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One VC dedicated to funding tech-based fire solutions has already found hundreds of potential investments.
In a warming world where winter snow is melting earlier and rain is arriving later, “wildfire season” has become somewhat of a misnomer. Some parts of the country now see blazes popping up practically year round. This, combined with decades of fire management policy that promoted suppression over natural and controlled burns, has turned certain states — California, most famously — into tinderboxes.
With wildfire smoke becoming a standard component of Silicon Valley summers, it’s probably no surprise that numerous data analytics and artificial intelligence-focused startups have sprung up to address the issue. There’s even a San Francisco-based venture capital firm, Convective Capital, devoted solely to funding wildfire solutions.
“My big question coming into starting Convective was, are there enough companies in this category?” Bill Clerico, founder and managing partner of the firm told me. The answer, he found, was yes. After establishing Convective Capital in the beginning of 2022, he said, “we’ve identified about 500 of what we call fire tech companies.” They run the gamut from startups that work on wildfire suppression to those dealing with identification, prevention, mitigation, and insurance against damages.
Rhizome, a company making an AI-powered wildfire risk mitigation platform for utilities, is one of the firm’s most recent investments. “Think of it as Sim City for the grid,” Mishal Thadani, CEO of the Washington, D.C.-based startup, told me. “You obviously need to know, as extreme weather events hit, how this is going to affect your assets,” he explained.
Rhizome’s platform gives utilities insight into, “if there is an asset failure, given the asset type, the type of failure, and the burn probability given the vegetation makeup and the dryness conditions, what’s going to be the likelihood of a wildfire ignition?” This information helps utilities decide where to put their money, whether that means replacing a power line or pole, insulating conductors, undergrounding power lines, or trimming back a bush. Last month, Rhizome announced a $1 million investment from Convective Capital, not tied to a particular funding round. The company raised $2.5 million in its pre-seed round last year.
The problem is not simply a lack of data, Thadani told me — utilities often know things about their assets such as last inspection date and outage history, and have systems that can render the surrounding landscape and other infrastructural features. The problem is that data is not part of a holistic system that can provide comprehensive insights. If risk analysis is being performed, Thadani said, “it’s being done on a super scrappy spreadsheet basis.”
Rhizome aims to build the “connective tissue” between a utility’s disparate data systems, then combine that with other geographic datasets on climate, weather, and vegetation. From there, the company uses its machine learning models to assess the likelihood of extreme weather events and their subsequent impacts. Ultimately, this allows utilities to provide regulators with more quantifiable information on their plans to improve grid resiliency and prevent wildfires, beyond just citing a figure for how much money they want to spend.
Utilities are not exactly known for their technical prowess, but are hungry nevertheless for solutions to their wildfire woes. Pacific Gas & Electric, the nation’s largest utility, was driven into bankruptcy after being found liable for a spate of enormous California wildfires in 2017 and 2018. After reemerging from bankruptcy in 2020, it now has a plan to spend $18 billion on wildfire mitigation through 2025. Other utilities such as Hawaii Electric and Berkshire Hathaway Energy face billions in potential liabilities for wildfires in their service areas.
The most common customers for companies in Convective Capital’s portfolio are utilities, governments, and insurance companies. “These are tremendously deep-pocketed institutions, but they are not, you know, necessarily the most fast-moving or innovative,” he told me. “And so that is the fundamental challenge of building a wildfire technology company.”
So far, Rhizome has announced partnerships with two utilities, Seattle City Light and Vermont Electric Power Company. But Clerico acknowledges that getting traditional institutions onboard is no easy task, even when the benefits seem clear. The magnitude of the destruction in recent years has served as an accelerant, though — something the vegetation management platform provider AiDash has seen first hand. Abhishek Singh, cofounder and CEO of the startup (which is not in Convective’s portfolio), said that when he founded the company in 2019, “Every investor warned us not to do this because utilities don’t buy and they won’t invest.” But that’s not what he’s experienced.
AiDash raised $58.5 million in an oversubscribed Series C round earlier this year, led by the impact investor Lightrock, and has five utility partnerships, including Southern California Edison’s holding company, Edison International, as well as Duke Energy. The company uses satellite data and AI analytics to assess vegetation near utility infrastructure for wildfire risk. It can also detect faults by fusing satellite data with other sources such as thermal or LiDAR-based imagery. (Convective Capital sees the value proposition in using satellites for vegetation management, too — it’s invested in one of AiDash’s direct competitors, an Amsterdam-based startup called Overstory.)
When Singh founded AiDash in 2019, both the size and cost of satellites were plummeting, leading to far more launches and thus far more data. . “Since the history of the first satellite until 2018, there were 2,200-odd satellites launched,” he told me. “From 2019 onwards, each year close to 1,000 satellites are getting launched.” The company purchases mounds of that data to conduct its vegetation analyses.
Vegetation management is typically the largest line item in a utility’s operations and maintenance budgets, Singh told me, costing the entire sector around $6 billion or $7 billion annually. “It’s also the single largest cause of utility-caused wildfires, as well as the cause of most outages,” he said, as power lines coming into contact with trees, grasses, and shrubs can easily spark a fire. Anything that can help them trim that budget and preempt the need for costly equipment repairs is worth a lot. “These are all million dollar contracts,” Singh told me.
But big data platforms alone are just one tool in the vast toolbox that comprises a holistic approach to wildfire management. “There’s no panacea, where you just do one thing and then it solves the problem,” Clerico told me. “It’s going to get solved as a combination of consistent and repeated forest management, building towns and cities that are fire adapted, building great infrastructure, and then having the ability to detect and respond quickly. All of these things are huge, multi decade, multi billion dollar investments.”
So for the foreseeable future, Convective Capital will have its work cut out for it. But when I asked Clerico if one day, in a beautiful, far-off dreamland, there might not be the need for a dedicated wildfire tech VC, he said he hopes so.
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The nonprofit laid off 36 employees, or 28% of its headcount.
The Trump administration’s funding freeze has hit the leading electrification nonprofit Rewiring America, which announced Thursday that it will be cutting its workforce by 28%, or 36 employees. In a letter to the team, the organization’s cofounder and CEO Ari Matusiak placed the blame squarely on the Trump administration’s attempts to claw back billions in funding allocated through the Greenhouse Gas Reduction Fund.
“The volatility we face is not something we created: it is being directed at us,” Matusiak wrote in his public letter to employees. Along with a group of four other housing, climate, and community organizations, collectively known as Power Forward Communities, Rewiring America was the recipient of a $2 billion GGRF grant last April to help decarbonize American homes.
Now, the future of that funding is being held up in court. GGRF funds have been frozen since mid-February as Lee Zeldin’s Environmental Protection Agency has tried to rescind $20 billion of the program’s $27 billion total funding, an effort that a federal judge blocked in March. While that judge, Tanya S. Chutkan, called the EPA’s actions “arbitrary and capricious,” for now the money remains locked up in a Citibank account. This has wreaked havoc on organizations such as Rewiring America, which structured projects and staffing decisions around the grants.
“Since February, we have been unable to access our competitively and lawfully awarded grant dollars,” Matusiak wrote in a LinkedIn post on Thursday. “We have been the subject of baseless and defamatory attacks. We are facing purposeful volatility designed to prevent us from fulfilling our obligations and from delivering lower energy costs and cheaper electricity to millions of American households across the country.”
Matusiak wrote that while “Rewiring America is not going anywhere,” the organization is planning to address said volatility by tightening its focus on working with states to lower electricity costs, building a digital marketplace for households to access electric upgrades, and courting investment from third parties such as hyperscale cloud service providers, utilities, and manufacturers. Matusiak also said Rewiring America will be restructured “into a tighter formation,” such that it can continue to operate even if the GGRF funding never comes through.
Power Forward Communities is also continuing to fight for its money in court. Right there with it are the Climate United Fund and the Coalition for Green Capital, which were awarded nearly $7 billion and $5 billion, respectively, through the GGRF.
What specific teams within Rewiring America are being hit by these layoffs isn’t yet clear, though presumably everyone let go has already been notified. As the announcement went live Thursday afternoon, it stated that employees “will receive an email within the next few minutes informing you of whether your role has been impacted.”
“These are volatile and challenging times,” Matusiak wrote on LinkedIn. “It remains on all of us to create a better world we can all share. More so than ever.”
A battle ostensibly over endangered shrimp in Kentucky
A national park is fighting a large-scale solar farm over potential impacts to an endangered shrimp – what appears to be the first real instance of a federal entity fighting a solar project under the Trump administration.
At issue is Geenex Solar’s 100-megawatt Wood Duck solar project in Barren County, Kentucky, which would be sited in the watershed of Mammoth Cave National Park. In a letter sent to Kentucky power regulators in April, park superintendent Barclay Trimble claimed the National Park Service is opposing the project because Geenex did not sufficiently answer questions about “irreversible harm” it could potentially pose to an endangered shrimp that lives in “cave streams fed by surface water from this solar project.”
Trimble wrote these frustrations boiled after “multiple attempts to have a dialogue” with Geenex “over the past several months” about whether battery storage would exist at the site, what sorts of batteries would be used, and to what extent leak prevention would be considered in development of the Wood Duck project.
“The NPS is choosing to speak out in opposition of this project and requesting the board to consider environmental protection of these endangered species when debating the merits of this project,” stated the letter. “We look forward to working with the Board to ensure clean water in our national park for the safety of protection of endangered species.”
On first blush, this letter looks like normal government environmental stewardship. It’s true the cave shrimp’s population decline is likely the result of pollution into these streams, according to NPS data. And it was written by career officials at the National Park Service, not political personnel.
But there’s a few things that are odd about this situation and there’s reason to believe this may be the start of a shift in federal policy direction towards a more critical view of solar energy’s environmental impacts.
First off, Geenex has told local media that batteries are not part of the project and that “several voicemails have been exchanged” between the company and representatives of the national park, a sign that the company and the park have not directly spoken on this matter. That’s nothing like the sort of communication breakdown described in the letter. Then there’s a few things about this letter that ring strange, including the fact Fish and Wildlife Service – not the Park Service – ordinarily weighs in on endangered species impacts, and there’s a contradiction in referencing the Endangered Species Act at a time when the Trump administration is trying to significantly pare back application of the statute in the name of a faster permitting process. All of this reminds me of the Trump administration’s attempts to supposedly protect endangered whales by stopping offshore wind projects.
I don’t know whether this solar farm’s construction will indeed impact wildlife in the surrounding area. Perhaps it may. But the letter strikes me as fascinating regardless, given the myriad other ways federal agencies – including the Park Service – are standing down from stringent environmental protection enforcement under Trump 2.0.
Notably, I reviewed the other public comments filed against the project and they cite a litany of other reasons – but also state that because the county itself has no local zoning ordinance, there’s no way for local residents or municipalities opposed to the project to really stop it. Heatmap Pro predicts that local residents would be particularly sensitive to projects taking up farmland and — you guessed it — harming wildlife.
Barren County is in the process of developing a restrictive ordinance in the wake of this project, but it won’t apply to Wood Duck. So opponents’ best shot at stopping this project – which will otherwise be online as soon as next year – might be relying on the Park Service to intervene.
And more on the week’s most important conflicts around renewable energy.
1. Dukes County, Massachusetts – The Supreme Court for the second time declined to take up a legal challenge to the Vineyard Wind offshore project, indicating that anti-wind activists' efforts to go directly to the high court have run aground.
2. Brooklyn/Staten Island, New York – The battery backlash in the NYC boroughs is getting louder – and stranger – by the day.
3. Baltimore County, Maryland – It’s Ben Carson vs. the farmer near Baltimore, as a solar project proposed on the former Housing and Urban Development secretary’s land is coming under fire from his neighbors.
4. Mecklenburg County, Virginia – Landowners in this part of Virginia have reportedly received fake “good neighbor agreement” letters claiming to be from solar developer Longroad Energy, offering large sums of cash to people neighboring the potential project.
5. York County, South Carolina – Silfab Solar is now in a bitter public brawl with researchers at the University of South Carolina after they released a report claiming that a proposed solar manufacturing plant poses a significant public risk in the event of a chemical emissions release.
6. Jefferson Davis County, Mississippi – Apex Clean Energy’s Bluestone Solar project was just approved by the Mississippi Public Service Commission with no objections against the project.
7. Plaquemine Parish, Louisiana – NextEra’s Coastal Prairie solar project got an earful from locals in this parish that sits within the Baton Rouge metro area, indicating little has changed since the project was first proposed two years ago.
8. Huntington County, Indiana – Well it turns out Heatmap’s Most At-Risk Projects of the Energy Transition has been right again: the Paddlefish solar project has now been indefinitely blocked by this county under a new moratorium on the project area in tandem with a new restrictive land use ordinance on solar development overall.
9. Albany County, Wyoming – The Rail Tie wind farm is back in the news again, as county regulators say landowners feel misled by Repsol, the project’s developer.
10. Klickitat County, Washington – Cypress Creek Renewables is on a lucky streak with a solar project near Goldendale, Washington, getting to bypass local opposition from the nearby Yakama Nation.
11. Pinal County, Arizona – A large utility-scale NextEra solar farm has been rejected by this county’s Board of Supervisors.