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Sparks

Biden: Look at These Pretty Wind Turbines (Also, We’re Expanding Oil Drilling)

No one is pleased.

President Biden.
Heatmap Illustration/Getty Images

An announcement Friday by the Biden administration to extend the nation’s offshore oil leasing program perfectly encapsulates the Catch-22 the president finds himself in over his climate goals. The press release brazenly advertises the drilling expansion plan as “Reflecting America’s Rapid and Accelerating Shift to Clean Energy,” all while reading like someone trying to convince you that they’ve got a gun to their head.

This plan was a long time coming. The Interior Department is responsible for establishing a five-year leasing schedule under the Outer Continental Shelf Lands Act that will “best” meet the United States' energy needs, and the previous plan is about to expire. Lease sale 261, which was supposed to be held on Wednesday but has been delayed until later this fall, is the last one on the agenda.

The agency could, in theory, issue a schedule with zero lease sales over the next five years. But due to provisions added into the Inflation Reduction Act by West Virginia Senator Joe Manchin, such inaction would prevent the government from being able to open up more of the nation’s coast to offshore wind development. Before the Interior Department can put up any offshore acreage for wind, it has to have put up at least 60 million acres for oil in the previous year, the law says.

So instead of calling it an offshore oil lease plan, the agency is describing it as an offshore wind-enablement plan. The IRA’s handcuffs were referenced roughly four times in the press release, including in the first sentence, which reads, “Consistent with the requirements of the Inflation Reduction Act …” The plan to hold three oil and gas sales in 2025, 2027, and 2029 is the “minimum number” the department could schedule in order to continue the expansion of offshore wind, it said, and “the fewest … in history.” The subheading of the page even calls it a plan that “phases down oil and gas leasing in the Gulf of Mexico,” and the image paired with the announcement on social media featured wind turbines.

There’s nothing factually wrong about any of this. The final plan calls for significantly fewer sales than the 47 initially proposed in 2018 by the Trump administration, and a marked reduction from the 11 proposed by Biden last summer. The plan also restricts drilling to areas in the Gulf of Mexico that are already under development, rather than opening up new areas in Alaska or the Atlantic, as Trump wanted to do. But it does put the U.S. on a path to increased oil production, and at least one analysis asserts that the administration doesn’t even need to hold any more wind lease sales to achieve Biden’s clean energy goals.

It’s unclear who the apologetic tone or desperate image of wind turbines was for. By all accounts, the announcement was a letdown to all sides.

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Sparks

Electricity Bills Were Higher Than Ever in July

Americans paid $217 on average for electricity last month, according to Heatmap and MIT’s Electricity Price Hub.

A plug graph.
Heatmap Illustration/Getty Images

July is typically the season of high electricity bills, and this year is no exception.

Nationally, the average electricity bill spiked to $217, an all-time high, according to new data from Heatmap and MIT’s Electricity Price Hub. That’s up from $177 in June, and $215 last July. Meanwhile, electricity rates were 19 cents per kilowatt-hour, virtually unchanged from June and slightly higher than July of last year.

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Scoop: Clearway Cancels Plan to Swap Solar Farm for Data Center and Gas Plant

The energy developer is backing off after a Heatmap report.

Solar panels and a gas plant.
Heatmap Illustration/Getty Images

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Last week, I reported that Clearway asked the Trump administration’s Bureau of Land Management to swap a five year-old application for a solar farm’s permits with “a proposed data center and natural gas facility.” Clearway’s chief development officer John Woody had written in a letter to BLM dated April 3 that the swap was “the result of a shift in our internal development priorities” and intended “to better align with the goals of our Administration.” He also noted the plans were in “exploratory early stages.”

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Koloma Strikes New Hydrogen Exploration Deal in the Philippines

The deal, shared exclusively with Heatmap, is the startup’s third in the oil-importing country.

A Koloma worker.
Heatmap Illustration/Koloma, Getty Images

Hydrogen fuel comes in myriad forms. There’s green hydrogen, which is extracted from water molecules using zero-carbon electricity. There’s blue hydrogen, derived from methane and scrubbed clean by carbon capture. And then there’s white hydrogen. Otherwise known as natural or geologic hydrogen, this type of hydrogen comes directly from naturally occurring deposits in the earth, can accumulate in considerable quantities and concentrations, and is highly energy-efficient to extract compared to manufacturing pathways such as electrolyzers and steam methane reforming.

It’s a seductive promise, but finding deposits with enough hydrogen to make the economics of exploration work is difficult. That’s where Koloma comes in. The startup uses a bespoke subsurface data set, which its founders developed over 20-plus years, to flag the areas most likely to hold sufficient hydrogen, after which they can extract it for power and derivative fuels.

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