Welcome to today’s GridBrief! We’re diving into the DOE’s latest nuclear investment push, SCOTUS's decision on EPA carbon rules, and how a new Texas pipeline is changing the game for shale. Plus, Amazon, Google, and Microsoft are going all-in on small modular reactors—get ready for a nuclear-powered future.

SCOTUS Rejects Emergency Bid to Halt EPA Carbon Rule

In a closely watched decision, the U.S. Supreme Court declined to put the brakes on the EPA’s carbon emissions rule for power plants, keeping the regulation in place while lower courts hear challenges.

The rule targets coal and gas-fired plants, requiring them to either capture 90% of their carbon emissions or face closure by the early 2030s. For the power industry, this is a major inflection point: compliance will require expensive upgrades like carbon capture technology, potentially accelerating the retirement of older, less efficient plants. Some utilities argue the EPA is overreaching, and that these requirements will increase costs for consumers while threatening grid reliability. However, with SCOTUS declining to intervene, utilities must continue preparing for a future where fossil fuel generation faces significant regulatory headwinds. The outcome of next year’s presidential election will be crucial in determining whether the rule stands long-term.

DOE Opens $900M to Support SMR Deployment

The Department of Energy is injecting up to $900 million to fuel the next generation of small modular reactors (SMRs), a critical move for the future of U.S. energy. This funding signals the DOE’s commitment to advancing SMRs as a reliable, 24/7 clean energy source—seen as key to achieving the nation's net-zero emissions goals by 2050. SMRs are not just smaller versions of traditional nuclear plants; they promise faster deployment, scalability, and greater safety features, making them ideal for supplementing intermittent renewable energy like wind and solar. The funding is split into two buckets: $800M for "first mover" projects—teams looking to deploy the first wave of SMRs—and $100M for "fast followers" to help others jump into the game. By addressing challenges like design, licensing, and supply chain development, this program could turn SMRs into a cornerstone of America’s clean energy strategy.

Texas Natural Gas Pipeline Eases Shale Bottlenecks

The Permian Basin, responsible for half of U.S. crude oil production, just got a much-needed boost from the new Matterhorn Express pipeline, which began operations last month. This 580-mile pipeline is critical for alleviating the bottlenecks that have plagued West Texas producers, forcing them to pay others to take their natural gas or simply flare it off. Matterhorn is now moving 2.5 billion cubic feet of gas per day from the Permian to Gulf Coast export hubs, helping stabilize gas prices that had plummeted to negative levels. This not only allows producers to ramp up oil output but also reduces environmentally damaging flaring. However, experts warn this relief may be short-lived—Permian gas production is expected to keep growing, and Matterhorn’s capacity could be maxed out by next year. The next pipeline, Blackcomb, isn’t expected online until 2026, so producers may face similar bottlenecks again soon.

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Conversation Starters

• U.S. Clean Hydrogen Hubs Under Scrutiny - Canary Media
  One year into the $7 billion federal program, U.S. clean hydrogen hubs are facing questions about transparency and progress. Environmental advocates warn that projects may be off-track and are calling for more detail on community impacts and lifecycle emissions.

• Tech Giants Betting on Nuclear - The Register
  Amazon, Google, and Microsoft are cutting deals for nuclear power years ahead of delivery. Google lined up an agreement with Kairos Power, Amazon invested $500M in SMRs in Washington and Virginia, and Microsoft’s PPA will revive Three Mile Island. The common thread? Betting on 24/7 clean energy to power their data centers.

• Amazon’s SMR Power Play - WSJ
  Amazon announced three major deals to develop more than 600 MW of SMR capacity. The company is working with Energy Northwest, X-energy, and Dominion to bring reactors online in Washington and Virginia. Amazon’s long-term plan: 5 GW of new nuclear power by 2039.

Good Bet, Bad Bet

Bad Bet: Paul Ehrlich’s Population Bomb Bust
In 1968, biologist Paul Ehrlich predicted global mass starvation due to overpopulation, leading to skyrocketing energy demand and shortages. He claimed by the 1980s, hundreds of millions of people would starve. Oops.

Good Bet: Go long on Dominion Energy (D)
Here’s why: Amazon just dropped half a billion on small modular reactors (SMRs), and Dominion’s at the heart of this nuclear revolution in Virginia. You’re too late to capture this wave of NuScale, but SMRs are about to be the backbone of 24/7 clean energy, and Dominion’s got their hands deep in the game. With tech giants like Amazon betting big on nuclear, Dominion’s positioned to ride the wave into the 2030s.

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