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Artificial intelligence is also involved.
Categorizing Crusoe Energy is not easy. The startup is a Bitcoin miner and data center operator. It’s a “high-performance” and “carbon-negative” cloud platform provider. It’s a darling of the clean tech world that’s raised nearly $750 million in funding. The company has historically powered its operations with natural gas, but its overall business model actually reduces emissions. Confused yet?
Here are the basics. The company was founded in 2018 to address the problem of natural gas flaring. Natural gas is a byproduct of oil extraction, and if oil field operators have no economical use case for the gas or are unable to transfer it elsewhere, it’s often simply burned. If you, like me, have spent time sourcing stock images of air pollution, you’ve probably seen the pictures of giant flames coming out of tall smokestacks near oil pump jacks and other drilling infrastructure. That’s what flaring natural gas looks like, and it is indeed terrible for the environment. That’s largely because the process fails to fully combust methane, which is the primary component of natural gas and 84 times more potent than carbon dioxide over a 20-year period.
That’s where Crusoe comes in. The company’s co-founder, president, and chief operating officer, Cully Cavness was working in the oil and gas industry when he realized that stranded natural gas could be harnessed to power Bitcoin-mining data centers if they were sited directly next to the oil field infrastructure. Burning natural gas for electricity production fully combusts methane, producing CO2 as a byproduct. Still bad, you might say! But it’s definitely not as bad as methane leaking into the atmosphere via flaring, the status quo where Crusoe operates.
So regardless of what one might think of the utility of Bitcoin mining overall, “if you were to delete what we’re doing you would just have a big ball of fire and that would be worse,” Cavness told me.
Plus, it’s dirt cheap. “It is the lowest cost way to generate power that we’ve ever seen,” Cavness said, though he wouldn’t disclose exactly how much Crusoe pays the oil companies for their natural gas. “This is truly a waste product. I mean, there is no value being ascribed to it.”
According to Crusoe’s most recent ESG report, for every ton of CO2 equivalent that the company produced in 2022, it reduced over 1.6 tons through avoided methane emissions. And the opportunity for growth is enormous. “There is a huge amount of flared gas around the world,” Cavness said. “If you captured it all, it would power like two thirds of all of Europe’s electricity and it would power the entire data center industry many times over.”
Of course, in an ideal world, flared gas wouldn’t even be an option. There have been some state level-efforts to ban “routine flaring” in Colorado, New Mexico, and Alaska, but enforcement has often fallen short. “Nothing about flaring should be routine,” Deborah Gordon, a methane expert at the think tank RMI, told me. “It should be an emergency piece of equipment. It’s there to handle a burst of gas that would otherwise present a safety problem to the people on the ground.”
But in the places where Crusoe operates, Cavness said flare gas is available 98% to 99% of the time. Today, the company has about 30 sites located throughout all the major oil fields in the U.S., plus one facility in Argentina.
Gordon views circumstances like this, where gas is being perpetually flared, as “opportunities to decommission” oil wells. But given sheer demand, that may not be an economically or politically feasible solution in the short term. Last year was a record-setting one for oil production, as the U.S. pumped more than any country had in history.
So given that oil isn’t going to disappear overnight, this particular fossil-fuel powered Bitcoin miner has been wildly successful with climate-focused investors. Two years ago, Crusoe closed its $350 million Series C round, led by clean tech investor G2 Venture Partners with participation by existing climate tech venture firms Lowercarbon Capital and MCJ Collective, among others.
“It’s not just the lowest hash rate for Bitcoin mining, or the cheapest cost of compute. It’s also the greenest and when those two things are true, you’ve got an amazing business on your hands,” Clay Dumas, a partner at Lowercarbon Capital, told me. He views shutting down oil fields that flare natural gas as simply “not tractable” given today’s energy environment.
But now Crusoe is shifting its focus on multiple fronts. Cavness told me the company never planned to build its long-term business solely around Bitcoin mining, though historically nearly all of its revenue has come from the famously volatile world of cryptocurrencies. His co-founder, Chase Lochmiller, has a masters in computer science with a focus on artificial intelligence and has long understood AI’s energy demands.
“And so since way before ChatGPT, we’d had a view that GPU computing was going to be actually the bigger opportunity and the bigger driver of data center power demand. And if we could align that with wasted energy sources and other curtailed energy sources, it could be a really effective approach to reduce costs and also reduce emissions,” Cavness told me.
Last year the company expanded its Crusoe Cloud service, which is essentially its version of Amazon Web Services or Microsoft Azure. It works like this: Crusoe builds the data centers (or co-locates with existing facilities), buys the GPU servers, and operates a software layer on top of it all. Then, companies looking to train AI models or synthesize large datasets pay to access Crusoe Cloud over the internet, remotely spinning up Crusoe’s GPU clusters to do the hard lifting.
Last month, Cavness said that the majority of the company’s revenue came from its AI data centers, outpacing Bitcoin revenue for the first time. If all goes according to plan, AI will comprise more than 75% of the company’s revenue by year’s end. “You couldn’t really have timed the launch of a cloud business focused on generative AI much better than they did,” Dumas told me.
Then, as the world (potentially and eventually) moves away from oil, Crusoe is also shifting its focus towards stranded renewable assets. That means sourcing power from areas where there’s excess wind, solar, hydropower, or geothermal on the grid, which leads to curtailment or negative pricing for these resources. “So that’s how we think about operating on the other side of the energy transition,” Cavness told me. This business model, he said, creates an incentive for renewable operators to build even more capacity, since they know they’ll have customers for their excess energy.
Of course, Crusoe isn’t the only company and data centers aren’t the only industry looking to access the cheap power that stranded renewables can supply. Excess clean energy could be used to make green hydrogen, provide heating and cooling for buildings, operate direct air capture facilities, or power microgrids. If renewables are used to mine speculative cryptocurrencies, many would likely argue there are worthier opportunities.
But high compute data centers — whether they’re mining Bitcoin or training AI models — do have one major advantage. “You can talk about highest use from a CO2 avoidance standpoint. But generally, the market is going to treat highest use as the greatest willingness to pay,” Dumas told me. “At this particular moment, it’s hard for me to imagine any application that has a higher willingness to pay, and that is more deployable than data centers.”
Crusoe wouldn’t reveal what portion of its operations run on renewables vs. natural gas. The company’s current focus is expanding its Crusoe Cloud service in Iceland, partnering with an existing data center that’s powered by the country’s abundant hydropower and geothermal energy. Crusoe also says it’s working to develop domestic behind-the-meter wind and solar projects, which would be separate from the main grid and directly supply their data centers with power, though none have been formally announced yet.
Ultimately though, whether Crusoe uses renewables or flare gas, whether it mines Bitcoin or trains AI models, investors have decided that it’s undeniably better than business as usual. “You can complain all you want about the carbon emissions of Bitcoin and compute, but they’re not going anywhere except for up,” Dumas told me, saying it’s incumbent upon us to bring this new computational power to market as cleanly as possible. “And that’s really what Crusoe’s in a position to do.”
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Current conditions: Bosnia’s capital of Sarajevo is blanketed in a layer of toxic smog • Temperatures in Perth, in Western Australia, could hit 106 degrees Fahrenheit this weekend • It is cloudy in Washington, D.C., where lawmakers are scrambling to prevent a government shutdown.
The weather has gotten so weird that the U.S. National Oceanic and Atmospheric Administration is holding internal talks about how to adjust its models to produce more accurate forecasts, the Financial Timesreported. Current models are based on temperature swings observed over one part of the Pacific Ocean that have for years correlated consistently with specific weather phenomena across the globe, but climate change seems to be disrupting that cause and effect pattern, making it harder to predict things like La Niña and El Niño. Many forecasters had expected La Niña to appear by now and help cool things down, but that has yet to happen. “It’s concerning when this region we’ve studied and written all these papers on is not related to all the impacts you’d see with [La Niña],” NOAA’s Michelle L’Heureux told the FT. “That’s when you start going ‘uh-oh’ there may be an issue here we need to resolve.”
There is quite a lot of news coming out of the Department of Energy as the year (and the Biden administration) comes to an end. A few recent updates:
Walmart, the world’s largest retailer, does not expect to meet its 2025 or 2030 emissions targets, and is putting the blame on policy, infrastructure, and technology limitations. The company previously pledged to cut its emissions by 35% by next year, and 65% by the end of the decade. Emissions in 2023 were up 4% year-over-year.
Walmart
“While we continue to work toward our aspirational target of zero operational emissions by 2040, progress will not be linear … and depends not only on our own initiatives but also on factors beyond our control,” Walmart’s statement said. “These factors include energy policy and infrastructure in Walmart markets around the world, availability of more cost-effective low-GWP refrigeration and HVAC solutions, and timely emergence of cost-effective technologies for low-carbon heavy tractor transportation (which does not appear likely until the 2030s).”
BlackRock yesterday said it is writing down the value of its Global Renewable Power Fund III following the failure of Northvolt and SolarZero, two companies the fund had invested in. Its net internal rate of return was -0.3% at the end of the third quarter, way down from 11.5% in the second quarter, according toBloomberg. Sectors like EV charging, transmission, and renewable energy generation and storage have been “particularly challenged,” executives said, and some other renewables companies in the portfolio have yet to get in the black, meaning their valuations may be “more subjective and sensitive to evolving dynamics in the industry.”
Flies may be more vulnerable to climate change than bees are, according to a new study published in the Journal of Melittology. The fly haters among us might shrug at the finding, but the researchers insist flies are essential pollinators that help bolster ecosystem biodiversity and agriculture. “It’s time we gave flies some more recognition for their role as pollinators,” said lead author Margarita López-Uribe, who is the Lorenzo Langstroth Early Career Associate Professor of Entomology at Penn State. The study found bees can tolerate higher temperatures than flies, so flies are at greater risk of decline as global temperatures rise. “In alpine and subarctic environments, flies are the primary pollinator,” López-Uribe said. “This study shows us that we have entire regions that could lose their primary pollinator as the climate warms, which could be catastrophic for those ecosystems.”
“No one goes to the movies because they want to be scolded.” –Heatmap’s Jeva Lange writes about the challenges facing climate cinema, and why 2024 might be the year the climate movie grew up.
Whether you agree probably depends on how you define “climate movie” to begin with.
Climate change is the greatest story of our time — but our time doesn’t seem to invent many great stories about climate change. Maybe it’s due to the enormity and urgency of the subject matter: Climate is “important,” and therefore conscripted to the humorless realms of journalism and documentary. Or maybe it’s because of a misunderstanding on the part of producers and storytellers, rooted in an outdated belief that climate change still needs to be explained to an audience, when in reality they don’t need convincing. Maybe there’s just not a great way to have a character mention climate change and not have it feel super cringe.
Whatever the reason, between 2016 and 2020, less than 3% of film and TV scripts used climate-related keywords during their runtime, according to an analysis by media researchers at the University of Southern California. (The situation isn’t as bad in literature, where cli-fi has been going strong since at least 2013.) At least on the surface, this on-screen avoidance of climate change continued in 2024. One of the biggest movies of the summer, Twisters, had an extreme weather angle sitting right there, but its director, Lee Isaac Chung, went out of his way to ensure the film didn’t have a climate change “message.”
I have a slightly different take on the situation, though — that 2024 was actuallyfull of climate movies, and, I’d argue, that they’re getting much closer to the kinds of stories a climate-concerned individual should want on screen.
That’s because for the most part, when movies and TV shows have tackled the topic of climate change in the past, it’s been with the sort of “simplistic anger-stoking and pathos-wringing” that The New Yorker’s Richard Brody identified in 2022’s Don’t Look Up, the Adam McKay satire that became the primary touchpoint for scripted climate stories. At least it was kind of funny: More overt climate stories like last year’s Foe, starring Saoirse Ronan and Paul Mescal, and Extrapolations, the Apple TV+ show in which Meryl Streep voices a whale, are so self-righteous as to be unwatchable (not to mention, no fun).
But what if we widened our lens and weren’t so prescriptive? Then maybe Furiosa, this spring’s Mad Max prequel, becomes a climate change movie. The film is set during a “near future” ecological collapse, and it certainly makes you think about water scarcity and our overreliance on a finite extracted resource — but it also makes you think about how badass the Octoboss’ kite is. The same goes for Dune: Part Two, which made over $82 million in its opening weekend and is also a recognizable environmental allegory featuring some cool worms. Even Ghostbusters: Frozen Empire, a flop that most people have already memory-holed, revisitedThe Day After Tomorrow’s question of, “What if New York City got really, really, really cold?”
Two 2024 animated films with climate themes could even compete against each other at the Academy Awards next year. Dreamworks Animation’s The Wild Robot, one of the centerpiece films at this fall’s inaugural Climate Film Festival, is set in a world where sea levels have risen to submerge the Golden Gate Bridge, and it impresses on its audience the importance of protecting the natural world. And in Gints Zilbalodis’ Flow, one of my favorite films of the year, a cat must band together with other animals to survive a flood.
Flow also raises the question of whether a project can unintentionally be a climate movie. Zilbalodis told me that making a point about environmental catastrophe wasn’t his intention — “I can’t really start with the message, I have to start with the character,” he said — and to him, the water is a visual metaphor in an allegory about overcoming your fears.
But watching the movie in a year when more than a thousand people worldwide have died in floods, and with images of inundated towns in North Carolina still fresh in mind, it’s actually climate change itself that makes one watch Flow as a movie about climate change. (I’m not the only one with this interpretation, either: Zilbalodis told me he’d been asked by one young audience member if the flood depicted in his film is “the future.”)
Perhaps this is how we should also consider Chung’s comments about Twisters. While nobody in the film says the words “climate change” or “global warming,” the characters note that storms are becoming exceptional — “we've never seen tornadoes like this before,” one says. Despite the director’s stated intention not to make the movie “about” climate change, it becomes a climate movie by virtue of what its audiences have experienced in their own lives.
Still, there’s that niggling question: Do movies like these, which approach climate themes slant-wise, really count? To help me decide, I turned to Sam Read, the executive director of the Sustainable Entertainment Alliance, an advocacy consortium that encourages environmental awareness both on set and on screen. He told me that to qualify something as a “climate” movie or TV show, some research groups look to see if climate change exists in the world of the story or whether the characters acknowledge it. Other groups consider climate in tiers, such as whether a project has a climate premise, theme, or simply a moment.
The Sustainable Entertainment Alliance, however, has no hard rules. “We want to make sure that we support creatives in integrating these stories in whatever way works for them,” Read told me.
Read also confirmed my belief that there seemed to be an uptick in movies this year that were “not about climate change but still deal with things that feel very climate-related, like resource extraction.” There was even more progress on this front in television, he pointed out: True Detective: Night Country wove in themes of environmentalism, pollution, mining, and Indigenous stewardship; the Max comedy Hacks featured an episode about climate change this season; and Industry involved a storyline about taking a clean energy company public, with some of the characters even attending COP. Even Doctor Odyssey, a cruise ship medical drama that airs on USA, worked climate change into its script, albeit in ridiculous ways. (Also worth mentioning: The Netflix dating show Love is Blind cast Taylor Krause, who works on decarbonizing heavy industry at RMI.)
We can certainly do more. As many critics before me have written, it’s still important to draw a connection between things like environmental catastrophes and the real-world human causes of global warming. But the difference between something being “a climate movie” and propaganda — however true its message, or however well-intentioned — is thin. Besides, no one goes to the movies because they want to be scolded; we want to be moved and distracted and entertained.
I’ve done my fair share of complaining over the past few years about how climate storytelling needs to grow up. But lately I’ve been coming around to the idea that it’s not the words “climate change” appearing in a script that we need to be so focused on. As 2024’s slate of films has proven to me — or, perhaps, as this year’s extreme weather events have thrown into relief — there are climate movies everywhere.
Keep ‘em coming.
They might not be worried now, but Democrats made the same mistake earlier this year.
Permitting reform is dead in the 118th Congress.
It died earlier this week, although you could be forgiven for missing it. On Tuesday, bipartisan talks among lawmakers fell apart over a bid to rewrite parts of the National Environmental Policy Act. The changes — pushed for by Representative Bruce Westerman, chairman of the House Natural Resources Committee — would have made it harder for outside groups to sue to block energy projects under NEPA, a 1970 law that governs the country’s process for environmental decisionmaking.
When those talks died, they also killed a separate deal over permitting struck earlier this year between Senator Joe Manchin of West Virginia and Senator John Barrasso of Wyoming. That deal, as I detailed last week, would have loosened some federal rules around oil and gas drilling in exchange for a new, quasi-mandatory scheme to build huge amounts of long-distance transmission.
Rest in peace, I suppose. Even if lawmakers could not agree on NEPA changes, I think Republicans made a mistake by not moving forward with the Manchin-Barrasso deal. (I still believe that the standalone deal could have passed the Senate and the House if put to a vote.) At this point, I do not think we will see another shot at bipartisan permitting reform until at least late 2026, when the federal highway law will need fresh funding.
But it is difficult to get too upset about this failure because larger mistakes have since compounded the initial one. On Wednesday, Republican Speaker Mike Johnson’s bipartisan deal to fund the government — which is, after all, a much more fundamental task of governance than rewriting some federal permitting laws — fell apart, seemingly because Donald Trump and Elon Musk decided they didn’t like it. If I can indulge in the subjunctive for a moment: That breakdown might have likely killed any potential permitting deal, too. So even in a world where lawmakers somehow did strike a deal earlier this week, it might already be dead. (As I write this, the House GOP has reportedly reached a new deal to fund the government through March, which has weakened or removed provisions governing pharmacy benefit managers and limiting American investments in China.)
The facile reading of this situation is that Republicans now hold the advantage. The Trump administration will soon be able to implement some of the fossil fuel provisions in the Manchin-Barrasso deal through the administrative state. Trump will likely expand onshore and offshore drilling, will lease the government’s best acreage to oil and gas companies, and will approve as many liquified natural gas export terminals as possible. His administration will do so, however, without the enhanced legal protection that the deal would have provided — and while those protections are not a must-have, especially with a friendly Supreme Court, their absence will still allow environmental groups to try to run down the clock on some of Trump’s more ambitious initiatives.
Republicans believe that they will be able to get parts of permitting reform done in a partisan reconciliation bill next year. These efforts seem quite likely to run aground, at least as long as something like the current rules governing reconciliation bills hold. I have heard some crazy proposals on this topic — what if skipping a permitting fight somehow became a revenue-raiser for the federal government? — but even they do not touch the deep structure of NEPA in the way a bipartisan compromise could. As Westerman toldPolitico’s Josh Siegel: “We need 60 votes in the Senate to get real permitting reform … People are just going to have to come to an agreement on what permitting reform is.” In any case, Manchin and the Democrats already tried to reform the permitting system via a partisan reconciliation bill and found it essentially impossible.
Even if reconciliation fails, Republicans say, they will still be in a better negotiating position next year than this year because the party will control a few more Senate votes. But will they? The GOP will just have come off a difficult fight over tax reform. Twelve or 24 months from now, demands on the country’s electricity grid are likely to be higher than they are today, and the risk of blackouts will be higher than before. The lack of a robust transmission network will hinder the ability to build a massive new AI infrastructure, as some of Trump’s tech industry backers hope. But 12 or 24 months from now, too, Democrats — furious at Trump — are not going to be in a dealmaking mood, and Republicans have relatively few ways to bring them to the table.
In any case, savvy Republicans should have realized that it is important to get supply-side economic reforms done as early in a president’s four-year term as possible. Such changes take time to filter through the system and turn into real projects and real economic activity; passing the law as early as possible means that the president’s party can enjoy them and campaign on them.
All of it starts to seem more and more familiar. When Manchin and Barrasso unveiled their compromise earlier this year, Democrats didn’t act quickly on it. They felt confident that the window for a deal wouldn’t close — and they looked forward to a potential trifecta, when they would be able to get even more done (and reject some of Manchin’s fossil fuel-friendly compromises).
Democrats, I think, wound up regretting the cavalier attitude that they brought to permitting reform before Trump’s win. But now the GOP is acting the same way: It is rejecting compromises, believing that it will be able to strike a better deal on permitting issues during its forthcoming trifecta. That was a mistake when Democrats did it. I think it will be a mistake for Republicans, too.