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Just check out Hydrostor’s Willow Rock project.

How Hydrostor Is Helping Modernize the Grid
The technologies that have begun to define our era are also set to cause a spike in the world’s demand for energy. The growth of smart technology in our homes and businesses will require a huge amount of electricity, and the data centers that power the AI ambitions of modern technology are notorious for their hunger for energy. It is clear that the world’s power grid must grow and modernize to accommodate what’s coming. However, as Hydrostor President Jon Norman points out, this modernization needed to happen no matter what.
“The conventional grid is reaching the end of life,” he says. “The last investment cycles on the grid were really 30-40 years ago. What’s interesting about what’s happening now is that there was always going to be a need to modernize around this time period — regardless of the decarbonization agenda.”
It’s true that the ongoing growth of renewable resources like solar and wind are key to modernizing the grid, not only because they provide clean energy and energy security, but also because, as Norman notes, they are now among the least-expensive ways to add new electricity onto the network. Alongside them, the modern grid needs more ways to store energy, which would allow us to save sun power for the nighttime, for example, or stash away energy to avoid blackouts. But while lithium-ion batteries and pumped hydro systems have begun to fill some of that short-term storage need, Hydrostor’s technology provides the opportunity to do something more: to store a large quantity of megawatts for many hours or days at a time, an ability that would modernize the power grid in a variety of ways, supporting the energy demands of tomorrow and easing grid congestion to make way for continued economic growth.
Hydrostor’s advanced compressed-air energy storage (A-CAES) technology uses the elemental forces of water, air, and gravity to store grid energy for long durations with minimal losses. Picture a purpose-built underground cavern filled with water, and an empty reservoir situated aboveground. Hydrostor facilities use grid electricity to compress air, which it sends below ground, capturing the heat created during the process. The pressurized air then pushes the water from the underground cavern into the aboveground pond (a closed-loop reservoir). In this state, the big underground battery is “charged.” When the stored energy is needed, water is released from the reservoir and flows into the cavern, pushing the compressed air back out to the surface. There, after being recombined with heat, it moves through turbines to create electricity.
One Hydrostor A-CAES facility can store 500 megawatts of energy and deploy it whenever necessary. In this way, it can act as a traditional energy-generating plant. “Say there’s a power plant retiring,” Norman says. “We can surgically locate in a grid where the new project provides that same benefit and the same type of synchronous inertia that traditional power plants provide” — that is, the grid’s ability to constantly match electricity demand in real time. “It’s just using off-peak electricity almost in a way that provides that capacity on the grid.”
Hydrostor’s facilities can also take the place of transmission line expansion. At one proposed project site in Australia, Hydrostor’s system provides the backbone of a mini grid by storing solar and wind generation and providing it as a backup solution for the town when the single transmission line that reaches to the remote region goes down. (The last time that this happened, the region was without power for days.)
This Australian use case demonstrates how longer-term storage will be a critical piece of modernization. Lithium-ion batteries, like those inside our EVs and smartphones, have already begun to buttress the grid with extra storage capacity. But they are most useful for storing energy for short periods up to 4 hours, and they suffer from long-term performance degradation the same way a phone’s battery life fades over time. Pumped hydro systems are a useful tool but can be located only in specialized locations and can be difficult to successfully permit.
Hydrostor’s flexibility is its strength. Rather than inventing exotic new technologies, the system uses an established supply chain. For example, the turbines, compressors, and other equipment are already proven in the oil and gas industry, while the excavation of caverns is borrowed from techniques already used for underground hydrocarbon storage. Because of the relatively simple requirements, a Hydrostor A-CAES facility can be cited in many different locations; Norman estimates that between a third and a half of a given power jurisdiction would typically work. And Hydrostor is dense and efficient with space: A 500-MW facility occupies only 100 acres, compared with the more than 800 acres needed for an average 1,000-MW nuclear power facility in the United States.
Although it occupies relatively little above-ground space, a Hydrostor facility is a major infrastructure project — which means that it doubles as a robust engine of job growth for the area, one that builds upon the skill sets already present in the local community. “We have hundreds of people working on-site at any one time during a four- to five-year construction period,” Norman says. “And the skill sets that are required to operate the plant are the same skill sets as operators that run fossil plants. It’s not like you’re retraining people to clean solar panels. This is literally the same job dropped onto the site: high-paid, very skilled jobs, and a direct translation of what they have done before.”
The Willow Rock project underway in Kern County, California, for example, will employ more than 6,500 people throughout the course of construction. Once complete, the facility will provide 40 full-time jobs during its 50-plus year operational lifetime. While a 500-megawatt A-CAES project costs roughly $1.5 billion, more than a third of the capital expenditure for the project goes to the cost of building the underground cavern with on-site mining labor. Together with the onsite labor needed to integrate the aboveground equipment with the underground development and build the necessary transmission infrastructure, this means that a significant percentage of the money for Hydrostor projects goes to paychecks for American workers.
Even in a time of clear partisan divisions over what kinds of energy will power the economy, Norman points out, there is widespread agreement that energy storage is crucial to powering the grid modernization that America so urgently needs. Sun-drenched areas of the American Southwest like Arizona and New Mexico, as well as wind energy powerhouse areas like Wyoming and Colorado, are beginning to ask for more long-term storage capabilities to help them manage times when solar or wind energy go through inevitable dips.
Utilities, Norman says, have begun to recognize that they need energy storage of 8 to 10 hours, and preferably longer, to make sure they can replace their solar and wind capacity when those intermittent resources are producing less energy than average. “If you have a storage resource that can provide that amount, then you’re going to be able to fill that gap,” he says. “And that’s what is really significantly driving those needs.”
And if we are to move away from keeping aging assets online to meet our energy needs — which costs ratepayers millions of extra dollars — then it is essential for utilities to embrace modern, longer-term storage solutions like Hydrostor’s plants.
The grid, after all, needs to meet demand with supply every second, but has never before been able to reliably store large amounts of electricity. Under the old way of doing things, the best we could do was to instantaneously tap into the energy that’s stored within fossil fuels. “Think about natural gas or coal,” Norman says. “It’s kind of like stored energy. You just burn it and then, boom, you have your electricity product. If those things are retiring, you really need longer-term storage on the grid.”
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Just as demand for batteries is intensifying.
The energy impacts of the continued crisis in the Persian Gulf are obvious. Countries that rely on the natural gas and oil from the region are dealing with higher prices, and in some cases are trying to tamp down their demand for fuel and electricity to keep prices under control, not to mention maintain basic energy availability.
But it’s not just gas-fired power plants and internal combustion engines that are feeling the pinch.
The consequences of the effective closure of the Strait of Hormuz go well beyond the set of energy commodities typically associated with the Persian Gulf, including a vast array of minerals and petrochemicals, including many necessary to produce clean energy. We’ve already covered aluminum, a key component of solar panels, cars, and batteries, which requires so much energy for processing that almost 10% of it is produced in the Middle East, where fuel is abundant.
Now another chemical essential to the battery supply chain is seeing price hikes and supply reductions: sulfuric acid.
Sulfuric acid is used in refining and processing several metals and minerals key to the energy transition, including copper, cobalt, nickel, and lithium. Copper is used throughout EVs and other clean technologies, while nickel and cobalt are used in cathodes in lithium-ion batteries — which, of course, also contain lithium. Shortages or higher prices of sulfuric acid could lead to shortages or higher prices for batteries and electric vehicles, just as consumers flock to them to help mitigate the impacts of rising fossil fuel costs.
Sulfur is a byproduct of oil and natural gas refining, hence about half of seaborne sulfur comes from the Middle East, according to Argus Media, but only a handful of sulfur-bearing vessels have transited the Strait of Hormuz since the war began. In response to the disruption, China, the world’s top exporter of sulfuric acid, began restricting shipments abroad, according to S&P.
Sulfuric acid “is an irreplaceable input in the manufacture of renewable energy materials, such as silicon wafers in solar panels; the nickel, cobalt, and rare earths in wind turbine magnets and electric vehicle (EV) motors; and the copper wiring in every grid connection and transformer,” wrote Atlantic Council fellow Alvin Camba in an analysis for the think tank.
“Most elemental sulfur comes from the Middle East,” Camba told me, “and it goes to places like Indonesia,” where metals are processed to “produce the batteries for a lot of vehicles for companies like Tesla, BYD, and Honda.”
Shortages of sulfuric acid will likely hit Indonesia especially hard. The country produces about 60% of the world’s nickel, but has only about a month’s inventory of sulfur, according to a team of Morgan Stanley analysts. “We believe the energy shock is reverberating and will sustain beyond the reopening of the Strait of Hormuz,” the analysts wrote of China’s export restrictions. “It will keep fuel markets tighter, lift the cost curve for Indonesian nickel, and raise refining margins in Asia. Higher energy prices will show up in food, tech and battery supply chains.”
Already, according to Morgan Stanley, “several” Indonesian nickel producers have reduced their output by at least 10% from last month. In the Democratic Republic of Congo, copper and cobalt miners are reducing their use of chemicals in their operations and considering cutting output.
Battery manufacturers are already seeing higher costs for their materials. The Chinese battery giant (and Tesla supplier) CATL saw its profit margins decline quarter-over-quarter revenue growth due to “cost pressure,” Morningstar analyst Vincent Sun wrote last week in a note to clients — and that’s despite greater sales volumes as consumers attempt to escape fossil fuel-dependency. As sulfuric acid rises in price, the battery companies will also be competing with agribusiness, who use sulfuric acid to produce phosphate fertilizers, Camba told me.
Even Ivanhoe Mines chief executive and metal and mining mega-bull Robert Friedland said in a statement last week, “If the closure of the Straits of Hormuz continues … second-derivative effect will be on global copper production due to the shortage of the world’s most important industrial chemical, sulfuric acid.” Friedland described the market for sulfur and sulfuric acid as “extremely tight.”
That also spells bad news for lithium, the namesake mineral used in EV batteries. Around half of global lithium production comes from spodumene, a hard rock mined largely in Western Australia. Refining that rock requires a "shitload" of sulfuric acid, Nathaniel Horadam, the founder and president of Full Tilt Strategies, told me, through an energy intensive process known as “acid baking.”
Australian mines were already suffering from high diesel prices and shortages due to the conflict in Iran, according to Argus Media. The high price of sulfuric acid could put a squeeze on margins for lithium refining, which largely occurs in China.
“If their production costs go up, that’s going to be factoring into their market pricing,” Horadam said. “I would expect all those prices to go up in the short to medium term until this stuff kind of settles.”
The other major threat to battery makers specifically, Horadam said, was shortages of petrochemicals like ethylene, which is used in the production of plastics, and polyethylene, a polymer often used in plastic bags.
Ethylene is often made from ethane, a natural gas liquid, or naphtha, a refined petroleum product and production in the Persian Gulf has been severely disrupted by the Hormuz crisis. As of March, Asian petrochemical producers had already reduced their output in anticipation of shortages.
Polyethylene is also a crucial component in lithium-ion batteries, where it’s often used in the “separator,” which physically divides the cathode from the anode. Even the Trump administration has thrown its support behind polyethylene in battery manufacturing A $1.3 billion loan from the Department of Energy’s in-house bank to finance a separator manufacturing facility in Indiana survived the Trump administration’s gutting of that office, with $77 million getting disbursed last September. (Notably, the Trump-era announcement dropped a reference to electric vehicles and instead enumerated separators’ uses in “data centers, energy storage, and consumer electronics.”)
Over 40% of lithium-ion separators are produced in China with the “bulk” of them produced in Asia, according to the DOE, which makes support for domestic production paramount to maintaining international competitiveness and domestic supply chains.
“We’re relying on the Chinese and Japanese to produce all our separators and electrolytes and such,” Horadam said. “This sulfuric stuff is getting all the attention because it’s pretty obvious in terms of visible, salient minerals that are directly impacted, but I wouldn’t sleep on separators and binding agents.”
The opinion covered a host of actions the administration has taken to slow or halt renewables development.
A federal court seems to have struck down a swath of Trump administration moves to paralyze solar and wind permits.
U.S. District Judge Denise Casper on Tuesday enjoined a raft of actions by the Trump administration that delayed federal renewable energy permits, granting a request submitted by regional trade groups. The plaintiffs argued that tactics employed by various executive branch agencies to stall permits violated the Administrative Procedures Act. Casper — an Obama appointee — agreed in a 73-page opinion, asserting that the APA challenge was likely to succeed on the merits.
The ruling is a potentially fatal blow to five key methods the Trump administration has used to stymie federal renewable energy permitting. It appears to strike down the Interior Department memo requiring sign-off from Interior Secretary Doug Burgum on all major approvals, as well as instructions that the Interior and the Army Corps of Engineers prioritize “energy dense” projects in ways likely to benefit fossil fuels. Also struck down: a ban on access to a Fish and Wildlife Service species database and an Interior legal opinion targeting offshore wind leases.
Casper found a litany of reasons the five actions may have violated the Administrative Procedures Act. For example, the memo mandating political reviews was “a significant departure from [Interior] precedent,” and therefore “required a ‘more detailed justification’ than that needed for merely implementing a new policy.” The “energy density” permitting rubric, meanwhile, “conflicts” with federal laws governing federal energy leases so it likely violated the APA, the judge wrote.
What’s next is anyone’s guess. Some cynical readers may wonder whether the Supreme Court will just lift the preliminary injunction at the administration’s request. It’s worth noting Casper had the High Court’s penchant for neutralizing preliminary injunctions in mind, writing in her opinion, “The Court concludes that the scope of this requested injunctive relief is appropriate and consistent with the Supreme Court’s limitations on nationwide injunctions.”
On China’s H2 breakthrough, vehicle-to-grid charging, and USA Rare Earth goes to Brazil
Current conditions: In the Atlantic, Tropical Storm Fernand is heading northward toward Bermuda • In the Pacific, Tropic Storm Juliette is active about 520 miles southwest of Baja California, with winds of up to 65 miles per hour • Temperatures are surging past 100 degrees Fahrenheit in South Korea.
Nearly two weeks ago, Vineyard Wind sued one of its suppliers, GE Vernova, to keep the industrial giant from exiting the offshore wind project off the coast of Nantucket in Massachusetts. Now a U.S. court has ordered GE Vernova to finish the job, saying it would be “fanciful” to imagine a new contractor could complete the installation. GE Vernova had argued that Vineyard Wind — a 50/50 joint venture between the European power giant Avangrid and Copenhagen Infrastructure Partners — owed it $300 million for work already performed. But Vineyard Wind countered that the manufacturer remains on the hook for about $545 million to make up for a catastrophic turbine blade collapse in 2024, according to WBUR. “The project is at a critical phase and the loss of [Vineyard Wind]’s principal contractor would set the project back immeasurably,” the Suffolk County Superior Court Judge Peter Krupp wrote in his decision, repeatedly using the name of GE Vernova’s renewables subsidiary. “To pretend that [Vineyard Wind] could go out and hire one or more contractors to finish the installation and troubleshoot and modify [GE Renewables’] proprietary design without [GE Renewables’] specialized knowledge is fanciful.”
Charlotte DeWald fears the world is sleepwalking into tipping points beyond which the Earth’s natural carbon cycles will render climate change uncontrollable. By the time we realize what it means for global weather and agricultural systems that there’s no sea ice in the Arctic sometime in the 2030s, for example, it may be too late to try anything drastic to buy us more time. Much of the discourse around what to do concerns a specific kind of geoengineering called stratospheric aerosol injections, essentially spraying reflective particles into the sky to block the sun’s heat from permeating the increasingly thick layer of greenhouse gases that prevent that energy from naturally radiating back into space. That’s something DeWald, a former Pacific Northwest National Laboratory researcher and climate scientist by training who specialized in modeling aerosol-cloud interactions, knows all about. But her approach is different, using a technology known as mixed-phase cloud thinning, a process similar to cloud seeding. “The idea is that you could dissipate clouds over the Arctic to release heat from the surface to, for example, increase sea ice extent or thickness or integrity,” she told me. “There’s some early modeling that suggests that it could yield significant cooling over the Arctic Ocean.”
With all that context, you can now appreciate the exclusive bit of news I have for you this morning: DeWald is launching a new nonprofit called the Arctic Stabilization Initiative to “evaluate whether targeted interventions can slow dangerous” warming near the Earth’s northern pole. So far, ASI has raised $6.5 million in philanthropic funding toward a five-year budget goal of $55 million to study whether MCT, as mixed-phase cloud thinning is known, could help save the Arctic. The nonprofit has an advisory board stacked with veteran Arctic scientists and put together a “stage-gated” research plan with offramps in case early modeling suggests MCT won’t work or could cause undue environmental damage. The project also has an eye toward engaging with Indigenous peoples and “will ground all future work in respect for Indigenous sovereignty, before any field-based research activity is pursued.” The statement harkens to Harvard University’s SCoPEx trial, a would-be outdoor experiment in spraying reflective aerosols into the atmosphere over Sweden that ran aground after researchers initially failed to consult local stakeholders and a body representing the Indigenous Saami people in the northern reaches of Nordic nations came out against the testing. (By repeatedly invoking ASI’s nonprofit status, DeWald also seemed to draw a contrast with for-profit stratospheric aerosol injection startup Stardust Solutions, which last year Heatmap’s Robinson Meyer reported had raised $60 million.) “We are continuing to move toward critical planetary thresholds without a bible plan for things like tipping points,” DeWald said. “That was the inflection point for me.”

China just took yet another step closer to energy independence, despite its relatively tiny domestic reserves of oil and gas, kicking off the world’s largest project to blend hydrogen into the natural gas system. As part of the experiment, roughly 100,000 households in the center of the Weifang, a prefecture-level city in eastern Shandong province between Beijing and Shanghai, will receive a blend of up to 10% hydrogen through existing gas pipes. The pilot’s size alone “smashes” the world record, according to Hydrogen Insight. Whether that’s meaningful from a climate perspective depends on how you look at things. A fraction of 1% of China’s hydrogen fuel comes from electrolyzer plants powered by clean renewables or nuclear electricity. But the People’s Republic still produces more green hydrogen than any other nation. Last year, the central government made cleaning up heavy industry with green hydrogen a higher priority — a goal that’s been supercharged by the war in Iran. Therein lies the real biggest motivator now. While China relies on imports for natural gas, swapping out more of that fuel for domestically generated hydrogen allows Beijing to claim the moral high ground on emissions and air pollution — all while becoming more energy independent.
Meanwhile, China’s container ships are the latest sector to experiment with going electric and forgoing the need for costly, dirty bunker fuel. A 10,000-ton fully electric cargo vessel capable of carrying 742 shipping containers just started up operations in China this week, according to a video posted on X by China’s Xinhua News service.
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The ability of electric vehicles to serve as distributed energy resources, charging in times of low demand and discharging back onto the grid when demand peaks, has long been a dream of EV enthusiasts and DER advocates alike. California’s PG&E utility launched a small bi-directional charging program in 2023, allowing owners of Ford F-150 Lightnings to use their trucks as home backup power, and eventually feed energy back onto the grid. The utility added a host of General Motors EVs to the program back in 2025. On Monday, it announced its latest vehicle participant: Tesla’s Cybertruck. The Tesla vehicle will be the first in the program to run on alternating current, which simplifies the equipment necessary and lowers costs for consumers, according to PG&E’s announcement.
In January, I told you about the then-latest company to benefit from President Donald Trump’s dabbling in what you might call state capitalism with American characteristics: USA Rare Earth. The vertically integrated company, which aims to mine rare earths in Texas, took big leaps forward in the past year toward building factories to turn those metals into the magnets needed for modern technologies. For now, however, the company needs ore. On Monday, USA Rare Earth announced plans to buy Brazilian rare earth miner Serra Verde in a deal valued at $2.8 billion in cash and shares. The transaction is expected to be complete by the end of the third quarter of this year. The company pitched the move as a direct challenge to China, which dominates both the processing of rare earths mined at home and abroad. “The world has become too dependent on a single source and it’s high time to break that dependency,” USA Rare Earth CEO Barbara Humpton told CNBC’s “Squawk Box” on Monday.
As if we needed more evidence that the data center backlash is “swallowing American politics,” here’s Heatmap’s Jael Holzman with yet another data point: According to tracking from the Heatmap Pro database, fights against data centers now outnumber fights against wind farms in the U.S. That includes both onshore and offshore wind developments. “Taken together,” Jael wrote, “these numbers describe the tremendous power involved in the data center wars.”