Driving Decarbonization: Rio Tinto and Green Lithium to Boost EU Lithium Supply

Saptakee S
-
0
Driving Decarbonization: Rio Tinto and Green Lithium to Boost EU Lithium Supply

As the demand for electric vehicle (EV) metals grows across Europe, global mining giant Rio Tinto and UK-based refinery developer Green Lithium have joined forces to create a robust domestic lithium supply chain. This strategic partnership is set to boost the UK and EU’s automotive and manufacturing sectors, while also advancing decarbonization goals.

Rio Tinto – Green Lithium Partnership Sparks Hope for Europe’s Lithium Future

Green Lithium plans to construct a large-scale lithium refinery in Teesside, England. The facility will produce high-purity lithium chemicals, essential for batteries in the UK and EU automobile industry. What makes this project unique is its focus on sustainability. To reduce environmental impact, the company will use advanced technology to process low-carbon spodumene concentrate.

Philippe Bourdages, Vice President of Minerals Sales at Rio Tinto remarked,

“Rio Tinto and Green Lithium share ambitions related to decarbonization and today’s announcement is an important step forward in our journey towards unlocking the end-to-end battery metals supply chain in Europe. Alongside Green Lithium, we are looking to supply the global rollout of green battery technology to feed the significant European market demand.”

Rio Tinto will play a significant role in boosting lithium production. This initiative comes at a crucial time. Europe, despite being a key player in the EV market, lacks sufficient lithium refining capabilities. Currently, much of the global supply chain is controlled by Chinese companies.

This joint venture is expected to help reduce Europe’s dependence on imports, thereby securing a sustainable supply of battery metals.

Most importantly Sarah Jones MP, UK Government Minister for Industry and Decarbonisation applauded this deal, noting,

“This is great news for Green Lithium and Rio Tinto and will not only support high-skilled jobs in the North East but boost our critical minerals supply chains as we continue to build a cleaner, greener future for our automotive industry and drive forward our mission to net zero.”

Unlocking Green Lithium’s Sustainable Lithium Refinery in Teesside

Green Lithium’s lithium refinery in Teesside, North East England, aims to set new sustainability standards. With a low-carbon refining process, it will reduce emissions compared to traditional resource-heavy methods. This is possible due to its location in a region with abundant clean energy options.

The refinery will use renewable energy sources, including on-site solar and wind power. To further cut emissions, the facility will enter into green power agreements, ensuring its electricity comes from clean sources. By 2035, the plant also aims to fully transition to green hydrogen for gas needs, replacing natural gas.

Guy Hatcher, Head of Strategic Business Development and Co-Founder at Green Lithium highlighted that as per Minviro’s Life Cycle Assessment (LCA) report, the refinery’s emissions profile is set to outperform existing operations. It can potentially reduce the overall carbon footprint by 75% compared to current refineries. With these innovations, the refinery is on track to lead the way in sustainable lithium production for the growing battery market.

A MESSAGE FROM Li-FT POWER LTD.

Lithium Deposits That Can Be Seen From The Sky

LiFT Power lithium mining

Who is Li-FT Power? They are one of the fastest developing North American lithium juniors with a flagship Yellowknife Lithium project located in the Northwest Territories.

Three reasons to consider Li-FT Power:
RESOURCE POTENTIAL | EXPEDITED STRATEGY | INFRASTRUCTURE

Li-FT is advancing five key projects; all located in the extremely safe and friendly mining jurisdiction of Canada.

Learn more about this mineral exploration company engaged in the acquisition, exploration, and development of lithium pegmatite projects >>

TXSV: LIFT | OTCQX: LIFFF | FRA: WS0
*** This content was reviewed and approved by Li-FT Power Ltd. and is being disseminated on behalf of Li-FT Power Ltd. by CarbonCredits.com. ***

Why Lithium is Crucial for Europe’s Net Zero Goals?

It’s a well-known fact that lithium is a key material for electric vehicle (EV) batteries and energy storage systems and would significantly reduce Europe’s dependency on fossil fuels in the future.

According to the EU’s Critical Raw Materials Act (CRMA) which is part of the Green Deal Industrial Revolution,

 “Ensures EU access to a secure and sustainable supply of critical raw materials, enabling Europe to meet its 2030 climate and digital objectives.” 

The CRMA emphasized that critical raw materials are essential to Europe’s economy but are vulnerable to supply disruptions. Demand for these materials is rapidly increasing due to global decarbonization efforts. Furthermore, the council has predicted:

  • By 2030, the EU’s need for lithium will rise twelvefold, and by 2050, it will increase twenty-onefold.

However, Europe currently imports 81% of its lithium and lacks domestic refining capacity, relying heavily on suppliers from Chile and China. The CRMA tackles Europe’s supply vulnerabilities by building strong, resilient, and sustainable value chains. Additionally, it aims to enhance domestic extraction, refining, and recycling while lowering import reliance and monitoring supply disruptions.

CRMA’s 2030 Milestones for Domestic Capacities

The Act sets these benchmarks along the strategic raw materials value chain and for the diversification of the EU supplies

  • at least 10% of the EU’s annual consumption for extraction
  • at least 40% of the EU’s annual consumption for processing
  • at least 25% of the EU’s annual consumption for recycling
  • no more than 65% of the EU’s annual consumption from a single third country

Lithium Prices Stabilize While Cobalt Trend Low, A S&P Global Report

Passenger plug-in electric vehicle (PEV) sales rose 26.5% year over year in August, driven by growth in China, though Europe’s top markets saw a decline of over 60,000 units due to Germany’s end of subsidies.

With slowing PEV demand in Europe and the U.S., battery makers are delaying expansions, and automakers are pushing back electrification goals.

The key highlights of the S&P Global analysis were: Lithium prices stabilized shortly because of CATL’s mine shutdown and high seasonal demand, but the market was oversupplied. Conversely, cobalt prices fell 1.7% in September, and the excess supply is likely to continue until 2028, keeping prices low.

Lithium S&P GLOBAL

EU’s Quest for Reliable Supply Chains

To diversify supply, the EU is also forming global partnerships to secure domestic supply chains and boost sustainable economic growth. Significant deposits have been found in Serbia and Germany, However, challenges like environmental concerns and regulatory hurdles have slowed progress.

One major example is Rio Tinto’s efforts to revive its Jadar lithium project in Serbia. This project, set to be Europe’s largest lithium mine, had its license revoked in 2022 due to environmental protests. However, with legal approval in July 2023, the project’s resumption was on track. Rio Tinto estimates that the Jadar mine could produce up to 60,000 tons of lithium annually, which would meet nearly 20% of Europe’s demand for EV batteries.

We can infer that the partnership between Rio Tinto and Green Lithium not only supports the automotive industry but also aligns with wider efforts to achieve net zero emissions. Both companies are committed to decarbonization, and this project could significantly reduce the carbon footprint of lithium production in Europe.

Last but not least, Sean Sargent, Chief Executive Officer of Green Lithium, expressed himself by saying.

“The EV and battery revolutions are fundamental to reducing the carbon emissions that contribute to global climate change. By building our refineries, we will accelerate the adoption of EVs and sustainable energy storage through the increased supply of low-carbon, battery-grade lithium chemicals. Fulfilling this vision requires the right partners, and in Rio Tinto we have found an exceptional potential commercial partner.”

Li-FT Power Reveals Initial Mineral Resource of 50.4 Million Tonnes at Yellowknife Lithium Project

Jennifer L
-
0
Li-FT Power Reveals Initial Mineral Resource of 50.4 Million Tonnes at Yellowknife Lithium Project

Li-FT Power Ltd. (TSXV: LIFT) has announced its first-ever National Instrument 43-101 (NI 43-101) compliant mineral resource estimate (MRE) for the Yellowknife Lithium Project (YLP), located in the Northwest Territories, Canada. This maiden estimate is a major milestone for the company and marks a significant step forward in the project’s development. 

The resource estimate positions the Yellowknife Lithium Project as a globally important spodumene resource, making it one of the top 10 largest spodumene projects in the Americas.

North and South American hard-rock lithium projects
Source: Li-FT Power

A Lithium Giant Emerges: Key Highlights of the Maiden MRE

The Yellowknife Lithium Project’s initial MRE reveals a total of 50.4 million tonnes grading 1.00% lithium oxide (Li₂O). That is equal to around 506,000 tonnes of Li₂O or 1.25 million tonnes of lithium carbonate equivalent (LCE). This significant volume of lithium-rich spodumene places the Yellowknife Project among the largest hard-rock lithium deposits in Canada, currently ranked as the 3rd-largest hard-rock maiden resource in the country.

Maiden resource estimates for Canadian spodumene projects
Source: Li-FT Power

The estimate includes 8 of the 13 spodumene-bearing pegmatite dykes located on the property. However, the majority of these deposits remain open at depth, with 6 of the 8 dykes in the estimate showing unconstrained mineralization. This opens the door for substantial resource expansion through future drill programs. 

8 of 13 resource pegmatites dykes with 2024 drilling plotted
8 of 13 resource pegmatites dykes with 2024 drilling plotted Source: Li-FT Power

In addition, 5 undrilled spodumene dykes on the property are not yet included in the MRE, presenting further upside potential for growth as exploration continues.

The maiden resource estimate is based on data gathered from 49,548 meters of diamond drilling, completed across 286 holes between June 2023 and April 2024. While the estimate represents a substantial resource, it is only the beginning, with Li-FT aiming to build on these early findings as additional exploration and drilling are conducted over the coming years.

Yellowknife Lithium Project deposit in-pit MRE
Source: Li-FT Power

Strategic Positioning and Infrastructure Benefits

One of the Yellowknife Lithium Project’s significant advantages is its excellent access to infrastructure. The Ingraham Trail, a government-maintained paved highway, runs through part of the project’s mineral resource area, providing convenient transportation links. 

Li-FT yellowknife lithium project location
Location of LIFT’s Yellowknife Lithium Project

Moreover, the project is close to rail facilities at Hay River, which is connected to major ports in Prince Rupert and Vancouver. This logistical infrastructure is critical for future shipping, especially to key markets in Asia, where lithium demand continues to grow as the global transition to electric vehicles accelerates.

The project is also close to existing powerlines near Yellowknife, which will help reduce development and operational costs. This infrastructure positioning enhances the project’s economic viability and makes it well-suited for future large-scale mining and processing operations.

Metallurgical Testing and Processing Potential

The metallurgical work conducted to date confirms the suitability of the Yellowknife Lithium Project’s spodumene-bearing pegmatites for dense medium separation (DMS) processing. DMS is a cost-effective method for separating lithium from spodumene, and initial testing has shown that this technique can be applied successfully to the YLP deposits.

X-ray diffraction analysis and pilot-scale testing completed as part of the Yellowknife Lithium Project’s metallurgical program have confirmed the presence of simple lithium mineralogy in the pegmatites. The confirmation that low-cost DMS processing is suitable for the spodumene dykes included in the maiden resource estimate adds further confidence in the project’s potential to be a low-cost lithium producer.

Yellowknife’s Road to Lithium Dominance

With the maiden resource estimate now in place, Li-FT Power is moving forward with plans to conduct a Preliminary Economic Assessment (PEA) for the Yellowknife Lithium Project. The PEA will evaluate the project’s economic feasibility, including factors such as capital and operating costs, potential production rates, and overall project profitability.

Li-FT expects to complete the PEA in the second quarter of 2025, marking another critical step toward bringing the lithium project into production. The company’s management views this initial resource estimate as a foundation for growth. CEO Francis MacDonald expressed optimism about the project’s future, saying that:

“The announcement of Li-FT’s first NI 43-101 mineral resource estimate for the Yellowknife Lithium Project marks a significant milestone for both the company and the Northwest Territories.”

What Lies Ahead For Lithium

The opportunities presented by the Yellowknife Lithium Project are immense. As the world shifts towards electrification and renewable energy, lithium demand is expected to soar, driven by the growth of electric vehicles (EVs) and energy storage systems. Projects like Yellowknife, with its large, high-grade lithium resources, will play a crucial role in meeting this demand, stabilizing lithium prices and supporting the global transition to cleaner energy.

The Northwest Territories, with its rich mineral endowment and supportive mining infrastructure, is well-positioned to become a key player in the global lithium supply chain. The Yellowknife Lithium Project has the potential to be a cornerstone asset in the region’s mining future.

With 50.4 million tonnes of inferred resources and substantial room for expansion, the project could become a key contributor to North America’s lithium supply. As Li-FT Power advances and continues exploration, this development represents a major opportunity in the rapidly growing lithium market.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: LIFT.

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

Ioneer’s Nevada Lithium Mine Gets Regulatory Approval Amid the Endangered Buckwheat Flower Controversy

Saptakee S
-
0
Ioneer’s Nevada Lithium Mine Gets Regulatory Approval Amid the Endangered Buckwheat Flower Controversy

The U.S. Bureau of Land Management (BLM), under President Biden’s administration, has nearly completed the regulatory process for Ioneer’s Rhyolite Ridge lithium project in Nevada, one of the largest lithium sources in the U.S.

BLM’s decision follows a six-year review aimed at boosting U.S. critical mineral production and reducing China’s dominance in battery metals. Once fully approved, the mine will become a key supplier of lithium for the U.S. electric vehicle (EV) market, with the capacity to power up to 370,000 EVs annually.

Rhyolite Ridge is one of two advanced lithium projects in the U.S. and is fully funded for a Final Investment Decision. It is expected to be a low-cost lithium site due to its valuable boron co-product and innovative cost-saving measures in its sustainable operations. Subsequently, it will produce lithium carbonate by processing materials on-site rather than shipping them elsewhere. This approach is crucial for the EV battery supply chain.

LATEST: EIA Expects Explosive Growth in U.S. Battery Storage—Can America Ascend to Dominance?

Ioneer’s Lithium Mine vs. Endangered Buckwheat Flower Debate 

The proposed Rhyolite Ridge lithium mine by Ioneer has sparked a heated debate. While it promises economic and environmental benefits through the production of critical battery metals, it also threatens a rare plant species, Tiehm’s buckwheat. This is why conservationists and mining advocates are locked in a tug-of-war over the project’s future.

The Economic Promise

Proponents of the Rhyolite Ridge mine argue that the project is vital for U.S. energy independence and the growth of the electric vehicle market. As one of the largest lithium mines in the U.S., it could support the production of a massive number of EVs each year. Simply put, the Nevada lithium project is a major step forward to reduce carbon emissions and shift to clean energy.

Ioneer’s Chairman, James Calaway, highlighted the project’s potential contribution to the clean energy transition, stating,

“We can protect the flower and still produce the critical minerals needed for EV batteries.”

Ioneer Buckwheat

Source: Ioneer

The Environmental Challenge

Conservationists, however, have raised concerns about the mine’s environmental impact. The endangered Tiehm’s buckwheat flower, which grows only in the region near the mine site, has become a symbol of this fight. The flower was discovered in the 1980s and is found on federal land near the Nevada-California border. Environmental groups claim that the mine’s operations will endanger the fragile plant, pushing it closer to extinction.

In 2020, more than 17,000 rare flowers mysteriously died near the proposed mine site. Conservationists accused Ioneer of intentionally destroying the plants, but the company denied the allegations. Surprisingly, the U.S. Fish and Wildlife Service (FWS) later attributed the deaths to thirsty squirrels. However, environmentalists successfully pushed for the flower to be listed as endangered under the Endangered Species Act.

The FWS responded by designating 910 acres near the mine as a protected area to preserve the flower’s habitat. While this move helps protect the species, it does not completely halt the mining project. The debate continues over whether these measures are enough to ensure the flower’s survival.

Can Conservation and Mining Coexist?

Ioneer firmly believes that it can protect Tiehm’s buckwheat without compromising the mine’s operations. The company has adjusted its plans to limit the impact on the flower’s habitat. In addition, Ioneer has proposed a propagation plan to grow and transplant the flowers nearby. Calaway insists that these measures will not affect the mine’s production and remains confident that the project can proceed sustainably.

Environmental groups, however, remain unconvinced. Patrick Donnelly from the Center for Biological Diversity argues that the mine’s plans still threaten the flower’s survival, stating,

“The mining company’s plans run afoul of the Endangered Species Act.”

Donnelly further added that the project would destroy much of the plant’s critical habitat. Critics emphasize the irreplaceable nature of Tiehm’s buckwheat and argue that no amount of mitigation can undo the damage.

As the project moves through its final stages of approval, the debate between economic progress and environmental preservation is far from over. The question remains: Can the U.S. secure its lithium supply without sacrificing its biodiversity?

BLM Director Tracy Stone-Manning has also assured,

“This environmental analysis is the product of the hard work of experts from multiple agencies, to ensure we protect species as we provide critical minerals to the nation. We’re steadfast in our commitment to be responsible stewards of our public lands as we deliver the promise of a clean energy economy.”

The Road Ahead for Ioneer’s Rhyolite Ridge Lithium Project

The Rhyolite Ridge lithium project, backed by BLM’s approval, still faces hurdles before moving forward. The next phase includes a public comment period and the release of a final environmental impact statement. After these steps, a decision on the mining permit is expected within 30 days.

This project reflects the challenge of balancing economic growth with environmental protection. The BLM, in coordination with state and tribal authorities, has worked to address concerns while ensuring the project supports the Biden administration’s clean energy goals. The U.S. government has increasingly focused on critical mineral production, aiming to boost domestic supply and reduce reliance on imports.

Rhyolite Ridge, along with the Thacker Pass project, is key to increasing lithium production for EV batteries and energy storage solutions in the U.S. Reuters reported that Ford and a joint venture between Toyota and Panasonic have already agreed to buy lithium from the mine. However, the ongoing debate around environmental impacts, including the preservation of the rare Tiehm’s buckwheat flower, underscores the tension between conservation and the push for a green economy.

Disclaimer: Research sources:

  1. BLM issues final analysis for proposed Rhyolite Ridge lithium mine in Nevada | Bureau of Land Management
  2. https://www.mining.com/us-closer-to-greenlighting-ioneers-nevada-lithium-mine/ 

Ambuja Cements Makes History: First to Join the Alliance for Industry Decarbonization (AFID)

Saptakee S
-
0
Ambuja Cements Makes History: First to Join the Alliance for Industry Decarbonization (AFID)

Ambuja Cements Limited, the top cement and building materials company in India announced joining the Alliance for Industry Decarbonization (AFID). Ambuja’s membership marks a historic moment as it becomes the world’s first cement manufacturer to join AFID, setting a milestone in decarbonization for the cement industry.

Adani’s Acquisition and Significance of Joining the AFID

In September 2022, Adani Group completed the acquisition of Ambuja Cements Ltd and ACC Ltd. Thus, Ambuja Cements is now part of the growing Adani Portfolio. With its subsidiaries, ACC Limited and Sanghi Industries Limited, Ambuja Cements aims to help the Adani Group reach a cement production capacity of 140 MTPA by 2028.

Joining AFID is a significant milestone for the cement behemoth. Simply put, this global initiative aims to accelerate the transition to net zero as it aligns with the Paris Agreement. The AFID focuses on reducing emissions in industrial sectors and boosts the net-zero goals of the hard-to-abate industries. It brings together public and private organizations from energy-intensive industries to work toward a greener future. It serves as a platform for industry dialogue, fostering cooperation among private and public stakeholders in energy-intensive sectors.

By collaborating with other members, Ambuja aims to develop robust decarbonization strategies that align with national commitments. Notably, The International Renewable Energy Agency (IRENA) coordinates the alliance’s activities, ensuring a unified approach to achieving net-zero goals across industries.

Furthermore, the cement giant earned an A- ‘Leadership Score’ from CDP for its climate action. The company was also named one of ‘India’s Most Trusted Cement Brands’ by TRA Research in 2024 and listed among the ‘Iconic Brands of India’ by The Economic Times.

Currently, it has 18 integrated plants and 19 grinding units. Its highly advanced port infrastructure ensures timely, cost-effective bulk cement shipments, giving the company a competitive edge in the market.

Now, the big question is how Ambuja Cements plans to decarbonize its cement manufacturing process and achieve its Net Zero goals. What are its strategies and investments in renewable energy? Let’s explore.

Ambuja Cements: Leading the Way to Net Zero by 2050

Mr. Karan Adani, Non-Executive Director, Ambuja Cements.

“This marks another significant step for Ambuja in its sustainability journey. We are already amongst the lowest emission-intensity cement producers globally and are undertaking several strategic initiatives to further reduce our GHG emission footprint. Being a member of the Alliance for Industry Decarbonization would allow us to leverage the experiences of global cross-sector industry peers, and in turn, share our approach to decarbonization.”

Emission Reduction Target

Ambuja Cements, India’s second-largest cement producer with a capacity of 78.9 million tons per annum, has set a bold goal to achieve net zero emissions by 2050. Its targets are validated by the Science Based Targets initiative (SBTi). The company is committed to reducing greenhouse gas (GHG) emissions and is recognized as one of the lowest-emission cement producers globally.

  • This year the company utilized over 8.6 million tonnes of waste-derived resources. It boldly highlighted being 11 X water-positive and 8 X plastic-negative.

Ambuja Cements

Source: Ambuja Cements

Scope 1 and Scope 2 Emissions

The sustainability report explains how the company is combating its Scope 1 and Scope 2 emissions by 21% per ton of cementitious material by 2030. Notably, these efforts align with the Global Cement and Concrete Association’s roadmap for achieving Net Zero by 2050. The company has also conducted a climate risk assessment to ensure business resilience. They integrate recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD).

Ambuja cements emissionsSource: Ambuja Cements

The company has established an Internal Carbon Pricing (ICP) mechanism which is an integral part of its emission management strategy. This tool helps the company make informed decisions to reduce carbon emissions and fund low-carbon projects.

Mega Investment Plan in Renewable Energy

A key strategy to decarbonize the cement industry is the use of renewable energy. Ambuja Cements focuses on cutting energy consumption by harnessing solar and wind power, along with utilizing waste heat recovery systems (WHRS). At present, it has installed 76 MW of WHRS.

The press release reveals Ambuja Cements’ significant investment plan of approximately $1.2 billion (₹10,000 crore) in renewable energy projects. The company is targeting a total capacity of 1 gigawatt (GW) and an additional 376 megawatts (MW) from Waste Heat Recovery Systems (WHRS). This initiative will ensure that 60% of its expanded capacity will be powered by renewable energy by 2028.

Ambuja Cements RENEWABLE ENERGYSource: Ambuja Cements

Thus, all these efforts will significantly reduce the company’s carbon footprint and gain economic benefits through reduced energy costs and improved operational efficiency.

From this data, we can understand Ambuja Cements’ commitment to decarbonizing the cement industry through renewable energy and sustainable practices. With a clear vision to reduce carbon emissions and achieve its net zero targets, the company is leading the way towards a greener future.

EIA Expects Explosive Growth in U.S. Battery Storage—Can America Ascend to Dominance?

Saptakee S
-
0
EIA Expects Explosive Growth in U.S. Battery Storage—Can America Ascend to Dominance?

Battery storage systems play a crucial role in maintaining grid stability by balancing electricity supply and demand. They store energy from renewable sources like wind and solar, releasing it when needed, which helps to save power during low-demand periods. In this rapidly growing sector, lithium-ion batteries are taking the lead, driving the energy transition with their high efficiency and flexibility.

Utility-scale battery energy storage is booming across the United States. According to the latest report from the U.S. Energy Information Administration (EIA), till July 2024, operators added 5 gigawatts (GW) of new capacity to the U.S. power grid, making a total available battery storage capacity more than 20.7 GW. Notably, developers plan to add 15 GW in 2024 and another 9 GW in 2025.

battery storage lithium EIA

Source: EIA

A MESSAGE FROM Li-FT POWER LTD.

Lithium Deposits That Can Be Seen From The Sky

LiFT Power lithium mining

Who is Li-FT Power? They are one of the fastest developing North American lithium juniors with a flagship Yellowknife Lithium project located in the Northwest Territories.

Three reasons to consider Li-FT Power:
RESOURCE POTENTIAL | EXPEDITED STRATEGY | INFRASTRUCTURE

Li-FT is advancing five key projects; all located in the extremely safe and friendly mining jurisdiction of Canada.

Learn more about this mineral exploration company engaged in the acquisition, exploration, and development of lithium pegmatite projects >>

TXSV: LIFT | OTCQX: LIFFF | FRA: WS0
*** This content was reviewed and approved by Li-FT Power Ltd. and is being disseminated on behalf of Li-FT Power Ltd. by CarbonCredits.com. ***

Lithium-ion batteries Lead the Charge

The U.S. power sector has overwhelmingly adopted lithium-ion batteries for energy storage. These batteries now account for over 90% of the global demand, outpacing their use in personal electronics. As the world transitions from fossil fuels, battery storage is crucial to improving energy efficiency and supporting clean energy adoption.

Energy storage, while not a primary electricity source, provides crucial backup power. It stores electricity generated from the grid or renewable sources, making it a key player in the renewable energy ecosystem. Batteries allow electricity produced during peak generation times to be stored and later supplied during peak demand periods, enhancing grid reliability and reducing energy losses.

Despite impressive growth, the battery storage sector faces several challenges. Supply chain disruptions, inflation, and delays in grid interconnection are slowing the pace of new projects. However, experts like energy analysts and battery enthusiasts expect these issues to improve by the end of this year, leading to an even faster deployment.

Michael Craig, a professor at the University of Michigan, emphasizes the need for rapid technological advancement to meet ambitious carbon-reduction goals. The EIA predicts that utility-scale battery storage will almost double by the end of 2024, a sign that the industry is moving in the right direction.

Battery Storage Set to Drive 60% of CO2 Reductions by 2030: IEA

Battery storage is becoming increasingly attractive as costs continue to fall. Companies like Tesla and Enphase are scaling their battery storage offerings to meet growing demand, driven by the rise of AI and data centers, which are expected to increase energy consumption dramatically.

According to industry projections, the global battery storage market will grow in leaps and bounds with the push for renewable energy adoption. By 2030, electric vehicles are expected to displace millions of barrels of oil daily, further boosting the need for large-scale energy storage solutions in the power sector.

As battery storage continues to expand, it is clear that this technology is a cornerstone of the energy transition, enabling the shift away from fossil fuels and toward a more sustainable, electrified future.

According to the IEA, to triple global renewable energy capacity by 2030, while ensuring electricity security, energy storage must grow six-fold. In the Net Zero Emissions (NZE) Scenario, storage capacity needs to reach 1,500 GW by 2030. Batteries will drive 90% of this expansion, growing 14-fold to 1,200 GW, supported by technologies like pumped storage and compressed air.

lithium battery storage IEA

Source: IEA

This rapid growth requires battery deployment to rise 25% annually. Batteries are key, as they account for 60% of CO2 reductions in 2030, directly in EVs and solar PV, and indirectly through electrification and renewables.

Low-Cost Cathode Could Slash Lithium Battery Costs

A team led by Hailong Chen at Georgia Tech has developed a low-cost iron chloride (FeCl3) cathode for lithium-ion batteries (LIBs). This breakthrough could reduce electric vehicle (EV) costs, where batteries make nearly half the price. FeCl3 costs just 1-2% of traditional cathode materials like nickel and cobalt while delivering the same energy capacity, making it a game-changer for EVs and energy storage.

The FeCl3 cathode is not only cheaper but also provides higher voltage than popular alternatives like lithium iron phosphate (LiFePO4). Chen’s team aims to push for all-solid-state LIBs, which could improve safety and efficiency. This could also enhance large-scale energy storage and strengthen the power grid.

Chen’s research, which began in 2019, shows FeCl3 as a scalable and eco-friendly option. The team expects the technology to be commercially available within five years, promising to reshape EVs and renewable energy storage with lower costs and greater sustainability.

Source: Hailong Chen and research team, Georgia Tech

BESS Market Poised for Explosive Growth by 2030, A McKinsey Report

The Battery Energy Storage System (BESS) market is rapidly growing, creating a huge opportunity for investors and companies. In 2022, over $5 billion was invested in BESS, nearly tripling from the previous year.

  • According to McKinsey, the global BESS market is projected to grow significantly, reaching between $120 billion and $150 billion by 2030—more than 2x its current size.

Battery storage Lithium McKinseySource: McKinsey

Although the BESS market is expanding, it remains fragmented, leaving many companies uncertain about their next move. Now is the time for businesses to pinpoint the best opportunities and secure their position. With rising competition and increasing demand for renewable energy, companies must act swiftly to carve out their share of this booming market.

Key Strategies to Succeed in the BESS Market

McKinsey has come up with innovative solutions for companies to succeed in the dynamic BESS market:

They should focus on filling gaps in the value chain and prioritizing software development. System integrators can explore new opportunities by partnering with battery manufacturers, while battery makers can add integration services to target specific sectors. Additionally, investing in software that optimizes BESS performance will unlock larger markets and drive higher margins.

Strengthening supply chains and staying agile are also crucial. Companies need strategic partnerships and multi-sourcing options to manage supply disruptions. Smaller firms should act quickly, leverage their intellectual property, and take risks to stay competitive against larger players.

With global investments in BESS surging, reaching between $120 billion and $150 billion by 2030, companies need to identify the best opportunities and act decisively.

BESS McKinsey lithium ion battery

Source: McKinsey

Can the U.S. Dominate the Battery Energy Storage Market?

EIA has also estimated that U.S. battery storage capacity could increase by 89% by the end of 2024. This growth depends on developers bringing planned energy storage systems online by their intended commercial operation dates.

  • Currently, developers aim to expand U.S. battery capacity to over 30 gigawatts (GW) by the end of 2024. This would surpass the capacity of petroleum liquids, geothermal, wood and wood waste, and landfill gas.

California and Texas dominate the battery storage market. California leads with 7.3 GW of installed battery storage, followed by Texas with 3.2 GW. Significantly, Vistra’s facility in Moss Landing, California, is currently the largest, with 750 megawatts (MW).

By 2025, developers expect to complete over 300 utility-scale battery storage projects across the U.S., with Texas accounting for about 50% of the planned capacity. The five largest battery storage projects set to come online in 2024 or 2025 include:

  • Lunis Creek BESS SLF (Texas, 621 MW)
  • Clear Fork Creek BESS SLF (Texas, 600 MW)
  • Hecate Energy Ramsey Storage (Texas, 500 MW)
  • Bellefield Solar and Energy Storage Farm (California, 500 MW)
  • Dogwood Creek Solar and BESS (Texas, 443 MW)

battery storage US lithium EIASource: EIA

With ambitious battery storage plans and declining costs, the U.S. is poised to achieve a cleaner, more reliable energy future, rapidly closing the gap with China.

Microsoft and UNDO Partner for 15,000 Tons of Carbon Removal Using Enhanced Rock Weathering!

Saptakee S
-
0
Microsoft and UNDO Partner for 15,000 Tons of Carbon Removal Using Enhanced Rock Weathering!

Microsoft and rock weathering pioneer UNDO announced a mega deal to permanently remove 15,000 tons of CO2 from the atmosphere. It is an extension of last year’s contract, which was certainly comparatively smaller in size. Significantly, Microsoft will also enhance UNDO’s ongoing scientific research in the enhanced rock weathering (ERW) field.

Microsoft Fuels UNDO’s Carbon Removal Ambition

In 2023, UNDO started working with Microsoft to remove 5,000 tons of CO₂ by spreading 25,000 tons of basalt in the UK. This marked Microsoft’s first-ever Enhanced Rock Weathering (ERW) purchase. Now, the partnership has expanded.

Brian Marrs, Senior Director of Energy Markets at Microsoft remarked,

“Microsoft is committed to being carbon-negative by 2030. We are excited to support UNDO’s enhanced rock weathering carbon removal projects with co-benefits for soils, farmers, and rural communities. With this follow-on deal, we look forward to working with the UNDO team who will pioneer further deep science across different measurement techniques and at varying scales to deliver crucial ERW process data.”

Microsoft

Technically speaking, UNDO will spread 65,000 tons of crushed rock on agricultural land, including 40,000 tons of basalt in the UK and 25,000 tons of wollastonite in Canada, to further reduce CO₂ emissions.

So, what is enhanced rock weathering and what’s its role in carbon removal?

Understanding Enhanced Rock Weathering (ERW)

Natural rock weathering (NRW) is nature’s own way of removing carbon dioxide (CO₂) from the atmosphere and permanently storing it in rocks. It has been occurring for millions of years.

UNDO has defined it scientifically as,

“As rain falls through the atmosphere it combines with CO2 to form carbonic acid. When this dilute acid lands on our soils, the CO2 mineralizes and is safely stored as solid carbon. The geological process of rock weathering removes 1 billion tonnes of CO2 every year.”

However, this process can be enhanced/accelerated through human intervention. This is where UNDO comes into play and thus, they named it Enhanced Rock Weathering.

UNDO ERW

Source: UNDO

So, what exactly does the company do?

They speed up this natural process by spreading crushed silicate rock on farmland. This increases the rock’s surface area, allowing it to absorb more CO2. Instead of taking millions of years, the process is shortened to just decades. Once the reaction occurs, the CO2 is locked away for over 100,000 years.

Furthermore, as the volcanic rock breaks down, it releases nutrients like magnesium, calcium, potassium, and phosphorus that help crops grow and balance soil pH. This supports farmers by offering free soil improvements, creating green jobs, and strengthening local food systems.

Microsoft Supports Funding and Scientific Research for ERW

Microsoft’s partnership would help UNDO advance scientific research in measuring, reporting, and verifying (MRV) ERW-based carbon removal. This collaboration also provides crucial funding for field trials and monitoring sites in Ontario, including a research farm at the University of Guelph and UNDO’s main lab at Queen’s University in Kingston. Additionally, new trial sites will be established in the UK, including one at Newcastle University.

Jim Mann, CEO and Founder of UNDO, stated,

“This agreement with Microsoft signals to the market that enhanced rock weathering can deliver scalable carbon removal. With Microsoft’s continued support, we can enhance our research and data-gathering capabilities.”

Canada: UNDO’s Next Operational Hub

UNDO plans to expand its North American operations in Canada as it is becoming a strategic center for carbon removal. It has chosen Wollastonite as a mining partner for its fast-weathering feedstock for quicker data collection and optimizing the ERW process.

The company is primarily targeting rural communities. It is supporting the farmers facing challenges from climate change by providing crushed rock for free. At present it is operating in Southeast Ontario and plans to expand in Québec. This move will allow them to spread millions of tons of silicate rock each year, taking a crucial step toward large-scale carbon removal operations.

How is UNDO Raising the Bar for its ERW Carbon Removal Method?

We can comprehend that UNDO is committed to scaling its operations globally. The company gathers high-quality data from global partners and develops methods to measure carbon removal in different regions through strong partnerships and advanced technology.

Nonetheless, it has to demonstrate that ERW is a reliable, standard, and measurable method for permanent carbon removal.

Most significantly UNDO has partnered with Puro.earth, a top carbon removal registry, to establish Enhanced Rock Weathering (ERW) as an ICROA-accredited carbon removal method. But the company thinks this is not enough. This is why they are partnering with independent climate scientists and standard agencies to create the first methodology for ERW validation under ISO-14064. This groundbreaking effort is shaping new protocols for global ERW projects.

Similarly, with Microsoft as its partner, it can demonstrate itself as a reliable and trustworthy company to invest in. Such partnerships are also vital for funding in-depth scientific research and MRV processes.

The Intergovernmental Panel on Climate Change (IPCC) has announced that the world needs to remove 10 billion tonnes of CO₂ from the atmosphere each year by 2050 to avert climate change damages. UNDO believes ERW could help eliminate about 4 billion tonnes of CO₂ annually, contributing to 40% of this goal. This clearly illustrates that the deal with Microsoft is truly and undeniably valuable!

Uranium Energy Corp (UEC) Fully Acquires Rio Tinto’s Wyoming Assets—What’s the Deal Value?

Saptakee S
-
0
Uranium Energy Corp (UEC) Fully Acquires Rio Tinto’s Wyoming Assets—What’s the Deal Value?

On September 23, Uranium Energy Corp (UEC) made a historic announcement to buy 100% of Rio Tinto’s Wyoming assets. These assets include the fully licensed Sweetwater Plant and several uranium mining projects with about 175 million pounds of uranium resources. This huge acquisition must have a huge price tag attached. So, what is its worth?

Unlock below.

Unlocking the UEC and Rio Tinto Deal Value

The total cost of the deal is $175 million, which UEC will pay using its available funds. UEC disclosed in the press release that it is buying 100% of the shares in two Rio Tinto subsidiaries that hold its Wyoming uranium assets. As part of the deal, UEC will replace $25 million in surety bonds for future reclamation costs. The deal is expected to close in the fourth quarter of 2024 after fulfilling all the standard conditions.

Amir Adnani, President and CEO, stated:

“Expanding our production capabilities with the acquisition of highly sought after and fully licensed uranium assets in the U.S. is an important and timely milestone, especially in Wyoming, where we have recently restarted ISR production. These assets will unlock tremendous value by establishing our third hub-and-spoke production platform and cement UEC as the leading uranium developer in Wyoming and the U.S.”

UEC Expands Its Uranium Portfolio, Builds the 3rd Hub in the U.S.

Donna Wichers, Vice President of Wyoming Operations remarked exuberantly,

”In my 46 years of operating experience in Wyoming, this is the first time that such a large portfolio of assets has been consolidated with one company, offering a pathway to near-term production, development and untapped exploration potential.”

UEC has gained 12 uranium projects in Wyoming’s Great Divide Basin. By acquiring Rio Tinto’s Sweetwater Plant and uranium projects, UEC creates its third U.S. hub-and-spoke production platform, unlocking the potential of its extensive assets. It includes access to licensed uranium facilities and mining resources.

Notably, The Sweetwater Plant, capable of processing 3,000 tons per day and 4.1 million pounds annually, offers flexibility for both ISR and conventional mining. As said before, a complete acquisition adds around 175 million pounds of uranium resources. Half can be mined using cost-effective ISR methods, which UEC will prioritize, while conventional mining will provide future growth opportunities. Thus, there’s a lot of flexibility in the production process.

On September 15, 2022, UEC filed the S-K 1300 Technical Report Summary, revealing resources for its Wyoming Hub-and-Spoke ISR Platform.   

A MESSAGE FROM URANIUM ROYALY CORP.

NASDAQ’s Sole Uranium Focused Royalty Company

Uranium Royalty Corp.

The company is Uranium Royalty Corp., trading as (NASDAQ: UROY, TSX: URC), holding a strong portfolio includes strategic acquisitions in uranium interests with royalties, streams, equity in uranium companies, and physical uranium trading. Their strategic approach aims to support cleaner, carbon-free nuclear energy while fostering long-term relationships based on sustainability principles.

Learn about the company’s portfolio of royalty assets and uranium holdings >>

NASDAQ: UROY | TSX: URC
*** This content was reviewed and approved by Uranium Royalty Corp. and is being disseminated on behalf of Uranium Royalty Corp. by CarbonCredits.com for commercial purposes. ***

Other Uranium Projects Bolstering UEC’s Resource Base in The Great Divide Basin

UEC also gains 53,000 acres of land and valuable geological data from Rio Tinto, increasing its exploration footprint to 108,000 acres in Wyoming’s Great Divide Basin. Other than the Sweetwater Plant, UEC will be adding Red Desert and Green Mountain uranium projects to its portfolio.

Red Desert Uranium Project

The Red Desert Project covers 20,005 acres in Wyoming’s Great Divide Basin. The project has about 42 million pounds of uranium resources across three deposits, with potential for more discoveries near the Sweetwater Plant. These deposits are conducive for ISR mining, as the uranium lies below the water table in sands confined by impermeable layers.

Green Mountain Uranium Project

Located 22 miles from the Sweetwater Plant, the Green Mountain Project spans 32,040 acres of mining and exploration rights. It holds an estimated 133 million pounds of uranium resources across five deposits. Some areas are suitable for ISR mining, while others are better for conventional methods.

Adnani further added,

“With this Transaction, we are building upon our transformative acquisition of Uranium One Americas in 2021, which added a large portfolio of holdings in the Great Divide Basin of Wyoming.  We recognized early on that there are meaningful development synergies with the Rio Tinto assets, particularly the Sweetwater Plant.”

Map: Shows the position of Rio Tinto’s assets relative to the existing UEC portfolio in the Great Divide Basin

UEC Uranium

Source: UEC

Empowering America’s Uranium Future: A Stronger Domestic Supply

On May 13, President Biden signed the Prohibiting Russian Uranium Imports Act, a significant law to enhance America’s energy and economic security by reducing reliance on Russian nuclear power. This legislation reestablishes U.S. leadership in the nuclear sector and secures the country’s energy future. With $2.72 billion in funding, it increases domestic enrichment capacity and demonstrates a commitment to long-term nuclear growth while promoting a diverse market for reliable commercial nuclear fuel.

With growing clean energy demand and a U.S. ban on Russian uranium, UEC is well-positioned to meet the increasing need for domestic uranium. Another recent big news was Microsoft’s partnership with Constellation Energy to revive Three Mile Island by 2028, generating over 800 megawatts of carbon-free energy.

Three Mile Island (TMI) in Pennsylvania is a significant site in nuclear energy history, known for the severe accident in 1979 that led to the closure of TMI-Unit 2. TMI-Unit 1 continued operations until 2019 when it was shut down due to economic reasons. However, this is a huge initiative amid the surge in nuclear energy, uranium demand, and of course AI expansion.

  • With global growth in nuclear energy and demand for uranium, the US is currently the largest consumer of uranium.

UEC uranium

Source: UEC

In conclusion, this recent acquisition of Rio Tinto showcases UEC’s dedication to establishing itself as the leading uranium company in North America, while also strengthening domestic supply chains to meet the rising demand for clean energy.

Larry Ellison’s $100 Billion Bet: Nuclear Power to Drive Oracle’s AI Revolution

Saptakee S
-
0
Larry Ellison’s $100 Billion Bet: Nuclear Power to Drive Oracle’s AI Revolution

In an announcement that stunned both the tech and energy industries, Oracle’s co-founder and executive chairman, Larry Ellison, revealed ambitious plans to use nuclear power to advance artificial intelligence (AI) in Oracle.

At the Oracle Financial Analyst Meeting 2024, Ellison disclosed the company’s intention to build data centers powered by small modular nuclear reactors. This bold step signifies the fierce competition and massive costs required to advance AI technology in today’s era.

Ellison’s Bold Power Play — Nuclear Energy Fuels Oracle’s AI Ambitions

Oracle’s venture into nuclear energy underscores the extraordinary resource demands of cutting-edge AI.

According to Ellison, the power required for training frontier AI models is vast and extraordinary. The company plans to construct data centers with “acres” of GPU clusters, needing a gigantic energy supply to operate efficiently. Ellison’s strategy to utilize nuclear reactors ensures a steady, scalable power source to support these energy-hungry systems.

During the session, he spoke,

“If your horizon is over next five years, maybe even the next ten years I wouldn’t worry about it. This business is just growing larger and larger and larger. There is no slowdown or shift coming.”

The tech leader further stated that only a few major tech companies, and potentially even one nation, will compete for dominance in AI model development over the coming years. He emphasized that staying competitive in this high-stakes AI race will come with a hefty price tag.

Oracle’s choice to embrace nuclear energy marks a major change in how tech companies tackle their rising energy demands. Their strategy may inspire competitors to look for similar solutions, potentially transforming the future of both the tech and energy industries.

A MESSAGE FROM URANIUM ROYALTY CORP.

The Only Pure Play Uranium Royalty Company

Cigar Lake uranium project

Uranium Royalty Corp is the first company to apply the successful royalty and streaming business model exclusively to the uranium sector.

With interests in advanced, permitted and producing uranium projects, the company is well positioned as a capital provider to meet the growing need for uranium as fuel for carbon free, nuclear energy. Learn more about Uranium Royalty Corp’s portfolio of royalty assets and uranium holdings.

Discover their first mover pure-play uranium royalty exposure >>

NASDAQ: UROY | TSX: URC
*** This content was reviewed and approved by Uranium Royalty Corp. and is being disseminated on behalf of Uranium Royalty Corp. by CarbonCredits.com for commercial purposes. ***

The AI Arms Race and the $100 Billion Price Tag

Ellison made it clear that staying competitive in the AI race will not be cheap. He estimated that companies looking to build frontier AI models would need to invest around $100 billion over the next three to five years. The enormous investment reflects the exponential growth in computational power required to push the boundaries of AI capabilities.

This staggering price tag is a wake-up call for the tech industry, highlighting the capital-intensive nature of AI research and development. It’s a clear signal that the widening gap between bigger players and smaller players is evident, as only those with massive resources can afford to keep pace.

Oracle is not just talking about powering its data centers; it’s already laying the groundwork. He noted,  

“Today, Oracle has 162 cloud data centers, live and under construction throughout the world. The largest of these data centers is 800 megawatts, and it will contain acres of Nvidia GPU clusters able to train the world’s largest AI models”

This massive facility can support the development of advanced AI models, some of which Ellison hinted may surpass the capabilities of existing supercomputers, including xAI’s new supercluster, Colossus.

Building the Nuclear Infrastructure

Oracle is also planning a data center requiring over one gigawatt of electricity, that will rely exclusively on nuclear power. Ellison believes that much power is sufficient to meet the substantial processing needs of Oracle’s upcoming projects including creating Colossus.

Currently, the company has secured building permits for three small modular reactors, that estimate the scale of the project. Ellison’s description of the project’s complexity gives a glimpse into the enormous challenges that lie ahead for Oracle and other companies vying for AI dominance.

As the AI arms race intensifies, Oracle’s decision to integrate nuclear power into its infrastructure strategy could revolutionize how tech companies meet their energy demands. By securing a reliable and clean power source, Oracle is positioning itself as a leader in AI development, capable of tackling the massive computational requirements needed for training advanced models.

Tech leaders, industry pundits, and energy companies predict that more companies will explore novel energy solutions to keep pace with the rising demands of AI in the future. Whether it’s nuclear, renewable energy, or a hybrid approach, power consumption will become a defining factor in the race for AI supremacy.

Oracle’s Revenue Boom Fuels Ambitious Nuclear Investment

Oracle reported its fiscal 2025 Q1 results recently indicating strong growth. The company’s total quarterly revenues increased by 7% year-over-year in USD, reaching $13.3 billion, and rose 8% in constant currency. Cloud services revenues saw a 21% jump year-over-year in USD, climbing to $5.6 billion, with a 22% increase in constant currency. Additionally, cloud and on-premise license revenues grew by 7% in USD, hitting $870 million, and were up 8% in constant currency.

The company’s earnings are a clear reflection of what Larry hinted at—it’s truly a case of survival of the fittest. His announcement is not just a revelation of Oracle’s future plans but a signal for the entire tech universe.

His theory is straightforward: to compete, you must make bold moves, like investing in nuclear power for AI. Oracle’s approach highlights that success now demands major investments in both technology and energy. This way companies can secure their energy supply and seamlessly perform computational services.

Interestingly, it’s not just Ellison who is envisioning nuclear power. Bill Gates’s company TerraPower, is also constructing a Natrium reactor and energy storage system in Kemmerer, Wyoming. The project, which has secured substantial funding from the DOE and is set to be completed by 2030, will have a capacity of 500 megawatts.

Gates emphasized that this investment in nuclear is a significant step toward achieving safe, abundant, zero-carbon energy, and its success is crucial for America’s future.

Net Zero Plans and Carbon Emissions 

Oracle has set an ambitious target to reach net zero emissions by 2050 and reduce its greenhouse gas emissions to 50% including both operational and supply chain, by 2030 compared to a 2020 baseline. The sustainability report reveals that this target has been endorsed by the Exponential Roadmap Initiative, an accredited partner of the United Nations Race to Zero.

Moreover, the company has committed to achieving 100% energy usage from renewable sources for both its Cloud Infrastructure (OCI) and Real Estate & Facilities (RE&F) operations by 2025. Additionally, they aim to reduce waste to landfill per square foot by 33% and cut air travel emissions by 25% within this timeline.

Here’s a peek into their energy use and carbon emissions for 2022.

Oracle

source: Oracle

In conclusion, Oracle’s move into nuclear-powered data centers marks a pivotal step in AI development. This bold strategy highlights the immense resources needed to compete and suggests that tech companies must now innovate beyond software and hardware to lead in the AI race.

EU Methane Regulation Sends a Strong Signal to US Natural Gas Suppliers

Jennifer L
-
0
EU Methane Regulation Sends a Strong Signal to US Natural Gas Suppliers

The European Union’s new Methane Regulation is making waves in the global energy market, especially in the U.S. liquefied natural gas (LNG) sector. The regulation aims to curb methane emissions from imported fuels, marking a significant step toward reaching net zero goals. 

Methane, the second-largest contributor to global warming after carbon dioxide, is a potent greenhouse gas. The regulation sets a clear signal that suppliers, particularly those in the U.S., must improve tracking and control of methane emissions.

The Regulation’s Impact on the US Natural Gas Sector

The EU Methane Regulation sets a long-term framework with the key compliance period beginning in 2027. However, reporting requirements will start earlier, in May 2025, which will establish an emissions baseline. These initial reports will help lay the foundation for future compliance efforts.

Cheniere Energy Inc., the top U.S. LNG exporter, sees this regulation as a wake-up call for the industry to sharpen its focus on emissions. Robert Fee, Cheniere’s vice president of international affairs and climate, highlighted that the company has already been working on methane measurement and reporting for over 6 years. This head start positions Cheniere to navigate the new regulations more smoothly than some of its peers. Fee emphasized, 

“Today and into the future, that’s going to be in a world where there’s an increasing focus on climate-related issues, and certainly through 2030 industry needs to take action to measure and mitigate methane emissions to near zero.”

Rather than imposing immediate and stringent penalties, the regulation gives companies time to adapt. They are expected to start by submitting information on existing supply deals and progressively incorporate these requirements into new contracts. 

This phased approach has alleviated fears of market disruptions. Fee explained that despite the new rules, the EU still views U.S. LNG as a critical energy supply, especially following the loss of Russian pipeline gas 3 years ago.

In terms of natural gas demand projection, S&P Global Commodity Insights estimates show that it will grow to over 70% by 2050 under a base case scenario, but it could drop under the green energy transition scenario.

global liquified natural gas LNG demand 2050

Challenges for US LNG Suppliers

The new regulation sends a clear message. Yet, there are still uncertainties about its exact implementation, especially concerning how it applies to LNG importers. This has created a degree of uncertainty in supply contract negotiations. 

The most significant challenge for U.S. exporters is the requirement to collect methane emissions data “at the level of the producer.” This poses a hurdle, as many companies in the U.S. gas supply chain lack direct access to emissions information from wellheads.

Ben Cahill, a director of energy markets at the University of Texas, also noted that U.S. gas producers often struggle to gather this information due to the complexity and vastness of the U.S. gas pipeline network.

EU Methane Push: Taking the Lead on Global Efforts

The EU’s new regulation aligns with the Global Methane Pledge, a commitment made by the U.S. and over 100 other countries in 2021 to reduce global methane emissions by 30% from 2020 levels by 2030. European authorities aim to establish the EU as a global leader in methane mitigation by pushing for stringent mitigation measures.

Starting in 2027, LNG importers will have to demonstrate that the supplies they bring into the EU meet methane emissions standards equivalent to those in the EU. 

By 2030, the region will have a methane emissions intensity standard that all imported fuels must meet. The regulation will also align with the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), a reporting framework developed by the United Nations Environment Program. Cheniere Energy joined the OGMP 2.0 initiative in 2022, with Fee describing it as the “best measurement framework” for the industry.

Despite the clear direction set by the EU Methane Regulation, several details remain unresolved. For instance, importers must start reporting to a “competent authority” in each member state by May 2025. However, these authorities have not yet been established, and penalties for non-compliance are still unclear.

Another question mark is how the EU will handle regulatory exemptions for countries whose methane regulations are deemed equivalent to those in the EU. U.S. government officials may need to collaborate with their EU counterparts to ensure that the U.S. methane fee and the Environmental Protection Agency’s emissions regulations are recognized.

These U.S. regulations are among the strictest globally. Still, whether they will satisfy the EU’s new standards remains to be seen. Analysts believe that this uncertainty has led to a temporary pause in long-term supply contract negotiations. 

A Growing LNG Market Amid Climate Regulations

Despite the challenges posed by the EU’s methane regulations, the global demand for LNG is rising. The U.S. LNG export capacity, expected to exceed 13 billion cubic feet per day (Bcf/d) by the end of 2024, is set to double by the end of the decade as new export projects come online. 

North America liquified natural gas export capacity 2028
Chart from the EIA

For these U.S. LNG exporters, the EU’s stance on methane emissions could bring regulatory continuity. It is both a challenge and an opportunity.

While there are compliance hurdles, the phased approach provides time for adaptation. Moreover, the EU’s continued reliance on U.S. LNG supplies, combined with global efforts to curb methane emissions, underscores the importance of U.S. participation in these regulatory frameworks.

Top Countries for Carbon Credit Investments in 2024: Colombia Ranks 1st

Jennifer L
-
0
Top Countries for Carbon Credit Investments in 2024: Colombia Ranks 1st

According to Abatable’s VCM Investment Attractiveness Index, Colombia, Kenya, Cambodia, Mexico, and Peru are the top five countries for carbon credit investors in 2024. The Index, released during Climate Week NYC, ranks countries based on their attractiveness for voluntary carbon market (VCM) investments.

The ranking considers factors such as regulatory advances, market readiness, project opportunities, and ability to shape future carbon markets.

Abatable is a top provider of carbon market solutions, offering tools to help businesses navigate carbon markets, find the right partners, assess market risks, and boost environmental impact.

Abatable co-founder Maria Eugenia Filmanovic explained that their approach also considers a country’s potential for impact on climate, nature, and people. Valerio Magliulo, Abatable’s CEO and co-founder emphasized that as the carbon market landscape evolves, access to reliable data is essential for making informed investment decisions. He further noted that:

“The VCM Investment Attractiveness Index is a critical  tool that helps democratize carbon market data for the benefit of participants across the market,  enabling them to make informed decisions and navigate the VCM, ultimately helping to scale  the market as a whole.”

Regulatory Progress in Carbon Market Drives Rankings

The top-ranked countries owe their success largely to their regulatory progress. For example, Colombia’s carbon tax has significantly boosted market activity. Its new regulatory framework and national carbon registry attract significant interest from carbon investors. 

Abatable carbon credit investment ranking by country

Colombia, one of the world’s 17 megadiverse nations, is home to a significant portion of Earth’s species, largely due to its share of the Amazon rainforest. This rich biodiversity has helped the country become a global leader in nature-based solution (NBS) carbon credits, with 142 million tonnes issued since the market’s start.

The South American nation has also excelled in the global carbon market, using a mix of compliance mechanisms and VCMs to showcase an innovative approach to carbon pricing.

Similarly, Kenya’s 2024 carbon market regulation created a more favorable environment for carbon project development and investment. The country has recently approved carbon market policies that create an investor-friendly environment and facilitate Article 6 compliance with the Paris Agreement, ensuring stable growth in the carbon credit supply.

Their regulatory foundation positions Colombia and Kenya as key players in the global carbon market. 

Key Insights From 2024 VCM Investment Index

Abatable VCM index score global score
VCM Index score – Global overview

Abatable VCM Investment Index uses 3 pillars and 24 indicators to assess the carbon market landscape, specifically analyzing the following aspects:

  • investment potential, 
  • national readiness for carbon trading, and 
  • opportunities for improving environmental and social conditions. 

Notable movements in the rankings include Colombia leaping 13 places to first and Cambodia jumping to third. 

The Index also reflects the volatility and complexity of the carbon credit market, with some countries advancing due to groundwork for Article 6 of the Paris Agreement, which allows carbon trading between nations.

Countries like Madagascar, Zambia, and Brazil have also gained prominence due to significant regulatory advancements and an increase in carbon credit supply. These nations have benefitted from early engagement with Article 6, offering investors a first-mover advantage in these evolving markets. 

Brazil, for instance, jumped 33 spots due to its surge in carbon credit availability, highlighting its growing role in the market. Big tech companies, including Google, Meta, Microsoft, and Amazon, are pouring millions into Brazil’s carbon credit initiatives. 

Looking Ahead: Growth in Compliance Schemes and Restoring VCM Confidence

The Index also underscores the impact of compliance schemes with integrated carbon credit mechanisms on a country’s attractiveness for investments. Countries are increasingly adopting such schemes to meet ambitious international climate targets and respond to mechanisms like the EU Carbon Border Adjustment Mechanism.

Within the voluntary carbon market, challenges abound over the past two years. Certain carbon projects are scrutinized but a renewed focus on carbon removal initiatives is rebuilding trust. 

Filmanovic highlighted that Abatable’s Index has been received positively by investors, serving as an important tool in shaping investment sentiment. The growing interest in Article 6.2 credits—allowing cross-border trading of emissions reductions—is seen as a sign of recovery for the market.

Abatable’s 2024 VCM Investment Attractiveness Index serves as a critical tool for de-risking investments and supporting the scaling of global carbon markets. 

With countries like Colombia and Kenya leading the way, the voluntary carbon market is set for continued growth, offering both environmental and financial opportunities for investors. As global efforts to curb emissions intensify, these top-ranked nations demonstrate how strategic policies can drive carbon market success.

1...101112...150Page 11 of 150