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We chatted about U.S. Wind’s project off the coast of Ocean City, oil jobs, and the future of the IRA.
I may have met the future of conservative climate politics on Tuesday, and he was standing next to piles of dead fish.
Larry Hogan, a Republican former governor of Maryland, is campaigning for an open Senate seat in one of the bluest states in the country. He faces an uphill run against Angela Alsobrooks, an acolyte of Vice President Kamala Harris and a Black woman who runs one of the state’s most populous and diverse counties, Prince George’s. Before President Biden dropped out as the Democrats’ nominee for president, internal polls indicated that Hogan had a chance; since Biden’s exit, despite Hogan’s name ID from eight years in Annapolis, his chances for victory now appear uncertain.
So I was surprised when, out of the blue, as Democrats were convening in Chicago around Harris as their nominee, Hogan’s team invited me out to a campaign stop along the Chesapeake Bay. Hogan was going to announce new plans on how he’d fight for protecting the Bay if elected, and I’d get to ask the candidate whatever I wanted about … climate. Not the usual offer from a Republican congressional campaign.
Hogan, however, has a long track record of bucking his party on climate change, and could be regarded as one of the most aggressive Republican governors on the issue in modern American history. In 2017, he signed into law one of the nation’s few state-wide fracking bans. In 2018, after then President Trump began pulling the U.S. out of the Paris Agreement, he joined with other states to meet the goals of the accord regardless. Three years later, he oversaw the creation of a plan to reduce Maryland’s emissions 50% by 2030 and achieving “net-zero” by 2045. Those emissions targets happen to be the same ones Alsobrooks has endorsed, too.
I went to his campaign website to see what it says about climate and found almost nothing. Nowhere on Hogan’s website is there a discussion of emissions or energy policy, and climate-related laws like the Inflation Reduction Act barely come up. The only possible reference I can find is one paragraph saying he’d “stand against unaffordable spending and mandates raising [the] cost of energy, food, and basic necessities.”
So I said yes. Not just because I’m a Marylander who deeply cares about the future of the planet, but also because of Hogan’s importance for the future of the IRA. If he somehow found a way to win, he’d be a crucial voice on the future of the landmark climate law, the fate of which will be decided next year as lawmakers look to rewrite tax policy.
That was why, on Tuesday I woke up at the crack of dawn and drove two hours to Tilghman Island, a bucolic enclave popular for fishing and tourism along the eastern shorelines of Maryland. It might’ve been a rural part of the state, but every now and then along my route I’d see an array of solar panels in front of a farm or a house. I arrived at the meeting place to find it was a seafood plant along the water. Hogan arrived right after me in a jet black SUV and exited in attire so casual you’d hardly recognize him as a two-term governor: a simple baseball cap, a dull blue shirt, and, believe it or not, shorts.
I walked alongside Hogan and people who ran the processing plant as they surveyed flats of oyster shells and the guts of catfish I was told were an invasive species in the area. Finally, Hogan and I settled down to chat in an open garage. There are “more Republicans who actually are more environmentally sensitive than you think,” he told me, “but they’re certainly not in the majority, and they’re not the ones getting all the attention. My hope is to try to be a voice to get them to do some of the things we did and focus on.”
Of the IRA himself, he told me, “It concerns me that it was rushed through in a very partisan way without a single Republican vote. I think there are some really good things in it. I think there’s some things that weren’t very well thought out.”
“Like what?” I asked.
“Things that are going to have a more harmful effect on the economy and killing jobs,” he said, adding that “we ought to at least look at how to tweak it.”
That statement puzzled me — recent analysis indicates at least 334,000 new jobs have been created since the law was enacted in 2022. But writ large, the transition to clean energy will mean people lose jobs in the oil and gas industry — was that what he was referring to?
“Yeah. I mean, we’re not ready,” Hogan replied. “It was going to shut down existing industries without any transition period when we didn’t have the ability to provide enough energy to accomplish what we wanted. We just gotta figure out a way to make the transition, but you can’t do it too rapidly or it’s going to have the opposite impact.”
The funny thing about Republicans talking about climate and the IRA is that you essentially need a translator to know their positions. Lawmakers will say one thing on the record to a reporter and then the next minute say the exact opposite thing off the record. The truth is — and I know this from many years of covering Capitol Hill — many Republican politicians support the vast majority of this law and will never admit it.
Most voters today still do not know much about the IRA, or even what the Biden administration has done on climate change. That’s unlikely to change soon as Democrats have so far eschewed mentioning the topic much at all, including during their convention in Chicago this week. Congressional Democrats put a lot of time and effort over the last year into messaging the law and their other signature industrial policy achievements. But for now, it seems it’ll be largely absent from the campaign trail.
Should Republicans take full control of Congress and the presidency, the IRA is in legitimate danger from influential coalitions on the furthest flanks of the right-wing. Think the Heritage Foundation. The Freedom Caucus. The Marjorie Taylor Greenes and Jim Jordans and Lauren Boeberts roaming the halls of the Capitol. These power-brokers have proven through fights over the debt ceiling and government funding that they appear willing to put their votes where their mouths are to satisfy a political base of support that cares less about corporations and climate change than sticking it to liberals and the left. Hogan is correct that the IRA was passed entirely by Democrats without a single Republican vote, making it a ripe target for partisan pummeling.
And yet there’s so much in the IRA that Republicans typically should like. Climate policy that’s heavy on carrots for big business and light on penalties for corporate pollution has long been Republicans’ preferred route. Why does the most moderate Republican candidate for Senate in one of the nation’s bluest states have to bash the climate law at all, let alone claim its killing jobs? I’ll be honest, when I went out to the Bay to meet Hogan, I thought I was about to hear the first major Republican endorsement of the IRA.
I asked John Hart, a fellow Marylander who helps run the conservative climate group C3 Solutions, about why Hogan would claim the IRA is killing jobs when there’s no evidence to back that up. Hart authored a campaign messaging book for Republicans trying to talk about climate change and energy policy without denying the existence of the problem, on the one hand, or alienating their own voters on the other.
“It’s an American cultural and political problem,” Hart told me. “You have to be very cognizant of those head-scratching moments, and you have to address that very clearly.”
There’s two reasons why Republicans like Hogan have to bash the IRA even if they might support a lot of the underlying climate provisions, he said: GOP voters instinctually see such ideas as “picking winners and losers,” and the climate law has been lumped in with other policies like auto regulations that Republicans largely oppose.
“Candidates are viewing it not through the narrow lens of what that legislation alone does, but how it fits into a broader agenda,” Hart added. “With the IRA, [it becomes] part of a broader effort. A lot of Republicans do believe that the Biden administration wants to ban trucks.”
Hogan did not develop his approach to climate action overnight. While as governor, he pushed for reducing greenhouse gas emissions by 50% through 2030, he also opposed going any faster than that. (The legislature ultimately enacted the more aggressive plans without Hogan's signature.) The Alsobrooks campaign has attacked him on this, and in a statement to me said that if elected, “Larry Hogan would give [S]enate Republicans the majority they need to gut the IRA and roll back efforts to protect our environment.”
Blake Kernen, a spokesperson for the Hogan campaign, told me Hogan is “glad the [IRA] created clean energy jobs like he did as Governor in Maryland.” His concerns with the law have to do with “some of the new taxes and overspending in the bill [that] has and will contribute to inflation and job loss, and is disappointed that the bill was forced through a party line vote.”
Governor Hogan also loudly backed wind development off the Maryland coast, which is now a contentious issue along the eastern shore.
Ocean City, a popular vacation destination, is now considering legal action against the federal government if it approves efforts by U.S. Wind, a subsidiary of an Italian wind energy company, to actually build turbines off the state’s coastline. It’s a conflict that mirrors other fights waged by beach communities, resort areas, and fishing hubs against offshore wind. These parts of the country are far removed from cities and often Republican-leaning, and the loudest champions of these grievances have also been prominent GOP politicians. Most notable, of course, has been former President Donald Trump, who’s pledged to halt new permits, but Republican policymakers at all levels from New Jersey, New York, and Virginia, among others, have all been making political hay from wind farm projects in their states.
Hogan has made a name for himself in recent years as a bulwark against Trump and his brand of politics. But when I brought up Ocean City’s legal threat, his passionate support of the town led him to interrupt my question.
“They probably will and probably should [sue]. That’s an example where I was very supportive of wind energy and creating a market for that in our state to create jobs and further the production of wind energy. But on that project, there was not very much transparency. They didn’t work with the local community very much. That’s impacting the fishing industry, the tourism industry, and they’re concerned that their entire livelihoods are going to be ruined.”
Heatmap’s own polling shows the political vulnerability renewable energy faces from the environmental impacts of development. Yet earlier in our interview, Hogan had boasted about the jobs wind has brought to the transportation and logistics hub Tradepoint Atlantic in the Port of Baltimore. He spoke effusively about the jobs in industries like welding that wind development creates. (One tidbit: His campaign released an ad a few days ago featuring a Democrat-registered welder in Baltimore who says they’re voting for Hogan, with no mention of the wind industry.)
In my mind, at least, failing to build those turbines could present a bigger risk to Ocean City in the long run than building them. If we didn’t construct them, it would take away an opportunity to dramatically increase the amount of renewable energy available for Maryland to wean off of carbon-based power. Failing to do so would pose a longer-term threat to the town of Ocean City from sea level rise and intensifying extreme weather.
So I told Hogan that while, as a Marylander, I couldn’t imagine wind turbines at Ocean City, I also couldn’t stop thinking about the trade-offs. I asked him, how does he view those tradeoffs?
Hogan stood firm. “I think you can accomplish the goals without putting them on the beach. I think you move them further out. It’s a pretty simple process. The federal government required them to put them in a place that no one wants. There’s no reason for it.”
This began to sound like some sort of Republican party line, trying to sell voters on a vision of the future that derails the energy transition along the way. But as one of my personal favorite Republican-splainers on energy, Sarah Hunt of the Rainey Center, explained to me, this kind of misconstrues how politics ordinarily works.
The normal thing is that constituents go to their representatives and voice their concerns, and a lot of these beach towns and fishing areas just happen to be Republican. In other parts of the country like Louisiana, where the politicians are more open to offshore oil, they’re similarly supportive of offshore wind.
“I think that is individual to Maryland and specific areas of Maryland,” Hunt told me. “I think offshore wind is a wonderful thing. I think it’s legitimate to say it doesn’t belong everywhere, and I think it’s reasonable to have a process for communities to provide input into the placement of such projects.”
After Hogan and I concluded our interview, I drove home in the gas-powered car I inherited from my late grandparents and passed more solar paneling in front of rural homes. Driving over the Chesapeake Bay, I tried to imagine seeing wind turbines on the horizon one day, and a world where Republicans support tax credits for renewables while fighting to make sure those projects adhere to the Clean Water Act. May we live in interesting times, I guess.
Editor’s note: This story has been updated to reflect that Maryland was already a member of the Regional Greenhouse Gas Initiative when Hogan became governor.
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And more of the week’s top news about renewable energy fights.
1. Jefferson County, New York – Two solar projects have been stymied by a new moratorium in the small rural town of Lyme in upstate New York.
2. Sussex County, Delaware – The Delaware legislature is intervening after Sussex County rejected the substation for the offshore MarWin wind project.
3. Clark County, Indiana – A BrightNight solar farm is struggling to get buy-in within the southern region of Indiana despite large 650-foot buffer zones.
4. Tuscola County, Michigan – We’re about to see an interesting test of Michigan’s new permitting primacy law.
5. Marion County, Illinois – It might not work every time, but if you pay a county enough money, it might let you get a wind farm built.
6. Renville County Minnesota – An administrative law judge has cleared the way for Ranger Power’s Gopher State solar project in southwest Minnesota.
7. Knox County, Nebraska – I have learned this county is now completely banning new wind and solar projects from getting permits.
8. Fresno County, California – The Golden State has approved its first large-scale solar facility using the permitting overhaul it passed in 2022, bypassing local opposition to the project. But it’s also prompting a new BESS backlash.
A conversation with Robb Jetty, CEO of REC Solar, about how the developer is navigating an uncertain environment.
This week I chatted with REC Solar CEO Robb Jetty, who reached out to me through his team after I asked for public thoughts from renewables developers about their uncertain futures given all the action in Congress around the Inflation Reduction Act. Jetty had a more optimistic tone than I’ve heard from other folks, partially because of the structure of his business – which is actually why I wanted to include his feelings in this week’s otherwise quite gloomy newsletter.
The following conversation has been lightly edited for clarity. Shall we?
To start, how does it feel to be developing solar in this uncertain environment around the IRA?
There’s a lot of media out there that’s oftentimes trying to interpret something that’s incredibly complex and legalese to begin with, so it’s difficult to really know what the exact impacts are in the first place or what the macroeconomic impacts would be from the policy shifts that would happen from the legislation being discussed right now.
But I’ll be honest, the thing I reinforce the most right now with our team is that you cannot argue with solar being the lowest cost form of electrical generation in the United States and it’s the fastest source of power generation to be brought online. So there’s a reason why, regardless of what happens, our industry isn’t going to go away. We’ve dealt with all kinds of policy changes and I’ve been doing this since 2002. We’ve had lots of changes that have been disruptive to the industry.
You can argue some of the things that are being discussed are more disruptive. But there’s lots of things we’ve faced. Even the pandemic and the fallout on inflation and labor. We’ve navigated through hard times before.
What’s been the tangible impact to your business from this uncertainty?
I would say it has shifted our focus. We sell electricity to our customers that are both commercial customers, using that power behind the meter and on site for their own facilities, or we’re selling electricity to utilities, or virtually through the grid. Right now we’ve shifted some of our strategy toward the acquisition of operating assets instead of buying projects from other developers that could be more impacted by the uncertainty or have economics that are more sensitive to the timing and uncertainty that could come out of the policy. It’s had an impact on our business but, back to my earlier comment, the industry is so big at this point that we’re seeing lots of opportunity for us to provide value to an investor.
As a company that works in different forms of solar development – from small-scale utility to commercial to community solar – do you see any changes in terms of what projects are developed if what’s in the House bill becomes law?
I’m not seeing anything at the moment.
I think most of the activity I’ve been involved in is waiting for this to settle. The disruption is the volatile nature, the uncertainty. We need certainty. Any business needs certainty to plan and operate effectively. But I’m honestly not seeing anything that’s having that impact right now in terms of where investment is flowing, whether its utility scale to the smaller behind-the-meter commercial scale we support in certain markets.
We are seeing it in the residential side of the solar industry. Those are more concerning, because you only have a short amount of time to claim the [investment tax credit] ITC for a residential system.
The company is well-positioned to take advantage of Trump’s nuclear policies, include his goal of installing a microreactor on a military base within the next few years.
At one point during his 12-year stint at SpaceX, Doug Bernauer turned his attention to powering a Martian colony with nuclear microreactors. Naturally, these would also fuel the rocket ships that could shuttle Mars-dwellers to and from Earth as needed. Then he had an epiphany.“I quickly realized that yes, nuclear power could help humanity become multiplanetary in the long term, but it could also transform life on Earth right now,” Bernauer wrote in 2023.
As nuclear power reemerges as a prominent player in the U.S. energy conversation, its potential to help drive a decarbonized future has crystallized into a rare bipartisan point of consensus. Radiant Nuclear, the Earth-based microreactor company that Bernauer founded after leaving SpaceX in 2019, is well positioned to take advantage of that, as its value proposition might as well be tailor-made for the Trump administration’s priorities
The startup’s aim is to make highly portable 1-megawatt reactors that can replace off-grid power sources such as diesel generators, which are ubiquitous in remote areas such as military bases. It’s fresh off a $165 million Series C funding round, with plans to begin commercial deployment in 2028. That aligns neatly with Trump’s recently announced goal of deploying a reactor on a military base by the same year. It’s an opportunity that Radiant Chief Operating Officer Tori Shivanandan told me the company is uniquely well-suited to take advantage of.
“A diesel generator that operates at 1 megawatt you have to refill with diesel about every three to five days,” Shivanandan explained. That means having regular access to both fuel and the generator itself, “and that’s just not reliable in many locations.” The company says its reactors only need refueling only every five years.
Radiant’s goal is to be cost competitive with generators in far flung locales — not just military bases, but also distant mines, rural towns, oil and gas drilling operations, and smaller, more dispersed data centers. “A customer who’s on the North Slope of Alaska, they might pay $11 or $12 a gallon for diesel,” Shivanandan told me. That’s a price she said Radiant could definitely compete with.
“The military’s interest in microreactors has been coming for quite a long time,” Rachel Slaybaugh, a climate tech investor at the venture firm DCVC told me. The firm led Radiant’s Series C round. Some of Radiant’s appeal is “right place, right time,” she said. “Some of it is putting in a lot of work over a long time to make it the right place, right time.”
Trump’s recent nuclear-related executive orders also have Shivanandan and her team over the moon. As the administration looks to streamline nuclear licensing and buildouts, one order explicitly calls for establishing a process for the “high-volume licensing of microreactors and modular reactors,” which includes “standardized applications and approvals.” These orders, Shivanandan told me, will keep Radiant on track to start selling by 2028, and set the stage for the company’s rapid scale up.
Alongside DCVC, the company's latest round included funding from Andreessen Horowitz’s “American Dynamism” team, Union Square Ventures, and Founders Fund. This raise, Shivanandan told me, will cover Radiant’s expenses as it builds out its prototype reactor, which it plans to test at Idaho National Lab next year. It will be the first fueled operation of a brand new reactor design in 50 years, she said.
“My perspective is the bigger reactors are important and interesting, and there are a lot of great companies, but they’re not a very good fit for venture investing, Slaybaugh told me. “We like microreactors, because they just need so much less capital and so much less time.”
That potential buildout speed also means that even as the Inflation Reduction Act’s clean energy tax credits look poised for a major haircut, Radiant may still be able to benefit from them. In the latest version of the budget bill, nuclear projects are only eligible for credits if they begin construction by 2029 — a tall order for the many startups that likely won’t start building in earnest until the 2030s. But if all goes according to plan, that’s a timeline Radiant could work with — at least for its initial reactors, which would be the most expensive and thus most in need of credits anyway.
The company aims to reach economies of scale relatively quickly, with a goal of building 50 reactors per year at a yet-to-be-constructed factory by the mid 2030s. The modular design means Radiant can deploy multiple 1-megawatt reactors to facilities with greater power needs. But if a customer wants more than 10 or so megawatts, Radiant recommends they look to microreactors’ larger cousins, the so-called small modular reactors. Companies developing these include Last Energy, which makes 20-megawatt reactors, as well as NuScale, Kairos, and X-energy, which aim to build plants ranging from 150 megawatts to 960 megawatts in size.
While it could take one of these SMR companies years to fully install its reactors, Radiant’s shipping container-sized products are not designed to be permanent pieces of infrastructure. After being trucked onsite, the company says its reactors can be switched on the following day. Then, after about 20 years of continuous operation, they’ll be carried away and the site easily returned to greenfield, since there was no foundation dug or concrete poured to begin with.
This April, the Department of Defense selected Radiant as one of eight eligible companies for the Advanced Nuclear Power for Installations Program. The winner(s) will design and build microreactors on select military installations to “provide mission readiness through energy resilience” and produce “enough electrical power to meet 100 percent of all critical loads,” according to the Defense Innovation Unit’s website.
Also on this list was the nuclear company Oklo, which counts OpenAI CEO Sam Altman among its primary backers and went public last year. This Wednesday, the Air Force announced its intent to enter into a power purchase agreement with the company to build a pilot reactor on a base in Alaska. The reactor will reportedly produce up to 5 megawatts of power, though Oklo’s full-scale reactors are set to be 75 megawatts. Whether the military will opt to contract with other nuclear companies is still an open question.
Perhaps more meaningful, though, is the show of support Radiant recently gained from the Department of Energy, which selected it as one of five companies to receive a conditional commitment for a type of highly enriched uranium known as HALEU that’s critical for small, next-generation reactors. Much of this fuel came from Russia before Biden banned Russian uranium imports last year, in a belated response to the country’s invasion of Ukraine and an attempt to shore up the domestic nuclear supply chain.
America’s supply of HALEU is still scarce, though, and as such, Shivanandan considers the DOE’s fuel commitment to be the biggest vote of confidence Radiant has received from the government so far. The other companies selected to receive fuel are TRISO-X (a subsidiary of X-energy), Kairos Power, TerraPower, and Westinghouse, all of which have been around longer — the majority a decade or more longer — than Radiant.
Though the company is currently focused on Earth, Radiant hasn’t completely abandoned its interplanetary dreams. “We do believe that, should you want to colonize Mars and also create the environment in which you could refuel your rocket and send it back, then you would need 1-megawatt nuclear reactors,” Shivanandan told me. Anything larger might be too heavy to put in a rocket.
Good to know.