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Instead of rocket fuel, they’re burning biomass.

Arbor Energy might have the flashiest origin story in cleantech.
After the company’s CEO, Brad Hartwig, left SpaceX in 2018, he attempted to craft the ideal resume for a future astronaut, his dream career. He joined the California Air National Guard, worked as a test pilot at the now-defunct electric aviation startup Kitty Hawk, and participated in volunteer search and rescue missions in the Bay Area, which gave him a front row seat to the devastating effects of wildfires in Northern California.
That experience changed everything. “I decided I actually really like planet Earth,” Hartwig told me, “and I wanted to focus my career instead on preserving it, rather than trying to leave it.” So he rallied a bunch of his former rocket engineer colleagues to repurpose technology they pioneered at SpaceX to build a biomass-fueled, carbon negative power source that’s supposedly about ten times smaller, twice as efficient, and eventually, one-third the cost of the industry standard for this type of plant.
Take that, all you founders humble-bragging about starting in a dingy garage.
“It’s not new science, per se,” Hartwig told me. The goal of this type of tech, called bioenergy with carbon capture and storage, is to combine biomass-based energy generation with carbon dioxide removal to achieve net negative emissions. Sounds like a dream, but actually producing power or heat from this process has so far proven too expensive to really make sense. There are only a few so-called BECCS facilities operating in the U.S. today, and they’re all just ethanol fuel refineries with carbon capture and storage technology tacked on.
But the advances in 3D printing and computer modeling that allowed the SpaceX team to build an increasingly simple and cheap rocket engine have allowed Arbor to move quickly into this new market, Hartwig explained. “A lot of the technology that we had really pioneered over the last decade — in reactor design, combustion devices, turbo machinery, all for rocket propulsion — all that technology has really quite immediate application in this space of biomass conversion and power generation.”
Arbor’s method is poised to be a whole lot sleeker and cheaper than the BECCS plants of today, enabling both more carbon sequestration and actual electricity production, all by utilizing what Hartwig fondly refers to as a “vegetarian rocket engine.” Because there’s no air in space, astronauts have to bring pure oxygen onboard, which the rocket engines use to burn fuel and propel themselves into the stratosphere and beyond. Arbor simply subs out the rocket fuel for biomass. When that biomass is combusted with pure oxygen, the resulting exhaust consists of just CO2 and water. As the exhaust cools, the water condenses out, and what’s left is a stream of pure carbon dioxide that’s ready to be injected deep underground for permanent storage. All of the energy required to operate Arbor’s system is generated by the biomass combustion itself.
“Arbor is the first to bring forward a technology that can provide clean baseload energy in a very compact form,” Clea Kolster, a partner and Head of Science at Lowercarbon Capital told me. Lowercarbon is an investor in Arbor, alongside other climate tech-focused venture capital firms including Gigascale Capital and Voyager Ventures, but the company has not yet disclosed how much it’s raised.
Last month, Arbor signed a deal with Microsoft to deliver 25,000 tons of permanent carbon dioxide removal to the tech giant starting in 2027, when the startup’s first commercial project is expected to come online. As a part of the deal, Arbor will also generate 5 megawatts of clean electricity per year, enough to power about 4,000 U.S. homes. And just a few days ago, the Department of Energy announced that Arbor is one of 11 projects to receive a combined total of $58.5 million to help develop the domestic carbon removal industry.
Arbor’s current plan is to source biomass from forestry waste, much of which is generated by forest thinning operations intended to prevent destructive wildfires. Hartwig told me that for every ton of organic waste, Arbor can produce about one megawatt hour of electricity, which is in line with current efficiency standards, plus about 1.8 tons of carbon removal. “We look at being as efficient, if not a little more efficient than a traditional bioenergy power plant that does not have carbon capture on it,” he explained.
The company’s carbon removal price targets are also extremely competitive — in the $50 to $100 per ton range, Hartwig said. Compare that to something like direct air capture, which today exceeds $600 per ton, or enhanced rock weathering, which is usually upwards of $300 per ton. “The power and carbon removal they can offer comes at prices that meet nearly unlimited demand,” Mike Schroepfer, the founder of Gigascale Capital and former CTO of Meta, told me via email. Arbor benefits from the fact that the electricity it produces and sells can help offset the cost of the carbon removal, and vice versa. So if the company succeeds in hitting its cost and efficiency targets, Hartwig said, this “quickly becomes a case for, why wouldn’t you just deploy these everywhere?”
Initial customers will likely be (no surprise here) the Microsofts, Googles and Metas of the world — hyperscalers with growing data center needs and ambitious emissions targets. “What Arbor unlocks is basically the ability for hyperscalers to stop needing to sacrifice their net zero goals for AI,” Kolster told me. And instead of languishing in the interminable grid interconnection queue, Hartwig said that providing power directly to customers could ensure rapid, early deployment. “We see it as being quicker to power behind-the-meter applications, because you don’t have to go through the process of connecting to the grid,” he told me. Long-term though, he said grid connection will be vital, since Arbor can provide baseload power whereas intermittent renewables cannot.
All of this could serve as a much cheaper alternative, to say, re-opening shuttered nuclear facilities, as Microsoft also recently committed to doing at Three Mile Island. “It’s great, we should be doing that,” Kolster said of this nuclear deal, “but there’s actually a limited pool of options to do that, and unfortunately, there is still community pushback.”
Currently, Arbor is working to build out its pilot plant in San Bernardino, California, which Hartwig told me will turn on this December. And by 2030, the company plans to have its first commercial plant operating at scale, generating 100 megawatts of electricity while removing nearly 2 megatons of CO2 every year. “To put it in perspective: In 2023, the U.S. added roughly 9 gigawatts of gas power to the grid, which generates 18 to 23 megatons of CO2 a year,” Schroepfer wrote to me. So having just one Arbor facility removing 2 megatons would make a real dent. The first plant will be located in Louisiana, where Arbor will also be working with an as-yet-unnamed partner to do the carbon storage.
The company’s carbon credits will be verified with the credit certification platform Isometric, which is also backed by Lowercarbon and thought to have the most stringent standards in the industry. Hartwig told me that Arbor worked hand-in-hand with Isometric to develop the protocol for “biogenic carbon capture and storage,” as the company is the first Isometric-approved supplier to use this standard.
But Hartwig also said that government support hasn’t yet caught up to the tech’s potential. While the Inflation Reduction Act provides direct air capture companies with $180 per ton of carbon dioxide removed, technology such as Arbor’s only qualifies for $85 per ton. It’s not nothing — more than the zero dollars enhanced rock weathering companies such as Lithos or bio-oil sequestration companies such as Charm are getting. “But at the same time, we’re treated the same as if we’re sequestering CO2 emissions from a natural gas plant or a coal plant,” Hartwig told me, as opposed to getting paid for actual CO2 removal.
“I think we are definitely going to need government procurement or involvement to actually hit one, five, 10 gigatons per year of carbon removal,” Hartwig said. Globally, scientists estimate that we’ll need up to 10 gigatons of annual CO2 removal by 2050 in order to limit global warming to 1.5 degrees Celsius. “Even at $100 per ton, 10 gigatons of carbon removal is still a pretty hefty price tag,” Hartwig told me. A $1 trillion price tag, to be exact. “We definitely need more players than just Microsoft.”
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On Democrats’ very good night, Russian uranium, and a cane toad plague
Current conditions: Heavy rainfall in Florida and the Southwest caused flooding that forced local officials to enact emergency Election Day measures to make accommodate voters • Temperatures are up to nearly 90 degrees Fahrenheit amid a major rainstorm in Puerto Rico, the most populous U.S. territory, where the limits of federal representation mean there was no election yesterday • The eastern Pacific basin has broken multiple records with 24 named storms and 13 hurricanes so far, and nearly four weeks before the season ends.

In 2010, then-President Barack Obama introduced the term “shellacking” into the American political lexicon when he described the depth of Democrats’ loss in the midterm elections. Sixteen years later, Democrats are the ones doing the shellacking. The party surged to victory in places long considered deep-red GOP strongholds. Kansas elected Adam Hamilton as its first Democratic U.S. senator in 94 years. Texas hadn’t elected a Democrat statewide in 32 years, yet gave the party a U.S. Senate seat and the governor’s mansion. South Carolina’s incoming Democratic senator is its first since 1998. Hours before polls closed in the nation’s westernmost reaches, Democrats had won control over both the House of Representatives and the Senate.
Ahead of the vote, I spoke to half a dozen experts on what we should expect from the new Democratic Congress. Among the energy policies the party will want to enact: Restrictions on data centers, a restoration of renewable energy tax credits, and the creation of a new tax credit to support batteries. Among the issues expected to see congressional probes: Trump’s gutting of climate rules, funding cuts for clean energy, deals to kill offshore wind projects, and the redirection of Department of Energy funding from green projects to dirty ones. Aligning with Democrats on the need for clean energy tax credits wasn’t enough to save many Republicans in blue and purple states. At least nine Republicans who signed at least one public letter calling on the Trump administration to preserve tax credits for renewables lost reelection Tuesday night, including Jen Kiggans of Virginia, Juan Ciscomani of Arizona, Gabe Evans of Colorado, David Valadao of California, Mike Lawler of New York, Thomas Kean Jr. of New Jersey, Mariannette Miller-Meeks of Iowa, and Ryan Mackenzie and Rob Bresnahan, both of Pennsylvania.
To go deeper into the outcomes of the election, check out these stories by my colleagues:
Strange bedfellows are coming together to form the Responsible Data Center Development Collaborative. In an election night scoop, The Hill reported that green groups such as the Sierra Club, the League of Conservation Voters, and the Natural Resources Defense Council were working with Microsoft, Amazon, Meta, and Google to develop “a common national framework for responsible data development.” The document, leaked to the publication, details the need for “durable economic development,” “more affordable, reliable, and emissions-free energy,” and “community agency and support for responsibly developed projects.” Other parties involved in the effort include the U.S. Chamber of Commerce, Anthropic, Nvidia, and Oracle.
The world’s biggest banks, meanwhile, are once again making more money from green energy projects than fossil fuel ones. For a fifth straight year, according to a Bloomberg analysis published Tuesday, the 2025 revenue from servicing debt on climate-related financing topped $3 billion, eclipsing the $2.9 billion from deals for oil, gas, and coal producers.
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The U.S. is racing to replace the Russian enriched uranium that fuels roughly a quarter of its fleet of civilian nuclear plants before federal law bans imports at the end of next year. Industry sources tell me that utilities have about enough fuel to get through the end of the decade before the absence of Russian uranium starts forcing reactors to shut down. Some still expect Trump to find a way to intervene, like when he unilaterally relaxed sanctions on Russian diesel last month. But the few U.S. uranium enrichers that survived the 1990s and 2000s, when cheap imports put much of the domestic industry out of business, are scrambling to erect new centrifuges and pump out more fuel. A new player, the Peter Thiel-backed General Matter, is on track to begin construction as early as next year, as I reported last week. On Monday, Urenco USA, the American subsidiary of the European enrichment giant, announced that it had churned out its first shipment of LEU+, the higher-enriched version of low-enrich uranium that U.S. utilities are pioneering. The Kremlin, however, is beefing up its own operations to maintain its share of the global market. On Tuesday, NucNet reported that Russia planned to build a new facility to process uranium from two mining sites in Zabaikalsky Krai, a landlocked federal jurisdiction in the Russian Far East covering much of the area once known as Transbaikal. The two deposits, located more than 3,700 miles from Moscow, are part of one of the largest volcanic-hosted uranium clusters in the world. Russia is developing the new processing plant in hopes of shoring up its supplies for export.
Meanwhile, Germany is showing signs of the energy vulnerabilities that may have encouraged Russia’s invasion of Ukraine nearly five years ago. In 2021, Germany and much of Western Europe burned through its stores of natural gas to make up for a shortfall of wind power during a “dunkelflaute,” a period in which previously forecasted gusts never blew. That intensified the pain when Brussels was seeking to cut off Russian supplies and the Kremlin throttled the flow of gas into pipelines. On Tuesday, Reuters reported that Germany has entered winter with its lowest gas stocks on record, far below the EU average.
A California court ruled this week in favor of activists seeking to shut down a first-of-a-kind carbon capture project in inland Kern County, north of Santa Barbara. The decision found that the Carbon TerraVault I, which stores CO2 captured from the California Resources Corporation’s Elk Hills cryogenic natural gas-processing facility, broke the California Environmental Quality Act by failing to evaluate, disclose and mitigate potential environmental effects from the facility. The facility, which started running in May, must now halt all operations until it can carry out a new environmental review. “This is a tremendous victory for Kern County communities,” Lupe Martinez, an advocate with the community group Delano Guardians, said in a statement. “We live in one of the most polluted regions in the nation, yet the county and powerful corporations attempted to push forward a project that threatened our air, water, and public health without conducting the proper environmental review required by law.”
It feels almost biblical. One of the world’s biggest mining companies is facing a brutal invasion of toads. Rio Tinto plans to spend $20 million to battle what the Financial Times called “a marauding can toad that is threatening to encroach on Australia’s iron ore-rich Pilbara region.” The company is working with scientists to establish a “kill zone” between the Indian Ocean and the Great Sandy Desert in Western Australia. While the amphibians don’t affect Rio Tinto’s mining operations, an invasive pest that upsets the region’s unique biodiversity threatens to make future permitting harder since regulators will face new pressures to protect endangered native species.
Rep. Jeff Van Drew was defeated by ... another wind opponent.
Democrat Zack Mullock unseated Representative Jeff Van Drew, one of offshore wind’s biggest foes, on Tuesday night in the race for New Jersey’s second district. But while Mullock is a fan of renewable energy, he’s still a man of the south Jersey shore — and unlikely to be a champion for turbines off his coast.
District 2 encompasses the entire lower quarter of the state, covering six coastal counties from Atlantic City down to the tip of Cape May and around to the Delaware Bay. The area is a hotbed for offshore wind opposition, where groups like Protect our Coasts NJ have filed legal challenges against almost every wind project proposed in the region.
After heading to Congress in 2019, Van Drew, who was previously a Democrat, switched parties and became a key ally to this movement. He called for a moratorium on offshore wind development, held hearings on offshore wind “industrialization”, and requested that the Government Accountability Office investigate the industry. He also worked with the Trump administration to block projects that were under construction.
During a debate in late October, Mullock accused Van Drew of flip flopping on wind, arguing that the congressman was a staunch supporter of the industry during his decade-long tenure in the New Jersey legislature. Mullock, who is currently serving his second term as mayor of the city of Cape May, summed up his own position by citing a resolution he signed in 2023 calling for a moratorium on surveying and acoustic testing for offshore wind development pending an investigation into a spate of whale deaths. He signed it due to “concerns” about the environment and commercial fishing, he said.
“I believe very much in our future with renewable energy,” he said. “We need to go full steam ahead with solar panels. And yes we should do wind where it is appropriate, where it doesn't hurt our environment and it doesn't hurt our commercial fishing industry.”
Mullock’s campaign website says he supports federal investments in renewable energy and incentives for energy-efficient homes. He also wants “stricter enforcement of the Clean Air Act and the Clean Water Act,” and to fund coastal resiliency and other “smart infrastructure” projects that protect against climate impacts. He also campaigned in support of a data center moratorium.
Early signs point to a rough election for AI infrastructure.
We’ve seen enough: If this was the data center election, it was a really bad night for the industry.
Democratic campaigns and their affiliated Super PACs spent bigly on data center-themed attack ads. The ads came in various flavors. Some ads painted a vote for tax cuts as aiding data center developers. Others brought up candidates’ previous support for data centers or stock the candidate may have held in the tech industry or AI infrastructure developers. As Election Day approached, the data center industry sought to bat back claims that their sector’s poor reputation with the electorate would sway the results. People may have soured on their industry, they argued, but people weren’t going to vote based on that position.
Results are still coming in, but so far congressional races heavily featuring these data center attacks are heavily going in Democrats’ favor. In addition, these races have so profoundly shifted that it’ll be challenging for the industry to argue they played no role in the outcome.
Some of the most illustrative examples are obvious. In Georgia, Democrat Keisha Lance Bottoms campaigned on a statewide data center moratorium and won control of the governor’s mansion, becoming the first black woman to ever lead a U.S. state. Similar results in Ohio where Amy Acton flipped party control of the governor’s seat with a campaign that included going hard against data centers. In Pennsylvania, two Democrats who focused on data centers in their races have flipped Republican districts: Scranton mayor Paige Cognetti and firefighter Bob Brooks. In New Jersey, Cape May mayor Zack Mullock rode data center attacks to defeat Rep. Jeff Van Drew, the biggest opponent of the offshore wind industry. In Virginia, Democrat Shannon Taylor rode data center-laden attacks to take control of the Richmond area congressional seat from Rep. Rob Wittman.
If you’re arguing this election was decided by data centers, your best proof point: Democrat Gina Hinojosa has taken control of the governor's mansion in Texas, defeating incumbent Greg Abbott, who’d sought recently to take a hard line against the industry. Hinojosa ran on going further, calling to pass a law completely pausing data center development across one of the industry’s favorite states. She won a decisive victory. So did Democratic Texas Agriculture Commissioner candidate Clayton Tucker, who I explained months ago became one of anti-data center Facebook’s favorite online personalities.
But it makes sense that data centers would matter a lot in Texas, which could be compared to Virginia in terms of their buildout. When you inspect the election results more closely, they tell a more complicated story about the upper boundaries of these data center attacks.
For decades, Greenville and Spartanburg County have been GOP vote strongholds and reliable for both Republican congressional candidates and statewide campaigns. The congressional district gave Donald Trump at least a 20-point cushion in the 2024 presidential election, according to Decision Desk HQ. Last week, I explained for subscribers to The Fight how Courtney McClain, a novice candidate living one mile from a controversial data center proposal, was running against incumbent Rep. William Timmons. I couldn’t find much in the way of online ad spending on either side in this race and it’s never been on the radar of most political observers as a campaign that could somehow flip party control. But the data center debate in Spartanburg County has been immense.
Tonight, Timmons kept his ordinarily ruby red district by slim single digits after running even for most of the night. But this swing was essentially the same as the national margin. And because Timmons didn’t lose, this actually feels like a crucial distinction – data centers were not deciding races themselves in all cases. Democrat Annie Andrews defeated Republican Darlene Graham in a result driven by Democratic overperformance and GOP underperformance in this area, but it’s challenging to tie this result to the data center issue at all. Anything from the economy and the Iran War to Graham’s deceased brother and his baggage could be blamed for this result from this heavily evangelical region.
However, it will be challenging for the data center sector to differentiate themselves from this outcome, especially since a pro-data center Super PAC – Building the Future – publicly waded into the race in support of Graham only to lose. “Darlene Graham’s loss is a black eye for the data center industry,” wrote Teddy Schleifer of The New York Times on election night.
The same story played out in Georgia’s 1st district, which includes the city of Savannah. OpenAI is developing a controversial data center project in Effingham County, northwest of Savannah and the congressional race – which like South Carolina’s 4th had comparatively little spending – has been chock full of data center mudslinging, with the Democrat Amanda Hollowell calling for broader moratoria on development.
Effingham County went for Trump by almost 50 points in 2024. As of this story’s publication, the Republican, Jim Kingston, is winning by a single percentage point with 93% of the vote in. Most of what’s left is in Effington. Should this candidate win, it’s safe to say it’s because voters in this county looked past data centers, or did not link their vote for a national candidate to the local development.
On Election Night, Effingham County formally tabled any decision on the OpenAI data center. So at least on the ground level, people are paying close attention to these results.