You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
It’s useful for more than just decarbonization.
Now that President Donald Trump has been officially inaugurated and issued his barrage of executive orders celebrating fossil fuels and shelving climate technologies such as wind energy and electric vehicles, climate tech startups are in a pickle. Federal funding can play a critical role in helping companies scale up and build out first-of-a-kind projects and facilities. So how to work with a government hostile to one of these startups’ core value propositions: aiding in the energy transition?
Talk of clean tech and electrification may be out of vogue, but its utility is not. The potential of many of these companies goes beyond mitigating climate change and into the realm of energy security and resilience — something the Department of Defense is well aware of.
The White House’s climate webpage has gone dark; the Department of Defense’s climate resilience portal lasted a little longer, but that’s now down, too. Once upon a time, though, the site read, “The changing climate is one of many threat multipliers to National Security, which adds complexity to Department of Defense decisions.” That’s a major reason why this agency can’t stop, won’t stop funding climate technologies. Another reason is that many technologies that happen to be good for the planet might also simply be the best tool for the job, meaning the DOD need not utter the word “climate” at all when justifying its decision to deploy new solutions.
“The Defense Department, so far in our experience, has framed things largely in terms of alternative benefits that our technology can have, such as fuel supply chain redundancy and reliability,” Ted McKlveen, co-founder and CEO of the hydrogen storage company Verne, told me. Verne received a $250,000 Small Business Innovation Research grant from the Army last May to work on the development of hydrogen vehicles.
Cindy Taff, CEO of the next-generation geothermal startup Sage Geosystems, told me something similar. “What the military likes to talk about is energy resilience,” she said, though she has heard the DOD tout the climate benefits of her company’s tech, too. Sage currently has multiple DOD engagements, including feasibility studies with both the Army and Navy and a $1.9 million grant to build a demonstration project for the Air Force.
That’s not to say it’s clear what the Department of Defense’s funding priorities under Trump will be. When I contacted the DOD in mid-December to request an interview for this story, a spokesperson initially told me they would help connect me to the right person. But as Trump’s inauguration drew nearer, I got a message saying the agency would have to hold off until it got more guidance, as “it remains to be seen in the next few weeks what direction the new administration is going.”
Regardless of how the priorities shake out, practically every climate-focused company and venture capitalist I talk to emphasizes that their companies will only succeed if they can make or invest in products that can compete on economics and/or quality alone, sans government support. That was true even before a second Trump turn in the White House started to look like an inevitability, and this new administration will at least partially reveal which companies can do that. But while everybody aims to be independent of federal support, they might not actually need to say goodbye to that funding stream, so long as they can tout their economic and performance benefits to the right customers.
Take Pyka, for example. When Michael Norcia co-founded the autonomous electric aircraft company in 2017, the ultimate goal was to design a passenger plane. “We want that to be our legacy, but we were also very, very realistic about the challenges associated with actually doing that,” he told me. So when the DOD took an interest in the company’s commercial cargo planes and their potential ability to deliver supplies in contested environments, the startup jumped at the opportunity, delivering its first aircraft to AFWERX, the innovation arm of the Department of the Air Force, early last year. Interest from such a lucrative government customer helped the company to close its $40 million Series B round in September.
Of course, the decarbonization benefits of electrifying military cargo delivery would be huge. But unsurprisingly, Norcia told me that the DOD primarily frames the opportunity in terms of the capabilities of all-electric or hybrid-electric planes, which could take a variety of fuels, operate quietly, and give off minimal heat, making them more difficult to detect via thermal imaging. Plus, the more equipment is electrified the better, “in terms of having them be able to operate in a highly contested environment, where moving fuel around maybe is not feasible,” Norcia explained. Not to mention the fact that if a manned aircraft is shot down, people die, meaning that in a counterfactual sense, Pyka’s tech is saving lives.
Verne’s North Star is also decarbonization. And given that the military is the world’s largest oil consumer, McKlveen was excited to partner with the Army to put its hydrogen storage tech to use in medium and heavy-duty vehicles. The company stores hydrogen (ideally green hydrogen, produced via renewables-powered electrolysis) at high density as a cold, compressed gas, making it possible to build hydrogen vehicles with greater range and lower cost than has traditionally been done. Similar to Pyka, the Army is enthused that these vehicles would be difficult for adversaries to detect, as they’re quiet and give off little heat. Likewise, McKlveen told me that hydrogen power could replace the Army’s notoriously noisy generators.
While Verne has also partnered with the Department of Energy and its R&D arm, ARPA-E, McKlveen said that working with the DOD has been unique in a few ways. “The key difference is the DOD is a customer and a grant provider. So they can say both what their needs are as a potential customer and represent a potential customer,” he explained. This, along with the agency’s clear, phased approach that it puts companies through, helps bring a level of transparency to the whole process, from pilot to full-fledged military implementation, that McKlveen appreciates.
And lest we forget, “they also have a very large budget,” he told me. For fiscal year 2025, the DOD has requested $849.8 billion, while the DOE, by comparison, has requested a mere $51.4 billion.
“I find military people to be get-it-done type of people,” Taff of Sage Geosystems told me. “So I think that helps to create a sense of urgency and also push things along a lot faster than you would see with maybe other organizations.” Sage uses drilling technologies adopted from the oil and gas industry to access heat for clean electricity production across a wide variety of geographies. This is an especially attractive option for the DOD as the majority of geothermal infrastructure is underground, and thus well protected from attack. And unlike other renewables, this tech can provide 24/7 energy no matter the weather conditions. So it’s no surprise that the military is pouring money into this sector, pursuing partnerships with other big names in the geothermal space such as Fervo Energy and Eavor.
Electric planes, hydrogen, and geothermal all felt intuitively justifiable to me from a defense standpoint, but I was more surprised to learn that the DOD has gotten into the alternative proteins, a.k.a. “fake meat”, industry. Though meat substitutes won’t power tankers or keep the lights on, the Defense Department’s $1.4 million grant to The Better Meat Co. is intended to strengthen the American supply chain. China’s Ministry of Agriculture and Rural Affairs views lab-grown meat as critical to its five-year agricultural plan. “So we don’t want to have the United States be importing clean protein in the way that we’re currently dependent on Asia for our semiconductors and photovoltaics,” Paul Shapiro, the company’s CEO, told me.
The Better Meat Co. produces a protein called Rhiza that’s derived from microscopic fungi, which it then sells as an ingredient to other companies to make either 100% animal-free meat or a meat blend. “This isn’t an alternative protein program. It’s a domestic biomanufacturing program,” Shapiro told me when I asked if military funding for meat substitutes could be at risk under Trump. Looking at some of the other companies that got grants through the same program, he said, “it’s literally like bio manufacturing things for military planes and jet lubricants and chemical catalysts for bullets.” That is, probably not Republican targets for defunding. “It’s clearly solely about wanting the U.S. to be a leader in biomanufacturing for the products that the world is going to depend on in the future.”
The DOD also sees promise in numerous other clean energy technologies, including nuclear microreactors for their portability and ability to provide off-grid energy in remote locations and alternate battery chemistries that could help the U.S. move away from a dependence on Chinese-produced lithium-ion batteries.
But despite the deep well of funding and pragmatic approach to deployment that the Department of Defense offers, agreeing to work with the DOD isn’t always an obvious choice. Many fear their company’s tech could be used in ways and in wars that they oppose. In 2018, for example, thousands of Google employees signed a letter opposing the company’s participation in Project Maven, a partnership with the Pentagon that uses artificial intelligence to improve the accuracy of drone strikes. Supporters of the project said it would lead to fewer civilian deaths, while protestors argued that Google “should not be in the business of war.” Google did not renew the contract. More recently, employees at Microsoft, Google, and Amazon have signed petitions opposing their company’s provision of cloud computing and AI services to the Israeli government.
Norcia noted that most, but not all of his employees were neutral to positive when it came to working with the Air Force, while “for a small minority of the company, it unfortunately was not something that they really wanted to devote their life to.” While he understands that perspective, Norcia does believe that Pyka’s work with the DOD is a net positive for the world. “If you assume wars are going to keep happening — which, unfortunately, I think is the reality — I’d rather have it be the case that they’re more of a robot war than a human war,” he told me. And at the end of the day, passenger planes are still the goal.
As for his team at Verne, McKlveen told me everybody was on board. “The Defense Department has led to some of the biggest innovations of the last century, whether that’s the internet or GPS. And our team knows that.” Plus, even if the DOD doesn’t talk much about the climate benefits of sustainability-focused tech, that doesn’t negate them. A 2019 study revealed that the Pentagon purchases an average of 100 million barrels of oil per year, so from that perspective, “it’s hard to find a bigger customer that we can address,” McKlveen told me.
Norcia agreed. “I think the gains of your impact get turned way up if you’re doing work with the DOD,” he said, “as opposed to, you know, building an app that makes something incrementally more efficient or more addictive.”
Editor’s note: This story has been updated to reflect that DOD’s climate resilience portal has been taken down.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
The freeze goes into effect at 5 p.m. Tuesday.
The Trump administration has specifically targeted many large federal energy and climate programs in its sweeping freeze and review of grant funding, according to a list obtained by Heatmap News.
The list follows the release of a two-page memo dated January 27 and released Monday evening, in which the Office of Management and Budget ordered a pause on federal grant programs that “advance[s] Marxist equity, transgenderism, and green new deal social engineering policies.” The memo was first reported by independent journalist Marisa Kabas and stated that the pause will go into effect at 5 p.m. ET Tuesday.
Targeted programs include vast swathes of the federal government most relevant to the energy sector, from major Energy Department cleantech research offices and labs to all implementations of energy tax credits, including those in the Inflation Reduction Act. It also includes essentially all work at the National Oceanic and Atmospheric Administration, a Commerce Department subagency that produces climate science and weather forecasting.
The document states that programs targeted by the administration will be reviewed to determine whether they “impose an undue burden on the identification, development, or use of domestic energy resources.” Programs will also be reviewed to discover whether they’re funded by the Bipartisan Infrastructure Law and Inflation Reduction Act or implicated under the president’s Day One executive order to terminate activities related to “diversity, equity, inclusion, and accessibility,” or whether they “promote gender ideology” — terms defined vaguely, if at all, in the document.
It’s too early to know how the legal system will handle this maneuver by the new administration, or how the U.S. political system will respond to the chaos. Already, impromptu protests are being convened outside of the White House, a group of high-powered plaintiffs has filed a lawsuit, and moderate Republicans — namely Senators Susan Collins and Lisa Murkowski — are worrying publicly over the sweeping pause.
Heatmap has reached out to the Office of Management and Budget for comment on the document, and we will update this story if we receive it. The full list of targeted programs was first reported by Jennifer Shutt at States Newsroom. Among those named relating to the energy sector are:
This story is still developing.
Kneecapping demand from clean energy is a funny way to boost supply.
The technology that undergirds decarbonization requires a lot of minerals, and those minerals are often found or processed overseas — really often in China. The Biden administration thought this was a problem, so as it subsidized the domestic use and manufacture of solar panels, wind turbines, and battery-electric vehicles and the deployment of green energy, it also tried to nudge the critical mineral industry mining and refining industries to be more American, with subsidies for battery plants and loan guarantees for lithium mines.
The Trump administration halfway agrees with its predecessors: It wants to see an American minerals industry, but it isn’t so much interested in the renewable energy part. During his Day One fusillade of executive orders, the president hammered the wind industry, scrapped the Biden administration’s goals for vehicle electrification, and encouraged faster permitting for nearly every type of energy generation other than wind, solar, and storage.
While new clean energy projects won’t disappear overnight, the growth trajectory of the sector may be imperiled, which in turn means that incremental future demand for critical minerals in the United States has likely diminished. Demand certainty is incredibly important for the mining sector — it takes an estimated 29 years from resource discovery to production in the United States, according to S&P — as exploration is a highly uncertain and expensive process. Because of this, the industry as a whole is already incentivized to undersupply the market, explained Arnab Datta, the managing director of policy implementation at Employ America.
“If there’s uncertainty about demand, it will hold back investment,” Datta told me. “If you under-invest, you get suboptimal profits. If you over-invest, the risk is bankruptcy.”
Many minerals projects the Biden administration greenlit and supported were closely tied to downstream decarbonization goals. The nearly $1 billion loan guarantee for the Ioneer Rhyolite Ridge refining project for lithium mined in Nevada, for instance, would “finance the on-site processing of lithium carbonate that would support production of lithium for more than 370,000 EVs each year,” the Energy Department’s Loan Programs Office said in an announcement on January 17.
In December, the LPO issued a $750 million conditional loan guarantee for a synthetic graphite facility in Tennessee that was “expected to produce 31,500 metric tonnes per year of synthetic graphite, which can support the production of lithium-ion batteries for approximately 325,000 EVs each year.”
And America’sfirst graphite processing plant, which supplies Tesla’s battery-making operations from Vidalia, Louisiana, does so with help from a $100 million Department of Energy loan.
The Trump approach to stimulating investment is still evolving — the Department of Energy doesn’t yet have a confirmed secretary — but it appears to focus largely on permitting mining and refining projects with a focus on the defense industrial base.
The executive order “Unleashing American Energy” asks agencies to “identify all agency actions that impose undue burdens on the domestic mining and processing of non-fuel minerals and undertake steps to revise or rescind such actions.” Trump also asked the secretaries of the interior and energy to make “efforts to accelerate the ongoing, detailed geologic mapping of the United States,” and “ensure that critical mineral projects, including the processing of critical minerals, receive consideration for Federal support.”
Many of the minerals used for renewables and clean energy projects also have defense applications. The most obvious exampleare the suite of minerals found in batteries — lithium, cobalt, graphite — which are as key for powering electric vehicles as they are for building drones.
“If you’re going to make a Venn diagram of what critical minerals you need for sustainable energy technologies, battery technologies, solar cells, and electricity infrastructure, that circle of critical minerals sits inside of the circle of critical minerals that you need for defense purposes,” explained Catrina Rorke, the senior vice president for policy and research at the Climate Leadership Council.
But renewable energy applications can quickly outpace defense. According to the Breakthrough Institute’s Seaver Wang, “In many cases the business for these projects would be difficult to sustain on the defense applications alone unless DOD is throwing tons of money to make those projects too big to fail.”
The F-35 fighter jetuses around 900 pounds of rare earth elements, and the Pentagon is looking at maintaining a fleet of about 2,400. A single offshore wind turbine, meanwhile, can use up to thousands of pounds. To get a sense of how much rare earth metal even a modestly sized offshore wind operation requires, you’d have to look at something like a destroyer, which needs over 5,000 pounds of them.
Not all analysts see a strong tension between the Trump administration’s renewable energy policy and its critical minerals policy, however. Morgan Bazilian, director of the Payne Institute and a public policy professor at the Colorado School of Mines, told me that it was “simplistic” to say “you need supply and demand to meet somewhere.”
“There’s still going to be a need for copper whether or not the U.S. builds a lot of transmission lines,” Bazilian said. “There’s still going to be the need for light and heavy rare earths, and there’s a need for tellurium and nickel on global markets. The problem is not robust demand in the United States, which is one piece of the pie.”
No matter what these minerals are used for or where their ultimate destination is, the United States is desperately looking for any foothold in mining and processing in order to compete with China, which dominates many sectors of the industry.
“What we need to do now is to get some domestic mining and processing going,” Bazilian said. The U.S. “doesn’t have to be dominant or be the biggest producer of these things. We need to get on the map a little bit. We have precious little going on.”
Even if U.S. demand slows, “I don’t think it will stop,” Bazilian said. “I don’t see that in itself kneecapping anything.”
Regardless of the level of demand, it will need mines and processing facilities to meet it, which requires permitting and financing. What investors and companies looking to open mines and refining facilities need is not just assurance of demand over the long term, Rorke explained, but also the go-ahead to build.
“If you’re only focused on the demand side,” Rorke said, “you’re really investing in a long-term problem because you are not matching it with the supply that can come on to satisfy that demand over the long term.”
Editor’s note: This story has been updated to correct Datta’s affiliation and title.
If you care about climate change, this is a no-brainer.
Back in 2019, the year I bought my Tesla Model 3, Elon Musk was more nuisance than accused neo-Nazi. He released an offbeat autotuned rap song about Harambe the gorilla and was acquitted of defamation charges after calling a rescuer in the Thailand cave incident of being a “pedo guy.” Both events feel eons ago in internet time. They also feel ancient as part of the gradual progression of Tesla’s CEO from real-life Tony Stark to right-wing agitator and propagandist.
Lots of people who purchased Tesla EVs before Musk took off the mask are understandably miffed. Anyone who buys a Cybertruck and has been on the internet before should know they’re driving an extension of Elon’s id. But millions of people worldwide bought Teslas over the past several years with no intention of puttering around in a MAGA machine. The sentiment can be seen in the bumper stickers that now appear on Model 3s and Ys around blue states, declaring some version of “I bought it before Elon was crazy.” A new study in the Netherlands put a number to the notion: The survey found that one in three Tesla owners wants to unload their cars rather than continue to drive a vehicle associated with Musk.
This is a time when social media abounds with lists of companies to avoid because of their political stances and contributions; anyone who wants to vote with their wallet by not buying Tesla absolutely can and probably should buy some other carmaker’s EV instead (unless Tesla, which is slated to release its earning this week, winds up the last EV-maker standing). But don’t ditch your Model S or Y just to avoid driving around in an advertisement for his company.
I’ve thought a lot about this as a Model 3 owner for five-plus years. It’s not uncommon to meet someone who can’t wait to tell you they’d never buy a Tesla because of Musk’s politics or noxious behavior on X. Fair enough. But plenty of those people drive gas-only or hybrid vehicles. The oil company CEOs who make money selling gasoline and diesel have been far worse for the climate than Musk, even if his Trump-ward turn is closing the gap. They just know enough not to tweet. Or buy Twitter.
It certainly doesn’t make climate sense to dispose of a Tesla in favor of a non-EV. But even trading one in for another company’s EV just to get Musk out of your life is a bad deal. When you sell your car, it becomes somebody else’s car. That person inherits the symbolic weight of owning one of Musk’s products and takes over the Supercharging dole, paying Tesla for energy every time they need to charge away from home. More importantly, you’ll probably wind up purchasing a new EV that needed a reasonable amount of carbon emissions to create (not to mention water and other resources), and will need years of driving on cleaner energy to make up for it. What’s gained in virtue signaling is lost in carbon dioxide.
This personal conundrum is reminiscent of the macroeconomic controversy over fossil fuel divestment, where universities, companies, and other institutions have been pressured to rid themselves of investment that support coal, oil, and gas. In theory, selling off such assets is supposed to harm the fossil fuel industry. But as the Harvard Business Reviewwrites: “What looks good on paper often falls short in practice. There’s one major problem with divestment: Selling an asset requires someone to buy it. In other words, for you to divest, someone else needs to invest.” Institutions get to pat themselves on the back and tell constituents they greened their portfolio, but the fossil fuel business carries on unchanged.
In fact, the Review directly compares divestment to the car problem. Companies, they say, should think about sunsetting their fossil fuel investments rather than selling immediately just to wash their hands of a dirty industry. It’s just like how driving an old car into the ground is better than selling it — since selling requires buying, and buying adds a new car to the roads.
So it goes for aging Teslas. You might feel a wave of satisfaction by selling off your Model Y and derive great pleasure from not having to think about Musk when you get in your car. But if, like me, you bought an electric car for climate reasons, and it just so happened that a Tesla was the most practical one you could get, then the best thing to do once it’s paid off is to keep it as long as it will run.
An owner can keep more of their money from lining Musk’s pocket by charging at home or at other companies’ DC fast-chargers instead of Superchargers, or by having the vehicle repaired and serviced by independent shops rather than by Tesla itself. But it is quite literally not worth it to sell your Tesla just to avoid having to explain to other people, or to yourself, why you drive one.