WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, readers! We hope you all had a restful weekend. We are kicking off today’s Daily on Energy with some news from Energy Secretary Chris Wright, who announced a $1 billion deal to construct supercomputers to help energy and cancer research.
Meanwhile, we are keeping an eye on President Donald Trump’s trip to Asia where he is set to meet with Chinese President Xi Jinping later this week. The two leaders are expected to hash out trade tensions between the two nations with critical minerals and rare earths being the center of the conflict.
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.
ENERGY DEPARTMENT LOOKS TO ADVANCE FUSION, CANCER RESEARCH WITH $1B SUPERCOMPUTER DEAL: Energy Secretary Chris Wright is poised to announce a $1 billion deal to construct multiple supercomputers that will be used to unlock scientific breakthroughs in issues such as nuclear power, national security, and cancer treatment.
The tech: Wright confirmed the deal this afternoon during an event in Washington D.C., alongside Advanced Micro Devices’ CEO Lisa Su, revealing that the government will be supporting the build out of two supercomputers.
The $1 billion deal calls for the first computer, named Lux, to be constructed and online within the next six months. This computer is expected to be built around AMD’s MI355X artificial intelligence chips and will also feature central processors and networking chips made by the semiconductor giant.
The second supercomputer, which will be called Discovery, will feature AMD’s MI430 AI chips that are specifically designed for high-performance computing. This project is expected to be completed by 2028 and operational one year later.
The use: These computers are to be used to “supercharge” discoveries in scientific issues that have stumped researchers for decades, including how to harness nuclear fusion energy. This tech will also be used to manage the country’s arsenal of nuclear weapons and support healthcare-related research.
Key quote: “Winning the Al race requires new and creative partnerships that will bring together the brightest minds and industries American technology and science has to offer,” Wright said.
Read more from Callie here.
TRANSMISSION COMPETITION, PERHAPS THE SOLUTION FOR LOWERING ELECTRICITY PRICES? As we discussed last Friday’s edition of Daily on Energy, electricity prices are still on the rise. One industry expert believes this problem doesn’t need to be solved by adding in more generation, but fixing how transmission projects move forward.
The details: Paul Cicio, chairman of the Electricity Transmission Competition Coalition, told Callie this morning that transmission has been the main driver behind recent electricity price hikes. He doesn’t mean the lack of it – though that plays a role – but whether or not transmission projects are developed through a competitive bidding process instead of being awarded to one utility company.
Cicio explained that over 10 years ago, the Federal Energy Regulatory Commission passed an order requiring transmission projects to be competitively bid on because it’s “in the public interest,” however, it allowed for an exception when the project was for reliability.
“Fast forward 10 years now, the utilities are issuing only reliability transmission projects, so they have skirted around the law of the land and FERC’s letting them get away with it,” Cicio said.
Data collected by ETCC found that awarding transmission projects to individual companies can lead to massive price increases. In the PJM region alone, ETCC found that transmission costs used to only make up around 6.8% of wholesale electricity prices. By 2024, that share soared to 32%.
“It’s not generation that’s increasing the prices, it’s transmission,” Cicio said, warning that if federal regulators fail to enforce competitive bids for transmission projects, the president will fail in delivering on his promise to halve electricity prices.
TRUMP MEETS WITH ASIAN NATIONS: Trump kicked off his Asia trip over the weekend in Malaysia, where he signed several deals on critical minerals with Asian nations.
Trump yesterday signed agreements with Malaysia, Thailand, and Cambodia to enhance access to critical minerals amid China’s restrictions on rare earth elements. Specifically, Trump signed two reciprocal trade agreements with Malaysia and Cambodia. The two countries, as well as Thailand, also signed a memorandum of understanding to increase critical mineral exports to the U.S.
As part of the deal Trump promised not to raise tariffs, but would maintain the 19% tariffs on all three countries. The agreements are part of the administration’s effort to address the trade imbalances following China’s stricter export controls on rare earths.
The agreements come just days before Trump is set to meet with Chinese President Xi Jinping to address trade tensions between the two nations. It was reported yesterday that the U.S. and Chinese trade officials have agreed on a trade framework which includes rare earths.
Where is Trump today? Trump landed in Japan today where he was greeted by Japan’s Emperor Naruhito at Tokyo’s Imperial Palace. The president is expected to meet with Japan’s new Prime Minister Sanae Takaichi for the first time tomorrow local time. Then, the president will fly out to South Korea on Wednesday.
Read more by Maydeen here.
WRIGHT BULLISH ON NATURAL GAS: Energy Secretary Wright remains confident that the U.S. will see massive increases in natural gas exports in the next decade.
In a video reportedly shown at a conference in Singapore today, Wright said the U.S. will double natural gas exports over the next five years and potentially double them again five or ten years after if “demand is there,” according to Reuters.
“And I suspect it will be,” Wright reportedly said.
Some background: This is the second time Wright has made the bullish promise to expand natural gas exports, the first being during the GasTech conference in Milan last month. At the time, the Energy Secretary said it was fully possible to expand due to the reversal of numerous Biden-era policies aimed at reducing reliance on fossil fuels (such as pausing approvals of liquefied natural gas export terminals).
DOE CANCELS PLUG-IN AMERICA’S CONSUMER EV EDUCATION CAMPAIGN: Plug-In America, an electric vehicle nonprofit organization, announced that the Energy Department is seeking to cancel millions in obligated funding for its consumer EV education program.
The group said that the DOE sent two termination letters, one on Oct. 2 through email and the second one dated Oct. 10 through mail, stating it would end its grant for the Plug In America’s Consumer EV Education Campaign.
According to Plug-In America, DOE’s justification to cancel the funding stated, “This project no longer effectuates program goals regarding feasibility due to a shift in the Department of Energy’s priorities.”
The nonprofit last year received a three-year $5 million grant for the education project. It was part of the Biden administration’s DOE Vehicle Technologies Office program, which selected 16 projects totaling $32.5 million to advance technology to reduce greenhouse gas emissions in the transportation sector.
Plug-In America’s education campaign helps provide information for consumers, dealers, and electric utilities on electric vehicles. The group said if the funding is terminated, they will be forced to cancel 76 planned experiential ride-and-drive events, including in rural areas.
They would be forced to end its digital advertising campaigns promoting EV driver stories and PlugStar.com, Plug In America’s brand-neutral EV shopping tool and educational resource. It would also end expanding the PlugStar program’s training and certification of auto dealership sales staff.
The termination letter is part of the Trump administration’s effort to cut programs and funding that do not align with the White House’s agenda. The administration has been a strong critic of the EV sector as it has canceled tax credits and undone regulations promoting battery-powered vehicles.
HURRICANE MELISSA: Jamaica is bracing for Hurricane Melissa, a category 5 storm that is expected to hit the country tomorrow.
Hurricane Melissa, a storm with winds of 157 mph or greater is expected to reach the southern coast of Jamaica tomorrow before hitting Cuba. The storm caused at least four deaths on Saturday across Haiti and the Dominican Republic.
As of 2 p.m. Eastern Time, the storm was about 145 miles south of Kingston, Jamaica, with winds of 175 mph, according to the National Hurricane Center.
Key quote: AccuWeather Chief Meteorologist Jon Porter said “Much of Kingston’s critical infrastructure is located in low-lying areas that are vulnerable to storm surge.”
“A key power plant, airport, shipping port, fuel terminal and water treatment plant all sit near the southern coast. A storm surge of 6-10 feet could seriously damage or destroy this infrastructure, worsening immediate impacts and complicating recovery efforts,” Porter said.
OPEC+ WEIGHING ANOTHER PRODUCTION HIKE IN DECEMBER: OPEC+ is poised to continue pressing on with increasing crude production in monthly increments through the end of the year, as Reuters now reports that the bloc is considering a modest hike in December.
The details: Four sources familiar with the talks confirmed the discussions to the outlet, with two explicitly saying OPEC+ is likely to agree on increasing production by 137,000 barrels per day.
This would be an identical increase seen in October, further signaling that OPEC+ is aware of the concerns that have grown over the year that more output will create a supply glut. OPEC+ has been rapidly unwinding years of supply cuts throughout the year, recovering more than 2.2 million barrels per day since just this spring.
News of the expected December increase unsurprisingly put downward pressure on prices this afternoon. Just after 2 p.m. EST, international benchmark Brent Crude was down 0.26% and selling at $65.77 per barrel. West Texas Intermediate had also fallen 0.07%, and was priced at $61.46 per barrel.
ICYMI – EXXON MOBIL SUES CALIFORNIA OVER CLIMATE DISCLOSURE RULES: Exxon Mobil on Friday sued California over two state laws requiring large companies to disclose their greenhouse gas emissions and climate-related financial risks.
The oil giant filed a lawsuit in the U.S. District Court for the Eastern District of California, claiming that California’s laws, Senate Bills 253 and 261, violate the First Amendment, Reuters reported.
“The First Amendment bars California from pursuing a policy of stigmatization by forcing Exxon Mobil to describe its non-California business activities using the State’s preferred framing,” Exxon Mobil said in the lawsuit.
Specifically, SB 253 requires public and private companies operating in the state and generating over $1 billion in annual revenue to disclose their carbon emissions accounts starting in 2026. Companies must disclose their own emissions and those from their supply chain.
Meanwhile, SB 261 requires companies operating in the state with over $500 million in revenue to disclose climate-related financial risks and strategies to mitigate them.
A LOOK AHEAD:
Oct. 27 Energy Secretary Chris Wright is poised to make an announcement in Washington D.C. on artificial intelligence.
Oct. 27 – 29 The American Clean Power Association is holding its RECHARGE 2025 Conference in Austin, Texas.
Oct. 28 Draslovka will be holding a webinar titled “Critical Minerals and the Geostrategic Playbook,” featuring remarks from House Energy and Commerce Subcommittee on Environment chairman Rep. Gary Palmer.
Oct. 28 The Data Center POWER eXchange forum will be hosted in Denver, featuring remarks from former FERC chairman Mark Christie.
Oct. 28 – 29 The Mountain West Renewables Summit will be taking place in Salt Lake City, Utah.
Oct. 29 The Atlantic Council, alongside Natural Resources Canada and the Munk School of GLobal Affairs and Public Policy, is hosting the Summit on Future Energy Security in Toronto, Canada.
Oct. 29 The Senate Energy and Natural Resources committee will be holding a hearing to examine the Section 106 Consultation Process under the National Historic Preservation Act.
Oct. 29 The Senate Environment and Public Works committee is holding a business meeting to consider several nominations.
Oct. 29 – 30 Energy Trading Week Americas will be held in Houston, Texas
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