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After a decade of leadership, voters are poised to overturn two of its biggest achievements. What happened?
Twenty years ago, you could still get away with calling Redmond, Washington, an equestrian town. White fences parceled off ranches and hobby farms where horses grazed under dripping evergreen trees; you could buy live chicks, alfalfa, and Stetson hats in stores downtown. It wasn’t even unusual for Redmond voters to send Republicans to represent their zip code in the state legislature, despite the city being located in blue King County.
The Redmond of today, on the other hand, looks far more like what you’d expect from an affluent (and now staunchly progressive) suburb of Seattle. A cannabis dispensary with a pride flag and a “Black Lives Matter” sign in the window has replaced Work and Western Wear, and the new high-performing magnet school happens to share a name with one of the most popular cars in the neighborhood: Tesla. But Washington is a state full of contradictions, and among Redmond’s few remaining farms is one registered under the winkingly libertarian name of “Galt Valley Ranch LLC.” It belongs to a multimillionaire who has almost single-handedly bankrolled the most significant challenge yet to Washington’s standing as a national climate leader.
Andrew Villeneuve, the founder of the Northwest Progressive Institute, a left-wing think tank also based in Redmond, told me he’s struggled to get voters to pay attention to ballot measures in the past. “I’ve had no such awareness issues this year,” he said. “Nobody’s like ‘Who’s Brian Heywood?’”
A hedge fund manager, multimillionaire, and recent California transplant, Heywood has in short order made himself the supervillain of Washington’s left. His Joker arc into politics involves fleeing the liberal dystopia of the Golden State in 2010 for the no-income-tax refuge of Washington, only to discover that Olympia was progressive, too. This year, he set out to personally “fix stupid things” in his adopted state by spending $6 million out of pocket on a signature-gathering campaign that ultimately landed four conservative initiatives on Washington’s general election ballot. (His campaign, Let’s Go Washington, is also allusively named, although Heywood told The Seattle Times that he is not a MAGA supporter.)
Two of the four ballot measures Heywood has willed before voters this November address standard small-government gripes: One would repeal the capital gains tax, and the other would allow workers to opt out of the state’s long-term care payroll tax. Others, however, will ask Washingtonians to vote directly on whether to repeal the state’s landmark cap-and-invest carbon-trading program (I-2117) or block its transition away from natural gas (I-2066).
“We’ve faced initiatives like these before,” Villeneuve told me, “but what is different is how many of them are coming at once.”
As in many Western states, it’s relatively easy for a motivated individual with means to collect the roughly 320,000 signatures needed for a petition to end up on the ballot in Washington. (Contract workers are paid up to $5 per signature, and they often descend on ferry lines, where bored motorists can be talked into putting down their names as they wait for the next boat.) But while rich activists have leveraged this system in the past — Washingtonians may remember the name Tim Eyman — the outcome of the ballot measures before voters this fall will be closely watched by other states and legislatures to gauge how directly popular bold climate progress really is.
“What happens in Washington will certainly have an impact on what happens around the rest of the country,” Leah Missik, the Washington deputy policy director at the clean energy nonprofit Climate Solutions, who also serves on the executive board of the No on 2066 campaign, told me. She added, “If these [laws] are in any way repealed or weakened, that is a sign to other states, and I think it would be incredibly damaging and incredibly unfortunate.”
Though politics in Washington have long been conservation-minded and, shall we say, crunchy (I grew up in Redmond), the state really began to stand out as a leader in progressive climate policy with Governor Jay Inslee’s election in 2013. During Inslee’s tenure, Washington committed to one of the most aggressive 100% clean energy pathways in the country, passed a wide-ranging building emissions law that RMI described as “significantly [raising] the level of ambition on what might be possible for other states,” and in 2023 enacted its landmark cap-and-invest program, called the Climate Commitment Act, which has generated over $2 billion in state revenue so far for transit projects, decarbonization initiatives, and clean air and water programs. Washington has even been credited with inspiring some of President Biden’s climate actions in office.
With Inslee, a Democrat, retiring at the end of this term, Let’s Go Washington’s campaign begins to appear designed to dismantle his legacy while proposing little in the way of alternatives. Hallie Balch, the communications director, denied this allegation in an emailed statement, telling me the initiatives “promote choice and affordability.” The cap-and-invest program, for example, “has not done what the governor said it would do,” she said, and “there are no metrics in place to track [its] success.”
Though the CCA’s cap covers about 75% of the state’s total greenhouse gas emissions, it’s true that we’re still a few years away from having a clear picture of the program’s results. (The law’s first compliance deadline for polluters isn’t until this November.) “The CCA has only been around for almost two years at this point, and so we haven’t yet seen the big emissions declines,” Emily Moore, the director of the climate and energy program at the Sightline Institute, a nonpartisan sustainability think tank that does not take an official position on initiatives, told me. “But what we are seeing,” she added, “is the money that it has generated for a whole suite of climate-friendly and community-friendly projects.”
There isn’t a revenue source remotely comparable to cap-and-invest available to fund the state’s transit, infrastructure, and community projects if the program goes away, meaning a repeal would have a dramatic impact on everything from bus service to salmon recovery projects to local heat pump and induction stove rebates, with most likely getting the axe. The program is also one of the main levers Washington has to reach its goal of reducing emissions 95% below 1990 levels by 2050. As one person involved in crafting the CCA described the upcoming vote on I-2117 to me, it’s “life or death for climate action in Washington.”
That’s partially because I-2117 wouldn’t only repeal the CCA; it would also bar the state and any municipality therein from implementing a new climate tax or cap-and-invest program at any point in the future. When asked what an alternative might be last week during a debate at Seattle University’s Department of Public Affairs and Nonprofit Leadership, Heywood vaguely proposed “something that works.”
“We always knew we were going to have to defend this program at the ballot box,” Joe Fitzgibbon, the majority leader of Washington’s House of Representatives and the chair of the House Environment and Energy Committee, who helped create the CCA, told me. He admitted that he’d expected such a defense to take the form of legislative elections, but 2022 came and went without a single backer of the CCA losing their seat. “I guess in hindsight, I thought we were out of the woods,” Fitzgibbon said.
Let’s Go Washington has labeled CCA a “hidden gas tax” and, bundled with its other initiatives, is running on the slogan “vote yes, pay less.” I-2117 is already the most expensive ballot measure campaign of this election cycle — and the most controversial, with Heywood campaigning at gas stations offering discounted gas, which opponents say violates vote-buying anti-bribery laws. But opposition to the initiative has also rallied a remarkable and unprecedented coalition of strange bedfellows in defense of the CCA, including over 500 businesses, environmental groups, health care organizations, faith leaders, tribes — as well as more than 30 breweries, “a very important coalition member in the state of Washington,” as No on I-2117’s communication director Kelsey Nyland quipped to me. Jane Fonda recently swung through the state to stump for I-2117; the ‘no’ campaign even has the support of the Green Jobs PAC, whose contributors include Shell and BP.
Almost all the advocates I spoke to about I-2117 were feeling optimistic ahead of Washington ballots going out at the end of this week, with the most recent Cascade PBS/Elway poll on the initiative showing support has dropped slightly since May; 46% now say they would vote no, over 30% who would vote yes. (Heywood has pointed optimistically to the number of undecided voters this leaves.) Still, it seems pretty unlikely that Washingtonians will repeal their cap-and-invest program.
I-2066 is a different story.
To the immense frustration of its opponents, Let’s Go Washington touts I-2066 as “Stop the Gas Ban.” The measure was only certified for the ballot in July, compared to January for 2117, meaning that organizers have had much less time to mobilize — several major national green groups, including Defenders of Wildlife and the Environmental Defense Action Fund, confirmed to me that they’d endorsed No on I-2117 but not considered a position on I-2066 — and are on the back foot to combat misinformation.
For one thing, there is no gas ban: I-2066, rather, would repeal parts of a Washington law directing its largest utility, Puget Sound Energy, to consider electrification alternatives before installing new gas pipes; scuttle a pilot effort to promote thermal energy networks as a gas alternative; and, most starkly, it would bar cities and towns, as well as Washington’s energy code, from “prohibiting, penalizing, or discouraging” gas appliances in buildings. “Discouraging” does a lot of work here. For example, Seattle’s building emissions performance standard, which doesn’t ban gas but nudges large developments toward a 2050 net-zero emissions target, could be in jeopardy.
Still, all of this is a lot to expect voters to sort through in the few minutes they might spend filling in the bubbles in their ballot, especially when Let’s Go Washington is making out its message to sound like one simply about energy choice. Add the opaque triple-negative climate campaigners have to sell (“vote no on a ban on banning gas”), and the messaging headaches grow more severe.
Earlier this month, the editorial board for the largest media outlet in Washington, The Seattle Times, endorsed a yes vote on I-2066, arguing for a slower transition away from fossil fuels that leans more heavily on natural gas. “Unfortunately, we are up against a network of fossil fuel corporations and their allies who have a lot of money and who are very invested in the status quo because it perpetuates their wealth and their influence,” Missik, who’s involved with the No on I-2066 campaign, told me, pointing to the Building Industry Association as well as Northwest Natural, National Propane Gas Association, and Koch Industries, who have backed the other side. I-2066 is also polling much better than I-2117; as of September, 47% of voters said they would vote yes, compared to 29% who said they’d vote no.
Rather than interpret those numbers as the electorate’s backlash to Washington’s climate progress, advocates argue they indicate how fossil fuel groups have successfully capitalized on the door propped open by Heywoods’s signature-gathering campaigns. It’s “because one guy opened his wallet; it is that simple,” Villeneuve, the founder of the Northwest Progressive Institute, said. “There is no grassroots movement to overturn these laws; it doesn’t exist. Brian Heywood brought this entire thing into being.” Or, as Missik put it: “Most Washingtons do believe in climate progress, whether or not this will be overridden by money. I sure hope not.”
All of this ultimately brings us back to the question of what Heywood’s whole deal is. With the singular exception of I-2066, his $6 million initiatives seem mostly doomed.
Some I spoke to floated the idea that Heywood and his allies are using Washington as a testing ground for dismantling climate action and seeing what sticks. “If it can happen here, it can happen anywhere: It can happen in California, it can happen in Colorado, it can happen in New York, it can happen in all these states that have passed really strong climate policies,” Caitlin Krenn, the climate and clean energy director of the nonprofit Washington Conservation Action, told me.
But there are other rumors, too. The Washington State Standard’s Jerry Cornfield recently quoted a local GOP chair calling Heywood’s initiatives “a powerful tool” that will “help get Republicans elected” — essentially, a turnout generator. (“We certainly want to see as many people as are eligible to vote exercise their right to make their voices heard, but our top priority is to educate voters about what's at stake with the initiatives this November,” Balch told me in response.) And then there is Heywood’s ranch. Republicans have long cosplayed as rural farmers and cowboys to tap into the masculine conservative fantasy of rugged individualism (what Texas Monthly once called “authenticity drag”). It’s essentially an image-building exercise — perhaps not so unlike positioning yourself as the guy who tried to rein in the state’s runaway Dems.
So far, Heywood has dodged questions about whether he plans to run for governor, and his campaign told me he “isn't using the initiatives as anything other than a way to bring broken policies directly to the people to vote on.” But with this year’s ballots going out to Washington voters today, it’s also a question for another time.
Regardless of what happens, many of the organizers I spoke to rejected the framing of Washington voters cooling on climate. One went as far as to tell me that the time, attention, and money Heywood has spent trying to roll back Washington’s progress is the highest compliment of all. “This is part of the process of doing big things,” Isaac Kastama, who was involved in enacting the CCA and now works for the advocacy group Clean and Prosperous Washington, told me. “If it’s not big and if it goes undetected, that probably means you’re not doing something serious enough.”
Editor’s note: This story has been updated to clarify the scope of I-2117 and correct what Let’s Go Washington has termed a “hidden gas tax.”
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It’s not perfect, but pretty soon, it’ll be available for under $30,000.
Here’s what you need to know about the rejuvenated Chevrolet Bolt: It’s back, it’s better, and it starts at under $30,000.
Although the revived 2027 Bolt doesn’t officially hit the market until January 2026, GM revealed the new version of the iconic affordable EV at a Wednesday evening event at the Universal Studios backlot in Los Angeles. The assembled Bolt owners and media members drove the new cars past Amity Island from Jaws and around the Old West and New York sets that have served as the backdrops of so many television shows and movies. It was star treatment for a car that, like its predecessor, isn’t the fanciest EV around. But given the giveaway patches that read “Chevy Bolt: Back by popular demand,” it’s clear that GM heard the cries of people who missed having the plucky electric hatchback on the market.
The Bolt died at the height of its powers. The original Bolt EV and Bolt EUV sold in big numbers in the late 2010s and early 2020s, powered by a surprisingly affordable price compared to competitor EVs and an interior that didn’t feel cramped despite its size as a smallish hatchback. In 2023, the year Chevy stopped selling it, the Bolt was the third-best-selling EV in America after Tesla’s top two models.
Yet the original had a few major deficiencies that reflected the previous era of EVs. The most egregious of which was its charging speed that topped out at around 50 kilowatts. Given that today’s high-speed chargers can reach 250 to 350 kilowatts — and an even faster future could be on the way — the Bolt’s pit stops on a road trip were a slog that didn’t live up to its peppy name.
Thankfully, Chevy fixed it. Charging speed now reaches 150 kilowatts. While that figure isn’t anywhere near the 350 kilowatts that’s possible in something like the Hyundai Ioniq 9, it’s a threefold improvement for the Bolt that lets it go from 10% to 80% charged in a respectable 26 minutes. The engineers said they drove a quartet of the new cars down old Route 66 from the Kansas City area, where the Bolt is made, to Los Angeles to demonstrate that the EV was finally ready for such an adventure.
From the outside, the 2027 Bolt is virtually indistinguishable from the old car, but what’s inside is a welcome leap forward. New Bolt has a lithium-ion-phosphate, or LFP battery that holds 65 kilowatt-hours of energy, but still delivers 255 miles of max range because of the EV’s relatively light weight. Whereas older EVs encourage drivers to stop refueling at around 80%, the LFP battery can be charged to 100% regularly without the worry of long-term damage to the battery.
The Bolt is GM’s first EV with the NACS charging standard, the former Tesla proprietary plug, which would allow the little Chevy to visit Tesla Superchargers without an adapter (though its port placement on the front of the driver’s side is backwards from the way older Supercharger stations are built). Now built on GM’s Ultium platform, the Bolt shares its 210-horsepower electric motor with the Chevy Equinox EV and gets vehicle-to-load capability, meaning you’ll be able to tap into its battery energy for other uses such as powering your home.
But it’s the price that’s the real wow factor. Bolt will launch with an RS version that gets the fancier visual accents and starts at $32,000. The Bolt LT that will be available a little later will eventually start as low as $28,995, a figure that includes the destination charge that’s typically slapped on top of a car’s price, to the tune of an extra $1,000 to $2,000 on delivery. Perhaps it’s no surprise that GM revealed this car just a week after the end of the $7,500 federal tax credit for EV purchases (and just a day after Tesla announced its budget versions of the Model Y and Model 3). Bringing in a pretty decent EV at under $30,000 without the help of a big tax break is a pretty big deal.
The car is not without compromises. Plenty of Bolt fans are aghast that Chevy abandoned the Apple CarPlay and Android Auto integrations that worked with the first Bolt in favor of GM’s own built-in infotainment system as the only option. Although the new Bolt was based on the longer, “EUV” version of the original, this is still a pretty compact car without a ton of storage space behind the back seats. Still, for those who truly need a bigger vehicle, there’s the Chevy Equinox EV.
For as much time as I’ve spent clamoring for truly affordable EVs that could compete with entry-level gas cars on prices, the Bolt’s faults are minor. At $29,000 for an electric vehicle in the U.S., there is practically zero competition until the new Nissan Leaf arrives. The biggest threats to the Bolt are America’s aversion to small cars and the rapid rates of depreciation that could allow someone to buy a much larger, gently used EV for the price of the new Chevy. But the original Bolt found a steady footing among drivers who wanted that somewhat counter-cultural car — and this one is a lot better.
“Old economy” companies like Caterpillar and Williams are cashing in by selling smaller, less-efficient turbines to impatient developers.
From the perspective of the stock market, you’re either in the AI business or you’re not. If you build the large language models pushing out the frontiers of artificial intelligence, investors love it. If you rent out the chips the large language models train on, investors love it. If you supply the servers that go in the data centers that power the large language models, investors love it. And, of course, if you design the chips themselves, investors love it.
But companies far from the software and semiconductor industry are profiting from this boom as well. One example that’s caught the market’s fancy is Caterpillar, better known for its scale-defying mining and construction equipment, which has become a “secular winner” in the AI boom, writes Bloomberg’s Joe Weisenthal.
Typically construction businesses do well when the overall economy is doing well — that is, they don’t typically take off with a major technological shift like AI. Now, however, Caterpillar has joined the ranks of the “picks and shovels” businesses capitalizing on the AI boom thanks to its gas turbine business, which is helping power OpenAI’s Stargate data center project in Abilene, Texas.
Just one link up the chain is another classic “old economy” business: Williams Companies, the natural gas infrastructure company that controls or has an interest in over 33,000 miles of pipeline and has been around in some form or another since the early 20th century.
Gas pipeline companies are not supposed to be particularly exciting, either. They build large-scale infrastructure. Their ratemaking is overseen by federal regulators. They pay dividends. The last gas pipeline company that got really into digital technology, well, uh, it was Enron.
But Williams’ shares are up around 28% in the past year — more than Caterpillar. That’s in part, due to its investing billions in powering data centers with behind the meter natural gas.
Last week, Williams announced that it would funnel over $3 billion into two data center projects, bringing its total investments in powering AI to $5 billion. This latest bet, the company said, is “to continue to deliver speed-to-market solutions in grid-constrained markets.”
If we stipulate that the turbines made by Caterpillar are powering the AI boom in a way analogous to the chips designed by Nvidia or AMD and fabricated by TSMC, then Williams, by developing behind the meter gas-fired power plants, is something more like a cloud computing provider or data center developer like CoreWeave, except that its facilities house gas turbines, not semiconductors.
The company has “seen the rapid emergence of the need for speed with respect to energy,” Williams Chief Executive Chad Zamarin said on an August earnings call.
And while Williams is not a traditional power plant developer or utility, it knows its way around natural gas. “We understand pipeline capacity,” Zamarin said on a May earnings call. “We obviously build a lot of pipeline and turbine facilities. And so, bringing all the different pieces together into a solution that is ready-made for a customer, I think, has been truly a differentiator.”
Williams is already behind the Socrates project for Meta in Ohio, described in a securities filing as a $1.6 billion project that will provide 400 megawatts of gas-fired power. That project has been “upsized” to $2 billion and 750 megawatts, according to Morgan Stanley analysts.
Meta CEO Mark Zuckerberg has said that “energy constraints” are a more pressing issue for artificial intelligence development than whether the marginal dollar invested is worth it. In other words, Zuckerberg expects to run out of energy before he runs out of projects that are worth pursuing.
That’s great news for anyone in the business of providing power to data centers quickly. The fact that developers seem to have found their answer in the Williamses and Caterpillars of the world, however, calls into question a key pillar of the renewable industry’s case for itself in a time of energy scarcity — that the fastest and cheapest way to get power for data centers is a mix of solar and batteries.
Just about every renewable developer or clean energy expert I’ve spoken to in the past year has pointed to renewables’ fast timeline and low cost to deploy compared to building new gas-fired, grid-scale generation as a reason why utilities and data centers should prefer them, even absent any concerns around greenhouse gas emissions.
“Renewables and battery storage are the lowest-cost form of power generation and capacity,” Next Era chief executive John Ketchum said on an April earnings call. “We can build these projects and get new electrons on the grid in 12 to 18 months.” Ketchum also said that the price of a gas-fired power plant had tripled, meanwhile lead times for turbines are stretching to the early 2030s.
The gas turbine shortage, however, is most severe for large turbines that are built into combined cycle systems for new power plants that serve the grid.
GE Vernova is discussing delivering turbines in 2029 and 2030. While one manufacturer of gas turbines, Mitsubishi Heavy Industries, has announced that it plans to expand its capacity, the industry overall remains capacity constrained.
But according to Morgan Stanley, Williams can set up behind the meter power plants in 18 months. xAI’s Colossus data center in Memphis, which was initially powered by on-site gas turbines, went from signing a lease to training a large language model in about six months.
These behind the meter plants often rely on cheaper, smaller, simple cycle turbines, which generate electricity just from the burning of natural gas, compared to combined cycle systems, which use the waste heat from the gas turbines to run steam turbines and generate more energy. The GE Vernova 7HA combined cycle turbines that utility Duke Energy buys, for instance, range in output from 290 to 430 megawatts. The simple cycle turbines being placed in Ohio for the Meta data center range in output from about 14 megawatts to 23 megawatts.
Simple cycle turbines also tend to be less efficient than the large combined cycle system used for grid-scale natural gas, according to energy analysts at BloombergNEF. The BNEF analysts put the emissions difference at almost 1,400 pounds of carbon per megawatt-hour for the single turbines, compared to just over 800 pounds for combined cycle.
Overall, Williams is under contract to install 6 gigawatts of behind-the-meter power, to be completed by the first half of 2027, Morgan Stanley analysts write. By comparison, a joint venture between GE Vernova, the independent power producer NRG, and the construction company Kiewit to develop combined cycle gas-fired power plants has a timeline that could stretch into 2032.
The Williams projects will pencil out on their own, the company says, but they have an obvious auxiliary benefit: more demand for natural gas.
Williams’ former chief executive, Alan Armstrong, told investors in a May earnings call that he was “encouraged” by the “indirect business we are seeing on our gas transmission systems,” i.e. how increased natural gas consumption benefits the company’s traditional pipeline business.
Wall Street has duly rewarded Williams for its aggressive moves.
Morgan Stanley analysts boosted their price target for the stock from $70 to $83 after last week’s $3 billion announcement, saying in a note to clients that the company has “shifted from an underappreciated value (impaired terminal value of existing assets) to underappreciated growth (accelerating project pipeline) story.” Mizuho Securities also boosted its price target from $67 to $72, with analyst Gabriel Moreen telling clients that Williams “continues to raise the bar on the scope and potential benefits.”
But at the same time, Moreen notes, “the announcement also likely enhances some investor skepticism around WMB pushing further into direct power generation and, to a lesser extent, prioritizing growth (and growth capex) at the expense of near-term free cash flow and balance sheet.”
In other words, the pipeline business is just like everyone else — torn between prudence in a time of vertiginous economic shifts and wanting to go all-in on the AI boom.
Williams seems to have decided on the latter. “We will be a big beneficiary of the fast rising data center power load,” Armstrong said.
On billions for clean energy, Orsted layoffs, and public housing heat pumps
Current conditions: A tropical rainstorm is forming in the Atlantic that’s forecast to barrel along the East Coast through early next week, threatening major coastal flooding and power outages • Hurricane Priscilla is weakening as it tracks northward toward California • The Caucasus region is sweltering in summer-like heat, with the nation of Georgia enduring temperatures of up to 93 degrees Fahrenheit in October.
Base Power, the Texas power company that leases batteries to homeowners and taps the energy for the grid, on Tuesday announced a $1 billion financing round. The Series C funding is set to supercharge the Austin-based company’s meteoric growth. Since starting just two years ago, Base has deployed more than 100 megawatts of residential battery capacity, making it one of the fastest growing distributed energy companies in the nation. The company now plans to build a factory in the old headquarters of the Austin American-Statesman, the leading daily newspaper in the Texan capital. The funding round included major investors who are increasing their stakes, including Valor Equity Partners, Thrive Capital, and Andreessen Horowitz, and at least nine new venture capital investors, including Lowercarbon, Avenir, and Positive Sum. “The chance to reinvent our power system comes once in a generation,” Zach Dell, chief executive and co-founder of Base Power, said in a statement. “The challenge ahead requires the best engineers and operators to solve it and we’re scaling the team to make our abundant energy future a reality.”
The deal came a day after Brookfield Asset Management, the Canadian-American private equity giant, raised a record $23.5 billion for its clean energy fund. At least $5 billion has already been spent on investments such as the renewable power operator Neoen, the energy developer Geronimo Power, and the Indian wind and solar giant Evren. “Energy demand is growing fast, driven by the growth of artificial intelligence as well as electrification in industry and transportation,” Connor Teskey, Brookfield’s president and renewable power chief, said in a press release. “Against this backdrop we need an ‘any and all’ approach to energy investment that will continue to favor low carbon resources.”
Orsted has been facing down headwinds for months. The Danish offshore wind giant has absorbed the Trump administration’s wrath as the White House deployed multiple federal agencies to thwart progress on building seaward turbines in the Northeastern U.S. Then lower-than-forecast winds this year dinged Orsted’s projected earnings for 2025. When the company issued new stock to fund its efforts to fight back against Trump, the energy giant was forced to sell the shares at a steep discount, as I wrote in this newsletter last month. Despite all that, the company has managed to raise the money it needed. On Wednesday, The Wall Street Journal reported that Orsted had raised $9.4 billion. Existing shareholders subscribed for 99.3% of the new shares on offer, but demand for the remaining shares was “extraordinarily high,” the company said.
That wasn’t enough to stave off job cuts. Early Thursday morning, the company announced plans to lay off 2,000 employees between now and 2027. The cuts represented roughly one-quarter of the company’s 8,000-person global workforce. “This is a necessary consequence of our decision to focus our business and the fact that we'll be finalizing our large construction portfolio in the coming years — which is why we'll need fewer employees,” Rasmus Errboe, Orsted’s chief executive, said in a statement published on CNBC. "At the same time, we want to create a more efficient and flexible organization and a more competitive Orsted, ready to bid on new value-accretive offshore wind projects.”
California Governor Gavin Newsom. Mario Tama/Getty Images
California operates the world’s largest geothermal power station, The Geysers, and generates up to 5% of its power from the Earth’s heat. But the state is far behind its neighbors on developing new plants based on next-generation technology. Most of the startups racing to commercialize novel methods are headquartered or building pilot plants in states such as Utah, Nevada, and Texas. A pair of bills to make doing business in California easier for geothermal companies was supposed to change that. Yet while Governor Gavin Newsom signed one statute into law that makes it easier for state regulators to certify geothermal plants, he vetoed a permitting reform bill to which the industry had pegged its hopes. “Every geothermal developer and energy org I talked to was excited about this bill,” Thomas Hochman, who heads the energy program at the right-leaning Foundation for American Innovation, wrote in a post on X. “The legislature did everything right, passing it unanimously. They even reworked it to accommodate certain classic California concerns, such as prevailing wage requirements.”
In a letter announcing his veto, the governor claimed that the law would have added new fees for geothermal projects. But an executive at Zanskar — the startup that, as Heatmap’s Katie Brigham reported last month, is using new technology to locate and tap into conventional geothermal resources — called the governor’s argument “weak sauce.” Far from burdening the industry, Zanskar co-founder Joel Edwards said on X, “this was a clean shot to accelerate geothermal today, and he whiffed it.”
Last month, Generate Capital trumpeted the appointment of its first new chief executive in its 11-year history as the leading infrastructure investment firm sought to realign its approach to survive a tumultuous time in clean-energy financing. Less publicly, as Katie wrote in a scoop last night, it also kicked off company-wide job cuts. In an interview with Katie, Jonah Goldman, the firm’s head of external affairs, said the company “grew quickly and made some mistakes,” and now planned to lay off 50 people.
Generate once invested in “leading-edge technologies,” according to co-founder Jigar Shah, who left the firm to serve as the head of the Biden-era DOE Loan Programs Office. That included investments in projects involving fuel cells, anaerobic digesters, and battery storage. But from the outside, he said on the Open Circuits podcast he now co-hosts, the firm appears to have moved away from taking these riskier but potentially more lucrative bets. “They ended up with 38 people in their capital markets team, and their capital markets team went out to the marketplace and said, Hey, we have all this stuff to sell. And the people that they went to said, Well, that’s interesting, but what we really would love is boring community solar.”
Three of New England’s largest public housing agencies signed deals with the heat pump manufacturer Gradient to replace aging electric heaters and air conditioners with the company’s 120-volt, two-way units that provide both heating and cooling. The Boston Housing Authority, New England’s largest public housing agency, will kick off the deal by installing 100 all-weather, two-way units that both heat and cool at the Hassan Apartments, a complex for seniors and adults with disabilities in Boston’s Mattapan neighborhood. The housing authorities in neighboring Chelsea and Lynn — two formerly industrial, working-class cities just outside Boston — will follow the same approach.
Public housing agencies have long served a vital role in helping to popularize new, more efficient appliances. The New York City Housing Authority, for example, is credited with creating the market for efficient mini fridges in the 1990s. Last year, NYCHA — the nation’s largest public housing system — signed a similar deal with Gradient for heat pumps. Months later, as Heatmap’s Emily Pontecorvo exclusively reported at the time, NYCHA picked a winner in its $32 million contest for an efficient new induction stove for its apartments.
Three chemists — Susumu Kitagawa, Richard Robson, and Omar Yaghi — won the Nobel Prize for “groundbreaking discoveries” that "may contribute to solving some of humankind’s greatest challenges, from pollution to water scarcity.” Just a few grams of the so-called molecular organic frameworks the scientists pioneered could have as much surface area as a soccer field, which can be used to lock gas molecules in place in carbon capture or harvest freshwater from the atmosphere.