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Tag: Energy Department

  • New Trump Administration Energy Rule Would Enable Data Centers with ‘Large Loads’

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    Data centers are being built with unprecedented gusto all over the U.S. The reason for this is fairly well known: the AI business requires gargantuan amounts of electricity and computing power. Every time you use an app like DALL-E to, say, make one of those dumb AI-generated images of Mickey Mouse committing the 9/11 terrorist attacks, you’re apparently using as much energy as it takes to charge an iPhone. Now picture how much electricity is being used if millions of Americans do it at the same time.

    The Trump administration has made it known that it’s a friend to the AI industry (it recently launched the AI infrastructure initiative Stargate) and so, it makes perfect sense that its Energy Secretary, Chris Wright, has decided to cut the red tape when it comes to hooking data centers up to the electrical grid.

    In a statement published Friday, the Energy Department announced its plan to amend current rules to allow organizations that consume a lot of electricity to connect to the grid much faster: “U.S. Secretary of Energy Chris Wright directed the Federal Energy Regulatory Commission (FERC) today to initiate rulemaking procedures with a proposed rule to rapidly accelerate the interconnection of large loads, including data centers, positioning the United States to lead in AI innovation and in the revitalization of domestic manufacturing.”

    Hear that, guys? Chris Wright is apparently such a big fan of large loads that, in a bout of deregulatory fervor, he’s now helping to usher in a new era of easier data center connection. While the specifics of Wright’s proposed rule are a little bit complicated, the obvious takeaway seems to be an effort to make the regulatory process less onerous on people who want to hook up a lot of servers to the grid. The Register notes that one proposed rule is to “limit the time taken to review connection decisions to 60 days,” ostensibly so applicants don’t get bogged down in a lengthy review process. In a letter about the proposed rule change published to the government’s website, Wright wrote:

    “To usher in a new era of American prosperity, we must ensure all Americans and domestic industries have access to affordable, reliable, and secure electricity. To do this, large loads, including AI data centers, served by public utilities must be able to connect to the transmission system in a timely, orderly, and non-discriminatory manner. This is an urgent issue that requires prompt attention.”

    He added:

    “This Administration is committed to revitalizing domestic manufacturing/ and driving American AI innovation.’ both of which will require unprecedented and extraordinary quantities of electricity and substantial investment in the Nation’s interstate transmission system. We must do so efficiently, fairly, and expeditiously.”

    The data center industry is booming, and, despite all that “bubble” talk when it comes to the AI business, it shows no signs of slowing down. Companies like Nebius—which most of us had never heard of twelve months ago—are in the process of making themselves essential to large parts of the digital economy. Nebius, which is an AI infrastructure provider (it operates data centers), recently netted a deal with Microsoft, and went in on a robotaxi firm with Uber. Its stock price has also erupted some 350 percent this year, so, suffice to say—for the moment—it really pays to have a lot of servers.

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    Lucas Ropek

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  • Wind, solar power aren’t worthless if there’s no wind or sun

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    President Donald Trump has made his wind power aversion well known. On at least five separate occasions recently, he called windmills ugly, expensive and altogether useless.

    His Transportation Department canceled $679 million in federal funding that would have benefited offshore wind projects, and his Interior Department ordered work to stop on a major wind project off Rhode Island that was nearly finished.

    The U.S. Energy Department chimed in with a Sept. 5 post on X.

    “Wind and solar energy infrastructure is essentially worthless when it is dark outside, and when the wind is not blowing,” the post said.

    The following day, X users added a community note — a crowdsourced fact-check — to the post, saying the department was wrong because “batteries allow electricity to be stored and used at a different time than when it is generated.”

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    Many of the energy experts we contacted agreed that wind and solar energy can be stored. They added that wind and solar power also have other advantages, beyond their zero carbon emissions once they start operating.

    “That’s like saying that a commercial aircraft is worthless when it isn’t flying,” said Severin Borenstein, faculty director of the Energy Institute at the University of California-Berkeley’s Haas School of Business. “Obviously, any piece of capital equipment does not operate 100% of the time. The question is whether the value it creates when it is operating justifies the capital investment.”

    Elon Musk, whose company Tesla manufactures batteries (and who owns X), replied to the post with the comment, “Um … hello?” and linked to an article about one of his battery products.

    The Energy Department did not respond to an inquiry for this article.

    How to store power generated by wind and solar infrastructure

    Experts said wind and solar powered equipment, on their own, do not store energy. The process requires an extra step.

    Batteries, as the X community note said, are one method.

    “We now have increasingly widespread and affordable battery storage at the home and the utility scale,” said Christopher R. Knittel, professor of energy economics at the Massachusetts Institute of Technology’s Sloan School of Management. “That allows renewable energy produced during the day to be stored and used at night or during demand spikes.”

    Storage of wind and solar power is “commonly done in California and Texas today, among other locations,” Borenstein said, contributing “significantly” to the electricity supply.

    Another option is to use wind and solar power to pump water into an elevated reservoir and release water when needed, harnessing the gravitational pull to power turbines, said Kenneth Gillingham, an economist with the Yale School of the Environment.

    Adding storage capacity does require additional cost, which might make the overall competitiveness of wind or solar energy less favorable. 

    Batteries can help smooth out short-term supply and demand mismatches, but they are less economical for longer term use such as storage from one season to another, said Peter R. Hartley, a Rice University economist who specializes in energy policy.

    Wind and solar power can be valuable additions to the energy mix

    Even without a storage component, wind or solar power can still be valuable in any energy mix, experts said — beyond the benefit of producing carbon-free energy to combat climate change. 

    For instance, in New England, the natural gas supply is used heavily for heating, so there is less available for electricity during winter months. In the absence of other types of power, that would translate into high electricity prices, Gillingham said.

    “Wind and solar can reduce the amount of electricity needed during many hours of the day,” he said. This prevents utilities from having to switch over to more expensive fuels, such as fuel oil or diesel, he said.

    “Solar power often coincides with peak daytime demand when electricity prices are highest, displacing expensive fossil generation and lowering overall costs,” Knittel said.

    Many states have made wind or solar important pieces of their energy strategy.

    In May, about one-third of the electricity generated in Texas came from renewable energy other than hydropower, a category that includes wind and solar. In California, that percentage was just over half. In Iowa, the percentage was about two-thirds. Nationally, the share is about 14%.

    “Far from being ‘worthless’ when conditions change, wind and solar are vital contributors to our energy system, delivering high value, clean power when it’s available, and, thanks to modern storage technologies, ensuring that power can continue to be used even when the sun isn’t shining or the wind isn’t blowing,” Knittel said.

    Our ruling

    The Energy Department said, “Wind and solar energy infrastructure is essentially worthless when it is dark outside, and when the wind is not blowing.”

    Although wind energy infrastructure doesn’t produce power if the air isn’t moving and solar doesn’t generate power if the sun’s not out, those sources of energy still have value during those periods.

    Energy can be stored either in batteries or in larger pieces of infrastructure such as reservoirs.

    And when these systems are operational, they can handle electricity demand in real time, adding to the power mix in states including Texas, California and Iowa.

    We rate the statement False.

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  • Secret Warnings About Wuhan Research Predated the Pandemic

    Secret Warnings About Wuhan Research Predated the Pandemic

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    “Delete That Comment”

    In late October 2017, a US health official from the National Institute of Allergy and Infectious Diseases (NIAID) arrived at the Wuhan Institute of Virology for a glimpse of an eagerly anticipated work in progress. The WIV, a leading research institute, was putting the finishing touches on China’s first biosafety level 4 (BSL-4) laboratory. Operating with the highest safeguards, the lab would enable scientists to study some of the world’s most lethal pathogens.

    The project had support from Western governments seeking a more robust partnership with China’s top scientists. France had helped design the facility. Canada, before long, would send virus samples. And in the US, NIAID was channeling grant dollars through an American organization called EcoHealth Alliance to help fund the WIV’s cutting-edge coronavirus research.

    That funding allowed the NIAID official, who worked out of the US embassy in Beijing, to become one of the first Americans to tour the lab. Her goal was to facilitate cooperation between American and Chinese scientists. Nevertheless, says Asha M. George, executive director of the Bipartisan Commission on Biodefense, a nonprofit that advises the US government on biodefense policy, “If you want to know what’s going on in a closed country, one of the things the US has done is give them grant money.”

    In emails obtained by Vanity Fair, the NIAID official told her superiors what she’d gleaned from the technician who’d served as her guide. The lab, which was not yet fully operational, was struggling to develop enough expertise among its staff—a concern in a setting that had no tolerance for errors. “According to [the technician], being the first P4 [or BSL-4] lab in the country, they have to learn everything from zero,” she wrote. “They rely on those scientists who have worked in P4 labs outside China to train the other scientists how to operate.”

    She’d also learned something else “alarming” from the technician, she wrote. Researchers at the WIV intended to study Ebola, but Chinese government restrictions prevented them from importing samples. As a result, they were considering using a technique called reverse genetics to engineer Ebola in the lab. Anticipating that this information would set off alarm bells in the US, the official cautioned, “I don’t want the information particularly using reverse genetics to create viruses to get out, which would affect the ability for our future information gain,” meaning it would impair the collaboration between NIAID and the WIV.

    There was good reason to fear that such a revelation could derail the fledgling partnership. One year earlier, the US Department of Energy had warned other agencies, including NIAID’s parent entity, the National Institutes of Health (NIH), that advanced genetic engineering techniques could be misused for malign ends. The Energy Department had developed a classified proposal, reported on here for the first time, to ramp up safeguards against that possibility and develop tools to better detect evidence of genetic engineering. The proposal, which was not implemented in its suggested form, prompted a heated interagency battle, six people with knowledge of the debate tell Vanity Fair.

    On January 10, 2018, as the NIAID official prepared her official trip report for the US embassy in Beijing, she wrote to colleagues, “I was shocked to hear what he said [about reverse engineering Ebola]. I also worry the reaction of people in Washington when they read this. The technician is only a worker, not a decision maker nor a [principal investigator]. So how much we should believe what he said?” She concluded, “I don’t feel comfortable for broader audience within the government circle. It could be very sensitive.”

    Among the recipients of that email was F. Gray Handley, then NIAID’s associate director for international research affairs. Handley agreed with the official’s assessment and advised her: “As we discussed. Delete that comment.”

    On January 19, the US embassy in Beijing issued a sensitive but unclassified cable that included concerning details from the NIAID official’s tour. It said that WIV scientists themselves had noted the “serious shortage of appropriately trained technicians and investigators needed to safely operate” the lab, according to an unredacted copy obtained by Vanity Fair. But the cable did not include the information that her NIAID colleagues apparently found most worrying.

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    Katherine Eban

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  • Biden-Backed Battery Firm Plunges After Pausing Construction

    Biden-Backed Battery Firm Plunges After Pausing Construction

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    (Bloomberg) — Li-Cycle Holdings Corp., which is set to receive significant backing from the Biden administration, saw its share price slashed nearly in half after announcing it would pause construction on a first-of-its-kind lithium-ion-battery recycling plant.

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    The Toronto company said it would halt work on its Rochester Hub pending completion of a strategic review, including scope and budget. Li-Cycle said it is facing escalating construction costs that exceed prior guidance and is working closely with the US Energy Department concerning its offer of a $375 million loan commitment.

    Li-Cycle is one of the many companies vying to help the US meet surging demand for battery materials needed in the transition from gas-powered cars. The government is pouring billions of dollars in subsidies and tax incentives to build up a domestic supply chain, intended to help the US compete with China’s dominant industry position. The setback shows the challenges the US and the West face trying to essentially kick-start an industry from scratch.

    Li-Cycle shares fell as much as 49% in New York. The stock closed at $1.23, down 46% for the day, its largest drop on record.

    “The board of directors has decided to pause construction work on the Rochester Hub, pending a review of the project, including an evaluation of the go-forward phasing of its scope and budget, including construction strategy,” according to the statement. “As previously disclosed, engineering and procurement for the project are largely complete, with the current focus being on construction activities on site.”

    Shares jumped 6% in February after the Biden administration announced the company’s US subsidiary would receive the loan to help finance expansion of a facility to recycle lithium-ion batteries into chemicals that can be used for the batteries of more than 200,000 electric vehicles a year. The funding is from the department’s Advanced Technology Vehicles Manufacturing Loan Program amid a broader White House goal of having half of all car sales in 2030 be zero-emissions.

    The unexpected announcement comes as congressional Republicans have vowed to find the next Solyndra LLC in their criticism of the hundreds of billions of dollars in new loan authority given to the Energy Department in President Joe Biden’s signature climate law. Solyndra, a California solar manufacturer that flopped soon after receiving a $535 million loan guarantee during the Obama administration, resulted in a years-long pause in loan activity amid intense congressional scrutiny.

    The Energy Department said the Li-Cycle loan is still in the conditional phase and no money has yet been distributed.

    (Updates with shares in fourth graph, expanded company comment in fifth graph.)

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