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And it involves dumping 9,000 tons of fancy sand off the North Carolina coast.

When visitors flock to the beach this summer in Duck, North Carolina, a small, 6-mile long town on the Outer Banks, they may catch a glimpse of a climate experiment happening among the waves.
About 1,500 feet offshore, a company called Vesta will be pouring 9,000 tons of sand into the sea and watching carefully to see what happens next. This finely crushed rock will not be of the typical Outer Banks variety. Instead, it will consist of a mineral called olivine, which should enhance the ocean’s ability to absorb carbon from the atmosphere — and lock it away for thousands of years.
That the experiment can go ahead at all marks a milestone for ocean-based carbon removal, a category of climate solutions that prod the ocean into sucking up more CO2. A big obstacle for the field has been the lack of a legal framework for permitting real-world trials — U.S. laws governing the ocean weren’t written with the prospect of intentionally altering its chemistry to address an existential environmental crisis in mind. But after an 18-month interagency review process, Vesta is now the first company with a federal permit from the U.S. Army Corps of Engineers to deploy a stand-alone carbon removal test in U.S. waters.
Though 9,000 tons may sound like a lot, this is still a relatively small-scale pilot designed to assess how effective the olivine is in driving carbon removal, as well as observe any other changes in the environment and develop methods for tracking the movement of the sand in the water. These kinds of field trials are essential to establishing which marine carbon removal methods have potential and which don’t.
“We want to measure everything very carefully at this stage and make sure that we are fully understanding the safety profile and the carbon removal data from this project,” Tom Green, Vesta’s CEO, told me. But the company has big aspirations. If things go well, he said, maybe olivine could be used for beach nourishment projects all over the country, where sand is deposited along the shore to address erosion. “Imagine the carbon removal possibilities if we did that with olivine sand,” he said. “We could quickly become the largest technique for permanent carbon removal that's out there.”
Scientists generally agree that stopping global warming this century will require both reducing emissions and taking carbon out of the atmosphere. The sheer size of the ocean and its natural ability to store vast amounts of carbon make it an enticing place to look for solutions.
Dumping thousands of tons of non-native sand into the ocean may not sound like the most convincing option — especially since the ocean is already “experiencing unprecedented destabilizing changes through massive warming, acidification, deoxygenation, and a host of resulting effects,” according to an open letter published last year and signed by hundreds of scientists. However, despite this — or perhaps because of it — the letter called for accelerating research to find out whether any of the proposed ocean-based carbon removal methods, including releasing large quantities of ground olivine, are viable.
Olivine is an abundant mineral with special properties. When it comes into contact with seawater, it drives a chemical reaction that converts CO2 gas into more stable forms of carbon that can’t readily return to the atmosphere. This in turn creates a deficit of CO2 in the surface waters, which triggers the ocean to take up more from the atmosphere in order to maintain equilibrium.
Reactions like this are happening constantly in the ocean already, but on very slow timescales. Vesta’s innovation is to speed up the process by crushing and deploying olivine strategically where the wind and waves can most efficiently weather it away.

Olivine could address the harms of CO2 pollution in more ways than one. The ocean already absorbs about 30% of the carbon released into the atmosphere each year, which has made the water more acidic and less hospitable to many of its inhabitants. But when olivine triggers these reactions, it can act as a sort of antacid. This approach to carbon removal is also known as enhancing the ocean’s alkalinity and olivine is just one of a number of different ways to do it. Another company called Planetary is experimenting with adding a different mineral, magnesium hydroxide, to the ocean. Ebb Carbon, on the other hand, is sucking up seawater and running it through a membrane to increase its alkalinity, before returning it to the tides.
Both already have field trials up and running, but instead of trying to conduct stand-alone experiments in the open ocean they’ve hitched onto existing ocean dumping permits. Ebb, for example, has set up at the Pacific Northwest National Laboratory’s facility in Sequim, Washington, where it is releasing treated seawater into wastewater that flows into the bay. Similarly, Planetary is conducting pilot projects at the wastewater outflows of a water treatment facility and power plant in Canada. Other ocean carbon removal companies, such as Los Angeles-based Captura, have opted to move abroad for their early projects and avoid the U.S. permitting puzzle altogether.
Vesta went to Duck because it is among the most studied stretches of coastline in the country. The town is home to an Army Corps coastal field research center known for its long-term data set on the surrounding waters. “Few locations on the globe provide a better archive of wave, water, bathymetry and other forces that shape nearshore conditions,” according to the Army Corps’ website. (“Bathymetry” is the topography of the seafloor.) That means Vesta will be able to get a more accurate picture of any changes the olivine is responsible for.
When Drew Havens, the town manager in Duck, first heard about Vesta’s plans, he was skeptical. “You're dumping something into the ocean, people automatically go to, well, is it going to harm humans? Is it going to be harmful to wildlife or other living organisms?” he told me.
Though some in the town are still nervous, Havens said he has become more comfortable with the idea as the project has been rigorously reviewed by environmental protection regulators at the federal and state level. Vesta’s scientists also engaged with the town council, did an open house for members of the public, and have generally invited questions and open dialogue.
Just because regulators have determined that the risks of this pilot project are low, however, doesn’t mean using olivine for carbon removal is risk-free. For one, the rock has to be mined — in this case, from a quarry in Norway, although it is also found in the U.S. — and transported to the project site. That’s likely to produce some environmental impacts, though the company estimates that the project will ultimately remove about 10 times more CO2 from the atmosphere than the emissions associated with running the experiment, including the mining and shipping of olivine.
But the biggest risk with mined olivine is that it contains nickel, said Jaime Palter, an associate professor of oceanography at the University of Rhode Island who has no affiliation with Vesta. Nickel can act as both a nutrient and a toxin for phytoplankton, she told me, so it's important to study whether putting olivine in the ocean will result in adverse effects.
Vesta has been closely examining that possibility. In fact, the project in Duck will be the company’s second U.S. field trial. In the summer of 2022, Vesta got permission from the town of Southampton in Long Island to spread olivine on the beach as part of a larger sand replenishment project that was already in the works. Vesta’s scientists worked with local academic partners at Cornell, SUNY Stony Brook, and Hamilton College to do extensive monitoring both before and after the sand was placed, collecting data on more than 20 indicators of the effects on the water, sediment, and ecology.
The company has since published two annual reports on the project. It is still awaiting analysis of many of the samples, but so far, the results have been promising, Green said. There has been no sign of trace metal accumulation in Eastern Oysters, a species known to accumulate pollutants from their environment, for instance. There was also no significant difference in water quality between control areas and the sites with olivine, and trace metal concentrations were below the relevant EPA water quality guidelines. The area’s benthic macrofauna — critters like clams and small crustaceans that live on or near the seafloor — were as abundant and various as before.
Notably, the tests also showed evidence of an increase in alkalinity in the waters of the olivine-treated area, which is the key reaction that leads to carbon removal. But Green said there’s more work to be done in terms of calculating where and when removal may have happened.
There’s also more work to be done to understand the effects of olivine in different environments, which brings us back to Duck. There, it will be deposited in 25-foot deep water instead of on the beach, helping Vesta to further refine its data and measurement methods. The plan is to continue testing and collecting data at the site for at least two years. The company declined to comment on the budget for the project. Vesta is funded primarily by venture capital investors but also raises money for research through an affiliated nonprofit.
Vesta may have been the first to get a federal permit to run a marine carbon removal test, but it definitely won’t be the last. Nikhil Neelakantan, a senior project manager at Ocean Visions, which is a nonprofit that advocates for ocean-based climate solutions, told me there are a number of other domestic projects in the pipeline, including more than a dozen government-funded research projects. The White House also recently set up a marine carbon removal fast track action committee with the mandate to create recommendations for policy, permitting, and regulatory standards for both research and implementation.
Neelakantan said there is work to do on clarifying the role of different agencies in regulating ocean carbon removal, and which laws apply to each method.
“This is an early first step, and it's exciting to see that it's finally going to come to fruition,” he said, of Vesta’s project in Duck. “I think there's momentum with this federal task force. It's going to be the first of many others that will happen soon.”
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On ‘precariously low’ oil stockpiles, China’s ammonia milestone, and a PFAS destroyer
Current conditions: The wildfires in France and Europe are slowing, but three firefighters have died and the looming heat wave could bring yet more disaster • New York and New Jersey are facing flash floods as a storm system makes its way across the Northeast United States • Days of thunderstorms are causing floods across Vientiane, Laos’ sprawling capital.
Last month, I toured Commonwealth Fusion Systems’ headquarters in small-town central Massachusetts. The place was abuzz in activity. On the factory floor side, workers were assembling the magnets needed to ultimately form the torus-shaped reactor — think a giant doughnut with an interior that curves like the core of an apple — called the tokamak. On the actual reactor side, SPARC — the prototype that CFS expects will make history next year as the first private enterprise and only tokamak to ever generate more energy that it took to start the fusion reaction — was starting to look like a functional machine from my view on a second-story walkway overlooking the sterile assembly room. The old joke that fusion is the energy source of tomorrow — and always will be — certainly didn’t ring as funny now. I’ll tell you who isn’t laughing: All the new investors that just poured another $1 billion into CFS. The company announced its latest funding round early this morning, which brings the startup’s total fundraising since its launch as a spinout from the Massachusetts Institute of Technology in 2018 to $4 billion. CFS now accounts for 30% of all the private capital that has flowed into fusion. What distinguishes this round, my colleague Katie Brigham wrote, is that the money is coming from a bunch of institutional investors, such as pension funds and sovereign wealth funds, rather than venture capitalists. On a call with reporters this week, CFS’s newly-named chief financial officer, Lorence Kim, said it’s the first-time institutional investors comprised the majority of the new funding. When I asked the company’s spokeswoman for a percentage estimate breaking down the new versus old investors in this round, she declined to comment. Kim cautioned that the funding isn’t the kind of capital you raise before launching on a stock market. But his hire is notable. The former Goldman Sachs banker famously helped take the pharmaceutical giant Moderna public and held the top financial role through the start of the Covid-19 pandemic.
Meanwhile, a federal Superfund site at a facility in Kentucky once used to enrich uranium for atomic bombs is being transformed into a data center. On Wednesday, the Department of Energy announced a deal between investment giant Brookfield, utility behemoth NextEra Energy, and three local power providers to redevelop portions of the Paducah site into a $100 billion data center campus. “By transforming former DOE sites into engines of innovation and economic growth, we can revitalize communities with increased tax revenue and thousands of jobs, while also strengthening America’s energy security,” Secretary of Energy Chris Wright said in a press release.
The Federal Reserve held the country’s benchmark interest rate steady at Wednesday’s meeting of the U.S. central bank’s top brass. But three bank presidents voted to increase rates as renewed fighting in Iran sent energy prices upward. The dissent “underscored officials’ fraying patience with looking past another price shock on the heels of tariff-related increases last year and with robust demand stemming from the artificial-intelligence buildout,” The Wall Street Journal reported. That is, of course, bad news for renewables and other clean energy developers who rely on cheap upfront money to build, as my colleague Matthew Zeitlin has written.
But there are potentially bigger problems afoot for American energy consumers. U.S. crude stockpiles fell sharply last week as American refineries ramped up production to seize on surging fuel prices as fighting erupted in Iran. The stocks have now reached “precariously low” levels, analysts told the Financial Times, meaning there’s far less cushion if the war worsens the supply shock.
Last month, the energy team at the liberal policy shop Third Way assembled 100 swing voters from across the country to talk about the data centers that poll after poll shows are becoming less and less popular, to put it mildly. The conclusion of the discussions was this: “America’s opposition to data centers has less to do with their feelings about artificial intelligence and more to do with their anger and distrust of large corporations and government.” The findings, shared with me exclusively in advance, showed that most participants were open to a new data center if they believed it would come with tangible benefits for their communities. While some investors, such as “Shark Tank” star Kevin O’Leary, have tried to present those offerings, “the trust isn’t there.” While Emily Becker, the director of Communications for Third Way’s Climate and Energy Program, told me she was “not surprised by how much opposition there was, what was heartening is people understood that benefits were possible. They just didn’t think they would receive them.”
Speaking of data centers and the public trust: NV Energy has accused one of the biggest developers of data centers in Nevada of attempting to illegally bypass state regulators to determine through private arbitration how and when the Berkshire Hathaway-owned utility should provide power to its operations. The lawsuit, filed Friday in Washoe County’s Second Judicial District Court, alleges that the developer, Tract, is trying to skirt the usual process by which the state Public Utilities Commission determines what share of the utility’s electricity should go to the large power user. Tract, according to the complaint, “wants NV Energy to reserve and provide enormous amounts of power for Tract's private development while shifting the infrastructure and energy costs to Nevada families, small businesses, and existing customers who did not cause them.” Sorting out those questions through arbitration would help to “keep these issues hidden” from state regulators and the public, NV Energy said, according to The Nevada Independent.
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When the Biden administration attempted to overhaul regulations on electrical transformers to make the key grid components more efficient, the proposal drew fierce bipartisan pushback amid a years-long nationwide shortage of the equipment. Ultimately, the Biden administration backed down and changed the proposal after receiving public comments. That would have seemed to provide some certainty for factories. But just two years after the final rule won acclaim from across the industry, the Trump administration is now considering revising the requirements for rules set to take effect in 2029. “We’re not aware of anyone asking for this,” Andrew deLaski, executive director of the Appliance Standards Awareness Project, told Utility Dive. The group supported the 2024 transformer rule and other stricter efficiency requirements DOE finalized during the Biden administration.
China has signaled it’s planning to take on what Bloomberg described as a bigger role in steering global negotiations over climate change. The 15th five-year plan published Monday by the Ministry of Ecology and Environment and other key agencies outlines how Beijing “will constructively lead the multilateral governance process to address climate change” and states that “China’s influence, guiding capacity, shaping power, and moral appeal in global climate governance will be significantly enhanced” through the end of the decade. Beijing is already looking to increase how much renewable energy it consumes, as I told you last week.
As you may recall, China is going all in on figuring out how to make green hydrogen work, especially now that the People’s Republic is throwing everything at the wall to diversify its domestic supply of fuels as the Iran War chokes off its regular supply of hydrocarbons. One of the trickier questions with green hydrogen is how to ship the world’s small molecules without leaks. A popular solution is to convert the hydrogen into green ammonia. On Tuesday, SPIC Green Energy announced the successful loading of 3,750 metric tons of green ammonia produced in Jilin Province onto a vessel at the Lianyungang Port in Jiangsu Province and shipped to South Korea. “The shipment represents the world’s largest single-batch delivery of green ammonia,” analyst Jian Wu wrote in his China Hydrogen Bulletin newsletter. “It marks China’s transition from technical demonstration to large-scale international commercial delivery.”
A company promising to put an expiration date on so-called forever chemicals just raised a bunch of money to bring its technology to market. Claros Technologies is developing a proprietary system that can break down the per- and polyfluoroalkyl substances, or PFAS, contaminating millions of Americans’ drinking water systems. This week, the startup closed a $55 million Series B financing round. “Over the past year, Claros has crossed the threshold from breakthrough technology to successful commercial reality,” CEO Michelle Bellanca said in a statement.
Risk-averse but deep-pocked institutional investors join the party.
When the Fusion Industry Association surveyed the sector earlier this month, it found that the industry’s 56 active companies had collectively raised more than $14.2 billion over the past five years. But an ever-larger share of that money is ending up in the hands of one startup: Commonwealth Fusion Systems.
With its latest $1 billion funding round, announced today, the MIT spinout now accounts for nearly 30% of all capital in the industry. The new financing, led by a wave of institutional investors entering the sector for the first time, will support construction of the company’s first commercial power plant in Chesterfield County, Virginia, which CEO Bob Mumgaard says is on track to come online in the early 2030s.
In a media briefing, Mumgaard noted that this latest raise marks “the largest single funding round among fusion energy companies since our last large round of $1.8 billion in 2021.” It brings the total capital raised by CFS to an even $4 billion as the company races to complete construction of SPARC, its demo reactor. If all goes according to plan, it should begin operating sometime next year, proving out the physics and engineering approach underpinning ARC, the planned commercial plant.
The new financing deviates from the typical venture capital round, as it brings in a broad but unnamed mix of “large pension funds, sovereign wealth funds, infrastructure funds doing project finance, and industrial corporates.” These risk-averse investors would typically steer clear of expensive, first-of-a-kind facilities, demonstrating the degree to which CFS has succeeded in building confidence in an industry long critiqued for overpromising and underdelivering.
The company credits the trust it built to its extensive peer-reviewed research as well as its decision to build a tokamak — widely regarded as the most mature fusion reactor design. “I don’t think there’s any other company that’s been as transparent and open with their physics and how it actually works,” Katie Rae, CEO and managing partner at Engine Ventures, told me. Rae has participated in every one of CFS’s funding rounds, and while she says her firm has evaluated virtually every startup in the sector, the company remains its only fusion investment.
But even flush with institutional capital, Mumgaard is clear that the company will need billions more to fully finance ARC and the numerous reactors to follow. It’s unclear where exactly that money will come from, though he’s pushing for government involvement. Alongside the Fusion Industry Association, Mumgaard is advocating for a one-time, roughly $10 billion federal infusion of cash into the broader industry to expand public-private partnerships, build shared research infrastructure, and help finance first-of-a-kind plants in an effort to keep pace with China’s rapidly growing fusion program.
According to reporting from Politico, a Department of Energy official told CFS and other fusion companies that such a level of federal funding is “unrealistic in this environment.” But though insiders argue it’s what the industry needs to scale, Rae says CFS doesn’t depend on it. “I think it is the right kind of investment to make, but we didn’t count on it from an investor perspective,” she told me.
One obvious alternative is the public markets. The IPO window for climate tech has reopened, with geothermal giant Fervo and nuclear fission startup X-energy both completing successful public offerings in recent months. SPACs have also made a comeback, as numerous nuclear companies are opting for this faster, though riskier, path to the public markets. But CFS’s newly appointed CFO, Lorence Kim, said during the briefing that this latest round proves “that the private markets have a lot of capital to deploy toward our mission.” Whether an IPO is in the company’s near future remains an open question, though he cautioned against interpreting his hiring as any indication of “IPO prep in a specific way.”
For what it’s worth though, Kim has taken another high-profile, pre-revenue startup public before: Moderna. As CFO from 2014 to 2020, he helped the company scale its mRNA platform and lead its blockbuster $600 million IPO in late 2018 — the largest ever in the biotech industry at the time. Notably, this all happened before Moderna had an approved product or the Covid pandemic made its signature vaccine a household name, similar to where Commonwealth finds itself today.
“Moderna was in this moment in time where the science worked, and the strategy was focused on execution and scale and deploying capital in a way that could enable real impact on the world,” Kim explained. CFS is now at the same juncture, he said. “And so in the same way that Moderna industrialized mRNA and made it inevitable and made it ubiquitous, it was really clear to me that CFS could do the same for fusion.”
Of course, CFS is not alone in its confidence — other fusion companies are equally bullish on their own approach. Take Inertia Enterprises, a Lawrence Livermore National Laboratory spinout, which last week unveiled its own commercial roadmap for a laser-driven fusion reactor. The company emphasized it’s the only one to have definitively demonstrated the viability of its underlying physics in a real-world experiment, rather than through theoretical work or simulations.
Or take Helion, which has raised $1.5 billion and secured a highly ambitious power purchase agreement with Microsoft to supply electricity to the tech giant by 2028. Or Pacific Fusion, which netted a staggering $900 million Series A to be doled out in milestone-based tranches. There are dozens of others — many with hundreds of millions in funding — pursuing a range of approaches that some of the field’s brightest minds consider technically feasible.
But when I mused to Rae about how exciting it is that institutional investors now appear willing to back an industry once viewed as bordering on science fiction, she was quick to correct me.
“They’re willing to bet on Commonwealth Fusion — that’s what you mean.”
At least one hyperscaler’s big bets seem to be paying off.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
Good evening. Let’s start with the news. Meta and Microsoft released their most recent quarterly earnings this evening, and Wall Street was watching to figure out if their enormous AI spending plans are paying off. We were watching because those proposals are shaping one of the most important energy stories today: the data center boom and the sharp return of electricity demand.
The returns were … mixed. Meta missed analysts’ estimates, and its profit fell 14% from the same quarter a year earlier. It increased the lower bound of how much it plans to spend on capital expenditures such as data centers this year, from $125 billion to $130 billion, but left the upper bound of $145 billion unchanged.
Microsoft, meanwhile, said its AI investments are starting to pay off. Revenue at its cloud business, which uses its data center space, increased by 43%, more than analysts expected. It spent $41 billion on capital expenses in the three months ending in June.
Meta’s stock was down 7% in after-hours trading, while Microsoft is up 8%. When Heatmap surveyed climate insiders last year, they ranked Microsoft as among the most decarbonization-friendly hyperscaler and Meta as among the worst.
Permitting odds up — thanks to Shift Key?
I do not regularly follow such things, but this afternoon I was told that the Kalshi market for “Will permitting reform become law this year?” surged to 77% today after trading for days around 50%:
I have no idea why it budged today, but perhaps what moved the market was our new episode of the Shift Key podcast (Apple, Spotify). On today’s show, I spoke with Daniel Palken, a former Capitol Hill policy staffer now at Arnold Ventures, about the current state of permitting reform negotiations in Congress. While we don’t know the exact shape of a deal yet, permitting reform is likely to be the biggest new policy for clean energy that we could get by the end of the year.
Daniel is a fantastic guide to the negotiations, and if you’re curious about the policy at all, I recommend that you listen. Here are few of my takeaways from the conversation:
1. A permitting reform deal will probably have six buckets.
They are (1) changes to the National Environmental Policy Act and the judicial review process that environmental studies face after completion; (2) reforms to the transmission process; (3) changes to the Clean Water Act; (4) a deal to make it harder for presidents to yank permits from approved projects; (5) changes to the National Historic Preservation Act, and (6) “everything else,” a grab bag of smaller fixes including to geothermal energy.
2. Wonky committee politics are shaping the deal.
The National Historic Preservation Act, for instance, is an archeological law that hasn’t been in the mix for previous reform proposals. It’s up for discussion now because Senator Mike Lee of Utah chairs the Senate Energy and Natural Resources Committee — and the NHPA is the major environmental bill under his jurisdiction. Likewise, observers think that a permitting deal has a much better shot of passing during this Congress (as compared to next year) because of an expected series of changes to committee chairs.
3. It’s way, way better to hook data centers to the power grid than run them off behind-the-meter power plants — even if they run off 100% natural gas.
Any permitting reform proposal will seek to expand the transmission system. That could have big benefits for the emissions intensity of data centers. Why? I’ll let Daniel explain:
If you look at the data centers that are hooking up off grid — when they’re not using repurposed jet engines, they’re using 20% thermally efficient gas plants. Whereas if you’re hooked up to the grid, there’s really two types of gas plants that live on the grid. There’s like 60% efficient combined-cycle gas turbines, which are most of the gas power that’s generated, and then there’s peaker [plants], which have low efficiency, but are run at capacity factors of like 5% — so from an emissions perspective, they don’t matter all that much.
So even if solar and wind didn’t exist at all, and nuclear didn’t exist, and hydro didn’t exist, it would still be a much, much cleaner option [to connect data centers to the power grid]. Like we’re talking factors of three in efficiency to connect your data center to the grid if it was purely powered by gas, which is, I think, an important point to understand.
I thought that was an interesting point, and while I’d seen some of those ideas in isolation, I’d never seen them laid out in one place. (And even if grid-scale gas plants are much more efficient than behind-the-meter plants, it’s still even better to power data centers with solar, batteries, and other clean firm power plants — which is also easier when they’re hooked up to the grid.)
I’ll stop glossing the episode and just link to it one more time. Thanks for reading.