.
As the Trump administration looks abroad for critical minerals deals, the drama threatening a major American mining megaproject in Madagascar may offer a surprising cautionary tale of how growing global instability can thwart Washington’s plans to rewire metal supply chains away from China.
Just days after the African nation’s military toppled the government in a coup following weeks of protests, the country’s new self-declared leaders have canceled Denver-based Energy Fuels’ mine, Heatmap has learned.
The so-called Toliara mine was supposed to be the “crown jewel” of one of the world’s least developed economies, a megaproject designed to patch Madagascar into a new global supply chain meant to reroute trade in metals needed for everything from state-of-the-art weapons to electric vehicle batteries away from China.
Last December, Energy Fuels, the Denver-based rare earths and uranium miner, won approval from the Malagasy government to move forward on its Toliara Project, a critical minerals mine with a value analysts estimated at $2 billion. But on Thursday morning, the new president of Madagascar’s National Assembly “announced the definitive cancellation” of the project, Luke Freeman, a geopolitical consultant with 25 years of experience in Madagascar, told me by email.
Kim Casey, Energy Fuels’ head of investor relations, dismissed the legitimacy of the coup leaders’ decision in an emailed statement. The company is “watching the events in Madagascar closely, and like the rest of the world we are waiting to see how things unfold,” the statement said.
“At this time, governing bodies and areas of responsibility in Madagascar remain unclear,” she went on. “Any statements made by any individual politicians or others amid this crisis have no legal effect, nor should they be taken to represent official Madagascar government policy or the opinions of the majority of local communities.”
Still, Casey left open the possibility that the mine could be postponed. If the coup “results in any delays in our development plans for the Toliara Project,” she said, “Energy Fuels has multiple projects around the world which are advancing at the same time.” Investors seemed less confident. The company’s stock, which had soared by nearly 500% over the past six months, plunged 8% on Wednesday, and another 13% on Thursday afternoon.
Even if the project goes under, it’s unlikely to impact U.S. mineral supplies, Neha Mukherjee, a rare earths analyst the London-based battery-metals consultancy Benchmark Mineral Intelligence, told me. The mine did not have any public offtakers yet, but Energy Fuels announced plans last year to send uranium ore from the project to the White Mesa Mill in Utah for processing.
“Toliara remains at a very early stage and is still working towards a final investment decision, so immediate on-ground impacts are likely to be limited,” she told me in an email. But she warned that “investors and potential offtakers” may “take a more cautious approach until there’s greater clarity on the political environment.”
It is no accident that, despite its unique culture that blends influences from Africa and Asia, Madagascar is a place known to many Americans primarily as the setting of a series of fictional movies about cartoon animals that aren’t even native to the island nation off southeast Africa. More than 75% of the island's 32 million people live on less than $3 per day, and poverty levels have barely declined over the past decade. Less than 40% of its people have access to electricity.
On Sunday, sweeping month-long youth protests over power and water outages, dubbed a “Generation Z revolution,” evolved into a more traditional type of insurrection when an elite arm of Madagascar’s military overthrew the government in what the African Union denounced as a coup.
The upheaval highlights the challenges ahead for U.S. companies as Washington attempts to reduce its dependency on China, which controls most of the world’s mining and processing of key metals such as rare earths and lithium.
The Biden administration sought to get around the issue by making minerals extracted from countries with which the U.S. had free trade agreements eligible for the Inflation Reduction Act’s most generous electric vehicle tax credits. That strategy put a particular focus on allies with vast mining industries, including Australia, Chile, and Canada.
While President Donald Trump has phased out the tax credits, his administration has tried to broker deals across the world with developing countries whose resources China has largely monopolized in recent years. In May, Trump signed a deal with Ukraine to secure revenues from its as-yet largely untapped minerals once the war with Russia ends — a precondition for his administration’s continued assistance in the effort to repel the Kremlin’s invasion. A month later, Trump negotiated a peace deal between the Democratic Republic of the Congo and Rwanda, pausing a bloody conflict and setting the stage for the U.S. to secure new contracts for raw materials in the war-torn but resource-rich part of central Africa.
The administration’s ongoing pressure on Denmark to cede its autonomous territory of Greenland to the U.S. is widely considered a play for the Arctic island’s minerals. Earlier this month, Reuters reported that the administration is considering buying a stake in Critical Metals, a company prospecting for rare earths in Greenland.
Washington’s appetite for critical minerals could even redraw world maps in the next few years.
Under the terms of a peace agreement that ended a decade-long civil war in the 1980s, Bougainville, a breakaway island off Papua New Guinea, is slated to hold a referendum in 2027 over whether to become an independent nation. Polls suggest the overwhelming majority of voters will support secession. In the U.S., a former investment banker turned novelist named John D. Kuhns has taken up the cause of Bougainville’s independence, advocating that Washington support the would-be republic whose biggest economic asset is a shuttered Rio Tinto copper mine that the autonomous government wants to reopen — potentially with U.S. help.
Trump is also weighing recognizing the breakaway region of Somalia’s independence as Somaliland, which has functioned as a sovereign nation with an internationally praised democracy for more than three decades, in a bid to secure deals to mine its mineral riches. Senator Ted Cruz, the Texas Republican, called on Trump to grant Somaliland recognition as recently as August.
But the most promising potential region for critical minerals may be the one sandwiched between America’s two greatest rivals. In September 2013, then-President Joe Biden huddled with the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan on the sidelines of the United Nations General Assembly in New York. From that summit came the C5+1, a partnership between the U.S. and the five Central Asian nations to work on critical minerals. Weeks after Trump returned to office, Secretary of State Marco Rubio affirmed the Trump administration’s support for the partnership in a call with his Uzbek counterpart.
After Australia and Canada, the Central Asian republics represent the “lowest-hanging fruit” for developing a U.S. critical mineral supply chain, said Pini Althaus, a veteran mining executive making deals in the region. The countries are relatively stable, have recently enacted business reforms meant to invite U.S. companies to work there, and — as a means of safeguarding their independence from Moscow and Beijing — are eager to make deals with the U.S., he said.
“We are at least a couple of decades away from having a domestic supply chain in the United States that can meet all of our critical mineral needs,” Althaus told me. “Practically speaking, we don’t have enough of these materials in the U.S., so we must partner with allied countries. Central Asia offers a lot of these opportunities.”
These days, however, political instability isn’t unique to developing countries. The Trump administration is supposed to host a meeting of the C5+1 in Washington as early as next month, Althaus said — that is, if the ongoing government shutdown is resolved.
In a press conference about the newly recast program’s first loan guarantee, Energy Secretary Chris Wright teased his project finance philosophy.
Energy Secretary Chris Wright on Thursday announced a $1.6 billion loan guarantee for American Electric Power to replace 5,000 miles of transmission lines with more advanced wires that can carry more electricity. He also hinted at his vision for how the Trump administration could recast the role of the department's Loan Programs Office in the years to come.
The LPO actually announced that it had finalized an agreement, conditionally made in January under the Biden administration, to back AEP’s plan. The loan guarantee will enable AEP to secure lower-cost financing for the project, for an eventual estimated saving to energy consumers of $275 million over the lifetime of the loan.
“These are the kind of projects where we’re going to partner with businesses to make our energy system more efficient, more reliable, ultimately lower cost,” Wright said on a call with reporters.
And yet in the past few months, the department has also canceled loan guarantees and grants for other transmission projects that were expected to provide those same benefits — including the Grain Belt Express, an 800-mile line set to bring low-cost wind power from Kansas to the Chicago metropolitan area in Illinois.
“We don’t care about authorship,” Wright told reporters, acknowledging that the AEP loan was conditionally approved by the Biden administration. “Not all of them were nonsense. The ones that are in the interest of the American taxpayers, in the interest of the American ratepayers, and there’s a helpful role for government capital — we’re happy to support those.”
When asked specifically why AEP’s proposal met his criteria while the Grain Belt Express didn’t, Wright first made an argument about cost. “I have nothing against the Grain Belt Express,” he said. “I suspect it’ll still be developed. But it’s far more expensive on a per mile basis since it’s a brand new transmission line.”
His subsequent comments, however, hinted at a more significant shift in approach. He went on to argue that the project came with an unacceptable amount of risk since the developers didn’t have buyers yet for the power coming down the line. It was trying to “close on arbitrage,” he said, by buying up cheap wind power that was stranded in Kansas and bringing it to a larger market. “It’s a more commercial enterprise,” he said. “That’s done with private entrepreneurs and private capital.”
It’s important to note that the Grain Belt Express loan guarantee would have been issued under an innovation-focused program within the Loan Programs Office that was specifically geared toward higher risk projects that banks won’t otherwise touch. The AEP project is part of a different program focused on more mature technologies, with a goal of reducing the cost of major utility infrastructure upgrades to ratepayers.
When I floated Wright’s comments by Jigar Shah, the former head of the Loan Programs Office under the Biden administration, he was flummoxed. “It’s nonsensical,” he said. To Shah, taking Wright’s risk aversion to its logical conclusion would mean, for instance, that the office should not fund any nuclear energy projects. “If this becomes a new standard, that means nuclear is dead in the United States,” he said.
AEP is the first developer to secure a loan guarantee under the Energy Dominance Financing Program, Congress’ new name a Biden-era program within LPO that offered loan guarantees to utilities to “retool, repower, repurpose, or replace energy infrastructure.” Initially called the Energy Infrastructure Reinvestment Financing Program and created by the Inflation Reduction Act, it focused on projects with climate benefits, like making efficiency upgrades to power plants or installing renewables on the site of a former coal plant.
In the Biden administration’s view, AEP’s project would “contribute to emissions reductions by supporting existing and new clean generation by expanding transmission capacity in the regions in which they operate.”
Trump’s One Big Beautiful Bill Act rebranded the program and removed any requirements that projects reduce emissions. On Thursday’s call, Wright seemed to imply that it wasn’t just the Biden-era loan program that had been renamed. “The Loan Program Office is being rechristened the Energy Dominant Financing — it is the rechristening of the same department,” he said in response to a question about the office’s remaining loan authority. The Department of Energy did not respond to my request for clarification.
None of that means that the potential emissions benefits from AEP’s project won’t materialize. Limited transmission capacity is one of the biggest obstacles for bringing new wind and solar power online, and reconductoring could also reduce line losses, making the overall grid more efficient.
The transmission project — which includes plans to rebuild some power lines and reconductor others — will ultimately increase capacity by more than 100%, a spokesperson for AEP told me. The first phase will involve upgrades to about 100 miles of wires across Ohio and Oklahoma, while future phases will tackle lines in Indiana, Michigan, and West Virginia, with the intent of meeting growing demand from data centers and manufacturing development, according to a press release.
When reporters asked Wright about the other conditional loan guarantees the Biden administration had issued under the Energy Infrastructure Reinvestment program that are still pending, the secretary stressed that he was looking for applicants that had identified a clear set of projects they would implement. “Many were done in a hurry, without really even having the projects that the loans would be associated with identified. You can end up with a grab bag of projects without a lot of say for where the money went,” he said.
Wright accused the Biden administration of failing to ask applicants to detail the impact the projects would have on taxpayers and ratepayers — a key question his colleagues are now asking.
Shah disagreed with that portrayal. The whole point of the program was to reduce interest rates for utilities and require them to pass on the benefit to ratepayers. All of the projects awarded conditional commitments met that bar, he said.
He warned that if the Trump administration didn’t honor the remaining conditional commitments to utilities under the program — all 10 of them — it risked losing the trust of any new companies it attempts to make similar deals with.
“Most of the nuclear projects that they’re looking to chase are not going to get closed until 2028. And so what signal are they sending? That projects that get approved in the last year of an administration are not going to be honored in the next administration?”