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It’s morning in America, and the sun is shining on our photovoltaic panels.

Campaign strategists and political consultants have a lot of folk theories that guide their work, some of which are even true. One common one is that the more optimistic candidate wins, especially in presidential races: Figures such as Ronald Reagan, Bill Clinton, George W. Bush, and Barack Obama who painted a bright vision of the future with a smile on their faces triumphed over their more dour opponents. Some political science research backs it up: One study examined candidates’ rhetoric over four decades of campaigns and found “the candidate who was more a pessimistic ruminator lost 9 of 10 times.”
This presents a problem for those who want candidates to make climate change advocacy a key part of their campaigns (and make promises they’ll have to keep once they take office). If candidates want to be optimistic, they may shy away from talking too much about a topic that can be disturbing, with the potential of global catastrophe always looming.
But we’re seeing the glimmers of something interesting in the current election. Now it’s the forces of the fossil fuel status quo who sound pessimistic, while those advocating more aggressive climate action are the optimistic ones.
This is clearly a conscious choice on the part of the Biden campaign and its allies. Using the Inflation Reduction Act and its climate investments as the evidence, they’re telling a story in which the administration is striding confidently into a better future, creating jobs and cleaning the air at the same time. Pro-Biden political action committees are airing ads (see here, here, or here) featuring sweeping drone shots of wind turbines and solar arrays, and slow-motion scenes from high-tech factories where good strong Americans are doing satisfying work for good pay, all while stirring music plays in the background. It’s morning in America, and the sun is shining on our photovoltaic panels.
The $80 million that the group Climate Power is planning to spend on ads for Biden, to take one example, may not blanket the airwaves from now to November, but it’s still a significant amount devoted to telling a feel-good climate story, even if that story is only a partial one. If that’s what will motivate voters more than encouraging them to marinate in bad news about rising temperatures and CO2 emissions, that’s what we can expect candidates to do.
And the contrast with Biden’s opponent is striking. These days, Donald Trump is less likely to call climate change a hoax invented by the Chinese government (as he used to), and more likely to simply dismiss it as nothing to worry about. But when it comes to anything involving clean energy, his rhetoric turns dark and foreboding. He has a long and weird obsession with the supposed horror of wind turbines, which he believes cause cancer, kill innumerable birds, and are “driving whales crazy.” He recently told a group of oil executives, “I hate wind.” Clearly.
When talk turns to electric cars, Trump is just as grim, painting them as nightmarish misery-mobiles for both those condemned to drive them and the workers who won’t get to build them. “The cars don’t go far, they cost too much, and they’re all made in China,” he says, and “if I don’t get elected, it’s going to be a bloodbath” for the whole auto industry. At the press conference he held after being convicted on 34 felony counts, he got barely a minute into his remarks before going off on EVs: “They want to stop you from having cars with their ridiculous mandates that make it impossible for you to get a car or afford a car; make it very possible for China to build all of our cars.” If ever there was a “pessimistic ruminator,” it’s Trump.
You don’t have to be planning to buy an EV this year to be more attracted to Biden’s optimistic picture of American workers building them than Trump’s nightmarish vision of automotive dystopia. And even if some portion of the population cheers when they hear Trump promising to “Drill, drill, drill,” it’s now the forces of the status quo that sound pessimistic when it comes to energy, denying that the country is capable of innovation and adaptation. We have to just keep doing what we’re doing, they say, because we can’t have anything better.
If there’s a risk of being too optimistic in a campaign, it might be that it saps the urgency from the climate issue and produces a bias toward easy, low-cost policy solutions rather than hard choices. But the Biden administration’s record — which though far from perfect includes both crowd-pleasing spending programs and stricter regulation of emissions that have produced strong opposition — suggests that what matters most is whether a president and the people in their administration care about the climate at all.
As Heatmap’s Jeva Lange has explained, the fact that few voters respond “climate change” when asked to name the country’s most pressing problem doesn’t mean they don’t believe it’s important. And if you convince a voter that cleaner energy is a worthwhile goal to pursue, does it matter if she’s thinking more about job opportunities and lower electric bills than about reducing emissions?
It also wouldn’t be a bad thing if people came to see the issue as a contrast between the future and the past, innovative thinking and hidebound fear of change. Two decades ago, Mark Schmitt coined one of those pithy bits of insight political writers are always searching for when he wrote that in a campaign, “It’s not what you say about the issues, it’s what the issues say about you.” His example was John McCain’s advocacy for campaign finance reform, which wasn’t at the top of the voters’ priority list but communicated that McCain was a principled reformer unafraid of taking on the powerful.
In the same way, advocacy for clean energy can help candidates build an optimistic image even apart from the policy debate over whether and how the country should decarbonize. If all those ads with gleaming solar farms and humming factory floors lead people to associate the climate issue with innovation and hope rather than deprivation and misery (as Trump and others would have it), then more and more candidates may want to make that part of their image, too. And the chances of positive policy change will only increase.
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How China emerged the victor of the war with Iran.
The Strait of Hormuz appears to maybe be opening up eventually — and the price of oil is collapsing.
Iranian Foreign Minister Abbas Araghchi said Friday morning that the waterway was “completely open,” shortly before President Trump declared on Truth Social that the strait was “COMPLETELY OPEN AND READY FOR BUSINESS AND FULL PASSAGE,” though the president also clarified that “THE NAVAL BLOCKADE WILL REMAIN IN FULL FORCE AND EFFECT AS IT PERTAINS TO IRAN.”
Eurasia Group analyst Greg Brew cautioned me that, as was the case when Trump announced a ceasefire last week, the actual status of the Strait of Hormuz has remained unchanged. Iran’s position is that traffic from non-hostile countries can go through the strait as long as ships coordinate with its government and follow a route that hugs its coastline; the U.S. has insisted for over a week that the strait is open, and has been blockading traffic from Iran.
That’s not to say today’s announcement was meaningless. “There has been movement from both the U.S. and Iran on the issues that matter — namely, Iran’s nuclear program,” Brew told me. Meanwhile, “there’s a lot of ambiguity, and there’s a lack of clarification on the status of the strait. The upshot of that is shippers don’t feel secure in using the strait.”
As for the mutual statements, Brew said they were a sign that “both sides have acknowledged a mutual interest in having the strait reopen.” The market, meanwhile “is responding to the positive vibes that the president and, to some extent, the Iranians are putting out regarding the status of Hormuz moving forward.” Oil prices fell substantially Friday, with the West Texas Intermediate benchmark price down 10.5% to around $85 per barrel.
While the final disposition of the conflict between the U.S. and Iran — and thus the flow of traffic through the Strait of Hormuz — remains unclear, the global energy system may be at the beginning of the end of the crisis that started at the end of February.
This doesn’t mean an immediate return to the status quo from the beginning of the year, however, which saw a glut of fossil fuels depressing global prices. Several hundred million barrels of oil that would otherwise have been pumped in the Persian Gulf remain in the ground after producers shut in production, temporarily suspending operations to protect their infrastructure and minimize their exposure to the conflict. This has created what Morgan Stanley oil analyst Martijn Rats called an “air pocket” in the market — and anyone who’s watched a hospital drama knows how dangerous an air pocket can be.
As happened with Russia’s war against Ukraine, the consequences of the Hormuz closure cannot simply be undone. That leaves countries — especially poorer countries dependent on fossil fuel imports — with a stark choice about how to fuel their future economic growth. The crisis may have tipped the balance towards renewable and storage technology from China over oil and natural gas from the Persian Gulf, Russia, or the United States.
“There is a huge shift in total supply available in the fossil system,” Jeremy Wallace, a professor of China studies at Johns Hopkins University, told me. “I think the fossil system has been demonstrated to be vastly less reliable, riskier than it was seen to be in February.”
For gas specifically, recovering from Iranian attacks on Qatar could take years, not just the weeks and months necessary to clear the backlog in the Persian Gulf.
That will serve to reinforce China’s dominant position as a producer and exporter of solar panels, batteries, and electric vehicles. “It’s hard for me to not see this as a huge win for Chinese firms that produce these products, upstream and downstream in those supply chains — as well, arguably, for the Chinese government itself,” Wallace said.
There’s already been some institutional movement away from fossil fuel investments and towards clean energy as well. A Vietnamese conglomerate, for instance, has proposed scrapping a planned liquified natural gas terminal for a solar and renewables project, while the county has also signed a deal with Russia to build the region’s first operational nuclear plant. And even as electric vehicle sales in China have slowed down, the share price of the battery giant CATL has surged since the war began despite rising costs of metals due to disruptions of chemicals necessary for refining from the closure of the strait.
Kyle Chan, a fellow at the Brookings Institution who studies Chinese technology and economic policy, summed up the situation by calling the energy shock of the war “the best marketing program you could possibly imagine for China’s clean tech sector.”
It’s not just China’s technology that is likely to be more attractive in light of this latest energy crisis, but also its energy model, which fuses energy security and decreasing dependence on imported fossil fuel (thanks, in part, to domestic coal supplies and hydropower) with a vast buildout of renewables and nuclear energy.
“The way that China has weathered the Iran war energy shock so far has really validated its strategy of investing heavily in alternative energy,” Chan said.
Going forward, Asian countries will have to decide on future investments in energy infrastructure, especially the extent they want to build out infrastructure for importing and processing oil and especially liquefied natural gas.
While the United States, especially under Trump, is more than happy to sell LNG to any taker, the fact that oil and LNG are global markets could make countries leery of depending on it at all if it’s risky to supply and price shocks, even if U.S. exports are dramatically less likely to get bottled up in the Gulf of Mexico.
“It seems like once in 100-year storms happen every year. Now it feels like that in the fossil energy system,” Wallace told me. “We’ve been talking about the crises of the 1970s for 50 years afterwards. We don’t need to be talking about those now.”
The 1970s saw major investments in non-oil energy generation, especially nuclear power, in Japan and France and large scale investments in energy efficiency. Today, Wallace said, “the alternatives are much more attractive.”
“In the months to come, I think we will see a lot of bottom up industrialists and probably wealthy consumers in Southeast Asia and South Asia who are going to vote for energy security of their own as best they can,” he told me, pointing to the mass adoption of solar in Pakistan since 2022.
But Asian countries embracing renewables and storage will not have entirely freed themselves from geopolitics. While batteries, solar panels, and electric vehicles do not require a flow of fuel from abroad the same way oil and gas infrastructure does, China has shown itself to be perfectly willing to use economic leverage to achieve political ends.
Relations between China and Japan, the second largest Asian economy and a close American ally, quickly devolved into crisis following the ascent of Sanae Takaichi to Prime Minister of Japan in October, after the new leader suggested that if China were to blockade Taiwan, it would constitute “an existential threat.” China responded with an array of economic punishments, including discouraging Chinese tourism in Japan and restricting shipments of rare earths elements and magnets.
China’s economic coercion, Chan told me, “reminds everyone that while you can buy all this really affordable, highly scaled-up clean energy equipment, China has been able to and has been willing to leverage that supply chain dominance in certain ways. There’s a degree of trust that you can’t really make up for.”
Countries embracing Chinese energy technology will “always have to have a Chinese-hedging discount in the back of their minds,” he said.
On Breakthrough Energy Ventures’ quantum computing investment, plus more of the week’s biggest money moves.
It’s been a busy week for funding, with several of the most high-profile deals featured in our daily AM newsletter, including Slate Auto’s $650 million fundraise for its stripped-down electric truck and Rivian’s partnership with Redwood Materials to repurpose the electric automaker’s battery packs for grid-scale storage.
These are clearly companies with direct decarbonization implications, but one of the week’s other biggest announcements raises the question: Is this really climate tech? That would be quantum computing startup Sygaldry, which recently nabbed $139 million in a round led by Breakthrough Energy Ventures to build quantum AI infrastructure. Huh.
Elsewhere in the ecosystem, the climate connection is a little more straightforward, with new funding for advanced surface materials designed to improve insulation and fire-protection, capital for microgrids that can integrate a diverse mix of generation and storage assets, and federal support for next-generation geothermal tech.
Quantum computing offers a futuristic paradigm for high-powered information processing and problem solving. By leveraging the principles of quantum mechanics, these systems operate in fundamentally different ways than even today’s most advanced supercomputers, encoding information not as ones and zeros, but as quantum units called “qubits.” Naturally, there is significant interest in applying this novel tech — which today remains error-prone and not ready for prime time — to artificial intelligence, with the aim of exponentially accelerating certain training and inference workloads.
Perhaps less intuitively, however, these next-generation computers are now viewed, at least by one prominent venture capital firm, as a key climate technology.
This week, quantum computing startup Sygaldry raised a $139 million Series A round led by Bill Gates’ climate tech VC firm Breakthrough Energy Ventures to build “quantum-acclerated AI servers” for data centers, which could reduce the cost and power required to train and operate large models. “The AI industry is advancing faster than ever and needs a breakthrough in performance per watt,” Carmichael Roberts, Breakthrough Energy Ventures’ chief investment officer said in the press release. “Sygaldry’s vision for bringing quantum directly to the AI data center has the potential to deliver exactly that, bending the cost and energy curve at the moment it matters most."
Certainly Sygaldry’s ultra-high-powered computers could help lower the energy intensity of AI workloads, but that is no guarantee that it will reduce AI and data center emissions overall. As was widely discussed when the Chinese AI firm DeepSeek released its cheaper, more energy-efficient model early last year, efficiency gains could reduce emissions in the sector at large, but they are perhaps just as likely — or some argue even more likely — to drive greater proliferation of AI across a wide array of industries. This unfettered growth could offset efficiency gains entirely, leading to a net increase in AI power demand.
Buildings account for nearly 37% of domestic energy consumption, with heating and cooling representing the largest share of that load. But while energy efficiency strategies typically focus on upgrading insulation or adjusting the thermostat, there’s another approach — essentially painting the roof with sunlight-reflecting material — that has the potential to reduce AC demand and thus cut a building’s cooling-related energy use by up to 50%.
Just such a “paint” is one of the unique ceramic coatings developed by NanoTech Materials, which this week raised a $29.4 million Series A to scale its infrastructure materials business. Beyond roofing, the company also offers a fire-protective coating for wooden infrastructure such as utility poles, fences, highway retaining walls, and other transportation assets, as well as an insulative coating for high-heat industrial equipment such as pipes and storage tanks designed to slow heat loss and prevent burn risk.
“Today’s built environment demands materials that don’t just meet code, but can also outperform the extreme conditions we’re now facing,” said D. Kent Lance, a partner at HPI Real Estate Services & Investments, which led the Series A. Nanotech Materials currently operates a manufacturing facility in Texas and plans to use this new capital to further expand its operations as it conducts market research for its various product lines.
Interconnection delays aren’t just a data center problem. Industrial developers working on everything from real estate and electric vehicle charging to manufacturing and aviation are also struggling to get timely and reliable access to power when building or expanding their operations. Enter Critical Loop. This modular microgrid company is building battery energy storage systems that can integrate batteries of varying sizes and specifications with a variety of power sources, including onsite solar, diesel generators, and grid power.
This week, the startup announced a $26 million Series A round, bringing total funding to $49 million across all equity and debt financing. Critical Loop’s approach combines a software platform with proprietary hardware — what it calls a “combiner” — which reduces the need for the many custom components typically required to connect a diverse mix of batteries and generation sources. “There’s a lot of power problems that are not getting solved because of limitations on an understanding of how to integrate different systems at a site,” Critical Loop’s CEO Balachandar Ramamurthy, told me last month.
The company’s initial product is a modular single-megawatt battery system that can be transported in shipping containers for rapid deployment in capacity-constrained locations. To date, Critical Loop has deployed about 50 megawatt-hours of microgrid assets, with plans to scale to over 100 megawatt-hours by year’s end.
It’s been another exciting week for one of the few bipartisan bright spots in clean energy — geothermal development. My colleague Alexander C. Kaufman reported in this morning’s AM newsletter that the AI-native geothermal company Zanskar secured $40 million through one of the first development capital facilities for early-stage geothermal development, and now the technology has secured fresh capital from the fickle U.S. Department of Energy. Today, the DOE announced a $14 million grant to support an enhanced geothermal demonstration project in Pennsylvania that will convert an old shale gas well into a geothermal pilot plant.
Conventional geothermal systems depend on a highly specific set of subsurface conditions to be commercially viable, which includes naturally occurring underground reservoirs where fluid flows among hot rocks. By contrast, developers of enhanced geothermal systems effectively engineer their own reservoirs, hydraulically fracturing rock formations and then circulating water through those man-made fractures to extract heat that’s then used to generate electricity. A number of well-funded startups are advancing this approach using drilling techniques adapted from the oil and gas industry, such as Fervo Energy — which has an agreement with Google to supply electricity for its data centers — and Sage Geosystems, which has a similar tie-up with Meta.
“As the first enhanced geothermal systems demonstration site located in the eastern United States, this project offers an important opportunity to assess the ability of such systems to deliver reliable, affordable geothermal electricity to Americans nationwide,” Kyle Haustveit, the Assistant Secretary of the Hydrocarbons and Geothermal Energy Office, said in the DOE release. If successful, the Energy Department says the project could provide a replicable model for scaling the deployment of enhanced geothermal systems across a broader range of geographies.
This week, the nonprofit XPRIZE organization announced that it’s partnering with Amazon to launch a new global competition focused on critical mineral circularity — redesigning how minerals such as lithium, cobalt, and nickel are recovered, processed, and reused. Demand for these minerals is projected to quadruple by 2040, but their supply chains remain largely concentrated in China, especially across refining, processing, and battery manufacturing.
The competition aims to catalyze breakthroughs in mineral recovery and recycling, materials solutions, and lower-impact extraction methods. It’s not yet open to submissions as organizers are still seeking philanthropic and corporate funding before entrepreneurs, startups, and research teams can submit their ideas for consideration. XPRIZE has been running challenges for three decades now, with past competitions revolving around carbon removal, adult literacy, and lunar exploration.
Current conditions: A broad swath of the United States stretching from South Texas to Chicago is being bombarded by the Central U.S. with severe storms and more than two dozen tornadoes so far • The thunderstorms pummeling Puerto Rico and the U.S. Virgin Islands are expected to stretch into the weekend • Kigali is also in the midst of a days-long stretch of heavy storms, testing the Rwandan capital’s recent wetland overhaul.
SunZia Wind, the largest renewable energy project of its kind ever built in the U.S., has started generating electricity, nearly capping off a two-decade effort to supply Californians with wind power generated in New Mexico. The developer has begun testing the project’s 916 turbines ahead of planned full-scale commercial operations later this quarter, unnamed sources told E&E News. The project includes 3.5 gigawatts of wind and 550 miles of transmission line to funnel the electricity west from the desert state to the coast. “The impact is already evident,” the newswire wrote. “California broke its record for wind generation eight times in the last four weeks.”
When Heatmap’s Robinson Meyer visited SunZia’s construction site in August 2024, he observed that, once it started running at full blast, the project would “generate roughly 1% of the country’s electricity needs.” Its success in the face of the Trump administration’s attacks on wind could “lay the model” for a new paradigm in which “clean energy buildings and environmental protectors work together to find the best solution for the environment and the climate,” Rob wrote. “We will need many more success stories like it if America is to meet its climate goals — 99 more, to be exact.”
The U.S. Senate voted 50-49 on Thursday to repeal a mining ban on land near the Minnesota’s Boundary Waters Canoe Area Wilderness, declaring what Heatmap’s Jeva Lange called “open season” on public lands. In what the public lands news site Public Domain called “an unprecedented use of the Congressional Review Act,” the vote slashes protections for the iconic nature preserve. Inspiring even fiercer political pushback is the fact that Republicans championed the effort largely to benefit an overseas corporation: Twin Metals Minnesota, a subsidiary of the Chilean mining conglomerate Antofagasta, which has for years sought to establish a copper-nickel mine on national forest land near the wilderness area. “The Boundary Waters belong to everyone,” Julie Goodwin, a senior attorney at Earthjustice, said in a statement. “They should be protected and enjoyed by all, not jeopardized to benefit a wealthy foreign company.”
At the same time, global demand for both nickel and copper are surging — and a successful effort to decarbonize the world economy through greater electrification will require a lot more of both metals.
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The good news: The Department of Energy is allowing the Direct Air Capture hub program started under the Biden administration to move forward. In documents submitted to Congress this week, the agency listed as approved the up to $1.2 billion the program awarded to two projects: Occidental Petroleum’s South Texas DAC Hub, and Climeworks and Heirloom’s joint Project Cypress in Louisiana. As Heatmap’s Emily Pontecorvo noted: “This fate was far from certain.” After the Energy Department cut funding for 10 of the original 21 projects last fall, a leaked list of projects suggested the Louisiana and Texas hubs would be targeted in a second wave of rescissions. The bad news: Last week, Rob had a scoop that Microsoft — whose carbon removal buying made up roughly 80% of the industry — was pausing its purchases. And as he wrote yesterday, even if it’s just temporary, the pause will ripple through the nascent market.
Other technologies that once seemed like science fiction are, in fact, moving forward. In an exclusive for Heatmap, I reported that Clean Core Thorium Energy, a Chicago-based company designing thorium fuel bundles that works in existing reactors, inked a deal to manufacture its first four units. In addition to assembling the bundles, the Canadian National Laboratories will supply the small amount of a special kind of uranium fuel needed to be blended into Clean Core’s mix and that serves as a spark plug for the reaction.
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Last October, the Energy Department asked the Federal Energy Regulatory Commission to set rules for patching data centers, advanced factories, and other large loads onto the grid. The move, as Utility Dive reported at the time, sparked controversy over whether it represented a Washington power grab given that the landmark Federal Power Act gives states jurisdiction over retail electricity interconnections. Now FERC has said it plans to respond. On Thursday, Robin Millican, a researcher at Columbia University’s Center on Global Energy Policy, posted on X that FERC announced a notice of intent to act on the Energy Department’s request, with a ruling expected in June. “Good,” she wrote. “Ensuring interconnection costs from data centers, advanced manufacturing, and big electrification projects aren’t passed to retail customers is overdue.”
Back in January, I told you that two geothermal startups raised a combined $212 million: Zanskar, which uses artificial intelligence to hunt down previously undetected conventional geothermal resources underground; and Sage Geosystems, a next-generation startup using fracking technology to drill for geothermal heat in places that conventional resources can’t tap. This week we saw two geothermal companies once again net a nine-digit number. Once again, Zanskar — considered by experts Heatmap surveyed to be one of the most promising climate-tech companies in the game right now for a reason, after all — announced the closing of another $40 million fundraise. Just Capital and Spring Lane Capital led the round, with an additional investment from Tierra Adentro Growth Capital. Zanskar said the round was a development capital facility, a type of deal that usually involves equity or debt to fund a company’s growth. It is “among the first ever structured for early-stage geothermal development, drawing on the best practices from the renewables and natural resource sectors,” the company said Thursday in a press release. The financing will help establish a revolving line of credit “designed to accelerate project development.”
On Wednesday, another competitor in the next-generation geothermal space, Mazama Energy, pulled in a fresh round of capital. The Frisco, Texas-based company, which last year boasted a system that reached hotter temperatures than any other geothermal company, just raised $100 million, according to Axios.

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