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πŸ₯ž Good morning! We're starting the week with a newsy 1,053 words, 4 minutes.

πŸ–₯️ Situational awareness: The Energy Department just released a new report on AI's potential to make grids cleaner and more resilient.

  • But DOE is also concerned about AI-based power demand. Watch this space for more.

🎢 Pharrell Williams hits all the right notes with "Black Yacht Rock Vol. 1," his quietly released new album that provides today's intro tune...

1 big thing: Airlines rally around Biden's fuel credit

Illustration: Natalie Peeples/Axios

Major airlines are uniting in defense of the "sustainable" fuel credit created by President Biden's new climate law, Axios Pro Energy Policy's Jael Holzman writes.

Why it matters: It's a sign that companies are taking seriously the odds of a GOP victory in November that would threaten the climate law.

  • Not to mention the credit is going to be helpful for some airliners' climate plans.

Driving the news: More than 40 companies β€” including American Airlines, JetBlue and United β€” today are announcing the Sustainable Aviation Fuel Coalition.

  • The group is moving to "advocate for the incentives and policies necessary" to boost production of the now-in-vogue alternative jet fuels.
  • The coalition also includes Boeing, ethanol trade groups and SAF producer startups like Gevo and World Energy, according to a news release.

Zoom in: The coalition wants to "expand" existing credits for making the special fuel and "secure broad, bipartisan legislation that will rapidly advance" its availability, the announcement said.

The big picture: So-called "sustainable" aviation fuel is made from material other than petroleum and reduces carbon emissions, according to the Energy Department.

Between the lines: There's conspicuous timing with this announcement because, according to recent reporting, the Biden team will say how it'll measure jet fuel emissions for the credit as early as tomorrow.

Catch up quick: Sixteen senators β€” including John Thune, who's been floated as a potential replacement to Mitch McConnell as Republican leader β€” wrote the Treasury Department last year on implementation of the credit, asking it to use a federal emissions model benefiting ethanol.

  • This demonstrates how support for ethanol could save the overall jet fuel credit from an IRA repeal-ready Trump administration.

Yes, but: One powerful industry β€” the trucking fuel sector β€” is angry about competition for ethanol stocks and whispering about possible legal challenges over the credit's implementation.

Go deeper: Unlock the whole story β€” and a steady diet of scoops and smart analysis β€” by talking to our sales team about Axios Pro: Energy Policy.

2. πŸƒπŸ½β€β™€οΈCatch up quick: G7 and Tesla

πŸ‘€ G7 energy ministers meeting in Italy may endorse a sixfold expansion of energy storage deployment by 2030 to help accommodate growing renewables, per the FT and Nikkei Asia.

  • What we're watching: The ministers are also discussing a 2035 common target date for shutting down coal-fired power plants, Reuters reports.
  • Why it matters: While G7 statements are non-binding and symbolic, they offer a window into nations' ambition for following up on last year's UN climate summit.

πŸš— China has "signaled its blessing for Tesla to roll out its advanced driver-assistance service in the carmaker's second-biggest market" following CEO Elon Musk's weekend visit, the WSJ reports.

  • Why it matters: China is the world's largest auto market. Tesla stock is jumping in pre-market trading as news emerges of progress toward deployment of "full self-driving" tech.

3. Exxon reveals its latest carbon plan

Illustration: Rebecca Zisser/Axios

ExxonMobil is eyeing large-scale production of carbon-based materials used in battery storage, steel production and other applications, Ben writes.

Why it matters: The oil-and-gas giant sees potentially billion-dollar markets. On Friday Exxon revealed its first detailed comments on how it expects the playing field to shape up.

What's new: "If you look at the world's efforts to decarbonize, it's clear to us that carbon, over time, will become more and more advantaged feedstock," CEO Darren Woods said on Friday's Q1 earnings call.

  • They see opportunities to "transform the molecular structures of low-value, carbon-rich feeds from refining and petrochemical processes to create high-value products," he said in a written statement.

Catch up quick: While climate activists want oil giants to scale back on fossil fuels, U.S. majors β€” and to a lesser degree their European peers β€” are in more of a 'both/and' mode.

  • Exxon has touted plans to continue boosting production of its core products that consume the bulk of its investment β€” even as it moves more deeply into carbon capture, hydrogen, lithium and other areas.

What's next: Woods cautioned that it's "early days" for the carbon materials segment.

  • Exxon chose to reveal its thinking "to make sure people are beginning to think more broadly about what this company is capable of," he adds.

4. On my screen: Oil demand and mining

Illustration: Shoshana Gordon/Axios

πŸ›’οΈ Veteran oil analyst Arjun Murti has another reason to be skeptical of peak oil: surprisingly resilient demand in advanced economies, Ben writes.

  • The big picture: "OECD demand, which we agree is mature and we had thought could decline, is actually showing greater stability in 2024 than originally expected," he writes in a new post.
  • Why it matters: That potential plateau (rather than an outright decline) would do less to offset rising demand in developing nations, where per-capita oil use is comparatively quite small. Full analysis.

⛏️ A new Breakthrough Institute report puts some numbers to mining volumes needed for climate-friendly power compared with fossil fuels.

  • Why it matters: Copper and other materials (like uranium for nuclear) required for "clean" energy are a major ecological concern, but comparison with carbon-based fuels is helpful.
  • What they found: The "extractive footprint" of conventional coal-fired power, per unit of electricity created, is 20 times greater than clean sources, and gas is twice as high. Among these climate-friendly sources, nuclear requires the least raw materials relative to power output.
  • Go deeper: Full report...MIT Technology Review coverage.

5. Fake engine noises are coming to EVs

Illustration: Sarah Grillo/Axios

The guttural roar from a gas engine disappears in an EV β€” but some people want it back, Axios' Nathan Bomey reports.

Why it matters: Lacking engines, EVs are quiet, emitting only the sound of tires on pavement and the purring whir of an electric motor as it powers the vehicle.

State of play: Dodge has had enough.

  • The Stellantis brand is debuting what it's dubbed a "Fratzonic Chambered Exhaust" system in the new 670-horsepower 2024 Dodge Charger Daytona β€” the first EV version of the Charger muscle car.

What we're watching: Fake engine noises could catch on more widely.

  • Dodge isn't the first to realize that drivers might want fabricated sounds.
  • A company called Borla Performance Industries sells an aftermarket system called Active Performance Sound that allows drivers to dial up fake engine noise for the Ford Mustang Mach-E electric vehicle.

Full story

6. πŸ’§ Number of the day: 3.4 billion barrels

That's how much water oil and gas companies injected underground last year in the most prolific region of the Permian Basin, per the Wall Street Journal.

Why it matters: Managing massive "produced" water volumes are among the list of potentially dangerous geologic changes the region faces.

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πŸ™ Thanks to Chris Speckhard and Javier E. David for edits to today's edition, along with the brilliant Axios Visuals team.