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Technology

Microsoft’s Major Carbon Removal Deal

On curbing AI emissions, flood resilience, and offshore wind

Microsoft’s Major Carbon Removal Deal
Heatmap Illustration/Getty Images

Current conditions: Extreme heat in Southern California is causing cars to break down on the highway • Flooding in northeastern India killed nine rare one-horned rhinos • Residents in Mount Vernon, Indiana, are waking up to debris and devastation from a violent tornado spawned by the remnants of Hurricane Beryl.

THE TOP FIVE

1. Microsoft and Oxy agree to largest-ever DAC credits deal

Tech giant Microsoft has agreed to the “single largest purchase” of direct air capture carbon credits, buying 500,000 metric tons of credits from Occidental Petroleum’s (aka Oxy) 1PointFive DAC subsidiary. The deal is worth hundreds of millions of dollars and will help Microsoft confront its growing emissions problem as demand for energy-intensive artificial intelligence grows. Microsoft’s emissions grew by 30% in 2023 compared to 2020. Google’s emissions are also rising, up 13% last year compared to the year before. Both companies pin the blame on the growth of AI. As Bloomberg noted, DAC “is expensive, energy-intensive and not yet proven at industrial scale.” Occidental clinched a similar (but smaller) deal with Amazon last year.

2. New FEMA rule will improve infrastructure flood resilience

The Biden administration yesterday finalized a rule aimed at protecting federal infrastructure from flooding exacerbated by climate change. The federal flood risk management standard, first proposed in 2015, will require public structures funded by FEMA be built above the projected flood level for their location, or be moved to a different location entirely. The hope is to “put a stop to the cycle of response and recovery, and rinse and repeat,” said Deanne Criswell, the FEMA administrator. FEMA will cover the cost of implementing the changes. The rule will come into effect on September 9.

3. Texas power outages persist as temperatures rise

Frustration is growing in Texas, where nearly 2 million people are still without power after Hurricane Beryl tore through the state Monday as a category 1 storm. The power outages mean many residents are without access to air conditioning as a heat wave pushes temperatures into the 90s. At least 16 hospitals were relying on generators to keep the lights on yesterday, according to The Associated Press. Making matters worse, flooding from the storm caused a “domestic wastewater” spill in downtown Houston, where residents were told to boil water before consuming it. A report published in April found that power outages from extreme weather events are rising in the U.S., with Texas being the worst-affected state.

Climate Central

4. Report: Offshore wind capacity won’t meet Biden’s goal

New analysis from the American Clean Power Association found that U.S. offshore wind capacity will fall short of President Biden’s goal of 30 gigawatts by 2030. There are currently 56 GW of capacity under development across 37 leases, the report finds, but just 14 GW will be deployed by 2030. However, things will speed up quickly, and it’ll take just three years for capacity to hit 30 GW in 2033, and another two to hit 40 GW in 2035.

5. Climate change-denying senator James Inhofe dies

Former Republican senator James Inhofe, “the capital’s most vociferous denier of climate change,” died Tuesday at age 89. Inhofe served five terms in the Senate starting in the 1990s before retiring in January last year. He began vocally downplaying scientific evidence of climate change in 2003. His campaigns received generous donations from fossil fuel interests. In 2012, Inhofe authored a book called The Greatest Hoax: How the Global Warming Conspiracy Threatens Your Future. In a 2015 stunt, he brought a snowball into the Senate in an attempt to prove that man-made global warming was not real. He opposed efforts to cap greenhouse gas emissions and once called the Environmental Protection Agency a “Gestapo bureaucracy.” He later went on to play a key role in transforming the EPA under former President Trump.

The late Sen. Inhofe during his 2015 snowball stunt.YouTube/C-SPAN

THE KICKER

Global temperatures seem to be falling slightly now, after more than a year of unrelenting new record monthly highs.

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Politics

Scoop: Trump Administration Refuses to Allow Safety Fixes at Vineyard Wind

The offshore wind developer was in the process of completing necessary repairs when the administration issued its stop work order, according to court filings.

Trump grabbing a turbine blade.
Heatmap Illustration/Getty Images

In the Atlantic ocean south of Massachusetts, 10 wind turbine towers, each 500 feet tall, stand stripped of their rotary blades. Stuck in this bald state due to the Trump administration’s halt on offshore wind construction, the towers are susceptible to lightning strikes and water damage. This makes them a potential threat to public safety, according to previously unreported court filings from the project developer, Vineyard Wind.

The company filed for an injunction against Trump’s stop work order last week. The order posed a unique threat to Vineyard Wind, as the project is 95% complete and its contract with a key construction boat is set to expire on March 31, the filing said. “If construction is not completed by that date, the partially completed wind turbines will be left in an unsafe condition and Vineyard Wind will incur a series of financial consequences that it likely could not survive,” the company wrote.

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Climate Tech

Zanskar Raises $115 Million to Propel Geothermal Discoveries

One of the buzziest climate tech companies in our Insiders Survey is pushing past the “missing middle.”

A Zanskar facility.
Heatmap Illustration/Zanskar, Getty Images

One of the buzziest climate tech companies of the past year is proving that a mature, hitherto moribund technology — conventional geothermal — still has untapped potential. After a breakthrough year of major discoveries, Zanskar has raised a $115 million Series C round to propel what’s set to be an investment-heavy 2026, as the startup plans to break ground on multiple geothermal power plants in the Western U.S.

“With this funding, we have a six power plant execution plan ahead of us in the next three, four years,” Diego D’Sola, Zanskar’s head of finance, told me. This, he estimates, will generate over $100 million of revenue by the end of the decade, and “unlock a multi-gigawatt pipeline behind that.”

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Green
AM Briefing

Of Mines and Men

On New Jersey’s rate freeze, ‘global water bankruptcy,’ and Japan’s nuclear restarts

Lithium mining.
Heatmap Illustration/Getty Images

Current conditions: A major winter storm stretching across a dozen states, from Texas to Delaware, and could hit by midweek • The edge of the Sahara Desert in North Africa is experiencing sandstorms kicked up by colder air heading southward • The Philippines is bracing for a tropical cyclone heading toward northern Luzon.

THE TOP FIVE

1. New Jersey’s new governor freezes electricity prices during inauguration speech

Mikie Sherrill wasted no time in fulfilling the key pledge that animated her campaign for governor of New Jersey. At her inauguration Tuesday, the Democrat signed a series of executive orders aimed at constraining electricity bills and expanding energy production in the state. One order authorized state utility regulators to freeze rate hikes. Another directed the New Jersey Board of Public Utilities “to open solicitations for new solar and storage power generation, to modernize gas and nuclear generation so we can lower utility costs over the long term.” Now, as Heatmap’s Matthew Zeitlin put it, “all that’s left is the follow-through,” which could prove “trickier than it sounds” due to “strict deadlines to claim tax credits for renewable energy development looming.”

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