WHAT’S HAPPENING TODAY: Good afternoon and happy Wednesday, readers! In today’s edition of Daily on Energy, Callie and Maydeen take a look at a lawsuit from a small town in North Carolina against utility giant Duke Energy, alleging the utility deceived the public about the environmental dangers of fossil fuels.
We are also watching some news in the nuclear energy industry, with Meta announcing a request to obtain nuclear power. Meanwhile, we take a look at a survey in which bank analysts forecast oil prices to fall below $60 a barrel in the middle of the upcoming Trump administration.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
DOE LNG EXPORT REPORT TO BE RELEASED WITHIN WEEKS: The Department of Energy’s report on the economic and environmental impacts of exports of liquified natural gas (LNG) is set to be released by mid-December, the agency revealed today.
The details: Brad Crabtree, the assistant secretary for the DOE’s Office of Fossil Energy and Carbon Management, revealed the timeline during a hearing with the House Oversight and Accountability’s subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs.
Crabtree told the subcommittee, led by Texas Republican Rep. Pat Fallon, that the report would be released by “mid-December.” Additionally, the assistant secretary said the report would be subject to a 60-day public comment period. With only 47 days remaining until Inauguration Day, this would mean the comment period would extend into the Trump administration.
While President-elect Donald Trump has vowed to reverse the Biden administration’s pause on permitting for new LNG export projects, industry experts previously told the Washington Examiner that the incoming president will not be able to ignore the report’s findings.
Some background: In January, the Biden administration issued a pause on new LNG export approvals to non-free-trade-agreement countries in order to conduct a study on the climate effects of the projects before giving the green-light. Previously, the administration promised to release the report by the end of the year. But some Republicans have accused officials of rushing to complete and publish the findings before President Joe Biden leaves office.
NORTH CAROLINA TOWN SUES UTILITY GIANT OVER CLIMATE CHANGE: A small town in North Carolina, just over 30 miles outside Raleigh, is suing utility giant Duke Energy in a landmark climate change accountability lawsuit.
The details: Officials with the town of Carrboro, including the mayor and City Council, filed the lawsuit on Wednesday against Duke Energy, claiming the utility deceived the public about the environmental dangers of fossil fuels.
The town has claimed the utility company cost residents millions of dollars, as the effects of climate change – such as floods and extreme weather – caused increased damage to the town, per the New York Times. Carrboro officials have reportedly accused Duke Energy of covering up what it knew about the impacts of climate change, leading to delayed action to curb toxic emissions from fossil fuels.
Specifically, they have claimed Duke Energy was first informed about the possible effects of climate change, such as that increased use of fossil fuels would raise the amount of CO2 in the atmosphere by 25%, as early as 1968. The lawsuit goes on to claim the company attempted to conceal the “major consequences on the climate.”
“Historically underserved and marginalized communities are facing disproportionate impacts and health risks that are associated with climate change,” Mayor Barbara Foushee said. “This was not an easy decision to make, but I believe that we must be courageous as we call out these injustices and seek change and accountability.”
Carrboro officials are asking for Duke Energy to compensate the town and residents for the costs they say they were forced to pay as a result of the utility’s alleged coverup.
Some background: Duke Energy is one of the largest utility operators in the country, with its more than eight million electricity customers spanning across six states including the Carolinas, Florida, Indiana, Ohio, and Kentucky. The company also provides natural gas to nearly two million customers.
BIG TECH NUCLEAR REVIVIAL…META SEEKING REACTORS: Meta is the latest tech giant to seek to obtain nuclear power.
The details: Meta announced Tuesday that it is requesting proposals from nuclear energy developers in an attempt to harness nuclear energy for further artificial intelligence developments while meeting sustainability goals.
The company is seeking to add between 1 to 4 gigawatts of new nuclear generation capacity within the United States, delivering that power in the early 2030s. A typical large nuclear reactor produces around 1 gigawatt of energy. In its search for developers, Meta said it is looking for individuals who have experience in developing opportunities for new nuclear energy resources, such as Small Modular Reactors. Initial proposals are due Feb. 5 of next year.
“Supporting the development of clean energy must continue to be a priority as electric grids expand to accommodate growing energy needs,” the company said in a release. “At Meta, we believe nuclear energy will play a pivotal role in the transition to a cleaner, more reliable, and diversified electric grid.”
Some background: Like other major nuclear energy investments, this is primarily tied to AI advancements, particularly through data centers. Along with manufacturing and electrification, data center growth has driven up energy demand across the country. In October, data and analytics firm Wood Mackenzie estimated that data centers were on track to consume around 20-25 gigawatts of hourly energy demand on average. This is roughly equivalent to 4-5% of all electricity consumption in the U.S. At this rate, big players across the tech industry are grasping for any opportunity to increase available power for AI.
Read more from Callie here.
FOUR NUCLEAR PLANTS SEE LIFESPAN EXTENDED: Four nuclear plants in the United Kingdom are set to stay open longer than expected, a change expected to boost energy security while reducing reliance on imported natural gas to meet clean energy goals.
The details: French-state owned utility EDF said today it plans to keep the Hartlepool, Heysham 1, Heysham 2, and Toness nuclear power stations open for several more years. Hartlepool and Heysham 1, which were expected to close in March 2026, will see their life extended by one year. The other two facilities, scheduled to close in March 2028, will now remain open until March 2030.
Located in northern England and southern Scotland, the nuclear facilities are among five that help make up around 14% of Britain’s electricity generation, according to Reuters. Combined, the four plants have a capacity of around 4.6 gigawatts – providing enough energy to power roughly 7 million homes.
Key quote: “EDF’s decision to keep four nuclear plants online is a strong endorsement of our clean power mission,” said British Energy secretary Ed Miliband in a statement. “These extensions are a major win for our energy independence – powering millions of homes for longer while supporting 3,000 good jobs across Lancashire, Teesside, and East Lothian. We can’t achieve clean power by 2030 without nuclear, which provides an all-important steady supply of homegrown clean energy.”
RISING SOLAR PRODUCTION NEARLY MEETS U.S. DEMAND: As Trump seeks to usher in a new wave of American-first energy production, the solar industry may not have any issues keeping up, according to a new report.
The details: The Solar Energy Industries Association released its Q4 2024 solar market insight report on Wednesday, claiming that domestic production of solar panels has risen so much that it is nearly fully meeting the demand for domestic solar manufacturing projects.
During Q3, the U.S. added a record-breaking 9.3 gigawatts of solar capacity to the grid – bringing the total solar capacity to nearly 40 gigawatts. Production and deployment is expected to exceed 40 gigawatts by the end of the year. At this pace, SEIA has estimated total U.S. solar power will be able to power over 71 million homes by 2029. The report reveals that setbacks to fully meet demand are primarily related to high interest rates, customer uncertainty, as well as industry hurdles like interconnection delays, lack of labor and equipment constraints.
Thank you, IRA: Some have credited this increase in production to clean energy tax credits stemming from the Democratic-passed Inflation Reduction Act. “There has been a drastic increase in total manufacturing capacity,” Sylvia Lyva Martinez, a principal analyst at data and analytics firm Wood MacKenzie which conducted the report, told E&E News. “We’re still seeing more capacity that is also under construction, and even more announcements for 2025.”
Many green energy tax credits from the IRA are currently under threat from the incoming administration, as Trump has promised to walk back unspent funding and renewable priorities from the Biden administration. Though, with his support for domestic energy production, the recent findings may indicate ample space for increased solar power development in the next four years.
BANKS PREDICTING OIL PRICES TO DROP BELOW $60 A BARREL UNDER TRUMP: The law firm Haynes Boone released a survey of bank analysts showing that oil prices are forecast to fall to $58.62 a barrel by 2027 which is the middle of upcoming Trump administration.
What developments are affecting oil and gas prices? The survey said several developments, such as the incoming Trump administration, the wars in the Middle East and Ukraine, increased energy demand, and crypto-mining infrastructure, are having short- and long-term effects on pricing.
“While oil prices are looking a little brighter down the road, the dip in long-term natural gas projections reflects just how much supply-side factors like deregulation are reshaping the landscape,” Haynes Boone energy practice group partner Kim Mai said. “When this many banks start converging on their price predictions, it’s worth paying attention. We’re seeing unusual alignment in their forecasts through 2027.”
The current price of West Texas Intermediate crude is $69.49 per barrel, and Brent Crude is about $73.23 per barrel.
Read more from Maydeen here.
NEW JERSEY CONSIDERS HEAT PROTECTIONS FOR WORKERS: New Jersey State legislators have proposed legislation to ensure workers are provided with heat protections when temperatures begin to rise during the warmer months.
The details: The Environmental Protection Agency estimates that more than 1,300 deaths per year in the United States are due to extreme heat.
Democrat State Sen. Joseph Cryan, the sponsor of the legislation, told Inside Climate News the goal is to provide protections for workers who are exposed to extreme heat, describing the measure as “a worker safety bill that’s based upon climate change.”
The latest version of the bill was introduced late November. There is a complementary bill sponsored by State Assemblymembers Annette Quijano and William Sampson. The legislation would require employers to provide indoor or outdoors workers with water, paid rest breaks, and access to shade. It would also require employers to set standards for recognizing heat hazards and establish a plan to prevent heat-related illness.
Under the Biden administration, the Department of Labor’s Occupational Safety and Health Administration also proposed a new rule in July to establish a federal safety standard to address excessive heat in the workplace.
Some states, including California, Colorado, and Washington, have some type of heat protection laws. Meanwhile, Texas and Florida have blocked efforts to establish heat protection laws.
ICYMI – TESLA SALES OF CHINA-MADE ELECTRIC VEHICLES FALL IN NOVEMBER: U.S. electric vehicle maker Tesla’s sales of China-made electric vehicles dropped 4.3% year-on-year to 78,856 last month, according to data from the China Passenger Car Association, Reuters reported.
It added that deliveries of China-made Model 3 and Model Y electric vehicles increased by 15.5% from the previous month. Tesla is providing incentives for vehicle purchasers in China, such as extended zero-interest financing of up to five years for some Model 3 and Y vehicles.
RUNDOWN
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