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Concentrating solar power lost the solar race long ago. But the Department of Energy still has big plans for the technology.

Hundreds of thousands of mirrors blanket the desert of the American West, strategically angled to catch the sun and bounce its intense heat back to a central point in the sky. Despite their monumental size and futuristic look, these projects are far more under-the-radar-than the acres of solar panels cropping up in communities around the country, simply because there are so few of them.
The technology is called concentrating solar power, and it’s not particularly popular. Of the thousands of big solar projects operating in the U.S. today, less than a dozen use it.
Concentrating solar power lags for many reasons: It remains much more expensive than installations that use solar panels, it can take up a lot of land, and it can fry birds that fly too close (a narrative that’s shadowed the industry and an issue it says it’s working to alleviate). Yet the government still has big aspirations for the technology.
To meet its climate goals and avert the catastrophe that comes with significant warming, the world must roll out renewable energy sources with unprecedented speed. But while the construction of solar and wind energy is surging, renewables still face two disadvantages that fossil fuels don't: They produce electricity under certain conditions, like when the wind is blowing or the sun is shining. And there’s not a lot of research on them powering heavy industry, like cement and steel production.
That’s where concentrating solar power has an advantage. It has two big benefits that have long kept boosters invested in its success. First, concentrating solar power is usually constructed with built-in storage that's cheaper than large-scale batteries, so it can solve the intermittency challenges faced by other kinds of solar power. Plus, CSP can get super-hot — potentially hot enough for industrial processes like making cement. Taken together, those qualities allow the projects to function more like fossil fuel plants than fields of solar panels.
A few other carbon-free technologies — like nuclear power — are capable of doing much the same thing. The question is which technologies will be able to scale.
“We have goals of decarbonizing the entire energy sector, not just electricity, but the industrial sector as well, by 2050,” said Matthew Bauer, program manager for the concentrating solar-thermal power team at the Department of Energy’s Solar Technologies Office. “We think CSP is one of the most promising technologies to do that.”
In February, the Department of Energy broke ground in New Mexico on a project they see as a focal point for the future of CSP. It’s a bet that the technology can compete, despite past skepticism.
Concentrating solar plants can be built in different ways, but they’re basically engineered to bounce sun off mirrors to beam sunlight at a device called a receiver, which then heats up whatever medium is inside it. The heat can power a turbine or an engine to produce electricity. The higher the heat, the more electricity is produced and the lower the cost of producing it.
The CSP installation in New Mexico will look a lot like past projects, with a field of mirrors pointing towards a tall tower. But one element makes it particularly unique: big boxes of sand-like particles. When it’s completed next year, it will be the first known CSP project of its kind to use solid particles like sand or ceramics to transfer heat, according to Jeremy Sment, a mechanical engineer leading the team designing the project at Sandia National Laboratories.
For years, scientists sought a material that would get hot enough to improve CSP’s efficiency and costs. Past commercial CSP projects have topped out around 550 degrees Celsius. For this new project, which the Department of Energy calls “generation three,” the team is hoping to exceed 700 degrees C, and has tested the particles above 1000 degrees C, the temperature of volcanic magma.
Past projects have used oil and molten salt to absorb the sun’s heat and store it. But at blistering temperatures these materials decompose or are corrosive. In 2021, the Department of Energy decided particles were the most promising route to reach the super-hot temperatures required for efficient CSP. The team building the project considered using numerous types of particles, including red and white sand from Riyadh in Saudia Arabia and a titanium-based mineral called ilmenite. They settled on a manufactured particle from a Texas-based company, Carbo Ceramics. To build the project they need 120,000 kilograms of the stuff.
Engineers at Sandia are now working on the project’s other components. At the receiver, particles will fall like a curtain through a beam of sunlight. After they’re blasted with heat, gravity will carry them down the 175-foot tower, slowed down by obstacles that create a chute similar to a children’s marble run. They’ll offload thermal energy to “supercritical carbon dioxide” — CO2 in a fluid state — which could then power a turbine. For industrial applications, the system would be designed to allow particles to exchange heat with air or steam to heat a furnace or kiln. To store heat energy for later, the particles can be stowed in insulated steel bins within the tower until that heat is needed hours later.
The team expects construction to wrap up next year, with results for this phase of the project ready at the end of 2025. The project needs to show it can reach super-high temperatures, produce electricity using the supercritical CO2, and that it can store heat for hours, allowing the energy to be used when the sun isn’t shining.
By the Department of Energy’s technology pilot standards, the 1 megawatt project is big, but it's much smaller than most solar projects built to supply power to electric utilities and tiny compared to past CSP projects.
This could help tackle another of CSP's challenges: Projects have been uneconomic unless they’re huge. They require big plots of land and lots of money to get started. One of the most well-known CSP projects in the U.S., the 110-megawatt Crescent Dunes, cost $1 billion and covers more than 1,600 acres in Nevada. “Nothing short of a home run is deployable — I can’t just put a solar tower on my rooftop,” said Sment.
Projects that use solar panels can be as small as the footprint of a home. Overall, they’re much easier to finance and build. That’s led to more projects, which creates efficiencies and lower costs. The DOE hopes its tests will show promise for smaller, easier to deploy CSP projects.
“That’s been one of the challenges, in my opinion, that’s faced CSP historically. The projects tended to be very large, one of a kind,” said Steve Schell, chief scientist at Heliogen, a Bill Gates-backed CSP startup that’s working on a different pilot with the Department of Energy.
Heliogen went public at the end of 2021 with a valuation of $2 billion. To overcome hesitancy about the price tags usually associated with CSP, the company is targeting modular projects focused on producing green hydrogen and industrial heat, aiming to replace the fossil fuels that usually power processes like cement-making.
For companies, the CSP business has historically been tough. Some U.S. CSP startups have gone out of business, or shifted their sights to projects abroad. Despite its splashy IPO, Heliogen’s shares are worth less than 25 cents today, down from over $15 at the end of 2021. In its most recent quarterly financial report, the company downgraded its expected 2022 revenue by $8- $11 million as it works to finalize deals with customers.
Bauer at the DOE thinks the government can make technologies like CSP less risky by investing in research that takes a longer view than the one afforded by markets. And as the grid needs more large-scale storage, the value for CSP may change.
Even if CSP never becomes a significant source of generation on the grid, supporters like Shannon Yee, an associate professor of mechanical engineering at the Georgia Institute of Technology who has worked with DOE on solar technologies for years, say it could still find other potential applications in manufacturing, water treatment, or sanitation.
“We always seem to be so focused on generating electricity that we don't look at these other needs where concentrated solar may actually provide greater benefit,” said Yee. “Everything really needs sources of energy and heat. How do we do that better?”
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The move would mark a significant escalation in Trump’s hostility toward climate diplomacy.
The United States is departing the United Nations Framework Convention on Climate Change, the overarching treaty that has organized global climate diplomacy for more than 30 years, according to the Associated Press.
The withdrawal, if confirmed, marks a significant escalation of President Trump’s war on environmental diplomacy beyond what he waged in his first term.
Trump has twice removed the U.S. from the Paris Agreement, a largely nonbinding pact that commits the world’s countries to report their carbon emissions reduction goals on a multi-year basis. He most recently did so in 2025, after President Biden rejoined the treaty.
But Trump has never previously touched the UNFCCC. That older pact was ratified by the Senate, and it has served as the institutional skeleton for all subsequent international climate diplomacy, including the Paris Agreement.
The United States was a founding member of the UN Framework Convention on Climate Change. It first joined the treaty in 1992, when President George H.W. Bush signed the pact and lawmakers unanimously ratified it.
Every other country in the world belongs to the UNFCCC. By withdrawing from the treaty, the U.S. would likely be locked out of the Conference of the Parties, the annual UN summit on climate change. It could also lose any influence over UN spending to drive climate adaptation in developing countries.
It remains unclear whether another president could rejoin the framework convention without a Senate vote.
As of 6 p.m. Eastern on Wednesday, the AP report cited a U.S. official who spoke on condition of anonymity because the news had not yet been announced.
The Trump administration has yet to confirm the departure. On Wednesday afternoon, the White House posted a notice to its website saying that the U.S. would leave dozens of UN groups, including those that “promote radical climate policies,” without providing specifics. The announcement was taken down from the White House website after a few minutes.
The White House later confirmed the departure from 31 UN entities in a post on the social network X, but did not list the groups in question.
Bloom Energy is riding the data center wave to new heights.
Fuel cells are back — or at least one company’s are.
Bloom Energy, the longtime standard-bearer of the fuel cell industry, has seen its share of ups and downs before. Following its 2018 IPO, its stock price shot up to over $34 before falling to under $3 a share in October 2019, then soared to over $42 in the COVID-era market euphoria before falling again to under $10 in 2024. Its market capitalization has bounced up and down over the years, from an all time low of less than $1 billion in 2019 and further struggles in early 2020 after it was forced to restate years of earnings thanks to an accounting error after already struggling to be profitable, up again to more than $7 billion in 2021 amidst a surge of interest in backup power.
The stock began soaring (again) in the middle of last year as anything and everything plausibly connected to artificial intelligence was going vertical. Today, Bloom Energy is trading at more than $111 a share, with a market cap north of $26 billion — and that’s after a dramatic fall from its all-time high price of over $135 per share, reached in November. By contrast, Southwest Airlines is worth around $22 billion; Edison International, the parent company of Southern California Edison, is worth about $22.5 billion.
This is all despite Bloom recording regular losses according to generally accepted accounting principles, although its quarterly revenue has risen by over 50%, and its reported non-GAAP and adjusted margins and profits have grown considerably. The company has signed deals or deployed its fuel cells with Oracle, the utility AEP, Amazon Web Services, gas providers, the network infrastructure company Equinix, the real estate developer Brookfield, and the artificial intelligence infrastructure company CoreWeave, Bloom’s chief executive and founder, KR Sridhar, said in its October earnings call.
While fuel cells have been pitched for decades as a way to safely use hydrogen for energy, fuel cells can also run on natural gas or biogas, which the company has seized on as a way to ride the data center boom. Bloom leadership has said that the company will double its manufacturing capacity by the end of this year, which it says will “support” a projected four-fold annual revenue increase. “The AI build-outs and their power demands are making on-site power generated by natural gas a necessity,” Sridhar said during the earnings call.
To get a sense of how euphoric perception of Bloom Energy has been, Morgan Stanley bumped its price target from $44 dollars a share to $85 on September 16 — then just over a month later, bumped it again to $155, calling the company “one of our favorite ‘time to power’ stocks given its available capacity and near-term expansion plans.”
Bloom has also won plaudits from semiconductor and data center industry analysts. The research firm SemiAnalysis described Bloom’s fuel cells as a “a fairly niche solution [that] is now taking an increasingly large share of the pie.”
It’s been a long journey from green tech darling to AI infrastructure for Bloom Energy — and fuel cells as a technology.
Bloom was founded in 2001, originally as Ion America, and quickly attracted high profile Silicon Valley investors. By 2010, fuel cells (and Bloom) were still being pitched as the generation source of the future, with The New York Times reporting in 2010 that Bloom had “spent nearly a decade developing a new variety of solid oxide fuel cell, considered the most efficient but most technologically challenging fuel-cell technology.” That product launch followed some $400 million in funding, and Bloom would hit an almost $3 billion valuation in 2011.
By 2016, however, when the company first filed with the Securities and Exchange Commission to sell shares to the public, it was being described by the Wall Street Journal as “a once-ballyhooed alternative energy startup,” in an article that said the fuel cell industry had been an “elusive target for decades, with a succession of companies unable to realize its business potential.” The company finally went public in 2018 at a valuation of $1.6 billion.
Then came the AI boom.
Fuel cells don’t use combustion to generate power, instead combining oxygen ions with hydrogen from natural gas and generating emissions of carbon dioxide and water, albeit without the particulate pollution of other forms of fossil-fuel-based electricity generation. This makes the process of getting permits from the Environmental Protection Agency “significantly smoother and easier than that of combustion generators,” SemiAnalysis wrote in a report.
In today’s context, Bloom’s fuel cells are yet another on-site, behind-the-meter natural gas power solution for data centers. “The rapid expansion of AI data centers in the U.S. is colliding with grid bottlenecks, driving operators to adopt BTM generation for speed-to-power and resilience to their modularity, fast deployment, and ability to handle volatile AI workloads,” Jefferies analyst Dushyant Ailani wrote in a note to clients. “Natural gas reciprocating engines, Batteries, and Bloom fuel cells are emerging as a preferred solution due to their modularity, fast deployment, and ability to handle volatile AI workloads.”
SemiAnalysis estimates that capital expenditure for Bloom fuel cells are substantially higher than those for gas turbines on a kilowatt-hour basis — $3,000 to $4,000 for fuel cells, compared to between $1,500 and $2,500 for turbines. But where the company excels is in speed. “The big turbines are sold out for four or five years,” Maheep Mandloi, an analyst at Mizuho Securities, told me. “The smaller ones for behind the meter for one to two years. These guys can deliver, if needed, within 90 days.”
Like other data center-related companies, Bloom has faced some local opposition, though not a debilitating amount. In Hilliard, Ohio, the state siting board overrode concerns about the deployment of more than 200 fuel cells at an AWS facility.
Bloom is also far from the only company that has realigned itself to ride the AI wave. Caterpillar, which makes simple turbine systems largely for the oil and gas industry, has become a data center darling, while the major turbine manufacturers Mitsubishi, Siemens Energy, and GE Vernova have all seen dramatic increases in their stock price in the last year. Korean industrial conglomerate Doosan is now developing a new large-scale turbine. Even the supersonic jet startup Boom is developing a gas turbine for data centers.
While artificial intelligence — or at least artificial intelligence companies — promises unforeseen technological and scientific advancements, so far it’s being powered by the technological and scientific advancements of the past.
On AI forecasts, California bills, and Trump’s fusion push
Current conditions: The intense rain pummeling Southern California since the start of the new year has subsided, but not before boosting Los Angeles’ total rainfall for the wet season that started in October a whopping 343% above the historical average • The polar vortex freezing the Great Lakes and Northeast is moving northward, allowing temperatures in Chicago to rise nearly 20 degrees Fahrenheit • The heat wave in southern Australia is set to send temperatures soaring above 113 degrees.

It’s not the kind of thing anyone a decade ago would have imagined: a communique signed by most of Western Europe’s preeminent powers condemning Washington’s efforts to seize territory from a fellow NATO ally. But in the days since the United States launched a surprise raid on Venezuela and arrested its long-time leader Nicolás Maduro, President Donald Trump has stepped up his public lobbying of Denmark to cede sovereignty over Greenland to the U.S. Senator Thom Tillis, the North Carolina Republican, and Senator Jeanne Shaheen, the Democrat from New Hampshire, put out a rare bipartisan statement criticizing the White House’s pressure campaign on Denmark, “one of our oldest and most reliable allies.” While Stephen Miller, Trump’s hard-line deputy chief of staff, declined to rule out an invasion of Greenland during a TV appearance this week, The Wall Street Journal reported Tuesday that Secretary of State Marco Rubio told lawmakers that the goal of the administration’s recent threats against the autonomously-governed Arctic island were to press Denmark into a sale.
The U.S. unsuccessfully tried acquiring Greenland multiple times during the 20th century, and invaded the island during World War II to prevent the Nazis from gaining a North American foothold after Denmark fell in the blitzkrieg. Indeed, Washington purchased the U.S. Virgin Islands, its second largest Caribbean territory, shortly after the 1898 Spanish-American war that brought Puerto Rico under American control. But the national-security logic of taking Greenland now, when the U.S. already maintains a military base there, is difficult to parse. “Greenland already is in the U.S. sphere of influence,” Columbia University political scientist Elizabeth N. Saunders wrote in a post on Bluesky. “It’s far cheaper for the U.S., in material, security, and reputational terms, to have Denmark continue administering Greenland and work within NATO on security.” One potential reason Trump might want the territory, as Heatmap’s Jael Holzman wrote last fall, is to access Greenland’s mineral wealth. But the logistics of getting rare earths out of both the ground and the Arctic to refineries in the U.S. are challenging. Meanwhile, in other imperialistic activities, Trump said Tuesday evening in a post on Truth Social that Venezuela would cede between 30 million and 50 million barrels of oil to the U.S., though the legal mechanism for such a transfer remains murky, according to The New York Times.
I told you last month about the in-house market monitor at the PJM Interconnection, the country’s largest power grid, urging federal regulators to prevent more data centers coming online within its territory until it can sort out how to reliably supply them with electricity. As Heatmap’s Matthew Zeitlin wrote days later, “everyone wants to know PJM’s data center plan.” On Tuesday, E&E News reported that PJM is expected to ratchet down its forecasts for how much power demand artificial intelligence will add on the East Coast. When the grid operator’s latest analysis of future needs comes out later this month, PJM Chief Operating Officer Stu Bresler said during a call last month that the projections for mid-2027 will be “appreciably lower” than the current forecast.
The merger of the parent company of Trump’s TruthSocial website and the nuclear fusion developer TAE Technologies, as I reported in this newsletter last month, is “flabbergasting” to analysts. And yet the pair’s partnership is advancing. On Tuesday, the companies announced that site selection was underway for a pilot-scale power plant set to begin construction later this year. The first facility would generate just 50 megawatts of electricity. But the companies said future plants are expected to pump out as much as 500 megawatts of power.
Meanwhile, the rival startup widely seen as the frontrunner to build America’s first fusion plant unveiled new deals of its own. Over at the CES 2026 electronics show in Las Vegas on Tuesday, Commonwealth Fusion Systems — which analysts say is taking a more simplified and straightforward pathway to commercializing fusion power than TAE — touted a new deal with microchip giant Nvidia and told the crowd at the conference that it had installed the first magnet at its pilot reactor, TechCrunch reported.
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Scott Wiener, the California state senator making a bid for Representative Nancy Pelosi’s long-held House seat, introduced two new bills he said were designed to ease rising energy costs. The first bill is meant to “get rid of a bunch of that red tape” that makes installing a heat pump expensive and challenging in the state, the Democrat explained in a video posted on Bluesky. The second piece of legislation would clear the way for renters to install small, plug-in solar panels on apartment balconies. “Right now, in California, it is way, way, way too hard, if not impossible, to install these kinds of units,” Wiener said. “We have to make energy more affordable for people.”
Sunrun is forming a new joint venture with the green infrastructure investor HASI to finance deployment of at least 300 megawatts of solar across what the companies billed as “more than 40,000 home power plants across the country.” As part of the deal, which closed last month, HASI will invest $500 million over an 18-month period into the new company, allowing the nation’s largest solar installer to “retain a significant long-term ownership position” in the projects. As I reported for exclusively Heatmap in October, a recent analysis by the nonprofit Permit Power, which advocates for easing red tape on rooftop solar, found that the cost of solar panels in the U.S. was far higher than in Australia or Germany due to bureaucratic rules. The HASI investment will help bring down the costs for Sunrun directly as it installs more panels.
Total U.S. utility-scale solar installations for 2025 were on track last month to beat the previous year, as I reported in this newsletter. But the phaseout of federal tax credits next year is set to dim the industry somewhat as projects race to start construction before the expiration date.
In another session at CES 2026, the electric transportation company Donut Labs claimed it’s made an affordable, energy-dense solid state battery that’s powering a new motorcycle and charges in just five minutes. The startup hasn’t yet produced any independent verification of those promises. But the company is known for what InsideEVs called its “sci-fi wheel-in electric motor” for its bikes.