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Climate

The LNG Lawsuit Everyone Saw Coming

On Biden’s big legal challenge, the Ukraine war, and sea levels

Briefing image.
The WMO Just Issued a Climate ‘Red Alert’
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Current conditions: The air quality in Birmingham, Alabama, is “moderate” due to smoke from planned fires • Tourists in drought-stricken Barcelona are being asked to conserve water • It’s 103 degrees Fahrenheit in South Sudan. Tomorrow will be even hotter.

THE TOP FIVE

1. 16 states sue Biden administration over LNG pause

Sixteen Republican-led states are suing the Biden administration over its pause on approvals for new liquified natural gas export terminals. The White House announced the pause in January, saying it wanted the Energy Department to first study the effect LNG projects have on the climate. The lawsuit claims this move was illegal and that there should have been a regulatory process giving key stakeholders a voice in the final decision. The U.S. is the biggest exporter of LNG in the world. Gas is “cleaner” to burn than coal, but the emissions footprint of transporting LNG is potentially massive, which is why climate activists celebrated the pause. But the decision was slammed by the fossil fuel industry and some advocates who say gas is “crucial for discouraging coal use in developing nations,” Bloomberg explained, adding: “The White House’s move struck at the heart of the debate over the future of energy.”

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  • 2. White House tells Ukraine to stop targeting Russian oil refineries

    Washington has told Ukraine to stop targeting Russia’s energy infrastructure because its attacks could cause global oil prices to rise and push the Kremlin to retaliate, the Financial Times reported. A military intelligence official told the paper that there have been at least 12 attacks on Russian oil refineries since 2022, nine of which occurred this year. There have also been attacks on terminals and storage infrastructure. “Russia remains one of the world’s most important energy exporters despite western sanctions on its oil and gas sector,” the FT said. Gas prices have risen almost 15% already this year, putting pressure on President Biden leading into the November election.

    3. NASA: Sea levels saw ‘relatively large jump’ last year

    The global average sea level rose by about 0.3 inches between 2022 and 2023, according to NASA. This is a “relatively large jump,” the agency said, driven by climate change and El Niño. Since 1993, the global average sea level has risen by 4 inches and the rate of rise is accelerating. In 1993, sea levels rose by about .07 inches per year.

    NASA

    “Current rates of acceleration mean that we are on track to add another 20 centimeters [nearly 8 inches] of global mean sea level by 2050, doubling the amount of change in the next three decades compared to the previous 100 years and increasing the frequency and impacts of floods across the world,” said Nadya Vinogradova Shiffer, director for the NASA sea level change team and the ocean physics program in Washington.

    4. Countries pledge to double down on nuclear energy expansion

    A group of 35 countries have pledged to “work to fully unlock the potential of nuclear energy” in the quest for energy security and emissions reductions. The relatively vague commitment, cosigned by the U.S., China, Britain, and Saudi Arabia, emerged from the first-ever Nuclear Energy Summit in Brussels yesterday. It says countries will help extend the lives of existing nuclear reactors, construct new ones, and support deployment of advanced reactors. “Generating electricity using nuclear fission remains a divisive issue that cuts across partisan lines,” wrote Nicole Pollack at Heatmap. Some environmental groups see the risk of nuclear disasters as too high, while others see it as a reliable low-carbon energy resource that’s available to us right now. “Without the support of nuclear power, we have no chance to reach our climate targets on time,” said International Energy Agency chief Fatih Birol.

    5. Biden administration to award $6.3 billion for projects to decarbonize heavy industries

    In the coming days, the Biden administration is expected to announce which projects will receive a cut of some $6.3 billion in funding to help decarbonize the U.S. industrial sector, Bloomberg reported. Heavy industry contributes nearly one third of the nation’s primary energy-related carbon dioxide, according to the Department of Energy, so slashing emissions here without hurting the economy is a priority. The Industrial Demonstrations Program aims to kickstart the process by focusing on the big emitters, like iron, steel, cement and concrete, chemicals, food and drink, aluminum, and paper products. “We hear every day about industrial companies that are interested in decarbonizing their plants, but the initial costs can be daunting,” Nora Esram, a senior director for research with the American Council for an Energy-Efficient Economy nonprofit, told Bloomberg. “The federal funds are geared to enable them to invest in new technologies to cut emissions while supporting community development.” The announcement could come as soon as Monday.

    THE KICKER

    New York’s JFK airport is getting a large EV charging station that will be open to the public 24/7.

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    Ideas

    How to Fix the Fastest-Rising Electricity Prices in the U.S.

    A group of energy researchers have a three-part prescription for Washington, D.C.’s exploding energy costs.

    Washington, DC.
    Heatmap Illustration/Getty Images

    Washington, D.C. has earned an unwelcome distinction: the largest one-year electricity price increase of any state (or equivalent geographic distinction) in the U.S. Prices there are up 87% over the past five years and 26% in the past year alone, according to new data from MIT and Heatmap News’ Electricity Price Hub. The average D.C. household is now paying $55 more for power each month than it did five years ago.

    In the face of this crisis, local officials have done little but blame regional markets, emphasizing the parts of recent rate increases they don’t fully control — generation charges — rather than any proactive measures they could take to offer relief to D.C. households. Meanwhile Exelon, the parent company for Pepco, D.C.’s local utility, has used the crisis to lobby state policymakers across the region for something worse — a return to utility-owned generation, which could leave consumers holding the bag for projects that run over budget or that are built for demand that never materializes.

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    Blue
    Climate Tech

    Funding Friday: Of Stellarators and SPACs

    On Thea Energy’s $100 million Series B, plus more of the week’s big money moves.

    Thea Energy.
    Heatmap Illustration/Getty Images, Thea Energy

    Nuclear is once again a dominant theme this week, with fusion startup Thea Energy landing a $100 million Series B that will help it expand its magnet manufacturing capabilities. While $100 million is nothing to scoff at, it somehow sounds modest alongside some of this year’s other deals, which include a $450 million Series A for Inertia Enterprises and $240 million for Shine Technologies. This week also brought the news that small modular reactor startup Newcleo plans to go public via SPAC later this year, bringing to mind the exuberance of the 2021 SPAC boom, in a deal expected to net a cool $429 million.

    Elsewhere, gridtech company Utilidata raised fresh capital after (surprise!) pivoting to the data center market, while a standalone battery storage developer and operator is betting there’s still plenty of money to be made in the increasingly crowded ERCOT market.

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    Green
    Spotlight

    Democrats’ Growing Divide Over Data Centers

    It’s pause vs pause-nots.

    Data center protests.
    Heatmap Illustration/Getty Images

    The American climate movement is beginning to look a lot like AI doomers versus the techno-optimists. It’s a dynamic that is winning local bans – and very little else for now.

    On one side, you’ve got the left-leaning insurgent grassroots movement against data centers. In many cases this push is in the name of climate action and environmental justice, with activists citing the risks of pollution from gas-fired power and the potential for strain on existing electricity supplies. But in many, many other cases, this movement is decidedly not about climate action; instead it’s a movement addressing everything from energy prices and power over large corporations to AI use generally.

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