WHAT’S HAPPENING TODAY: Good afternoon, and Happy Thursday, readers! Devastating wildfires continue to rage throughout the greater Los Angeles area, with the Palisades fire alone burning well over 17,000 acres. For comparison, Manhattan island is estimated to have an area of around 14,000 acres. As tens of thousands remain under evacuation warnings, Callie and Maydeen take a look at how natural disasters like fires and hurricanes caused a total of $140 billion insured losses worldwide last year.
Today’s edition of Daily on Energy also turns its attention to the nuclear industry, as more companies are pursuing development of microreactors, which could give electric batteries a run for their money.
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.
THE LATEST ON THE LOS ANGELES FIRES: Wildfires in Los Angeles continue to spread uncontrollably as smaller fires ignited overnight.
Fire details: As of this morning, the Palisades Fire, located in the community of Pacific Palisades, has burned 17,234 acres, with zero containment. The Eaton fire, located in the area of Pasadena and Altadena, has burned 10,600 acres with zero containment. The Hurst fire, near San Fernando, is at 855 acres with 10% contained.
Two new fires erupted yesterday. The Lidia Fire in the Antelope Valley has burned 348 acres but is 40% contained. The Sunset Fire in the Hollywood Hills has burned 43 acres with zero containment. The fires have caused tens of thousands of people to evacuate. Five civilians have died.
Last night, California Gov. Gavin Newsom announced that more than 7,500 firefighting and emergency personnel have been deployed to battle the fires. California is also moving about 140 2,500-gallon water tenders to fight the Eaton and Palisades fires. President Joe Biden approved Newsom’s request for a Presidential Major Disaster Declaration to support response to the major wildfires.
“The multiple incidents across the city and the region continue to tax our firefighters. However, rest assured that every single firefighter, first responder, law enforcement officer across the region remains 100% committed to protecting our communities,” said Kristin Crowley, Los Angeles City Fire Chief, during a morning press conference today.
“Here’s your call to action: Stay informed with trusted news and official updates. Be prepared to evacuate if you live near a wild land area. Follow all evacuation warnings and orders without delay,” she added.
Each fire is under an active investigation.
Weather update: Red flag warnings were extended throughout Los Angeles County until Friday. The fires were fueled earlier this week by an extreme windstorm that hit much of Southern California.
Due to the windstorm, there are 95,203 customers without power as of this morning, according to the Los Angeles Department of Water and Power. The department has been able to restore power to 202,406 customers since the windstorm started. Yesterday, the department issued a boil water notice for the Pacific Palisades 90272 zip code and the area north of San Vicente Boulevard, which will remain in effect for at least 48 hours.
INSURED LOSSES TOTALED $140B THANKS TO NATURAL DISASTERS: Natural catastrophes last year caused $140 billion in insured losses globally, making it the third most expensive year in losses, according to a report by Munich RE.
“Weather catastrophes were responsible for 93% of overall losses and 97% of insured losses. Around 11,000 people lost their lives as a result of natural disasters in 2024 – significantly fewer than the average,” the report stated.
The costliest insured loss of 2024 was Hurricanes Milton and Helene, the report said. Helene resulted in overall losses of $56 billion, with $16 billion falling onto insurers. Milton totaled the highest insurance loss, of $25 billion. Los Angeles’s wildfires could exceed last year’s hurricane losses.
AccuWeather yesterday estimated the total damage and economic loss from the wildfire is around $52 to $57 billion. It noted that the Palisades fire is destroying some of the most expensive real estate in the country, with median home values over $2 million.
“This is already one of the worst wildfires in California history. Should a large number of additional structures be burned in the coming days, it may become the worst wildfire in modern California history based on the number of structures burned and economic loss,” AccuWeather Chief Meteorologist Jonathan Porter said.
U.S. EFFORTS TO CURB EMISSIONS FALL OFF TRACK WITH PARIS GOALS: The United States is falling behind on targets set under the Paris Agreement to reduce greenhouse gas emissions, despite major efforts by the Biden administration to support renewable and clean energy.
The details: New research published by the Rhodium Group today reveals that greenhouse gas emissions in the U.S. dropped by only 0.2% in 2024 – a fraction of the 3.3% drop from the year before. At this rate, the research firm estimated that the U.S. is far off the trajectory needed to meet the Paris Agreement goals of reducing emissions by 50% in 2030 compared to 2005 levels.
Demand for energy soared by 3% in the past year, largely thanks to artificial intelligence developments, data center growth, and electrification. The study found that the residential sector in fact led overall demand for electricity.
To meet this demand, the industry primarily utilized increased fossil fuels, wind, and solar energy. Natural gas remains the largest single source of electricity in the U.S., with renewables slowly picking up more ground. The report did note that 2024 marked the first time solar and wind energy exceeded coal power in the total electricity generation mix in the U.S. Nuclear still remains above renewables.
Why this matters: In the U.S., emissions reductions have primarily been connected to replacing fossil fuel power sources – like coal-powered plants – with cleaner alternatives like natural gas or renewables. Though dramatic emissions reductions, like seen in 2020, can often be tied to extreme reductions in travel and manufacturing.
While the industry has been deploying more renewable energy sources to help meet energy demand, the need for energy has been rising so dramatically that some utilities are delaying the retirement of coal or boosting natural gas projects. As a result, it is becoming increasingly difficult to lower greenhouse gas emissions on a widespread scale.
“It’s a reminder that there’s always some bumpiness in emissions,” Ben King, an associate director at the Rhodium Group, told the New York Times. “It’s not just a question of how many electric vehicles are on the road or how much solar we’ve installed. A big portion of our economy still relies on fossil fuels.”
Rhodium Group said the U.S. must support accelerated decarbonization to support annual emissions reductions of around 7.6% to meet Paris Agreement targets.
SHIPPING NATIONS AND INDUSTRY SUPPORTS CARBON TAX: Major shipping nations issued a proposal supporting a tax on the industry’s carbon emissions.
Forty-seven governments, along with the International Chamber of Shipping, sent a joint text to
the United Nations’ International Maritime Organization to adopt a greenhouse gas emissions tax for global shipping.
Countries such as Greece, Japan, Korea, and the United Kingdom agreed to a proposed tax on shipowners’ carbon emissions. The industry group said the fee would incentivize shipowners to use alternative fuels. It would also help the industry to reach net-zero emissions by 2050. The U.S. and China did not agree to the proposal.
“The industry fully supports the adoption by [International Maritime Organization] of a [greenhouse gas emission] pricing mechanism for global application to shipping,” said Guy Platten, the International Chamber of Shipping Secretary General.
“We are very pleased that such a large and diverse group of nations now firmly supports a common approach to maritime carbon charging. This proposed joint text has been hard fought and is broadly based on ideas which ICS has been advocating for the past ten years,” he added.
ELECTRIC BATTERIES MAY HAVE COMPETITION…FROM NUCLEAR: The nuclear power industry is looking to go head-to-head with companies producing electric batteries in the race to replace diesel and natural gas generators with clean alternatives.
The details: A number of nuclear energy companies are now detailing plans to develop microreactors to power data centers, small communities, offshore drilling operations, remote mining operators, and more, according to a Financial Times report.
One company, Westinghouse, is working on building a transportable microreactor roughly the size of a shipping container that can run on its own for years before needing more fuel. Typically, these miniature reactors generate up to 20 megawatts. While this can be enough to power around 20,000 homes, it is dramatically lower than even small modular reactors that generate around 300 megawatts.
As the mining industry, offshore and onshore drilling, as well as isolated communities often rely on diesel and gas generators for power, nuclear power may offer a solution for those looking to lower emissions.
“Initially, the idea was there are parts of the economy that are very difficult to decarbonise, especially remote communities that depend on transportable diesel, which is very expensive,” Jon Ball, who leads Westinghouse’s eVinci microreactor program, told the Financial Times. “But the level of interest has really expanded and we believe this is going to be a significant growth area.”
Possible timelines: Like anything in the nuclear industry, it is expected to take several years before these microreactors can be put on the market or be in use. Westinghouse is expected to start a test program for their eVinci microreactor in 2027 at the Idaho National Laboratory.
The company has also entered an agreement with UK-based Core Power, which is reportedly looking to build nuclear power plants at sea. The company told the Financial Times that it is on track to receive an operating license from the Nuclear Regulatory Commission by 2029.
Other possible producers, including Nano Nuclear Energy, are reportedly seeking to bring their own microreactors to the market by 2031.
NEW YORK’S NUCLEAR REVIVAL IS ON ITS WAY: After having sided with environmentalists against nuclear energy for years, the state of New York may be changing its tune.
Some background: In 2021, New York shuttered the Indian Point nuclear facility over a lack of revenue and safety concerns, as well as environmental concerns, with the plant sitting so close to New York City. The closure was embraced by environmentalists and other activists, though it swiftly opened the door for increased greenhouse gas emissions. When it was in operation, the plant supplied around 25% of the electricity used in the Big Apple and surrounding region. Without that power, natural gas has been forced to step in.
Nuclear energy currently only makes up around 21.4% of the state’s entire electricity supply, less than half of the 46.2% made up by natural gas, according to Inside Climate News. With state officials eager to reach climate goals, those percentages may need to change.
The details: The New York State Energy Research and Development Authority (NYSERDA) is reportedly looking to support development of advanced nuclear technologies in order to help meet energy demand. This includes possible programs utilizing advanced light water reactors, sodium and molten salt reactors, high-temperature gas reactors, and fusion reactors, according to Inside Climate News.
Given that nuclear energy has the ability to produce electricity around the clock, not dependent upon specific weather conditions, many advocates have insisted governments cannot meet climate goals without harnessing nuclear power.
The agency has faced criticism for the renewed attention on nuclear power, particularly from climate activists looking for more investments in green alternatives like renewables and storage systems to ensure long-lasting energy. Regardless of this, the state is moving forward in developing plans for advanced nuclear power. NYSERDA is reportedly working on identifying companies interested in playing a role in this development, which will take some time.
“We need to understand how this [nuclear] technology has advanced, what are the current resources that could be used, and to really be quite careful and objective about looking at the opportunity that it may present,” NYSERDA president Doreen Harris told the outlet.
RENEWABLE GENERATION HIT RECORD HIGHS IN SWEDEN: As development for wind energy in the U.S. is poised to experience a lull due to the incoming Trump administration, the renewable energy source is seeing record generation abroad in Sweden.
The details: In December of last year, wind energy became the largest source of electricity in the country, soaring above nuclear and hydro power, the Swedish Wind Energy Association has said, according to Reuters. Specifically, wind power made up around 35% of produced output, a monthly record for the energy source.
It marks the first three-month period ever where wind energy has surpassed nuclear power, which traditionally makes up the majority of Sweden’s electricity generation, along with hydropower.
Sweden notably did not attribute the increase in power to increased winds. Instead, the country said the jump in generation was in large part due to the expansion of production itself. If normal wind speeds, and energy prices, stay the same in 2025, the country has estimated that output this year should see similar levels.
“The December outcome gives hope. Wind power can account for a large part of the electricity production needed for electrification not to lose momentum, to enable a climate transition, and to achieve Sweden’s climate goals,” the Swedish Wind Energy Association said.
Sweden is reportedly seeking to double its electricity output to around 300 terawatt hours in order to support increasing energy demand and climate goals. While the jump in wind generation is encouraging, the country is expected to invest in more nuclear power.
RUNDOWN
Bloomberg Making Sense of Global Warming Going Past 1.5C
The Guardian The chronicle of a fire foretold
Los Angeles Times Jimmy Carter and the sad saga of a 9-ton Northern California peanut