Latest news with #DeepSky
Daily Mail
6 days ago
- Business
- Daily Mail
Once‑desirable homes face 'worthless' future as insurance crisis deepens in blue state
A new cost-of-living crisis is deepening across America's progressive capital. In California, soaring climate risk and mounting insurance losses are converging into a property crisis experts warn could slash the value of millions of homes. Deep Sky, a Canadian carbon removal firm, published an analysis of the state's housing insurance market, which painted a dire picture. 'The highest risk areas of California have effectively become uninsurable and will soon become unaffordable,' the study, published in mid-June, concluded. 'Without significant policy intervention, these properties will eventually become worthless.' The warning comes just six months after destructive blazes ripped through Southern California, destroying over 18,000 structures and burning more than 57,000 acres. In January, the Palisades and Eaton fires became two of the most destructive blazes in state history. The impact on the insurance market, which was already under pressure, was immediate. In the first quarter of 2025, insurers posted a $1.1 billion net underwriting loss — a sharp reversal from the $9.4 billion gain they posted the same period a year before. Those numbers have hit some of the most wildfire-prone areas, where premiums have jumped by 42 percent since 2019, and more than 150,000 homes are now uninsured altogether as residents simply cannot afford coverage. But the state has a long way to fall before reaching worthlessness. Right now, the Golden State is America's most expensive housing market. Median home values in California are currently just over $780,000, according to Zillow. That's over $400,000 more than the US average. But, without a robust fire insurance market, policymakers and researchers are warning that the state is resting on shaky grounds. In May, Ricardo Lara, the state's insurance commissioner, approved a 17 percent rate hike for State Farm General, California's largest home insurance provider, to help pay for earlier destruction. 'The market is not going to fail under my leadership,' he told Politico after the decision. 'I have to make these hard decisions, even though it makes me the most unpopular person, and maybe nobody wants this position in the future.' California recently adjusted its climate regulations to allow for more home building across the state And California is by no means alone. Several other states that are prone to natural disasters have faced mounting home insurance issues. State Farm hiked home insurance rates in Illinois by 27.2 percent this month, adding $746 to the average bill. The insurer insists the hike is unavoidable, claiming it is paying out far more in claims than it collects in premiums in the state which is prone to hailstorms. Florida, which saw a major inflow of residents in 2020, is seeing housing shoppers flee its hurricane-vulnerable coastlines that used to draw million-dollar buyers. In April, contracts to buy homes in the Miami, West Palm Beach and Fort Lauderdale regions fell dramatically from the year prior. Homes also lingered longer on the market. Pending sales fell 23 percent year-over-year in Miami, according to Redfin, which was the largest drop among the 50 most populous metro areas across the US. Meanwhile, some cash-strapped young homebuyers are skipping insurance altogether out of fear their homes will not pass inspection. 'Many homeowners are living on borrowed time and borrowed trust, we're seeing financial strain and home safety come head-to-head,' home insurance expert Kara Credle from Guardian Service previously told 'Homeownership is no longer the financial safe haven it used to be.'
Yahoo
22-07-2025
- Business
- Yahoo
Alarming report warns that huge number of once-valuable homes may soon be 'worthless': 'State of crisis'
Alarming report warns that huge number of once-valuable homes may soon be 'worthless': 'State of crisis' A study has shown that destructive weather patterns are causing massive strain on the California home insurance market, according to InsuranceNewsNet. What's happening? California has been battered by catastrophic wildfires in recent years, leaving properties and lives in shambles. Direct air capture company Deep Sky has released findings showing that one in five homes in the most extreme fire risk areas of California have lost insurance coverage since 2019. Many insurance companies pulled coverage just months before the record-setting Palisades fires in January 2025. "The home insurance market is in a state of crisis. The highest risk areas of California have effectively become uninsurable and will soon become unaffordable," said the report. "Banks will not approve mortgages without home insurance, and few will buy a house without a mortgage (in a high risk wildfire area no less). Without significant policy intervention, these properties will eventually become worthless." Why is home insurance important? "We are in a statewide insurance crisis, affecting millions of Californians," said Insurance Commissioner Ricardo Lara, per InsuranceNewsNet. "Taking this on requires tough decisions. This is not a game." This sentiment has been shared by the U.S. Senate Budget Committee, which has projected that climate shifts will prompt a housing market crash worse than the one in 2008. What's being done about home insurance hikes? Wildfire season has begun in the state, and solutions are hard to find. "California is just entering the worst phase of its crisis," said Diane Delaney, executive director of the Private Risk Management Association, per InsuranceNewsNet. "Regulatory limitations have made it difficult for insurers to adjust pricing or expand capacity in high-risk areas." While California has a state-backed insurer of last resort, the amount of risk they're able to be exposed to is limited. Florida has attempted several reforms, which have included financial support for insurers, but homeowner rates have continued to rise despite the "corporate welfare." Do you feel like your home is well-insulated? Definitely In most areas Only in some rooms Not at all Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Solve the daily Crossword
Yahoo
01-07-2025
- Business
- Yahoo
'Spotlight On Canada': Deep Sky's $40M DAC Hub Backed By Bill Gates Draws Global Carbon Tech Surge After Trump Fuels U.S. Climate Uncertainty
Canadian climate startup Deep Sky is rapidly emerging as a leader in carbon removal after completing construction on what it calls the world's first test hub dedicated entirely to direct air capture technologies. Located in Alberta, the Alpha facility has secured contracts with eight companies from the U.S., Canada, the U.K., Germany, and the Netherlands, Reuters reports. This surge in international demand, particularly from U.S.-based startups, follows renewed political uncertainty in the U.S. regarding federal support for climate initiatives, Reuters says. According to Deep Sky CEO Alex Petre, the shift in leadership in Washington has caused an unexpected wave of inquiries from American carbon tech developers now seeking more stable infrastructure abroad. "The changes south of the border have actually meant that there is currently a spotlight on Canada," Petre told Reuters. Don't Miss: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Deep Sky received a $40 million grant from Breakthrough Energy, the climate-focused investment firm founded by Bill Gates. According to Reuters, the funds were used to construct the Alpha facility, a pilot-scale site where up to 10 direct air capture companies can test, iterate, and optimize their technologies in real-world conditions. Direct air capture differs from traditional carbon capture systems, which remove emissions directly from industrial smokestacks, Reuters says. DAC instead pulls carbon dioxide from ambient air, making it a key technology for addressing legacy emissions that are already in the atmosphere. However, Reuters says that high costs and limited scalability have slowed widespread adoption. The largest existing DAC plant, located in Iceland, removes only 36,000 tonnes of carbon dioxide per year. The United Nations Intergovernmental Panel on Climate Change has projected that billions of tons may need to be removed annually by 2050 to meet climate goals. Trending: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. In the U.S., DAC development previously received strong support under the Biden administration, which committed over $1 billion in funding for new hubs in Texas and Louisiana. With President Donald Trump's return, those federal grants are now facing possible cancellation, prompting developers to explore alternatives in Canada, Reuters reports. Deep Sky's test facility will begin capturing 3,000 tons of carbon dioxide annually starting this summer, laying the groundwork for the company's broader plan to develop a commercial-scale carbon removal operation in Canada, according to Reuters. The energy sector's relationship with Ottawa appears to be entering a new phase. Reuters says that under former Prime Minister Justin Trudeau, oil and gas leaders often criticized federal policies for placing climate goals ahead of economic development, creating friction with provinces like to Reuters, new Prime Minister Mark Carney has signaled a more balanced approach, with his administration pledging to diversify Canada's energy export markets, particularly as trade tensions with the U.S., its largest customer, remain unresolved. At a Calgary Chamber of Commerce event on May 23, new Natural Resources Minister Tim Hodgson delivered a message aimed squarely at Canada's western provinces. "In the new economy we are building, Canada will no longer be defined by delay, we will be defined by delivery," Hodgson said during his first public appearance in Alberta's corporate oil capital since joining Carney's cabinet, Reuters reports. Petre said she believes Canada has the potential to lead in both conventional and clean energy production. 'There's lots of really interesting developments (in Canada) that seem to be on the table that I think will really help us,' Petre told Reuters. Read Next: Here's what Americans think you need to be considered wealthy. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report This article 'Spotlight On Canada': Deep Sky's $40M DAC Hub Backed By Bill Gates Draws Global Carbon Tech Surge After Trump Fuels U.S. Climate Uncertainty originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Buzz Feed
01-07-2025
- Climate
- Buzz Feed
So THAT's Why UK Heatwaves Feel So Much Worse Than Other Countries
Every time it gets hot in the UK, I rush to social media to find the one tool that can soothe me: people from roasting climates, like Australia and the southern US, learn that we're really not exaggerating about the heat here. 'UK heat hits different,' a Californian living in the UK admitted in a TikTok video recently. 'I got a fan pushing hot, sticky air around – gotta go to a grocery store if you want a little bit of relief,' she added. But why does the UK feel so much hotter than countries with the same, or higher, temperatures? We literally are not built for this heat Speaking to HuffPost UK, Max Dugan-Knight, a climate data scientist at Deep Sky, said that if you think the heat really is different here, 'your intuition is correct'. Not only does he say that 'heatwaves are getting more common, hotter, longer, and generally more dangerous,' due to climate change, but the expert added: 'They're particularly uncomfortable in the UK.' One reason for that is the 'inadequate infrastructure for very hot temperatures' we have here, Dugan-Knight told us. 'There are places that regularly get temperatures that high – in the tropics, for instance, or the US Southwest – but almost everyone has access to air conditioning, shade is prioritised in building design, and in some cases, daily schedules adapt to avoid being outside during the hottest times of the day.' The UK, in comparison, 'is not prepared for heat like this', from our train infrastructure to our homes. Richard Millard, senior sustainability consultant at Building Energy Experts, added: 'House are designed to keep heat in with large amounts of insulation and dense materials such as brick and stone, that can work to overheat in summer due to solar gains and activity in the house during the day and our buildings lack design to prevent solar gain effectively such as shutters, overhangs and awnings and light colour exteriors and roofs that reflect away heat.' Then, there's our environment and climate Another issue is the humidity of the UK, which prevents sweat from wicking away, Johan Jaques, chief meteorologist at environmental solutions company KISTERS, said. 'That's why you feel hotter and stickier... This difference is why 35°C in a dry climate can feel more comfortable than 30°C with high relative humidity.' Then, there are our cities, which Miller said are likely to get hotter than rural spots. 'The UK has a very dense urban environment, which means our towns and cities have a large urban heat island effect due to the amount of concrete, asphalt and such that absorbs heat and releases it slowly, making cities and towns feel hotter,' he explained. These heatwaves, sadly, are likely to get longer, hotter, and 'generally more dangerous', Dugan-Knight ended. 'It is distressing, there's no way around that. In the short term we need to invest in better infrastructure to be able to withstand heatwaves like pervasive air conditioning. 'In the long term, we must address the underlying forces of climate change.'
Reuters
26-06-2025
- Business
- Reuters
Canadian carbon tech startup draws US interest post-Trump
CALGARY, June 26 (Reuters) - A Canadian startup that has built the world's first hub for the testing of multiple direct-air carbon-sucking technologies says it has seen an influx of inquiries from U.S. companies in the wake of President Donald Trump's election. Startup Deep Sky recently completed construction at its "Alpha" Direct Air Capture, or DAC, test ground in Alberta, where it will have room for 10 companies to deploy and fine-tune technologies on their way to developing commercial-scale plants. CEO Alex Petre said that with the Trump administration's reduced focus on climate as well as uncertainty about the future of U.S. funding support for DAC technology, Deep Sky is fielding more inquiries than expected from U.S.-based carbon tech developers. "The changes south of the border have actually meant that there is currently a spotlight on Canada," she said. Deep Sky, which received a $40 million grant last year from Bill Gates' Breakthrough Energy, has signed contracts with eight companies — from the U.S., Canada, the U.K., the Netherlands and Germany — to operate at the site. Carbon removal at the testing ground, which is expected to capture 3,000 tonnes of CO2 emissions annually, will begin this summer. DAC is different from the more established carbon capture and storage technology. Where traditional carbon capture and storage is deployed at industrial smoke stacks, filtering out the CO2 and storing it before it reaches the atmosphere, DAC removes carbon directly from the air — meaning it can clean up emissions that have already occurred. However, the technology has been expensive and slow to scale. The largest operating DAC plant in the world, in Iceland, has capacity to capture just 36,000 tonnes of CO2 annually. The UN Intergovernmental Panel on Climate Change has said stabilizing the planet's climate could require DAC removal at the scale of millions or even billions of tonnes annually by 2050. In the U.S., DAC proponents are facing a broader political backlash against public funding for climate technology. Under former President Joe Biden, the U.S. Department of Energy pledged more than $1 billion in funding support for two proposed DAC hubs in Texas and Louisiana. But sources told Reuters in March the grant funding could be eliminated by the Trump administration. Petre said that once Deep Sky's Alberta test hub is fully up and running, the company plans to develop a large-scale commercial DAC project in Canada. She said she is encouraged by new Prime Minister Mark Carney's commitment to identify and fast-track infrastructure projects of national interest in an effort to help Canada become a conventional and clean energy superpower. "There's lots of really interesting developments (in Canada) that seem to be on the table that I think will really help us," Petre said.
