Amazon is turning to artificial intelligence to improve power efficiency.

Why it matters: As concerns mount over skyrocketing energy demands from data centers, electric vehicles and increasingly electrified homes, how the world meets growing electricity demands may determine whether global climate goals are met.

Zoom in: According to a blog post released this morning and shared first with Axios, Amazon is turning to AI and machine learning techniques to better utilize new battery storage systems. The company is pairing those with solar and wind installations.

Reality check: Improving the efficiency and utilization of battery storage through AI and machine learning will help, but it is unlikely to be enough to meet the onslaught of power demand from new data centers built to handle the generative AI rush along with other aspects of a decarbonized economy.

• Amazon is seeking to portray positive use cases for AI, illustrating that it cuts both ways — it can both use more energy and help companies figure out new methods to save electrons.

The intrigue: Amazon highlighted a few facilities and partners that it is working with on battery storage to grid technologies, as well as predictive modeling to optimize renewable energy assets utilizing AI and machine learning approaches.

• The Baldy Mesa solar farm in the Mojave Desert contains a battery storage system that, when paired with machine learning models powered by Amazon Web Services, helps to anticipate when and how the batteries should store or sell energy into the grid.
• Amazon is also working on an AI model that would utilize data from the company's San Bernardino Air Hub, which has a 2.5 MW battery energy storage unit.
• This model, focused on offering predictive insights on site performance and energy generation, could benefit other parts of the company and beyond.

What they're saying: Chris Roe, Amazon's environment director, told Axios in an interview that the company is approaching its predictive systems for renewable energy facilities, among other actions, with an "emissions-first approach."

The bottom line: Battery storage predictive systems are one of many promising AI applications that could reduce a major company's emissions.

• But at the end of the day, the coming surge in data center energy demand could still overwhelm such gains.

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A new report shows a path to cutting emissions from China's industrial sector by altering how heat is generated for manufacturing.

Zoom in: According to data first provided to Axios, China's industrial sector is responsible for 61% of the country's carbon dioxide emissions, finds think tank Energy Innovation and Lawrence Berkeley National Laboratory.

• The installation of industrial heat pumps and thermal batteries could meet most, though not all, of China's demand for industrial heating, the report concludes.
• This would have the advantage of tapping into China's increasingly renewable grid.

Between the lines: The report also points out that deploying more efficient heating technology, and thereby cutting emissions, would have a benefit for the global supply chain.

Yes, but: The cost competitiveness of thermal batteries and — in many cases, industrial heat pumps — may depend on whether and how China's emissions trading system is rolled out to the industrial sector.

• Currently the trading system applies to the power sector, which is still quite coal-intensive.

What they're saying: Electrifying industrial process heating would "yield massive benefits to the country and the world," the report concludes.

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The Carbon Herald is entering into a strategic partnership with the Carbon Business Council in a bid to give it a greater reach for stories about carbon removal.

Why it matters: The deal aims to improve the public's knowledge about the emerging carbon removal and management sector, Ben Rubin, the executive director and co-founder of the business council, tells Axios exclusively.

Yes, but: The combination is novel and presents some questions regarding journalistic independence.

• "Carbon removal is unique in that it also requires storytelling to just generally raise awareness," says Rubin, who will serve as the Herald's publisher.

Zoom in: "The Carbon Herald team will remain editorially independent," Rubin adds, and its revenue will come via advertising, not the council.

• The Herald currently consists of an editor-in-chief and two reporters, and they are expected to stay on throughout the partnership.
• Rubin said joint opportunities may come in the form of events and market insights.

💵 Speaking of carbon removal, direct air capture startup 280 Earth just closed a $50 million Series B round.

• The startup, which spun out of Google's moonshot lab X, has also begun operating a small demonstration plant in Oregon.
• Go deeper via Axios Pro: Climate Deals.

A new analysis finds a "rapidly closing" window to reach net zero emissions by 2050.

Why it matters: Of nine technologies that will "make or break" energy transition globally, just four are mature, commercially scalable, and have proven business models, BloombergNEF argues.

The big picture: The four are EVs, renewable power, storage, and grids. They're not on a net zero path, but conditions are ripe for acceleration.

• Five other tech pillars including carbon capture, hydrogen, and clean aviation fuel face much higher barriers.

Threat level: BNEF's base transition case — relying on competitive, proven-at-scale tech — sees emissions falling 27% by 2050, and temps rising 2.6°C (4.68°F) above preindustrial levels by 2100.

• Oh, and even this scenario relies on various conditions like a "level playing field that allows these solutions to access markets."

The bottom line: A more Paris-friendly 1.75°C (3.15°F) rise demands vastly higher investment and more policy support.

This week brought the clearest sign that Exxon's lawsuit against climate-focused investors has become a wider showdown over activist shareholders and their ability to seek big corporate strategy changes.

State of play: CalPERS, the nation's biggest public pension fund, yesterday said it will oppose all Exxon board members and CEO Darren Woods at the company's annual meeting next week.

Why it matters: The fund's public announcement is a high-profile response to Exxon's ongoing case against Arjuna Capital and Follow This over a climate resolution they have since withdrawn.

Friction point: CalPERS said the lawsuit's repercussions could be "devastating."

• "If ExxonMobil succeeds in silencing voices and upending the rules of shareholder democracy, what other subjects will the leaders of any company make off limits? Worker safety? Excessive executive compensation?" they wrote.

The other side: The oil giant filed suit in January over the resolution that sought far more expansive climate targets.

• It alleges an "extreme agenda" that would force it to "change the nature of its ordinary business or to go out of business."
• Exxon says it's pressing the case because the current SEC process fails to exclude resolutions that would hurt companies, instead of boosting shareholder value.

Catch up quick: Powerful business groups — including the U.S. Chamber of Commerce and the Business Roundtable — joined the lawsuit on Exxon's side in February.

The bottom line: CalPERS move is highly unlikely to upend Exxon's ranks, but the vote tally will help gauge shareholders' views of the case.

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"Please keep in mind, the most powerful climate change solution is the one you already have in the palm of your hands: the right to vote."