Coal to give way to natural gas for U.S. power?

DOE CCUS Funding advances carbon capture, utilization, and storage with FEED studies, regional deployment, and CarbonSAFE site characterization, leveraging 45Q tax credits to scale commercial CO2 reduction across fossil energy sectors.

Key Points

DOE CCUS Funding are federal FOAs for commercial carbon capture, storage, and utilization via FEED and CarbonSAFE.

✅ $110M across FEED, Regional, and CarbonSAFE FOAs

✅ Supports Class VI permits, NEPA, and site characterization

✅ Enables 45Q credits and enhanced oil recovery utilization

The U.S. Department of Energy’s (DOE’s) Office of Fossil Energy (FE) has announced approximately $110 million in federal funding for cost-shared research and development (R&D) projects under three funding opportunity announcements (FOAs), alongside broader carbon-free electricity investments across the power sector.

Approximately $75M is for awards selected under two FOAs announced earlier this fiscal year; $35M is for a new FOA.

These FOAs further the Administration’s commitment to strengthening coal while protecting the environment. Carbon capture, utilization, and storage (CCUS) is increasingly becoming widely accepted as a viable option for fossil-based energy sources—such as coal- or gas-fired power plants under new EPA power plant rules and other industrial sources—to lower their carbon dioxide (CO2) emissions.

DOE’s program has successfully deployed various large-scale CCUS pilot and demonstration projects, and it is imperative to build upon these learnings to test, mature, and prove CCUS technologies at the commercial scale. A recent study by Science of the Total Environment found that DOE is the most productive organization in the world in the carbon capture and storage field.

“This Administration is committed to providing cost-effective technologies to advance CCUS around the world,” said Secretary Perry. “CCUS technologies are vital to ensuring the United States can continue to safely use our vast fossil energy resources, and we are proud to be a global leader in this field.”

“CCUS technologies have transformative potential,” said Assistant Secretary for Fossil Energy Steven Winberg. “Not only will these technologies allow us to utilize our fossil fuel resources in an environmentally friendly manner, but the captured CO2 can also be utilized in enhanced oil recovery and emerging CO2-to-electricity concepts, which would help us maximize our energy production.”

Under the first FOA award, Front-End Engineering Design (FEED) Studies for Carbon Capture Systems on Coal and Natural Gas Power Plants, DOE has selected nine projects to receive $55.4 million in federal funding for cost-shared R&D. The selected projects will support FEED studies for commercial-scale carbon capture systems. Find project descriptions HERE. 

Under the second FOA award, Regional Initiative to Accelerate CCUS Deployment, DOE selected four projects to receive up to $20 million in federal funding for cost-shared R&D. The projects also advance existing research and development by addressing key technical challenges; facilitating data collection, sharing, and analysis; evaluating regional infrastructure, including CO2 storage hubs and pipelines; and promoting regional technology transfer. Additionally, this new regional initiative includes newly proposed regions or advanced efforts undertaken by the previous Regional Carbon Sequestration Partnerships (RCSP) Initiative. Find project descriptions HERE. 

Elsewhere in North America, provincial efforts such as Quebec's and industry partners like Cascades are investing in energy efficiency projects to complement emissions-reduction goals.

Under the new FOA, Carbon Storage Assurance Facility Enterprise (CarbonSAFE): Site Characterization and CO2 Capture Assessment, DOE is announcing up to $35 million in federal funding for cost-shared R&D projects that will accelerate wide-scale deployment of CCUS through assessing and verifying safe and cost-effective anthropogenic CO2 commercial-scale storage sites, and carbon capture and/or purification technologies. These types of projects have the potential to take advantage of the 45Q tax credit, bolstered by historic U.S. climate legislation, which provides a tax credit for each ton of CO2 sequestered or utilized. The credit was recently increased to $35/metric ton for enhanced oil recovery and $50/metric ton for geologic storage.

Projects selected under this new FOA shall perform the following key activities: complete a detailed site characterization of a commercial-scale CO2 storage site (50 million metric tons of captured CO2 within a 30 year period); apply and obtain an underground injection control class VI permit to construct an injection well; complete a CO2capture assessment; and perform all work required to obtain a National Environmental Policy Act determination for the site.

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Iceland Bitcoin Mining Energy Shortage highlights surging cryptocurrency and blockchain data center electricity demand, as hydroelectric and geothermal power strain to cool servers, stabilize grid, and meet rapid mining farm growth amid Arctic-friendly conditions.

Key Points

Crypto mining data centers in Iceland are outpacing renewable power, straining the grid and exceeding residential electricity demand.

✅ Hydroelectric and geothermal capacity nearing allocation limits

✅ Cooling-friendly climate draws energy-hungry mining farms

✅ Grid planning and regulation lag rapid data center growth

The value of bitcoin may have stumbled in recent months, but in Iceland it has known only one direction so far: upward. The stunning success of cryptocurrencies around the globe has had a more unexpected repercussion on the island of 340,000 people: It could soon result in an energy shortage in the middle of the Atlantic Ocean.

As Iceland has become one of the world's prime locations for energy-hungry cryptocurrency servers — something analysts describe as a 21st-century gold-rush equivalent — the industry’s electricity demands have skyrocketed, too. For the first time, they now exceed Icelanders’ own private energy consumption, and energy producers fear that they won’t be able to keep up with rising demand if Iceland continues to attract new companies bidding on the success of cryptocurrencies, a concern echoed by policy moves like Russia's proposed mining ban amid electricity deficits.

Companies have flooded Iceland with requests to open new data centers to “mine” cryptocurrencies in recent months, even as concerns mount that the country may have to slow down investments amid an increasingly stretched electricity generation capacity, a dynamic seen in BC Hydro's suspension of new crypto connections in Canada.

“There was a lot of talk about data centers in Iceland about five years ago, but it was a slow start,” Johann Snorri Sigurbergsson, a spokesman for Icelandic energy producer HS Orka, told The Washington Post. “But six months ago, interest suddenly began to spike. And over the last three months, we have received about one call per day from foreign companies interested in setting up projects here.”

“If all these projects are realized, we won’t have enough energy for it,” Sigurbergsson said.

Every cryptocurrency in the world relies on a “blockchain” platform, which is needed to trade with digital currencies. Tracking and verifying a transaction on such a platform is like solving a puzzle because networks are often decentralized, and there is no single authority in charge of monitoring payments. As a result, a transaction involves an immense number of mathematical calculations, which in turn occupy vast computer server capacity. And that requires a lot of electricity, as analyses of bitcoin's energy use indicate worldwide.

The bitcoin rush may have come as a surprise to locals in sleepy Icelandic towns that are suddenly bustling with cryptocurrency technicians, but there’s a simple explanation. “The economics of bitcoin mining mean that most miners need access to reliable and very cheap power on the order of 2 or 3 cents per kilowatt hour. As a result, a lot are located near sources of hydro power, where it’s cheap,” Sam Hartnett, an associate at the nonprofit energy research and consulting group Rocky Mountain Institute, told the Washington Post.

Top financial regulators briefed a Senate panel on Feb. 6 about their work with cryptocurrencies like Bitcoin, and the risks to potential investors. (Reuters)

Located in the middle of the Atlantic Ocean and famous for its hot springs and mighty rivers, Iceland produces about 80 percent of its energy in hydroelectric power stations, compared with about 6 percent in the United States, and innovations such as underwater kites illustrate novel ways to harness marine energy. That and the cold climate make it a perfect location for new data-mining centers filled with servers in danger of overheating.

Those conditions have attracted scores of foreign companies to the remote location, including Germany's Genesis Mining, which moved to Iceland about three years ago. More have followed suit since then or are in the process of moving. 

While some analysts are already sensing a possible new revenue source for the country that is so far mostly known abroad as a tourist haven and low-budget airline hub, others are more concerned by a phenomenon that has so far mostly alarmed analysts because of its possible financial unsustainability, alongside issues such as clean energy's dirty secret that complicate the picture. Some predictions have concluded that cryptocurrency computer operations may account for “all of the world’s energy by 2020” or may already account for the equivalent of Denmark's energy needs. Those predictions are probably too alarmist, though. 

Most analysts agree that the real energy-consumption figure is likely smaller, and several experts recently told the Washington Post that bitcoin — currently the world's biggest cryptocurrency — used no more than 0.14 percent of the world’s generated electricity, as of last December. Even though global consumption may not be as significant as some have claimed, it still presents a worrisome drain for a tiny country such as Iceland, where consumption suddenly began to spike with almost no warning — and continues to grow fast.

Some networks are considering or have already pushed through changes to their protocols, designed to reduce energy use. But implementing such changes for the leading currency, bitcoin, won't be as easy because it is inherently decentralized. The companies that provide the vast amounts of computing power needed for these transactions earn a small share, comparable to a processing fee or a reward.

They are the source of the Icelandic bitcoin miners’ income — a revenue source that many Icelanders are still not quite sure what to make of, especially if the lights start flickering.

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Western Canada Hydropower Drought strains British Columbia and Manitoba as reservoirs hit historic lows, cutting hydroelectric output and prompting power imports, natural gas peaking, and grid resilience planning amid climate change risks this winter.

Key Points

Climate-driven reservoir lows cut hydro in B.C. and Manitoba, prompting imports and backup gas to maintain reliability.

✅ Reservoirs at multi-year lows cut hydro generation capacity

✅ BC Hydro and Manitoba Hydro import electricity for reliability

✅ Natural gas turbines used; climate change elevates drought risk

Severe drought conditions in Western Canada are compelling two hydroelectricity-dependent provinces, British Columbia and Manitoba, to import power from other regions. These provinces, known for their reliance on hydroelectric power, are facing reduced electricity production due to low water levels in reservoirs this autumn and winter as energy-intensive customers encounter temporary connection limits.

While there is no immediate threat of power outages in either province, experts indicate that climate change is leading to more frequent and severe droughts. This trend places increasing pressure on hydroelectric power producers in the future, spurring interest in upgrading existing dams as part of adaptation strategies.

In British Columbia, several regions are experiencing "extreme" drought conditions as classified by the federal government. BC Hydro spokesperson Kyle Donaldson referred to these conditions as "historic," and a first call for power highlights the strain, noting that the corporation's large reservoirs in the north and southeast are at their lowest levels in many years.

To mitigate this, BC Hydro has been conserving water by utilizing less affected reservoirs and importing additional power from Alberta and various western U.S. states. Donaldson confirmed that these measures would persist in the upcoming months.

Manitoba is also facing challenges with below-normal levels in reservoirs and rivers. Since October, Manitoba Hydro has occasionally relied on its natural gas turbines to supplement hydroelectric production as electrical demand could double over the next two decades, a measure usually reserved for peak winter demand.

Bruce Owen, a spokesperson for Manitoba Hydro, reassured that there is no imminent risk of a power shortage. The corporation can import electricity from other regions, similar to how it exports clean energy in high-water years.

However, the cost implications are significant. Manitoba Hydro anticipates a financial loss for the current fiscal year, with more red ink tied to emerging generation needs, the second in a decade, with the previous one in 2021. That year, drought conditions led to a significant reduction in the company's power production capabilities, resulting in a $248-million loss.

The 2021 drought also affected hydropower production in the United States. The U.S. Department of Energy reported a 16% reduction in overall generation, with notable decreases at major facilities like Nevada's Hoover Dam, where production dropped by 25%.

Drought has long been a major concern for hydroelectricity producers, and they plan their operations with this risk in mind. Manitoba's record drought in 1940-41, for example, is a benchmark for Manitoba Hydro's operational planning to ensure sufficient electricity supply even in extreme low-water conditions.

Climate change, however, is increasing the frequency of such rare events, highlighting the need for more robust backup systems such as new turbine investments to enhance reliability. Blake Shaffer, an associate professor of economics at the University of Calgary specializing in electricity markets, emphasized the importance of hydroelectric systems incorporating the worsening drought forecasts due to climate change into their energy production planning.

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Coal-to-Clean Energy Hubs leverage Bipartisan Infrastructure Law and Inflation Reduction Act funding to repurpose mine lands with microgrids, advanced nuclear, carbon capture, and rare earth processing, boosting energy security, jobs, and grid modernization.

Key Points

They are federal projects converting coal communities and mine lands into clean energy hubs, repurposing infrastructure.

✅ DOE demos on mine lands: microgrids, nuclear, carbon capture.

✅ Funding from BIL, CHIPS and IRA targets energy communities.

✅ Rare earths from coal waste bolster EV supply chains.

The Biden administration is channeling hundreds of millions of dollars in clean energy funding from recent legislation into its efforts to turn coal communities into clean energy hubs, the White House said.

The administration gave an update on its push across agencies to kick-start projects nationwide with funding Congress approved during Biden’s first two years in office. The effort includes $450 million from the Bipartisan Infrastructure Law that the Department of Energy will allocate to an array of new clean energy demonstration projects on former mine lands.

“These projects could focus on a range of technologies from microgrids to advanced nuclear to power plans with carbon capture,” Energy Secretary Jennifer Granholm said on a call with reporters Monday. “They’ll prove out the potential to reactivate or repurpose existing infrastructure like transmission lines and substations across an aging U.S. power grid, and these projects could spur new economic development in these communities.”

Among the projects the White House highlighted, it said $16 million from the infrastructure law will go to the University of North Dakota and West Virginia University to create design studies for the first-ever full-scale refinery facility in the U.S. that could extract and separate rare earth elements and minerals from coal mine waste streams. The materials are critical for electric vehicle-battery components that are currently heavily sourced from outside the U.S.

“Those efforts will pave the way toward building a first of its kind facility that produces essential materials for solar panels, wind turbines, EVs and more while cleaning up polluted land and water and creating good-paying jobs for local workers,” Granholm said.

Biden created an interagency working group focused on revitalizing coal-power communities through federal investments when he took office. In 2021, the group selected 25 priority areas ranging from West Virginia to Wyoming to focus on development, as high natural gas prices strengthened the case for clean electricity. There are nearly 18,000 identified mine sites across 1.5 million acres in the United States, according to the White House.

The massive effort fits into a broader Biden administration push to both fight climate change and support communities that have lost economic activity during a transition away from fossil fuel sources such as coal. While Biden’s most ambitious clean energy plans fell flat in Congress in the face of opposition from Republicans and some Democrats after the previous administration’s power plant overhaul, three major laws still unlocked funding for his administration to deploy.

Many of the initiatives are made possible through the Bipartisan Infrastructure Law, Chips and Science Act and the Inflation Reduction Act, even without a clean electricity standard on the books. The task force aims to make sure communities most affected by the changing energy landscape are taking maximum advantage of the federal benefits.

“Those new and expanded operations are coming to energy communities and creating good paying jobs,” Biden’s senior advisor for clean energy innovation and implementation John Podesta said on the call. “These laws can provide substantial federal support to energy communities like capping abandoned oil and gas wells, extracting critical minerals, building battery factories and launching demonstration projects in carbon capture or green hydrogen.”

The administration touted the potential benefits of the Inflation Reduction Act, a bill passed by Democrats to spur clean energy investments last year, even as early assessments show mixed results to date. At the time, U.S. consumers were dealing with decades-high inflation fueled in part by an energy crisis and high gas prices that drove debate — a point Republicans emphasized as the plan moved through Congress.

Deputy Treasury Secretary Wally Adeyemo said the Inflation Reduction Act aims to both “lower the deficit, as well as promote our energy security, lowering energy costs for consumers and combatting climate change.”

“As the Treasury works to implement the law, we’re focused on ensuring that all Americans benefit from the growth of the clean energy economy, particularly those who live in communities that have been dependent on the energy sector for job for a long time,” Adeyemo told reporters. “Economic growth and productivity are higher when all communities are able to reach their full potential.”

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Medicine Hat Bitcoin Mining Facility drives massive electricity demand and energy use, leveraging natural gas and nearby wind power; Hut 8 touts economic growth, while critics cite carbon emissions, renewables integration, and climate impact.

Key Points

A Hut 8 project in Alberta that mines bitcoin at scale, consuming up to 60 MW and impacting energy and emissions.

✅ Consumes more than 60 MW, rivaling citywide electricity use

✅ Sited by natural gas plant; wind turbines nearby

✅ Economic gains vs. carbon emissions and climate risks

On the day of the grand opening of the largest bitcoin mining project in the country, the weather was partly cloudy and 15 C. On a Friday afternoon like this one, the new facility uses as much electricity as all of Medicine Hat, Alta., a city of more than 60,000 people and home to several large industrial plants.

The vast amount of electricity needed for bitcoin mining is why the city of Medicine Hat has championed the economic benefits of the project, while environmentalists say they are wary of the significant energy use.

Toronto-based Hut 8 has spent more than $100 million to develop the 4½-hectare site on the northern edge of the city. It has 56 shipping containers, each filled with 180 computer servers that digitally mine for bitcoin around the clock.

The company said it has already mined more than 3,300 bitcoins in Alberta, including at its much smaller site in Drumheller. On average, the Medicine Hat facility mines about 20 bitcoins per day. The value of bitcoin can fluctuate daily, but has sold recently for around $9,000.

The bitcoin mining facility is located right beside the city of Medicine Hat's new natural gas-fired power plant and four wind turbines are a short distance away. The bitcoin plant can consume more than 60 megawatts of power, more than 10 times more electricity used by any other facility in the city, according to the mayor.

That's why, in the event of a summer heat wave, the city has provisions in place to pull the plug on the electricity it provides to Hut 8, mirroring utility pauses on crypto loads seen elsewhere, so there won't be any blackouts for residents, according to the mayor.

Still, some say the bitcoin mining industry wastes far too much energy

"It's a huge magnitude when you talk about the carbon emissions," said Saeed Kaddoura, an analyst with the Pembina Institute, an environmental think-tank. "Moving forward, there needs to be some consideration on what the environmental impact of this is."

Medicine Hat owns its own natural gas and electricity generation and distribution businesses. The city leases the land to Hut 8 and the facility employs 40 full-time workers. Add up the economic benefits and the city of Medicine Hat will receive a significant financial boost from the new project, says Ted Clugston, the city's mayor.

Financial details of the city's deal with Hut 8 are not disclosed.

For more than a century, the city has attracted business by offering low-cost energy, and the mayor said this project is no different.

"They could have gone anywhere in the world and they chose Medicine Hat," said Clugston. "[Hut 8] is not here for renewable energy because it is not reliable. They need gas-fired generation and we have it in spades."

Environmental groups are concerned by the sheer amount of energy consumed by bitcoin mining, with some utilities warning they can't serve new energy-intensive customers right now, especially in places like Medicine Hat where most of the electricity is produced by fossil fuels.

The bitcoin system is designed, so only a limited number of the cryptocurrency can be mined everyday. Over time, as more miners compete for a decreasing number of available bitcoins, facilities will have to use more electricity compared to the amount of the cryptocurrency they collect.

"The way the bitcoin algorithm works is that it's designed to waste as much electricity as possible. And the more popular bitcoin becomes, the more electricity it wastes," said Keith Stewart, a spokesperson for Greenpeace.

Stewart questions whether natural gas should be used to produce a digital product.

"If you live in Alberta, you want to have heat and light, those types of things. I don't think bitcoin is a necessity of life for anyone," he said.

The CEO of Hut 8 completely disagrees, arguing the cryptocurrency is essential.  

"Bitcoin was created during the financial crisis. It has really served a purpose in terms of providing the opportunity for people who don't necessarily trust their government or their central banks," said Andrew Kiguel.

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Longest Lightning Flash Record confirmed by WMO: a 477.2-mile megaflash spanning Mississippi, Louisiana, and Texas, detected by satellite sensors, highlighting Great Plains supercell storms, lightning safety, and extreme weather monitoring advancements.

Key Points

It is the WMO-verified 477.2-mile megaflash across MS, LA, and TX, detected via satellites.

✅ Spanned 477.2 miles across Mississippi, Louisiana, and Texas

✅ Verified by WMO using space-based lightning detection

✅ Occurs in megaflash-prone regions like the U.S. Great Plains

An almost 500-mile long bolt of lightning that lit up the sky across three US states has set a new world record for longest flash, scientists have confirmed.

The lightning bolt, extended a total of 477.2 miles (768 km) and spread across Mississippi, Louisiana, and Texas.

The previous record was 440.6 miles (709 km) and recorded in Brazil in 2018.

Lightning rarely extends over 10 miles and usually lasts under a second, yet utilities plan for severe weather when building long-distance lines such as the TransWest Express transmission project to enhance reliability.

Another lightning flash recorded in 2020 - in Uruguay and Argentina - has also set a new record for duration at 17.1 seconds. The previous record was 16.7 seconds.

"These are extraordinary records from lightning flash events," Professor Randall Cerveny, the WMO's rapporteur of weather and climate extremes, said.

According to the WMO, both records took place in areas prone to intense storms that produce 'megaflashes', namely the Great Plains region of the United States and the La Plata basin of South America's southern cone, where utilities adapting to climate change is an increasing priority.

Professor Cerveny added that greater extremes are likely to exist and are likely to be recorded in the future thanks to advances in space-based lightning detection technology.

The WMO warned that lightning was a hazard and urged people in both regions and around the world to take caution during storms, which can lead to extensive disruptions like the Tennessee power outages reported after severe weather.

"These extremely large and long-duration lightning events were not isolated but happened during active thunderstorms," lightning specialist Ron Holle said in a WMO statement.

"Any time there is thunder heard, it is time to reach a lightning-safe place".

Previously accepted WMO 'lightning extremes' include a 1975 incident in which 21 people were killed by a single flash of a lightning as they huddled inside a tent in Zimbabwe, and modern events show how dangerous weather can also cut electricity for days, as with the Hong Kong typhoon outages that affected families.

In another incident, 469 people were killed when lightning struck the Egyptian town of Dronka in 1994, causing burning oil to flood the town, and major incidents can also disrupt infrastructure, as seen during the LA power outage following a substation fire.

The WMO notes that the only lightning-safe locations are "substantial" buildings with wiring and plumbing, and dedicated lightning protection training helps reinforce these guidelines, rather than structures such as bus stops or those found at beaches.

Fully enclosed metal-topped vehicles are also considered reliably safe, and regional storm safety tips offer additional guidance.

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