Good morning. Heat waves continue to trigger heat records, with Phoenix hitting its 19th consecutive day above 110°F. The 5th most populated city in the US is experiencing burning pavement and potentially melting batteries. Not great!

In today’s email:

• Exxon makes big investment in CCS

• Taylor swift can’t save public transit

• Sylvera secures $57M for climate intelligence

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BIG DEAL

Big Oil might also become Big CCS

Driving the news: Exxon is making a significant move by purchasing pipeline operator Denbury.

Why it matters: The oil giant is using their $32 billion in cash reserves to buy their way into the energy transition.

• The $5 billion purchase gives Exxon access to the largest network of carbon dioxide pipelines in the US, aligning with its carbon capture goals.

• The carbon transportation and storage business complements Exxon's core oil and gas business instead of cannibalizing.

Why it's happening: Carbon capture is a key focus for its climate efforts due to several advantages.

• Unlike renewable energy, which competes with oil and gas, carbon capture aligns with Exxon's core business.

• Denbury previously went bankrupt in 2020, but has seen recent success thanks to the IRA. The company's involvement in carbon capture and their pursuit of government tax credits has positioned them as a prominent player in the industry.

🔥 Hot take: You can hate on Big Oil, but they have the war chest to make a huge impact on decarbonization. Those investments are likely to happen with business models which rely on constant consumption, like carbon capture and storage (CCS) and hydrogen, and not renewables.

HOT TOPICS

News that matters

☀️ Solar farms at sea are poised to be the next breakthrough in clean energy. China plans to launch large-scale projects along its eastern coastline. State Power Investment Corp. and Ocean Sun AS conducted a high-profile experiment off the coast of Shandong province, using circular rafts with solar panels to generate electricity. Although challenges like higher costs and environmental factors remain, offshore solar technology offers a promising solution for land-constrained regions looking to transition away from fossil fuels. (Bloomberg)

💨 Air quality warnings in the U.S. resurface as Canada sends troops to battle wildfires. Canada deployed its military to assist overwhelmed local authorities in fighting the severe wildfires that have consumed nearly 25 million acres this year. The Canadian armed forces and coast guard will be deployed to British Columbia in response to the province's request for federal assistance. (Washington Post)

🚊 Transit agencies face funding challenges due to decreased ridership and revenues. Taylor Swift's concerts attracted fans to transit, but she can’t do everything. Transit agencies urgently need solutions to their financial gaps, such as stringent farebox recovery ratios, reliance on sales taxes, and support from road users. (NextCity)

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CLIMATE DATA

How energy costs vary my state

A recent study compared energy costs across all 50 states and Washington, D.C., revealing interesting insights. Heating a cold home is more expensive than cooling a warm one, and Wyoming comes out on top with the highest heating oil costs, elevating its total energy expenses above other states.

North Dakota and Alaska follow suit due to their cold climates. On the other hand, Washington, D.C., enjoys the lowest energy costs, thanks to its mild climate, moderate energy expenses across all categories, and lower gasoline consumption. New Mexico and Texas also have relatively low energy costs due to minimal heating fuel requirements. (New York Times)

DEBRIEF

• AAA is following the trend of insurers reducing coverage in Florida due to the rising risk of natural disasters. They will not renew auto and home insurance policies for a small number of customers. This comes after Farmers Insurance and others made similar moves. (CBS News)

• Tesla is applying demand-based pricing and inventory of Model 3 cars across different states. Florida offers discounts up to $3,000, while Illinois has a net cost of $26,850 with incentives. Colorado provides a $5,000 tax credit but has limited availability. Moving cars between states comes with challenges but potential savings. (CleanTechnica)

• Scientists declare Crawford Lake in Canada as the starting point of the Anthropocene era, showing humanity's profound impact on Earth. The lake's sediments hold a thousand-year history, highlighting the exponential disruption caused by human activities in the mid-20th century. (Washington Post)

• The US Department of Commerce and NOAA have launched a $60 million program, the Ocean-Based Climate Resilience Accelerator, to support the growth of the ocean tech sector. It aims to fund accelerators and promote innovation in areas such as renewable energy and coastal resilience. The program offers up to $250,000 for program design and additional funding of up to $10 million for implementation. (GreenBiz)

• US DoE invests $32m to boost US critical minerals supply chain, reducing dependence on foreign sources. Funding supports domestic production of rare earth elements and other materials for clean energy technologies, creating jobs and strengthening national security. (Energy Monitor)

• Architects are exploring more climate-resilient home designs like geodesic domes. (New York Times)

• Smaller US industrial cities, once prosperous but now struggling, have the potential to undergo a "green rebirth," becoming climate-resilient hubs that support green agriculture and industry. (Smart Cities Dive)

• London-based climate intelligence startup Sylvera secures $57M in Series B funding led by Balderton Capital, with participation from existing investors. (TechCrunch)

• The EU introduces regulations to decarbonize freight transport.These measures support the EU's goal to cut transport emissions by 90% by 2050. (ESG Today)

• Phoenix breaks heat record with 19th consecutive day above 110°F, with night temperatures not falling below 90°F for 9 days. (CBS News)

ACCLIMATE RECS

Dive deeper

Empty Office Buildings Are Being Turned Into Vertical Farms. With office usage hovering near 50 percent of pre-pandemic levels, cities are putting the underutilized space to new use growing food. (Smithsonian Magazine)

An Ohio College Town Wants to Lead on Fighting Climate Change. It Also Has a 1940s-Era, Diesel-Burning Power Plant. Oberlin is implementing a plan to cut emissions by 75 percent by 2030 with a sense of urgency—as well as pragmatism. (Inside Climate News)

An Age-Old Wool Recycling Tradition Offers Lessons for Fast Fashion. Demand for clothing made from repurposed fabrics is rising as awareness builds about textile waste. (Bloomberg)

A Comedy Show About Solving Climate Change (Pique Action)

Why Acclimate? The global economy needs to acclimate to a new reality, like a hiker conquering a Colorado 14er.

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—Rick Jarrell, Founder of Acclimate