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Everything has a cooler name when you’re on a boat. A kitchen becomes a galley. You’re not parked, you’re at berth. There is even a fun, old-timey name for cutting emissions when you’re at port by plugging into the local power grid: cold ironing.
Right now, lots of smart people are working to lower ship emissions, and for good reason: Container ships cart between 80% and 90% of global trade, yet more than 95% of them run on petroleum products (mainly an extremely dirty sludge called bunker fuel). By one estimate, a single large ship can emit as much CO2 as 70,000 cars, as much nitrogen oxide as 2 million cars, and as much fine dust and carcinogenic particles as 2.5 million cars. By another estimate, shipping pollution is responsible for 60,000 premature deaths per year. Though fully electrifying container ships remains distant and challenging for a number of reasons (albeit not for lack of trying), alternate fuel sources ranging from liquid natural gas to ammonia to hydrogen to nuclear propulsion to that oldie but goodie, wind, are all on the table.
Until that gets sorted out, though, container ships need to keep doing what they’re doing, which is moving stuff (we can all remember what happens when they don’t!). And that means the ships need to berth at ports to transfer their cargo, idling all the while with their auxiliary engines so the crew onboard has basic power for things like emergency equipment, lights, plumbing, temperature controls, and refrigeration. This is bad for all the same reasons a car idling for days on end would be bad if that car used the energy of a small town. It’s also bad for another reason that usually only gets mentioned in passing: Idling container ships are really, really loud.
The ‘Rio de Janeiro’ ship auxiliary generator noise at 30mwww.youtube.com
When you hear about container ships being loud, it’s usually in the context of distressing whales. That’s because container ships are also noisy when they’re at sea, and most marine life depends on sound and sonar that gets drowned out by human activity. But much of the sound a ship at sea makes comes from its propellors, a design issue that will require solutions regardless of what kind of energy source is powering the ship.
At berth, though, container ships continue to make a racket. “During port stay, [the diesel generator] will often be the most predominant source of noise radiating from the ship to the surroundings,” a 2010 paper on noise pollution by the Danish Ministry of the Environment found. According to a report by Signol, a U.K.-based software company that markets its product as a potential solution for inefficient idling, “in close proximity to auxiliary engines, noise levels can reach 80-120 decibels — in comparison, a chainsaw averages 110 decibels!”
It’s a given that ports are loud: Idling ship engines join a cacophony of cranes, trucks, heavy machinery, trains, horns, and the like. Historically, this was fine, since ports were usually built away from residential areas, on land zoned for industry. But as cities grow more crowded, former industrial areas are becoming residential; some 39 million Americans lived near ports according to a 2016 EPA estimate, many of them people of color. “Complaints about noise from seagoing ships at berth are increasingly becoming an environmental issue ... mainly due to the rising population in residential areas around ports, the increase in the number of residential areas being built closer to the port itself, and changing expectations from people living in these residential areas,” explained the Noise Exploration Program To Understand Noise Emitted by Seagoing ships (NEPTUNES), a now-defunct collaboration between 11 ports in Europe, Australia, and Canada.
And whales aren’t the only mammals that hate ship noise. “Research on the effects of low-frequency noise has … shown that this is a stressor that can lead to headaches, dizziness, insomnia, depression, loss of concentration, and distortion of heart rhythm” in humans, the NEPTUNES report added.
Beyond health concerns, the noise is also just ... really annoying. In 2019, residents of Port Otago, New Zealand, were terrorized by what sounded like “a V8 running in your driveway” but were in fact 10-year-old container ships idling out in the harbor.
In Vancouver, in 2022, residents offered a similar simile for their acoustic tormentors: “It’s like having a garbage truck revving at the bottom of your driveway all day long,” one local told Vancouver Is Awesome.
When a supply-chain-related backlog forced container ships to idle off Seattle in 2021, an afflicted islander complained, “We’re getting the noise, the throbbing noise at night.”
Even in the best of circumstances, container ship noise is a persistent nuisance; some have even attributed a worldwide phenomenon called “the hum” to the racket made by container ship generators.
Everyone hates how container ships sound.www.youtube.com
Addressing the problem of ship noise, though, is tricky. There isn’t an international standard for how loud ships can be, and the most NEPTUNES was ultimately able to do was produce a list of unenforceable “best practices.” Many of the recommendations would also be tricky to implement on pre-existing vessels. While boats can be built to be quieter from the get-go, container ships are in circulation for decades; it might be 20 years or more before quiet fleets take over.
Ports also don’t want to rock the boat: “A strict noise policy is ... seen as a competitive disadvantage,” noted a 2013 study by Sweden’s Transport Research Institute (TRI), noting that shipowners must obey a long list of mandatory environmental regulations that they’re loathe to follow voluntary ones.
Thankfully for anyone who’s ever had to listen to the monotonous chuckling of a ship generator, two birds can be killed with one stone. Remember cold ironing? The term harkens back to the age of coal-fired ship engines: At port, the fires didn’t need to be fed, and the ship’s iron engines were allowed to go cold. Today, cold ironing refers to when a ship turns off all its engines at berth — including the smaller auxiliary ones belching sulfur oxide, nitrogen oxide, and CO2 over port cities — and instead plugs into onshore power (or “OSP,” in the industry lingo). “The overall emitted sound ... of a ship at berth could be reduced by up to 5 to 10 decibels by replacing the use of auxiliary engine(s) with external power suppliers,” NEPTUNES found.
In the EPA’s sexily titled “Shore Power Technology Assessment at U.S. Ports — 2022 Update,” the agency reported that there are currently 10 American ports that offer OSP for container and cruise ships, including the ports of Seattle, Tacoma, San Francisco, Los Angeles, San Diego, and Brooklyn (future upgrades are planned for Miami and Galveston). By all accounts, it’s working on both the environmental and the noise pollution fronts. “Port representatives report that neighbors notice when the shore power system is non-operational and vessels are emitting at-berth, compared to times when vessels are plugged in with no emissions coming from the vessel stacks and engine noise is reduced,” the EPA wrote. Unsurprisingly, “The community is strongly in support of the shore power system at the port.”
Cold ironing doesn’t reduce all port noise, of course; you can still expect the clanging of dropped containers, the vibration of ships, and the rumble of trucks and trains. There are other considerations, too: On-shore power generation needs to be low-emission, otherwise you’re just transferring pollution from the ship to the power plant. Still, the EPA is optimistic, noting that almost anything is better than ship engine emissions and that the situation will only improve as renewables roll out in force.
The possibilities only get more exciting from there. Stillstrom, a subsidiary of the Danish shipping conglomerate Maersk, is working on creating “charging buoys” that can power idling ships before they dock via underwater cables connected to offshore wind farms or onshore renewable power sources. OSP availability is rapidly expanding in the meantime. The Port of Seattle aims to install shore power at all of its major cruise and container berths by 2030. Starting this year, California will require 90% of vessels berthing at state-regulated ports to either use shore power or an approved emissions-reducing alternative. Abroad, the Port of Rotterdam is also working toward 90% shore power usage by 2030, and other European ports are pursuing OSP, too.
The impacts will be huge. The California Air Resources Board, for example, boasts its regulations will result in a 90% reduction in pollution from ships at port — and a 55% reduction in potential cancer risk.
That is, of course, great and worthy of pursuing in and of itself. “People will live longer, healthier lives” is a pretty unbeatable top line. But let’s not forget there are other laudable upsides to plugging in container ships — like living those longer lives in blessed peace and quiet.
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In practice, direct lithium extraction doesn’t quite make sense, but 2026 could its critical year.
Lithium isn’t like most minerals.
Unlike other battery metals such as nickel, cobalt, and manganese, which are mined from hard-rock ores using drills and explosives, the majority of the world’s lithium resources are found in underground reservoirs of extremely salty water, known as brine. And while hard-rock mining does play a major role in lithium extraction — the majority of the world’s actual production still comes from rocks — brine mining is usually significantly cheaper, and is thus highly attractive wherever it’s geographically feasible.
Reaching that brine and extracting that lithium — so integral to grid-scale energy storage and electric vehicles alike — is typically slow, inefficient, and environmentally taxing. This year, however, could represent a critical juncture for a novel process known as Direct Lithium Extraction, or DLE, which promises to be faster, cleaner, and capable of unlocking lithium across a wider range of geographies.
The traditional method of separating lithium from brine is straightforward but time-consuming. Essentially, the liquid is pumped through a series of vast, vividly colored solar evaporation ponds that gradually concentrate the mineral over the course of more than a year.
It works, but by the time the lithium is extracted, refined, and ready for market, both the demand and the price may have shifted significantly, as evidenced by the dramatic rise and collapse of lithium prices over the past five years. And while evaporation ponds are well-suited to the arid deserts of Chile and Argentina where they’re most common, the geology, brine chemistry, and climate of the U.S. regions with the best reserves are generally not amenable to this approach. Not to mention the ponds require a humongous land footprint, raising questions about land use and ecological degradation.
DLE forgoes these expansive pools, instead pulling lithium-rich brine into a processing unit, where some combination of chemicals, sorbents, or membranes isolate and extricate the lithium before the remaining brine gets injected back underground. This process can produce battery-grade lithium in a matter of hours or days, without the need to transport concentrated brine to separate processing facilities.
This tech has been studied for decades, but aside from a few Chinese producers using it in combination with evaporation ponds, it’s largely remained stuck in the research and development stage. Now, several DLE companies are looking to build their first commercial plants in 2026, aiming to prove that their methods can work at scale, no evaporation ponds needed.
“I do think this is the year where DLE starts getting more and more relevant,” Federico Gay, a principal lithium analyst at Benchmark Mineral Intelligence, told me.
Standard Lithium, in partnership with oil and gas major Equinor, aims to break ground this year on its first commercial facility in Arkansas’s lithium-rich Smackover Formation, while the startup Lilac Solution also plans to commence construction on a commercial plant at Utah’s Great Salt Lake. Mining giant Rio Tinto is progressing with plans to build a commercial DLE facility in Argentina, which is already home to one commercial DLE plant — the first outside of China. That facility is run by the French mining company Eramet, which plans to ramp production to full capacity this year.
If “prices are positive” for lithium, Gay said, he expects that the industry will also start to see mergers and acquisitions this year among technology providers and larger corporations such as mining giants or oil and gas majors, as “some of the big players will try locking in or buying technology to potentially produce from the resources they own.” Indeed, ExxonMobil and Occidental Petroleum are already developing DLE projects, while major automakers have invested, too.
But that looming question of lithium prices — and what it means for DLE’s viability — is no small thing. When EV and battery storage demand boomed at the start of the decade, lithium prices climbed roughly 10-fold through 2022 before plunging as producers aggressively ramped output, flooding the market just as EV demand cooled. And while prices have lately started to tick upward again, there’s no telling whether the trend will continue.
“Everyone seems to have settled on a consensus view that $20,000 a tonne is where the market’s really going to be unleashed,” Joe Arencibia, president of the DLE startup Summit Nanotech, told me, referring to the lithium extraction market in all of its forms — hard rock mining, traditional brine, and DLE. “As far as we’re concerned, a market with $14,000, $15,000 a tonne is fine and dandy for us.”
Lilac Solutions, the most prominent startup in the DLE space, expects that its initial Utah project — which will produce a relatively humble 5,000 metric tons of lithium per year — will be profitable even if lithium prices hit last year’s low of $8,300 per metric ton. That’s according to the company’s CEO Raef Sully, who also told me that because Utah’s reserves are much lower grade than South America’s, Lilac could produce lithium for a mere $3,000 to $3,500 in Chile if it scaled production to 15,000 or 20,000 metric tons per year.
What sets Lilac apart from other DLE projects is its approach to separating lithium from brine. Most companies are pursuing adsorption-based processes, in which lithium ions bind to an aluminum-based sorbent, which removes them from surrounding impurities. But stripping the lithium from the sorbent generally requires a good deal of freshwater, which is not ideal given that many lithium-rich regions are parched deserts.
Lilac’s tech relies on an ion-exchange process in which small ceramic beads selectively capture lithium ions from the brine in their crystalline structure, swapping them for hydrogen ions. “The crystal structure seems to have a really strong attraction to lithium and nothing else,” Sully told me. Acid then releases the concentrated lithium. When compared with adsorption-based tech, he explained, this method demands far fewer materials and is “much more selective for lithium ions versus other ions,” making the result purer and thus cheaper to process into a battery-grade material.
Because adsorption-based DLE is already operating commercially and ion-exchange isn’t, Lilac has much to prove with its first commercial facility, which is expected to finalize funding and begin construction by the middle of this year.
Sully estimates that Lilac will need to raise around $250 million to build its first commercial facility, which has already been delayed due to the price slump. The company’s former CEO and current CTO Dave Snydacker told me in 2023 that he expected to commence commercial operations by the end of 2024, whereas now the company plans to bring its Utah plant online at the end of 2027 or early 2028.
“Two years ago, with where the market was, nobody was going to look at that investment,” Sully explained, referring to its commercial plant. Investors, he said, were waiting to see what remained after the market bottomed out, which it now seems to have done. Lilac is still standing, and while there haven’t yet been any public announcements regarding project funding, Sully told me he’s confident that the money will come together in time to break ground in mid-2026.
It also doesn’t hurt that lithium prices have been on the rise for a few months, currently hovering around $20,000 per tonne. Gay thinks prices are likely to stabilize somewhere in this range, as stakeholders who have weathered the volatility now have a better understanding of the market.
At that price, hard rock mining would be a feasible option, though still more expensive than traditional evaporation ponds and far above what DLE producers are forecasting. And while some mines operated at a loss or mothballed their operations during the past few years, Gay thinks that even if prices stabilize, hard-rock mines will continue to be the dominant source of lithium for the foreseeable future due to sustained global investment across Africa, Brazil, Australia, and parts of Asia. The price may be steeper, but the infrastructure is also well-established and the economics are well-understood.
“I’m optimistic and bullish about DLE, but probably it won’t have the impact that it was thought about two or three years ago,” Gay told me, as the hype has died down and prices have cooled from their record high of around $80,000 per tonne. By 2040, Benchmark forecasts that DLE will make up 15% to 20% of the lithium market, with evaporation ponds continuing to be a larger contributor for the next decade or so, primarily due to the high upfront costs of DLE projects and the time required for them to reach economies of scale.
On average, Benchmark predicts that this tech will wind up in “the high end of the second quartile” of the cost curve, making DLE projects a lower mid-cost option. “So it’s good — not great, good. But we’ll have some DLE projects in the first quartile as well, so competing with very good evaporation assets,” Gay told me.
Unsurprisingly, the technology companies themselves are more bullish on their approach. Even though Arencibia predicts that evaporation ponds will continue to be about 25% cheaper, he thinks that “the majority of future brine projects will be DLE,” and that DLE will represent 25% or more of the future lithium market.
That forecast comes in large part because Chile — the world’s largest producer of lithium from brine — has stated in its National Lithium Strategy that all new projects should have an “obligatory requirement” to use novel, less ecologically disruptive production methods. Other nations with significant but yet-to-be exploited lithium brine resources, such as Bolivia, could follow suit.
Sully is even more optimistic, predicting that as lithium demand grows from about 1.5 million metric tons per year to around 3.5 million metric tons by 2035, the majority of that growth will come from DLE. “I honestly believe that there will be no more hard rock mines built in Australia or the U.S.,” he said, telling me that in ten years time, half of our lithium supply could “easily” come from DLE.
As a number of major projects break ground this year and the big players start consolidating, we’ll begin to get a sense of whose projections are most realistic. But it won’t be until some of these projects ramp up commercial production in the 2028 to 2030 timeframe that DLE’s market potential will really crystalize.
“If you’re not a very large player at the moment, I think it’s very difficult for you to proceed,” Sully told me, reflecting on how lithium’s price shocks have rocked the industry. Even with lithium prices ticking precariously upwards now, the industry is preparing for at least some level of continued volatility and uncertainty.
“Long term, who knows what [prices are] going to be,” Sully said. “I’ve given up trying to predict.”
A chat with CleanCapital founder Jon Powers.
This week’s conversation is with Jon Powers, founder of the investment firm CleanCapital. I reached out to Powers because I wanted to get a better understanding of how renewable energy investments were shifting one year into the Trump administration. What followed was a candid, detailed look inside the thinking of how the big money in cleantech actually views Trump’s war on renewable energy permitting.
The following conversation was lightly edited for clarity.
Alright, so let’s start off with a big question: How do investors in clean energy view Trump’s permitting freeze?
So, let’s take a step back. Look at the trend over the last decade. The industry’s boomed, manufacturing jobs are happening, the labor force has grown, investments are coming.
We [Clean Capital] are backed by infrastructure life insurance money. It’s money that wasn’t in this market 10 years ago. It’s there because these are long-term infrastructure assets. They see the opportunity. What are they looking for? Certainty. If somebody takes your life insurance money, and they invest it, they want to know it’s going to be there in 20 years in case they need to pay it out. These are really great assets – they’re paying for electricity, the panels hold up, etcetera.
With investors, the more you can manage that risk, the more capital there is out there and the better cost of capital there is for the project. If I was taking high cost private equity money to fund a project, you have to pay for the equipment and the cost of the financing. The more you can bring down the cost of financing – which has happened over the last decade – the cheaper the power can be on the back-end. You can use cheaper money to build.
Once you get that type of capital, you need certainty. That certainty had developed. The election of President Trump threw that into a little bit of disarray. We’re seeing that being implemented today, and they’re doing everything they can to throw wrenches into the growth of what we’ve been doing. They passed the bill affecting the tax credits, and the work they’re doing on permitting to slow roll projects, all of that uncertainty is damaging the projects and more importantly costs everyone down the road by raising the cost of electricity, in turn making projects more expensive in the first place. It’s not a nice recipe for people buying electricity.
But in September, I went to the RE+ conference in California – I thought that was going to be a funeral march but it wasn’t. People were saying, Now we have to shift and adjust. This is a huge industry. How do we get those adjustments and move forward?
Investors looked at it the same way. Yes, how will things like permitting affect the timeline of getting to build? But the fundamentals of supply and demand haven’t changed and in fact are working more in favor of us than before, so we’re figuring out where to invest on that potential. Also, yes federal is key, but state permitting is crucial. When you’re talking about distributed generation going out of a facility next to a data center, or a Wal-Mart, or an Amazon warehouse, that demand very much still exists and projects are being built in that middle market today.
What you’re seeing is a recalibration of risk among investors to understand where we put our money today. And we’re seeing some international money pulling back, and it all comes back to that concept of certainty.
To what extent does the international money moving out of the U.S. have to do with what Trump has done to offshore wind? Is that trade policy? Help us understand why that is happening.
I think it’s not trade policy, per se. Maybe that’s happening on the technology side. But what I’m talking about is money going into infrastructure and assets – for a couple of years, we were one of the hottest places to invest.
Think about a European pension fund who is taking money from a country in Europe and wanting to invest it somewhere they’ll get their money back. That type of capital has definitely been re-evaluating where they’ll put their money, and parallel, some of the larger utility players are starting to re-evaluate or even back out of projects because they’re concerned about questions around large-scale utility solar development, specifically.
Taking a step back to something else you said about federal permitting not being as crucial as state permitting–
That’s about the size of the project. Huge utility projects may still need federal approvals for transmission.
Okay. But when it comes to the trendline on community relations and social conflict, are we seeing renewable energy permitting risk increase in the U.S.? Decrease? Stay the same?
That has less to do with the administration but more of a well-structured fossil fuel campaign. Anti-climate, very dark money. I am not an expert on where the money comes from, but folks have tried to map that out. Now you’re even seeing local communities pass stuff like no energy storage [ordinances].
What’s interesting is that in those communities, we as an industry are not really present providing facts to counter this. That’s very frustrating for folks. We’re seeing these pass and honestly asking, Who was there?
Is the federal permitting freeze impacting investment too?
Definitely.
It’s not like you put money into a project all at once, right? It happens in these chunks. Let’s say there’s 10 steps for investing in a project. A little bit of money at step one, more money at step two, and it gradually gets more until you build the project. The middle area – permitting, getting approval from utilities – is really critical to the investments. So you’re seeing a little bit of a pause in when and how we make investments, because we sometimes don’t know if we’ll make it to, say, step six.
I actually think we’ll see the most impact from this in data center costs.
Can you explain that a bit more for me?
Look at northern Virginia for a second. There wasn’t a lot of new electricity added to that market but you all of the sudden upped demand for electricity by 20 percent. We’re literally seeing today all these utilities putting in rate hikes for consumers because it is literally a supply-demand question. If you can’t build new supply, it's going to be consumers paying for it, and even if you could build a new natural gas plant – at minimum that will happen four-to-six years from now. So over the next four years, we’ll see costs go up.
We’re building projects today that we invested in two years ago. That policy landscape we invested in two years ago hasn’t changed from what we invested into. But the policy landscape then changed dramatically.
If you wipe out half of what was coming in, there’s nothing backfilling that.
Plus more on the week’s biggest renewables fights.
Shelby County, Indiana – A large data center was rejected late Wednesday southeast of Indianapolis, as the takedown of a major Google campus last year continues to reverberate in the area.
Dane County, Wisconsin – Heading northwest, the QTS data center in DeForest we’ve been tracking is broiling into a major conflict, after activists uncovered controversial emails between the village’s president and the company.
White Pine County, Nevada – The Trump administration is finally moving a little bit of renewable energy infrastructure through the permitting process. Or at least, that’s what it looks like.
Mineral County, Nevada – Meanwhile, the BLM actually did approve a solar project on federal lands while we were gone: the Libra energy facility in southwest Nevada.
Hancock County, Ohio – Ohio’s legal system appears friendly for solar development right now, as another utility-scale project’s permits were upheld by the state Supreme Court.