All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

pittsburgh

atlanta

san-diego

charlotte

boulder

washington-dc

kansas-city

dallas

denver

detroit

des-moines

austin

boston

chicago

cleveland

columbus

houston

indianapolis

miami

nashville

new-orleans

nw-arkansas

philadelphia

phoenix

portland

richmond

salt-lake-city

san-antonio

san-francisco

seattle

tampa-bay

twin-cities

raleigh

huntsville

colorado-springs

axios-local

axios-pro

axios-live

the-axios-show

Nuclear energy needs a rebrand if it is going to play a primary role as the U.S. transitions its energy consumption away from fossil fuels, Lux Capital's Josh Wolfe tells Megan.

Why it matters: Nuclear energy remains a divisive topic in the sustainable energy debate, which includes everyone from early-stage entrepreneurs trying to build smaller-scale reactors all the way to the public at large. 

What's happening: Wolfe, whose firm Lux Capital is an early-stage VC, argues that nuclear energy should be included in a broader categorization of "elemental energy," which would include other earthly elements like solar and wind. 

Context: Nuclear waste remains one of the biggest outstanding questions for energy bears, who often point to its disposal as a large asterisk on nuclear's claim of being a "clean" energy source. 

In 2008, Lux started Kurion, a nuclear-waste removal company that was deployed during the Fukushima disaster in Japan. Wolfe was the chairman of the startup, based in Irvine, California.

The company ultimately sold to French utility management giant Veolia for $350 million in 2016. It had raised roughly $6 million in outside capital.

"We got lucky when Japan got unlucky, but we did something that actually changed the world," Wolfe says.

Zoom out: Even with Kurion's successful nuclear exit, Wolfe says the industry's detractors remain a barrier for some investors to areas of nascent innovation like reactor development and design.

Nuclear has to be part of the equation for a carbon-neutral grid, Wolfe says. Giving it a new name — elemental energy — could help erase decades worth of what Wolfe boils down to a misunderstanding between nuclear power and nuclear energy.

Nuclear has been powering Europe for decades, providing about a quarter of the continent's energy. It hasn't reached quite the same scale in the U.S.

Yes, but: Other questions still remain, such as how to sustainably mine uranium or, yes, what to do with the waste.

The industry will also need a sizable capital infusion upfront, given the early stages of some of the technology. Actually flipping the switch, regardless of what it's called, could take long to realize.

The bottom line: A flashy new name might get more Americans on board with nuclear energy, but it still has a long way to go.

1 big thing: No more "nuke"

Illustration of a smiley face with radiation symbols for eyes.

Walmart has agreed to an option to buy green hydrogen from startup Plug Power, the companies announced Tuesday.

Why it's the BFD: Walmart has implemented hydrogen fuel at some of its distribution and fulfillment centers, but the agreement with Plug Power marks the first time the retailer will be specifically sourcing green hydrogen, a spokesperson tells Alan. 

What's happening: Walmart has the option to buy up to 20 tons of green hydrogen from Plug Power, or enough to power 9,500 lift trucks.

The details: "Option" is the key word in the agreement. Plug Power will only be able to start supplying the green hydrogen once its plants are up and running, Sanjay Shrestha, Plug Power's chief strategy officer and general manager of energy solutions, tells Alan.

"Once we start to produce ... out of these plants, Walmart will see where it makes sense to start using it," Shrestha says.

Plug Power's plant in Georgia is expected to begin producing green hydrogen at the end of this year. Until then, it is providing Walmart with so-called "gray hydrogen" sourced from natural gas and industrial waste.

Catch up fast: Green hydrogen uses renewable energy to power the electrolysis process that separates hydrogen and oxygen atoms. Other colors such as blue and gray along the "hydrogen rainbow" are less climate-friendly, relying on natural gas, for example.

Reality check: Producing hydrogen with renewable energy remains relatively costly — last year, it cost about twice as much as other methods.

Of note: Even as Walmart's labor practices continue to attract scrutiny, the company has announced relatively ambitious goals to reduce its emissions, including taking steps to reduce Scope 3 emissions along its supply chain.

Because the lift vehicles operate in Walmart facilities, their emissions would be considered Scope 1, or those that are controlled or owned by an organization. 

Notably, Walmart so far has committed to reducing its Scope 1 and Scope 2 emissions, which amount to about 5% of the company's total emissions.

What they're saying: "Customers are increasingly asking for green hydrogen rather than gray hydrogen," Shrestha tells Alan.

"It further reinforces and further validates that as we build our green hydrogen network, there will be more appetite for it."

2. The BFD: Walmart looks to green hydrogen

Illustration of a shopping cart with the earth inside

The U.S. Department of Energy's Loan Programs Office (LPO) late Monday announced a conditional commitment to lend up to $107 million to expand production capacity for a critical minerals plant in Louisiana.

Why it matters: The loan, if finalized, would mark the first in more than a decade from the office's Advanced Technology Vehicles Manufacturing (ATVM) program, and would also be ATVM's first loan to support a supply chain manufacturing project.

What's happening: The loan would expand the production capacity at the Syrah Vidalia Facility, in Vidalia, Louisiana.

Tesla in December signed on as offtaker for the majority of active anode material (AAM) that will be produced from the plant. The rest will be sold to other automakers and EV battery manufacturers.

The facility is owned by Syrah Technologies, LLC, a subsidiary of an Australian firm. 

The expansion would enable the Vidalia Facility to produce more graphite-based AAM for EV batteries.  

Of note: Graphite for the facility would be sourced from a mining and processing operation in Balama, Mozambique, which is also owned and controlled by Syrah Technologies’ parent-owner, LPO said. 

This would make the Syrah Vidalia Facility the first vertically integrated, large-scale producer of AAM outside of China.

The details: LPO and Syrah plan to close the loan by the end of June 2022, and anticipate a first advance in "the September 2022 quarter," Syrah said.

The company in February announced a $176 million expansion of the Louisiana plant, which will more than quadruple its size. 

What we're watching: The reaction from U.S. lawmakers who have been clamoring for steps to shore up the nation's critical minerals supply chain.

Take, for example, Sen. Joe Manchin, D-W.Va., who has issued a steady stream of remarks on the topic, including this with Louisiana Republican Sen. Bill Cassidy and two other Republican senators as recently as March: 

“The time is now to grow, support, and encourage investment in the domestic production of graphite, manganese, cobalt, lithium, nickel and other critical minerals to ensure we support our national security, and to fulfill our need for lithium-ion batteries." 

3. LPO commits big dollars to battery minerals

Illustration of a car battery with a dollar sign on it

There are hundreds of earnings reports coming. Here are the three we're paying attention to and why.

Tesla: Vehicle order volume in Q1 could indicate whether customers are acting on the pressure to go electric amid rising gas prices, but order fulfillment numbers are still at the mercy of the strained supply chain. Unlike other EV makers, Tesla (TSLA: Nasdaq) hasn't closed its ordering function due to the disruptions. And with Elon Musk, there's always potential for a market-moving remark or two. Tesla reports tomorrow. 

Rivian and Lucid: Since both companies started delivering vehicles, they are among the only upmarket, EV-only Tesla competitors. If demand for EVs is outpacing what Tesla can fulfill, it's possible that could be reflected in Rivian's (RIVN: Nasdaq) or Lucid's (LCID: Nasdaq) revenue, although both face similar supply chain constraints. Rivian reports on May 11. Lucid's has not been scheduled yet.

The hot messes of the EV world: Several public EV companies have weathered one hurdle after another, and many are worse for wear. We're watching Lion (LEV: NYSE), Lordstown (RIDE: Nasdaq), Nikola (NKLA: Nasdaq), Workhorse (WKHS: Nasdaq) and a host of others to see whether they can materially recover, or will ultimately be sold for parts. Look for a recap of this cohort once all results are in.

4. What we're watching, earnings-palooza edition

Illustration of a car blinker light shaped like a dollar bill sign. 

Speaking of Rivian's rocky road: Our colleague Joann Muller dug into the EV company's impeccably unfortunate timing.

The EV maker is ramping up production and delivering vehicles just as soaring gas prices are contributing to consumer interest in EVs. At the same time, supply chain constraints threaten to derail any momentum the company has created.

Add to that its existing commitment to supply Amazon with 100,000 delivery vans, in addition to working on three other car models, and it looks like Rivian might have bitten off a bit more than it can chew.

Battery-powered water wars: Investors are eyeing the Great Salt Lake in Utah for potential lithium stores as metals producers race to own the manufacturing process in the U.S. 

But the lake is drying up at a rapid pace, similar to another lithium store, the eternally doomed Salton Sea in Southern California. Utah hopes that the two mining companies gearing up to harvest lithium will produce enough revenue for the state to keep the lake — and the mining industry — afloat, but plans are still up in the air as to what that revenue-share structure could look like.

Wincing at the pump: Gasoline and diesel prices this summer will climb to their highest point since 2014 — and that's after adjusting for inflation, the U.S. Energy Information Administration said in its Summer Fuels Outlook. High prices for crude oil are expected to push retail gasoline prices to an average $3.84 per gallon during the summer driving season from April through September. Last summer, they averaged about $3.06 per gallon. Ouch.

5. 🌡️ Temperature check

Illustration of an earth in space covered in red and blue meteorological color lines.

Pivot Energy, a Denver-based solar energy company, raised $190m in debt financing from Silicon Valley Bank to finance distributed solar projects across six states. http://axios.link/dULf

Air Company, a consumer goods startup that makes carbon-negative alcohol, raised $30m in Series A funding led by Carbon Direct Capital Management. Toyota Ventures, JetBlue Technology Ventures and Parley for the Oceans also participated in the round. http://axios.link/umLn

The Volvo Cars Tech Fund made a strategic investment in StoreDot, which is developing charging technologies for EVs. http://axios.link/yms3

QIC and Cypress Creek Renewables closed a $450m debt facility to fund the growth of CCR's solar and storage project pipeline. QIC acted as joint lead arranger with CPPIB and CarVal. http://axios.link/zg3d

Jupiter Power LLC, which develops and operates utility-scale battery storage systems, announced the closing of a $174.6m portfolio debt financing for six battery energy storage projects in the ERCOT market in Texas. KeyBank National Association provided the financing. Jupiter is backed by EnCap Investments L.P., Yorktown Partners and Mercuria Energy. http://axios.link/BJFA

Twain Financial Partners has closed on $42m in financing to complete the Longbow Solar project in Brazoria County, Texas. http://axios.link/ceoG

U.S. Department of Energy has awarded a $2.5m grant to Constellation and its project partners to research the viability of constructing direct air capture technology at Constellation’s Byron nuclear energy plant in Northern Illinois. Constellation will partner with 1PointFive Inc., Worley Group Inc., Carbon Engineering Ltd., Pacific Northwest National Laboratory and the University of Illinois Urbana-Champaign on the project. http://axios.link/d4Zq

Statevolt announced its launch, stating it plans to construct a 54-gigawatt-hour gigafactory in Southern California with an expected CapEx of $4 billion. Statevolt says it's signed a letter of intent with Controlled Thermal Resources to provide lithium and geothermal power from its Hell’s Kitchen Lithium and Power development. http://axios.link/l6uh

National Grid released its "Clean Energy Vision," aiming to make its networks in New York and Massachusetts "fossil-fuel free" by 2050 by incorporating so-called renewable natural gas as well as green hydrogen. http://axios.link/3phH

Clark Pacific, a design-build manufacturer of prefabricated building systems, is partnering with NewGen Energy to install solar across all of Clark Pacific’s facilities. http://axios.link/JBbH

California-based Biliti Electric Inc. said it plans to “set up” a three-wheeler factory in India's Telangana state, with a production capacity of 240,000 electric vehicles each year. http://axios.link/WYks 

Pacific Gas & Electric, the California utility, commissioned a 182.5-megawatt Tesla Megapack battery energy storage system that is up and running at its Moss Landing electric substation. http://axios.link/qTKU

Zoomlion Heavy Industry Science & Technology Co. released a hybrid all-terrain crane. http://axios.link/OttQ

6. Hot deals

PSEG chair, president and CEO Ralph Izzo will retire effective December 31. The utility’s board of directors elected COO Ralph LaRossa as president and CEO effective September 1, 2022. Izzo will serve as executive chair of the board from September 1 until his retirement. http://axios.link/vknn

Angelo Acconcia has joined ArcLight Capital Partners as a partner in the firm's Boston office. Acconcia was previously senior managing director at Blackstone. http://axios.link/WrQV

Bryan Dickerson joined strategic consulting firm Woolpert as vice president and director of operations for infrastructure. Dickerson previously led water planning and asset management at Black and Veatch. http://axios.link/3ZP0

Jane Flegal joined Stripe's climate team to lead its $925m Frontier initiative. Flegal formerly worked in the White House Office of Domestic Climate Policy as the senior director for industrial emissions. http://axios.link/TSi1

Pedego Electric Bikes has appointed Kevin Mayer as chief marketing officer. Mayer was most recently executive vice president, chief growth and brand officer of BJ's Restaurants. http://axios.link/FjjI

Ara Partners, a private equity firm specializing in industrial decarbonization, has promoted Katy Boettcher to principal and hired Ken Nguyen as a senior associate. http://axios.link/mW3e

7. It's Personnel

👀 Happy Tuesday, climate folks. It's earnings season, so we've got a quick take on what to watch for below.

🏃🏻‍♀️ Megan is almost halfway through her training program for some big hikes later this summer, and has almost accepted that running can be pretty fun.

🐰 A friend surprised Alan and family with tickets for the White House Easter Egg Roll. Will they be talking about the baby's utter meltdown at the White House for, oh, the next 30-40 years? Definitely. Was it worth it? Absolutely. (And, hey, they get to keep a commemorative wooden egg.) 

Thanks for reading Climate Deals! Please share with your friends, family and running partners.

April 19, 2022

1 big thing: No more "nuke"