You’ve reached your free article limit
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Your guide to the important races from Alaska to Arizona and everywhere in between.

In 2015, just one state had a goal of reaching 100% clean energy; today, over half the American population lives in states that do. That progress is thanks in large part to voters, who’ve prioritized electing candidates that support renewable energy, electric vehicles, climate justice, and other green policies.
And who’s making those policies? The people at the bottom of the ticket — candidates for the kind of local and state-level offices that do most of the nitty-gritty climate policymaking in this country. Here is a representative, albeit far from exhaustive, list of eight I’ll be keeping my eye on this year.
Who’s running: There are 10 candidates in Anchorage’s nonpartisan mayoral election, but the ones you need to know are Republican incumbent Mayor David Bronson; Democratic Party-endorsed Suzanne LaFrance, who helped pass the city’s Climate Action Plan while in the State Assembly; former state legislator and Democratic Party-endorsed Chris Tuck; and the Republican Party-endorsed former president and CEO of the Anchorage Economic Development Corporation Bill Popp.
State of the race: Bronson led with 35% of the vote in polls a month out from election day on April 2, but that wouldn’t put him over the 45% hump he needs to win without a runoff. LaFrance holds around 25% of the potential vote, and experts say she’d likely beat Bronson if it goes to a runoff.
Why it matters: Southcentral Alaska, home to half the state’s population, gets most of its energy from wells owned by Hilcorp in Cook Inlet. Hilcorp, however, has warned that it won’t commit to signing new contracts, which begin to expire next year, due to natural gas shortages. Mayors in the region, including Anchorage’s Bronson, recently formed a coalition to address the looming energy crisis, with solutions ranging from importing liquified natural gas from out of state, abroad, or Alaska’s North Slope 800 miles away; to new drilling (Bronson’s proposal); to finding an “alternative” source of energy (LaFrance’s stance). Whatever way you cut it, though, the next mayor of Anchorage is likely to have an outsized role in determining the state’s energy future, with organizations like The Alaska Center, which advocates for renewable energy, and Lead Locally, which champions climate leaders, rallying behind LaFrance.
Who’s running: Democratic Representative Ruben Gallego and “MAGA darling” Kari Lake are fighting for outgoing Independent Senator Kyrsten Sinema’s seat.
State of the race: It’s a true toss-up, although early polls show Gallego with the edge.
Why it matters: Sinema’s replacement could determine which party controls the Senate once the dust settles on November 5. In one corner is Lake, who has blamed heat-related deaths in the state on meth and, while “not opposed to some of the green energy,” has said she’d block renewable mandates. Gallego, by contrast, is endorsed by the League of Conservation Voters Action Fund in part for having paid special attention to public lands and waters and clean energy jobs while in Congress. He also co-sponsored the CHIPS and Science Act.
What it is: The Salt River Project is the biggest public power company in the country by generation, serving the Phoenix metropolitan area. Its board and council are chosen through a confusing and dubiously democratic “acreage-based voting system” on the first Tuesday in April in even-numbered years.
State of the race: A coalition of 14 clean energy candidates is attempting to flip the SRP board and council to make it more solar-friendly. However, only half of SRP’s customers are eligible to cast a vote — renters, for example, are not allowed — and less than 1% of those who are eligible actually do.
Why it matters: Currently, less than 4% of SRP’s energy comes from solar, compared to almost 10% for other local utilities. Incumbents on the council and board — some of whom have had SRP seats in their families for more than a century — have voted to keep using coal and penalized rooftop solar, with six-time elected official Stephen Williams telling the local NBC affiliate that the “sun doesn’t shine at night” — which, while true, does not typically prohibit solar energy from being generated during the daytime. In addition to pushing for more solar, the Clean Energy candidates also want to protect the local watershed, an issue likely to become increasingly critical in the heat-baked state.
What it is: A vote on whether or not to overturn Senate Bill 1137, which prohibits new oil and gas wells from being built within a half-mile of homes, schools, nursing homes, jails, and hospitals, and requires additional safety measures like leak detection.
State of the race: Big-money campaigns have killed progressive bills in California before, and the oil industry is poised to dump a lot more money into defeating the regulations. The campaign to overturn Senate Bill 1137 has already spent $20 million, while California’s Democratic Governor Gavin Newsom and Jane Fonda have rallied to support the bill.
Why it matters: The California referendum is set to be one of a handful of cases of voters deciding directly on legislation related to oil, gas, and emissions this November. Oil interests are already tailoring their arguments to sway California’s liberal constituency, arguing that the law’s limits are arbitrary and that it will be worse for the environment in the long run by forcing the state to import oil from places with less stringent regulations. Proponents of the bill, however, say it is a cut-and-dry case of environmental justice, given that many of the more than 2 million Californians who live within a mile of an oil or gas well in the state are people of color. That hasn’t stopped oil interests from undertaking some confusing shenanigans, even as some experts say gas interests just want the referendum to cause a delay “until they figure out what they’re going to do next.”
Who’s running: Former Democratic State Senator Curtis Hertel Jr., who is endorsed by the LCV, is running against former Republican State Senator Tom Barrett.
State of the race: The Cook Political Report has called Michigan’s 7th district, representing Lansing and the surrounding area, “the most competitive open seat in the country.”
Why it matters: “Climate won the Michigan midterms,” the Sierra Club wrote in 2022 after voters elected a “pro-environment majority” to the state legislature. Having control of both chambers allowed Democratic Governor Gretchen Whitmer to make speedy and impressive progress on the energy transition locally, while at the national level, Democrats took seven of the state’s 13 House seats. The advantages are slim, though, and going into November, Congressional Democrats face threats in MI-03, MI-08, and most notably, MI-07, which Democratic Congresswoman Elissa Slotkin has vacated to run for Senate. Notably, Democrats need to win five more House districts nationally to regain control of the chamber, which means every close district race is essential. It’s important locally, too; the race for Slotkin’s open seat is among the most competitive in the country, and green groups have hit Barrett for his poor environmental voting record and opposition to clean energy jobs.
Who’s running: Incumbent Democrat Jon Tester will face the winner of the Republican primary — likely former Montana Secretary of State and Public Service Commission Chair Brad Johnson, a Libertarian, or ex-Navy SEAL and entrepreneur Tim Sheehy, who was endorsed by Trump as an “American hero.”
State of the race: It’ll be a nail-biter. Tester “will likely have to convince one out of every six Trump voters to cross over for him” on a split ballot in November, RealClearPolitics notes. Still, polls show the Democrat with an early edge in potential Republican match-ups.
Why it matters: Unlike Arizona, which has turned purple in the last two elections, Montana is still a solidly conservative state, which Trump won by more than 16 points in 2020. At the same time, Montana is becoming a “must-watch climate battleground,” balanced between its cheap and ample supply of coal and its deep-rooted pride in its natural landscape. But while Tester’s environmental record isn’t perfect, the opposition looks much worse: Johnson has scaremongered about the reliability of renewable energy and EVs stressing the grid, while Sheehy quietly deleted references to sustainability and climate change from the website for his aerial firefighting company, seemingly to boost his credibility with MAGA voters.
Who’s running: North Carolina’s Democratic Attorney General Josh Stein will face the state’s Republican Lieutenant Governor, Mark K. Robinson.
State of the race: Either a toss-up or a slight lean Democratic, depending on who you ask. Early polls show Stein and Robinson neck and neck.
Why it matters: When I spoke to LCV’s senior vice president of campaigns, Pete Maysmith, he cited the North Carolina race as one of the advocacy group’s top 2024 priorities. Term-limited outgoing Democratic Governor Roy Cooper had long been an ally of green policymakers, setting strong EV goals for the state and making a (thwarted) push for offshore wind. Stein has vowed to keep up his predecessor’s work. Robinson, on the other hand, is one of the most flagrant deniers of climate change on any 2024 ballot: He’s called climate research “junk science” and misleadingly alleged there are “more polar bears on Earth now than ever.” Electing Stein wouldn’t just keep a climate denier out of office; with Cooper’s seat, Republicans could seize a trifecta in the state if, as expected, they keep control of the House and Senate. With no remaining opposition, they could start rolling back more of Cooper’s work.
Who’s running: There are currently 13 candidates in the nonpartisan primary for outgoing Governor Jay Inslee’s seat, but leading the polls are Attorney General Bob Ferguson, a Democrat endorsed by Inslee; moderate Democratic State Senator Mark Mullet; former moderate Republican Representative Dave Reichert; and former Richland school board member Semi Bird, the first Black Republican to run for governor in the state.
State of the race: Likely Democrat; the state last elected a Republican governor in 1985. Still, a November poll that pitted Ferguson against Reichert showed the Republican with a 2-point lead over his opponent.
Why it matters: Inslee’s apparent departure from politics will leave a gaping hole not just in the state’s climate leadership but also in the nation’s — as governor, Inslee made Washington an example for other states with its aggressive clean energy goals, phase-out of new gas-powered cars and trucks, heat pump requirement for new buildings, and local Climate Corps. That progressive trajectory is under threat from Republicans, who’ve successfully gathered signatures for potential initiatives that would chip away at “radical” policies like the state’s cap-and-invest program — a repeal of which both Reichert and Bird support. But Washington’s governor race could be consequential even if a Democrat wins. While Ferguson has called “climate change” a top priority and under Inslee opposed building a methane gas pipeline through the state, Mullet has taken a somewhat more moderate stance, expressing concerns about gas “affordability” for families.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Spoiler: They’re mostly winners.
There’s seemingly plenty to celebrate in the Senate’s new 400-plus-page permitting reform bill, the Bipartisan American Affordability and Jobs Act, or BAAJA. The headline benefit — and the one drawing the most praise from energy hawks — is that expediting the buildout of energy infrastructure and transmission lines ought to bring tons more zero-carbon energy online. No doubt it will speed up fossil fuel projects as well, but modeling shows that renewables like wind and solar are disproportionately held back by the notoriously contentious and slow planning and permitting processes the bill seeks to overhaul.
Old-school renewables aren’t the only technologies that stand to benefit from BAAJA, however.
Here are four more climate tech sectors — and the startups working in them — that are probably pretty happy to see that, after four years of debate and countless failed negotiations, a permitting bill finally appears poised to become law.
No surprises here: It’s well known at this point that geothermal is a beloved bipartisan technology, and BAAJA affirms the government’s commitment to bringing more of this clean, firm energy source online as soon as possible.
The bill would categorically exclude drilling exploratory geothermal test wells from review under the National Environmental Policy Act, and exempt lower-impact activities such as mapping and surface surveying from NEPA entirely. It would also require the Interior Department to hold annual geothermal lease sales, and drop the federal drilling permit requirement for geothermal exploration on non-federal land, so long as the government owns less than half of the underground resource.
Next-generation geothermal companies such as Fervo Energy, Sage Geosystems, Mazama Energy, and Quaise Energy stand to benefit, of course, as finding viable sites to trial their tech and build early commercial projects requires plenty of mapping and exploratory drilling. This cohort aims to expand geothermal beyond the relatively small number of geographies with the ideal combination of high heat at shallow depths, naturally occurring subsurface water or steam, and permeable rock that conventional geothermal power plants rely on. But a company like Zanskar, which uses AI to identify overlooked conventional geothermal resources, stands to benefit, too — its approach also depends on scouting and drilling across many sites.
BAAJA is intent on advancing tech that can squeeze more capacity out of the transmission lines we already have. The bill requires utilities to conduct recurring evaluations on technologies that could increase the capacity of existing transmission infrastructure, such as higher-capacity replacement wires or monitoring systems that determine when the lines can safely carry more power. Investor-owned utilities have historically had little incentive to adopt any of this, since they earn money by building new infrastructure, not by making existing infrastructure more efficient. Now, that math could change. If the evaluations find this tech will provide net benefits, utilities are required to deploy it within a certain timeframe, lest the Federal Energy Regulatory Commission impose penalties.
That’s welcome news for dynamic line rating startups such as LineVision and Heimdall Power, which use sensors to monitor power lines in real time to determine when they’re capable of carrying more electricity than their fixed ratings allow. Companies building higher-capacity lines are also likely to see more business. This includes TS Conductor, which makes a carbon-fiber core wire that it says can double or even triple a line’s capacity, and VEIR, which originally aimed to build “high-temperature superconducting transmission lines,” though it recently pivoted to data center power solutions. Startups like NewGrid, whose software finds ways to avoid congested lines and route more electricity through the existing grid, could benefit, too.
The bill also opens doors for virtual power plants, networks of distributed energy resources such as rooftop solar panels, batteries, smart thermostats, and electric vehicle chargers that operate like a single power plant, responding to spikes in energy demand or shifting load to off-peak hours. Like grid-enhancing technologies, VPPs can reduce the need for new poles, wires, and power plants by making better use of the energy resources already installed in homes and businesses. And they also include an added perk: They pay these customers for adjusting their energy use when the grid needs it.
While FERC ordered grid operators to open their markets to these aggregators in 2020, implementation has dragged. BAAJA would speed things up by requiring operators to allow VPPs into their markets within 18 months of the bill’s passage and setting a low, 100-kilowatt threshold for device networks to be considered VPP-eligible. It would also require utilities to connect VPPs quickly and allow them to export power, while barring utilities from requiring aggregators to install the utilities’ own equipment like separate submeters and switches, which adds delays and added costs for hardware and installation. Separately, the bill directs the Department of Energy to fund efforts to streamline local government permitting and inspections for distributed energy resources like rooftop solar and batteries.
This is a boon for aggregators including Voltus, Renew Home, and David Energy, which sell grid services like demand response, capacity, and frequency regulation into utility programs and wholesale markets. Under this bill, they could do so more easily thanks to guaranteed market access and lower entry thresholds.
VPP software platforms like Leap could benefit, too. Leap helps manufacturers of devices such as smart thermostats and EV chargers enroll customers in VPP programs, so fewer utility equipment requirements and what will presumably be a much bigger addressable market would help. Home battery companies such as Lunar Energy and Base Power, which aggregate their residential batteries into VPPs, and smart panel-maker Span, which coordinates home appliances to respond to grid needs, could see similar benefits.
Hard rock mining is also among the bill’s clear winners. It clarifies that miners can use as much federal land as is “reasonably necessary” to store waste rock and tailings, and opens additional federal land for hard-rock mining leases. It also requires lawsuits challenging mining approvals to be filed within 150 days. Broader changes to NEPA, the National Historic Preservation Act, and the Clean Water Act will also accelerate the mining approval process.
This will undoubtedly be controversial for many climate advocates; while the energy transition demands more critical minerals, mining itself is a dirty endeavor. Yet there are a number of climate tech-adjacent companies focused on extracting, refining, and processing materials like lithium, nickel, cobalt and copper that stand to benefit.
One of the buzziest startups trying to develop new critical minerals mines, AI-driven exploration and development company KoBold Metals, is mainly working abroad right now. But a more favorable domestic environment could prove an enticement to invest more at home. Mariana Minerals, a software-driven developer working to bring mines online faster and cheaper, definitely stands to benefit given its current domestic focus. So could startups like Jetti and Endolith, which are developing technology to extract more copper from low-grade ores. Both work with existing mines, so could stand to profit from a domestic mining boom.
Of course not everyone will win here. For the horde of climate-tech adjacent startups trying to jump on the data center bandwagon — perhaps those working on chip cooling or capturing and recycling the waste heat from data center servers — maybe the added costs this bill imposes on data centers will reduce demand for their services just a bit. But I wouldn’t count on that. The bill certainly won’t stop the buildout so much as change who pays for some of the infrastructure required to serve it, shifting the cost of new power lines and grid upgrades from ratepayers onto the tech giants and developers themselves.
Then there are the myriad software startups such as Nira Energy, Paces, and Piq Energy that help energy developers navigate the grid interconnection process. Since the bill requires regional grids to streamline their queues, this could reduce demand for their services. But developers will still need to know where the grid has room and where projects pencil out, and utilities and grid operators will have to rebuild their interconnection processes, a transition that could generate demand for software of this sort.
There’s also just an array of climate industries that go largely unaddressed. While the Inflation Reduction Act offered incentives for practically every decarbonization technology under the sun, this bill is far more targeted, leaving sectors such as EV manufacturing, industrial decarbonization products like clean cement and steel, agricultural technologies, and methane abatement relatively untouched.
Carbon capture and removal projects, EV charging, and hydrogen get only minor nods: protection from administrative delays for carbon management projects and DOE funding to help local governments expedite permitting for EV chargers and hydrogen refueling stations. All of these industries could still benefit when building manufacturing plants or other facilities that need federal sign offs. But they could also lose ground if speedier approvals for fossil fuel infrastructure make cleaner alternatives less competitive.
On Korean reactors, California plug-in solar, and Europe’s green steel champion
Current conditions: Floodwaters from the remnants of Hurricane Polo breached a 20-foot dam in southern New Mexico, forcing evacuations • The Pacific’s active hurricane season continues as Hurricane Rachel threatens dangerous rip tides off Baja California • Further north in the Pacific, Tropical Storm Choi-wan is headed toward the Northern Mariana Islands.
It’s 417 pages — or, for those of you who think in such terms, roughly two-and-a-three-quarters the length of a standard environmental impact statement. And it the landed yesterday with much fanfare. The Senate’s grand compromise on permitting reform, dubbed the Bipartisan American Affordability and Jobs Act, or BAAJA, is packed with sweeping changes that promise to upend how data centers are built, whether transmission lines get constructed at all, and speed up deployments of all kinds of energy infrastructure. My colleagues — there are five bylines on this sucker, if you have any doubt about how seriously Heatmap is taking this — have a dense and comprehensive explainer here.
Whether the bill becomes law is another question. Already, House Democrats are casting doubt over whether they will vote for the legislation during the lame-duck session after Republicans likely lose control of at least the lower chamber of Congress in November’s midterm elections. “Most Democrats will want to see how things go on Nov. 3 and then do a reality check,” Representative Jared Huffman, a California Democrat, told Bloomberg reporter Ari Natter. “If we’re on our way to a majority in one or both Houses, it makes no sense to fold our hand when we could wait a few months and have a much better deal early next year.” Any hope of brokering a deal to vote on the bill before the election seems unlikely. A GOP source told me “there is no way” House Speaker Mike Johnson, the Louisiana Republican, “will call back people from the campaign trail to vote on this in the House.” So it may be too soon to turn the acronym into a name. But my humble suggestion is to pronounce BAAJA as BAH-zhuh, which sounds like Basha, my late grandmother’s name. I can only assume the rest of you are equally moved by that association.
South Korea is the only country in the democratic world with a strong, recent track record of building nuclear reactors competently and on time. Seoul’s state nuclear giant is also bound by a settlement with America’s flagship nuclear company, Westinghouse, which accused Korea Hydro & Nuclear Power of ripping off the design of the U.S. reactor, the AP1000. As a result, the Koreans can’t build their own reactors in North America or Europe. But in a bid to stave off President Donald Trump’s tariffs, South Korea has agreed to spend $200 billion on U.S. energy projects. That includes an investment into Alaska LNG, a major liquified natural gas terminal, a gas-fired station in Texas, and eight nuclear reactors, according to Bloomberg and Politico. The deal is the culmination of talks ongoing since the spring, as I previously reported, and comes amid swirling rumors in the South Korean press over whether Seoul could secure a stake in Westinghouse if the American company makes a debut on the stock market. In a statement, the Canadian uranium giant Cameco, which owns 49% of Westinghouse, said the eight reactors in the Korean deal “contemplates” the construction of as many as six new AP1000s and up to two Korean APR1400 reactors. Still, the company emphasized that it was focused on the Department of Energy’s condition loan commitment to finance AP1000 components for any joint venture between Westinghouse and a utility building one of its reactors. But it said that, if both the American and Korean reactors can be built successfully, “both technologies are expected to be deployed on federal sites designated” by the U.S. government, “beginning with the deployment of two AP1000 reactors.”
It’s unclear when the South Korean money will flow into actual projects on the ground. But New York is putting up dollars. On Tuesday, New York Governor Kathy Hochul awarded another $10 million to the New York Power Authority to support workforce development programs in a bid to train more people to staff the nuclear power stations her administration has tasked the state utility with financing. “Advanced nuclear is a cornerstone of my all-of-the-above strategy to keep the lights on and costs down for New Yorkers,” Hochul said in a statement. “The $10 million in funding approved today by the NYPA board will help ensure New York’s advanced nuclear future will be built by and for New Yorkers and also re-energize an industry that will create thousands of high-quality jobs while complementing our nation-leading efforts on wind and solar.” Canada, meanwhile, is upping its ambition. Saskatchewan’s provincial government announced plans this week to build at least two large-scale reactors by the early 2040s, NucNet reported.
When Secretary of Energy Chris Wright sat down with my colleague Robinson Meyer last week, he said he doubted the Trump administration would impose a temporary ban on exporting diesel amid record-high prices. But the Financial Times reported Wednesday that the White House was holding “crisis talks” to determine whether the move was merited. Experts have cautioned that it could lower diesel prices in the U.S. slightly, but would send prices soaring in Europe.
Russia, meanwhile, just renewed its ban on diesel exports, blunting both the effects of the global market chaos and the profits the Kremlin could be yielding given its rising crude exports, Bloomberg reported.
Sign up to receive Heatmap AM in your inbox every morning:
California Governor Gavin Newsom signed a series of bills Wednesday that clear the way for more homeowners in the state to slash their electricity costs and personal carbon footprints. Under one new law, utilities will offer a voluntary incentive to electrify homes whenever the pipe connecting a home to a gas main line is due for replacement. Under another, homeowners and even renters will be able to install plug-in solar panels that can generate small amounts of electricity on roofs or balconies.
As grows a market in the nation’s most populous state, so goes the country. The so-called balcony solar bill in particular is expected to supercharge the market, making cheap, personal solar panels more widely accessible. As my colleague Katie Brigham wrote last year, plug-in solar is popular in Europe, and could find a big market in the U.S. New York, for example, passed legislation this spring, though Hochul has yet to sign it.
Europe once boasted two cutting-edge green industrial manufacturers, both in Sweden, with shared investors and executives. Northvolt, an electric vehicle battery manufacturer, declared bankruptcy last year. That left only Stegra, the green steelmaker. Shortly after Northvolt went under, Stegra went looking for another financial lifeline to cover the mounting costs of commercializing its renewable electricity-based method for forging steel. It ultimately received one from a French hydrogen investor. Now Stegra says it needs more money to complete its flagship first project in northern Sweden. The company named former Saab aerospace executive Håkan Buskhe as its new chief executive, replacing Henrik Henriksson who served in the top role since 2021. The new leadership’s review of its books and plans revealed “that additional capital is required to complete the project, as estimated costs of completing it are significantly higher than assumed in June.” The high costs “are mainly the result of substantial ramp-up costs following the prolonged scaling back of work earlier this year, as well as inflation.”
The U.S., meanwhile, may be getting what Canary Media called a “lower carbon steel mill” in Iowa. Mesabi Metallics, which is already building America’s first new iron ore mine in 50 years, announced plans this week for a $15 billion steel plant in southeast Iowa that would rely on what’s called direct reduced iron, a cleaner method of making iron than a traditional coal-fired blast furnace. As my colleague Emily Pontecorvo wrote last year, the Trump administration may have violated the law when it diverted Energy Department funding from a green steel project in Ohio to instead reboot a blast furnace. Hyundai is also building a gas-powered DRI steel mill in Louisiana, which the automaker plans to eventually run on low-carbon hydrogen, as I previously reported.

Before the artificial intelligence boom (and its less sexy older brother, the cryptomining boom), electricity demand growth was a problem many proponents of decarbonization actually wanted, because it would mean electrification was taking off. Last year, record EV sales translated into record 16% growth in electricity demand for charging the light-duty battery electric vehicles. But this year the growth fell by half to just 8%, according to the latest analysis by the U.S. Energy Information Administration.
Controlled Thermal Resources has completed key financial steps ahead of its planned Nasdaq debut.
California’s inland Salton Sea is a potential clean energy double dip, with vast and largely untapped geothermal hotspots for generating heat and electricity and rich deposits of lithium, manganese, and other critical minerals needed to fuel the battery revolution.
Now one of the companies looking to commercialize both resources is taking a big step toward debuting on the stock market.
On Thursday, Controlled Thermal Resources is set to announce that it’s converting $205 million of debt into equity ahead of a planned initial public offering on the Nasdaq later this year, Heatmap can exclusively report. Among the big investors swapping debt for a stake in the Imperial, California-headquartered startup is the automaker Stellantis, according to a source with direct knowledge of the deal.
“Like a lot of our colleagues in this industry, we need to raise a lot of capital to build out a multi-stage project,” Rod Colwell, CTR’s chief executive, told me this week. An IPO, he said, “is a mechanism that enables us to keep going back to the market as we build out our 650-plus megawatts and supporting infrastructure that follows.”
He declined to comment on what interest Stellantis, which owns brands such as Chrysler, Jeep, and Maserati, has in the deal. The Dutch auto giant did not respond to multiple requests for comment.
“Automakers who successfully build out a resilient EV supply chain, including mining and mineral processing, will be in a good position to compete as the U.S. auto market continues to evolve in the years ahead,” Corey Cantor, the research director at the trade group Zero Emission Transportation Association, told me via email. With electric vehicles sales also booming globally, “having a more resilient supply chain up and running soon is more important than ever.”
CTR isn’t pursuing a traditional IPO. Instead, the startup is planning to go public via a merger with a special purpose acquisition company, a so-called blank-check firm that’s already trading, allowing the actual primary entity to swiftly issue stock to retail investors. While plenty of SPAC deals have proven volatile in recent years, particularly in cutting-edge clean energy, geothermal stocks are particularly — forgive me — hot.
Fervo Energy, the country’s frontrunner in developing next-generation geothermal power plants, is racing to complete its first major facility, known as Cape Station. Shares in the Houston-based firm skyrocketed after its IPO in May, though the price has sunk in the intervening months.
With demand for electricity soaring, CTR shifted its strategy to focus on building its debut 50-megawatt geothermal power station. Power and heat from that facility will, in turn, be used to extract and process lithium and other minerals from the briny inland lake.
CTR said it aims to move forward with its plant next June, with the facility expected to come online in 2028.
“Shortly thereafter, we’ll be building out the critical minerals component,” Colwell said. “That’ll be commissioned in 2030.”
Editor’s note: This story has been updated to correct the generation capacity of CTR’s debut power station.