Lithium Markets in Limbo: Next Leg Up or Down?

Jennifer L
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Lithium Markets in Limbo: Next Leg Up or Down?

In the quest for electrification and cleaner energy sources, all eyes are on lithium, a.k.a. white gold, and how the market strives with battery prices continuing to fall.

According to BloombergNEF, the dramatic lithium price dropping trend will persist for several years, making battery technology economically viable for global decarbonization efforts. Benchmark Mineral Intelligence echoes this sentiment, highlighting the impending lithium market expansion driven by surging EV demand. 

What Drives Lithium Battery Prices Down?

In the past year, the price of lithium iron phosphate (LFP) battery cells in China has dropped 51% to an average of $53 per kilowatt-hour (kWh), which is significantly lower than the global average of $95/kWh last year, per BloombergNEF. 

This price decrease is driven by several factors, including:

  • Falling Raw Material Prices: Raw material costs, particularly for the cathode, have sharply declined. The cathode’s share of total costs for LFP cells in China dropped from 50% in early 2023 to under 30% this year.
  • Overproduction: China’s battery production capacity exceeds global electric vehicle (EV) demand, leading manufacturers to cut prices to maintain market share. Average capacity utilization in Chinese battery plants fell from 51% in 2022 to 43% in 2023 and is expected to decrease further.
  • Technological and Manufacturing Improvements: Companies like CATL and BYD are investing heavily in R&D, automation, and new factories, launching new products rapidly.

RELATED NEWS: EV Wars and Breakthroughs: BYD to Overtake Tesla, CATL’s New Battery With 1.5M KM Range

A MESSAGE FROM Li-FT POWER

Li-Ft Power

One of the most essential ingredients in the production of batteries, lithium powers some of the most important devices in our everyday lives. Dramatic lithium price dropping trends will persist for several years making battery technology economically viable for global decarbonization efforts. Li-FT Power Ltd. (TSX-V: LIFT | US: LIFFF) is the fastest developing North American lithium junior. Click here to learn more about their vast lithium assets including their flagship project, a 100%-owned Yellowknife Lithium project. 

A Bright Prediction for Lithium Batteries

BloombergNEF predicts that low lithium battery prices will persist for several years, significantly impacting the automotive and power sectors. At $50/kWh, battery technology is already economically viable for decarbonizing road transport globally.

A major evidence is on point. In China, pack-level prices for the most common battery chemistries have been below the $100/kWh benchmark since October 2023. Lithium iron phosphate (LFP) pack prices are now at $75/kWh, making EVs competitive with combustion cars in most segments.

Lithium ion battery prices
Chart from BloombergNEF website

Additionally, Chinese EVs are now the cheapest drivetrain by average transaction price, even excluding mini-city cars. This shift will gradually reflect outside China, benefiting commercial EV manufacturers and reducing the premium they pay for batteries.

China electric vehicle prices cheaper than ICE models
Chart from BloombergNEF

With the lithium battery prices dropping fast, another market stands to gain a lot from it – energy storage. 

Turnkey energy storage systems are 43% cheaper than a year ago. Global stationary storage installations are projected to rise to 155 GWh this year, up 61% from last year, according to BNEF data.

The narrative of perpetual battery and battery metal shortages has been challenged by recent developments. For instance, Toyota’s assertion last year that there were not enough batteries to meet global demand now appears outdated as battery prices continue to fall.

In fact, the substantial drop in battery prices in China could revolutionize the global automotive market by making EVs more affordable and accelerating the transition to renewable energy storage solutions. 

More notably, it signals that the lithium market is on the verge of a significant expansion in the coming years, as what the Benchmark Mineral Intelligence highlights in its Q2 2024 Lithium Market Overview. Benchmark is a prominent provider of independent data and advisory services for the lithium-ion battery and EV supply chain. 

On the Brink of a Major Expansion

While short-term volatility is expected, long-term prospects indicate a structural deficit as the lithium supply struggles to keep pace with the accelerating EV revolution. 

According to Benchmark’s latest report, global lithium demand is projected to reach 1.15 million tonnes of lithium carbonate equivalent (LCE) by 2024, with an astounding 87% driven by batteries, particularly EVs—the dominant end-use application. 

Looking ahead, demand is forecasted to more than double, reaching 2.89 million tonnes LCE by 2030. Batteries account for a staggering 94% of consumption, while industrial uses like glass and ceramics decline to just 6% of the total.

Simon Moores, CEO of Benchmark Mineral Intelligence remarked on this trend, saying:

“The lithium market is facing a demand tsunami from the rise of EVs that will put immense pressure on supply. Every auto maker has ambitious EV targets, and lithium-ion batteries are the enabling technology.”

On the supply side, Australia led lithium production in 2023 with a 40% global market share from hard rock mines, followed by Chile at 24%. However, Chinese production is anticipated to surpass Chile by 2025 as new projects come online. 

Geographical diversification in lithium mining will increase as the market expands, yet the concentration of lithium chemical production remains high in China and South America. Significant capital investments are deemed necessary to expand current operations and meet future demand.

Benchmark’s price forecast sees spodumene concentrate, a key driver of lithium chemical prices, to average $5,000 per tonne longer-term. This translates to a lithium carbonate price of around $30,000 per tonne.

What All These Mean for Investors?

For investors, the lithium market’s growth trajectory presents opportunities across producers like Albemarle, SQM, Ganfeng Lithium, and Pilbara Minerals, as well as battery manufacturers, EV makers, and ETFs focusing on the EV supply chain. Moores emphasized that white gold is pivotal in unlocking the EV and clean energy revolution. This calls for unprecedented scaling that hinges on significantly higher prices. 

Investors must meticulously navigate opportunities and threats in this dynamic market.

Despite recent challenges such as oversupply and lower-than-anticipated EV sales in China, which led to substantial price declines for lithium carbonate, the long-term outlook remains optimistic. Anticipated strong rebound in demand with accelerating global EV adoption suggests potential price recovery from 2025 onwards. 

But the caveat? Sustained high prices are necessary to incentivize new supply to meet future demand for lithium through the decade.

A Carbon Scam? BP-Owned and US Largest Offset Company’s Credits Are 80% Dubious

Jennifer L
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A Carbon Scam? BP-Owned and US Largest Offset Company’s Credits Are 80% Dubious

Some forest carbon offsets sold by Finite Carbon, the largest offsetting company in the US, offer minimal climate benefit, according to a satellite analysis by Renoster and CarbonPlan.

Finite Carbon, founded in 2009 and acquired by BP in 2020, manages over 60 projects covering 1.6 million hectares. These offset projects generate a quarter of the US’s carbon credits. 

Finite’s business model involves encouraging landowners to protect forests that are supposedly at risk of being cut down. The carbon absorbed by these protected trees generates credits, which polluters can purchase to offset their emissions. 

Since 2009, Finite claims to have offset over 70 million tonnes of emissions—more than double BP’s total emissions last year.

However, the credibility of Finite’s projects is under scrutiny amid rising concerns about the global carbon offset industry, which Barclays predicts could be worth $1.5 trillion by 2050. 

An analysis of three projects, representing nearly half of Finite Carbon’s credits valued at $334 million, revealed significant issues. Their findings were alarming: about 80% of the credits should not have been issued.

Finite’s Carbon Offsets Under the Microscope

The scrutiny of Finite Carbon’s offsets coincides with growing concerns about the carbon offset industry. US Treasury Secretary Janet Yellen recently emphasized the need to address the industry’s significant challenges.

Finite Carbon defended its offsets, stating that all projects are independently verified and developed according to California’s cap-and-trade program standards. 

The offsets developer sells most of its credits under California’s cap-and-trade system, which requires excessive polluters to buy offsets. Critics argue that flawed credits allow companies to continue polluting with impunity.

Finite’s offsetting process involves calculating a baseline of how many trees would be cut down without the project. 

Renoster, an agency used by carbon credit buyers to verify real climate benefits, found significant issues in Finite’s offset projects. 

One project in the Alaska Panhandle included trees not at risk of being cut down, resulting in about 79% of the credits being deemed invalid by Renoster.

Finite’s Sealaska project, covering 67,000 hectares, generated credits valued at over $100 million. The rating agency found that trees in the project area were unlikely to be cut down due to extensive prior logging, making the credits unjustifiable. They were in locations inaccessible to loggers, such as ravines and coastlines.

Finite’s approach of excluding logged areas and creating maps around small pockets of forest, sometimes fewer than 50 trees, may comply with technical rules but undermines the spirit of the regulations. 

Gerrymandering Credits: The Integrity Crisis in Carbon Offsetting

Thus, Renoster concluded that the project’s credits should not have been issued, labeling the practice as “cheating,” accusing them of intentionally manipulating project boundaries to maximize credits. Elias Ayrey, Renoster’s head scientist, criticized this “gerrymandering,” which makes assessing real conservation efforts impossible.

Sealaska representatives defended the credits, claiming the remaining trees had economic value and could legally be cut. Brian Kleinhenz, a former Sealaska executive, argued that there was always market value for the trees, even in difficult-to-access areas. 

The California Air Resources Board (CARB) supported the inclusion of these trees in baseline calculations. CARB spokesman Dave Clegern acknowledged concerns but maintained that projects are in compliance with all regulations.

Another Finite project analyzed is a 200,000-hectare forest in Washington state, owned by the Confederated Tribes of the Colville Reservation. It significantly overestimated the logging threat, according to CarbonPlan scientist Grayson Badgley. He noted that awarding credits for avoiding unlikely logging activities undermines the integrity of offsets.

Finite Carbon carbon offset baseline vs tribe management plan
Chart from SourceMaterial website Note: Finite Carbon timber harvest projection vs the tribe’s submitted management plan

The third project in West Virginia, covering 39,000 hectares and involving Lyme Timber, which promised to preserve trees in exchange for credits, was also found to be over-credited. Renoster concluded that many trees were in steep, inaccessible areas, making logging economically unfeasible. 

Lyme Timber president David Hoffer contested Renoster’s findings, asserting that their harvesting practices have been conservative.

A Path Forward for the Carbon Offset Industry

Finite Carbon’s controversial offset projects highlight the complexities and challenges within the carbon offset industry. The scrutiny underscores the urgent need for increased transparency and accountability in the carbon offset market. 

Amid all this turmoil, the moment represents a pivotal opportunity for the industry to evolve and enhance its credibility.

By implementing more rigorous verification processes, embracing advanced monitoring technologies like satellite analysis, and fostering collaboration among stakeholders, the carbon offset market can refine its practices and restore confidence. Ultimately, these steps will help ensure that carbon credits genuinely contribute to mitigating climate change.

Truck Titans Clash: Tesla Semi vs. Nikola Hydrogen

Saptakee S
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Truck Titans Clash: Tesla Semi vs. Nikola Hydrogen

The battle between Tesla and Nikola in the zero-emissions trucking world is thrilling. Tesla Semi’s all-electric power goes head-to-head with Nikola’s hydrogen-fueled trucks. The clash is driving innovation, breaking tech barriers, and shaping a greener future. Who will emerge supreme in the clean transport transition? Let’s read this interesting analysis…

Tesla’s Next Gen Semi Trucks

Tesla is ramping its green goals with a $3.6 B investment to expand Gigafactory Nevada at the Truckee-Reno Industrial Center. This major expansion introduces two key additions: a 100 GWh 4680 Cell Factory for advanced batteries and a High-Volume Semi Factory for Tesla’s new electric trucks. They want to establish Gigafactory Nevada as the main for manufacturing unit for EV trucks.

Tesla disclosed that combination trucks account for approximately 18% of U.S. vehicle emissions. The new cell factory will manufacture 1.5 million batteries annually for light-duty vehicles. Media reports say that till the end of last year, Tesla manufactured 70 Semi trucks, using them mainly within the company and for its partner PepsiCo.

We can comprehend the status of the Tesla Semi from the VP of Vehicle Engineering at Tesla- Lars Moravy’s statement.

“We’re finalizing the engineering of Semi to enable like a super cost-effective high-volume production with our learnings from our fleet and our pilot fleet and Pepsi fleet, which we are expanding this year marginally. In parallel, as we showed in the shareholders’ deck, we have started construction on the factory in Reno. Our first vehicles are planned for late 2025 with external customers starting in 2026.”

Tesla Semi-All Electric Specifications

Tesla

Nikola Promises Zero Emissions Class 8 Hydrogen Truck

Talking of Nikola, the company has already sold 72 units of Class 8 Hydrogen Fuel Cell Trucks through its HYLA brand. That is insanely impressive as they have exceeded their sales target of 60 units for Q2, 2024. Notably, their shares also shot high with this massive sales volume. Nikola CEO Steve Girsky exuberantly said,

“We have maintained our 2024 momentum with solid wholesale numbers, new customers such as Walmart Canada, and repeat customers like 4GEN and IMC, purchasing vehicles through our dealer network. We are firmly on the field and are continuing to secure our first-mover advantage in zero-emissions Class 8 trucks in North America, as well as with our HYLA hydrogen refueling solutions.”

Nikola Class 8 Hydrogen Powered Truck Specifications

Nikola

The market is supercharged with Tesla Semi and Nikola Hydrogen Class 8 competition. Some burning questions arise with these new launches…What will customers choose and what is the best model for net zero? Let’s do some comparison and analysis here. 

Who will Win the Battle of the Trucks; Hydrogen or EV for a Net Zero Future?

Nikola’s team has emphasized the growing demand for zero-emissions trucking solutions among customers who aim to fulfill their shipping needs and meet their ESG goals. And they highlighted the shift’s significant impact. One heavy-duty zero-emission truck reduces CO2 emissions as much as removing 23 gasoline-powered cars annually.

Both Nikola and Tesla are advancing clean transport with zero emissions. The difference is Nikola’s latest trucks run on hydrogen, while Tesla Semi relies on all-electric power.

Off Infrastructure, Charging, and Refueling…

There are 76 hydrogen refueling stations in the U.S., of which 66 are installed in California. Nikola must ramp up way higher to be a long-term player. Even though, hydrogen refuels faster, locating a proximal station might be challenging.

On the contrary, Tesla’s supercharger network is extensive and the EV charging infrastructure is easily accessible. Charging time is significantly reduced with advanced battery and charging technology. This makes EVs more energy-efficient, offering a quick choice to customers. Overall, Semi wins bonus points here with Musk claiming

“Semi Trucks are about to revolutionize the road!”

While the Tesla Semi hasn’t hit the market yet, Nikola’s Class 8 Hydrogen Trucks are already cruising the roads. This gives Nikola ample time to earn the trust of its valued consumers and solidify its market position. As for Tesla’s Semi, its on-road performance remains speculative for now.

P.S. Refer to the images to compare and understand the specifications, sourced from Nikola and Tesla’s official website. 

In conclusion, both transport giants are sprinting toward achieving net zero goals. Tesla and Nikola are positioned for a win-win scenario in terms of technology and infrastructure. No wonder, both can harmoniously co-exist in the clean transport sector. As Tesla Semi makes its debut, customers will have the opportunity to determine their preferred choice.

The Race to Net Zero: Formula E Champ di Grassi Buys Carbon Offsets from Rubicon Carbon

Jennifer L
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The Race to Net Zero: Formula E Champ di Grassi Buys Carbon Offsets from Rubicon Carbon

Formula E Champion and ABT CUPRA driver Lucas di Grassi partnered with Rubicon Carbon, a leading carbon credit management firm to offset his carbon footprint. This collaboration marks di Grassi as the first Formula E driver to invest in carbon credits to tackle his emissions. 

Di Grassi Shifts Gears to Carbon Offsets

The rapid growth of motorsports has raised environmental concerns, such as high carbon emissions. Initially limited, the industry’s sustainable practices now focus on reducing emissions, conserving energy, and using renewable resources to address climate change and promote greener racing.

Formula E shows how a complex, global motorsport industry should race toward achieving net zero emissions. The organization’s champ di Grassi took the first ride to sustainable racing. 

Lucas di Grassi, known for his activism in mobility technology, has become a leading figure in advocating for environmental responsibility within the racing industry. He has publicly distanced himself from industries that do not prioritize sustainability. He’s the first driver to offset all his CO2 emissions from traveling globally starting with his first Formula E race in China. 

Lucas di Grassi Formula E champion

Di Grassi has created a Rubicon Carbon Tonne (RCT) portfolio, a diversified and actively managed collection of carbon credits. This portfolio includes various carbon removal, nature-based avoidance, and industrial avoidance projects. The RCTs are designed to reduce risk and provide price certainty for buyers, enhancing their options for carbon offsetting.

Remarking on his collaboration with Rubicon, di Grassi said:

“In line with the values and objectives of Formula E, I drive an electric car and have adapted my lifestyle. But still, credible carbon avoidance and removal is the only way to do the sport we love and be responsible for our environment at the same time. I would be delighted if many other athletes, not only in Formula E, would consider the same path.”

Zero-Emission Race: Formula E’s Sustainability Revolution

Their collaboration illustrates how sports partnerships can drive positive environmental change and raise awareness about sustainability. Tom Montag, CEO of Rubicon Carbon, expressed his enthusiasm for the partnership, stating:

“We are excited to support Lucas and Formula E, who share our values in building a low-carbon future.”

Partnering with personalities like di Grassi is part of Rubicon’s broader strategy to invest in carbon projects worldwide. Recent initiatives include a large-scale ecosystem restoration project in Panama in collaboration with Ponterra, Microsoft, and Carbon Streaming. It’s a 250,000-acre restoration project in South Africa led by Imperative, and a partnership with YvY Capital to scale up carbon investments in Brazil.

Rubicon Carbon’s commitment to sustainability and innovation is reflected in its efforts to create impactful environmental solutions. By partnering with influential figures like Lucas di Grassi, Rubicon aims to inspire broader adoption of carbon offsetting practices within the sports industry and beyond.

Leading the Charge in Net Zero Carbon Racing

With seven days to go before the 2024 Hankook London E-Prix starts, this milestone highlights, once again, the environmental commitment of Formula E.

Motorsport’s carbon footprint primarily comes from transporting teams and vehicles globally and the emissions from fans traveling to races. Formula E tackles this by logically scheduling races worldwide, reducing unnecessary travel. 

In the 2022-23 season, Formula E implemented the ABB Ability OPTIMAX system to monitor race-specific energy usage, enhancing efficiency. Despite these efforts, freight still represents ¾ of the sport’s carbon footprint. 

  • The championship offsets between 35,000 and 40,000 tons of CO2 equivalent annually, aiming to cut its carbon footprint by 45% by 2030 from a 2018 baseline. Impressively, it has already achieved a 25% reduction.

Working with partners like DHL, Formula E explores sustainable aviation fuels and integrates sustainability across its supply chain. Initiatives include recycling tires and using recycled materials for vehicle chassis. Ultimately, the sports organization’s mission is to showcase how motor racing can thrive without emissions.

Formula E stands as the first sport with a certified net zero carbon footprint since its inception. The organization manages its carbon footprint through a 3-step process as : Measure, Reduce, and Offset.

  1. Measure

Formula E meticulously measures its carbon emissions across the entire championship. Since its inaugural season, the organization has partnered with carbon footprint experts to conduct a Lifecycle Assessment model. This model evaluates all race operations and Formula E’s headquarters, allowing for annual monitoring and calculation of greenhouse gas emissions. 

Formula E carbon emissions or footprint
Source: Formula E website

The motor racing organization’s emissions are categorized into:

  • Scope 1: Direct emissions (1.3%)
  • Scope 2: Indirect emissions from energy use (0.7%)
  • Scope 3: Other indirect emissions, including travel, freight, and car production (98%)

  1. Reduce

The world’s first all-electric FIA World Championship prioritizes reducing its carbon footprint through direct actions. In 2021, the motor racing set emission reduction targets validated by the Science Based Targets initiative (SBTi). The goals include a 60% reduction in Scope 1 and Scope 2 emissions and a 27.5% reduction in Scope 3 emissions by 2030, from a 2019 baseline. These targets aim to limit temperature rise to 1.5°C.

Formula E reduced carbon emissions 2019-2023
Source: Formula E website Notes: S5 refers to 2019 baseline, while S6-S9 refer to yearly emissions reduction until 2023.

Key emissions reduction initiatives include collaborating with logistics providers to use biofuels for road and sea freight, addressing the largest source of emissions in the championship.

  1. Offset

To address unavoidable emissions, Formula E invests in renewable energy projects in race markets. In Season 6, these investments offset all emissions since the sport’s inception, making them the first motorsport to achieve net zero carbon status. 

Formula E offset an estimated 33,800 tCO2e for Season 8 by purchasing and retiring 33,800 Certified Emission Reductions from two projects in Mexico. 

In Season 9, the electric motorsport advanced its commitment by aligning with PAS 2060, the international specification for demonstrating carbon neutrality, becoming the first global sports organization to do so.

Formula E’s pioneering efforts in measuring, reducing, and offsetting carbon emissions exemplify how even high-impact sports can lead to sustainability. By achieving and maintaining net zero carbon status, Formula E sets a benchmark for other industries to follow in the quest for a greener future.

Saskatchewan Achieves Legal Win Over Canada’s Federal Carbon Tax

Saptakee S
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Saskatchewan Achieves Legal Win Over Canada’s Federal Carbon Tax

In breaking news, the Saskatchewan government announced its successful court injunction to stop the Canada Revenue Agency from collecting the federal carbon tax in the province. This came as a joy for the Saskatchewan residents, amid all the tax burden they were carrying these years.

Court Halts Federal Collection Amidst Heated Constitutional Dispute

Releases from Global News stated that Bronwyn Eyre, the Satkatchewan provincial justice minister, and attorney general declared just a day before that,

“The court ruled in our favor, blocking the federal government from unconstitutionally garnishing money, pending the full hearing and determination of the continuation of the injunction by the Federal Court.”

She further argued that garnishing a provincial bank account violates Section 126 of Canada’s constitution. The issue is pressed for a full court hearing. Dustin Duncan, the minister of Saskatchewan’s Crown Corporations said that the application was successful. He said,

“The court has ruled in our favor and has blocked the federal government from – in our view – unconstitutionally garnishing money from the province of Saskatchewan. The injunction will be in effect pending a full hearing.”

He expressed hope that they would be in court this week to argue the merits of the successive steps. He was also confident of winning.

In defense, Minister of National Revenue Marie-Claude Bibeau said that the Canada Revenue Agency is actively collecting taxes as required by law. She emphasized their strong commitment to following the law. Bibeau pointed out that Saskatchewan did not comply, even though the Supreme Court of Canada said the carbon tax was okay. She affirmed that their goal is to treat everyone fairly and equally and to encourage environmental responsibility across Canada.

However, the legal tussle ended with Saskatchewan winning the battle against the federal carbon tax. Following this, the provincial government announced its successful court injunction to stop the Canada Revenue Agency (CRA) from collecting the federal carbon tax within the province.

In April, the CRA announced plans to audit Saskatchewan for not paying the carbon levies. Prime Minister Justin Trudeau defended the exemption for home heating oil users, citing its higher cost compared to natural gas. He wished Premier Moe “good luck” for this stance on CRA. Trudeau has further ruled out extending similar exemptions to other fuel users.

Saskatchewan Faced Increased Energy Costs in 2023

Last year, came heavy on Saskatchewan residents and businesses. They saw increases in their power and energy bills, as well as at the gas pumps. In 2022, the federal government approved Saskatchewan’s output-based performance standards (OBPS) for industrial emitters. This saved the industry an estimated $3.7 billion in federal carbon taxes by 2030 compared to federal carbon pricing.

As reported by top media agencies, the federal carbon tax also increased from $50 to $65 per tonne, with plans to reach $170 per tonne by 2030. In April 2023 the federal fuel charge raised gasoline costs to $0.14/litre. This carbon pricing system raised their bills.

SaskPower president & CEO Rupen Pandya remarked in a news release on December 9, 2023,

“We are striving to achieve these goals while keeping rates as low as possible while complying with a federal regulatory framework that requires us to collect additional carbon tax revenue.”

Thus, we can see that all the turmoil began a year back… It escalated when Scott Moe, premier of Saskatchewan opposed the federal decision to exempt home heating oil from the carbon tax in Atlantic Canada. He downrightly called it unfair. He demanded a similar exemption for natural gas in Saskatchewan, but Ottawa refused. That time Bronwyn Eyre also warned that the federal government has threatened to remove these rebates, impose fines, or even press charges against Saskatchewan officials. Consequently, residents continued to receive carbon rebate checks.

Significantly, the independent rate review panel in Saskatchewan suggested that the provincial government should postpone planned increases in rates for 2023-2024 and 2024-2025. They recommended keeping SaskEnergy’s 31% increase in gas prices from August and an 8% rise in delivery fees for the year. The provincial government is currently reviewing the panel’s report carefully. The carbon tax scenario, however, transformed this year and for the betterment of the Canadian province.

Saskatchewan emissionssource: Government of Saskatchewan (www.saskatchewan.ca)

Saskatchewan Families Enjoy Relief from Carbon Tax in 2024

Starting January 1, 2024, SaskEnergy and SaskPower removed the federal carbon tax from home heating. This decision can save ~98% of Saskatchewan families who were previously excluded from the federal exemption on home heating oil.

Dustin Duncan once again expressed himself by saying,

“We ensured fairness by removing the federal carbon tax on natural gas and electric heat, similar to what the federal government did for heating oil in Atlantic Canada,” said Crown Investments Corporation Minister. By extending this relief, we helped Saskatchewan families afford to heat their homes this winter.”

The removal of the carbon tax from SaskEnergy bills saved the average family about $400 in 2024. Heating accounted for ~60% of power consumption in winter for electric heat users. So SaskPower reduced the carbon tax rate on bills by 60%. This reduction lowered power bills by an average of $21 monthly for around 30,000 customers.

In January, customers still saw a federal carbon tax charge for natural gas or electricity used in December. However, bills for usage from January 1, 2024, onward showed the tax as both a charge and a reversal credit, effectively making it zero. This was a huge win for Saskatchewan, paving the way for carbon tax revocation.

U.S. DOE Aims to Expand Domestic Uranium Supply with US$2.7B RFP

Saptakee S
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U.S. DOE Aims to Expand Domestic Uranium Supply with US$2.7B RFP

The U.S. Department of Energy (DOE) has released a request for proposals (RFP) to buy low-enriched uranium (LEU) from U.S. sources. This move aims to boost domestic uranium enrichment capacity safely and responsibly. The RFP is backed by $2.7B from President Joe Biden’s Investing in America agenda, which was approved in May.

Breaking Free from Russian Influence in Nuclear Fuel with $2.72 Billion Injection

This year on May 13, President Biden signed a historic law, The Prohibiting Russian Uranium Imports Act to strengthen America’s energy and economic security. This law aims to reduce and eventually eliminate the country’s reliance on Russia for nuclear power.

It reestablished U.S. leadership in the nuclear sector, securing America’s energy future. With $2.72 billion in funding, it boosted new enrichment capacity in the U.S. and showed a commitment to long-term nuclear growth. This move would also promote a diverse market and ensure a reliable supply of commercial nuclear fuel.

Additionally, this law supported the country’s international goals. It banned imports of enriched uranium from Russia. Furthermore, last December, the U.S., Canada, France, Japan, and the UK pledged $4.2 billion to expand enrichment and conversion capacity.

Uraniumsource: EIA

US Energy Secretary Jennifer Granholm noted,

“DOE is helping jumpstart uranium enrichment capacity here in the United States, which is critical to strengthening our national security and growing our domestic nuclear industry,”

Ali Zaidi, National climate advisor and assistant to the president, highlighted the significance of transitioning from fossil fuel. He remarked, 

“Under President Biden’s leadership, we have spurred an unprecedented expansion in clean energy production, which is creating good-paying union jobs and putting us on a path to greater energy security.”

Moving on, contracts from this initiative will last up to 10 years, with proposals due by August 26, 2024.

A MESSAGE FROM URANIUM ROYALY CORP.
[Disseminated on behalf of Uranium Royalty Corp.]

How To Get Ahead In The Nuclear Renaissance.

URANIUM ROYALY CORP.

Uranium Royalty Corp. is a pure-play uranium royalty company focused on gaining exposure to uranium prices by making strategic investments in uranium interests, including royalties, streams, debt and equity investments in uranium companies, as well as through holdings of physical uranium.

Learn more about their portfolio of geographically diversified uranium interests >>

The Rise of Advanced Nuclear Reactors in the U.S.

These actions align with the DOE’s Pathways to Advanced Nuclear Commercial Liftoff report which wants to advance technologies for net-zero emissions by 2050. Additionally, the DOE’s Advanced Reactor Demonstration Program (ARDP) supports nuclear demonstration and risk reduction projects.

ARDP will accelerate advanced reactor demonstrations through cost-shared partnerships with U.S. industry. The Office of Clean Energy Demonstrations officially stated,

“It supports design, licensing, construction, and operation of two advanced reactor technologies, the TerraPower Natrium and the X-energy Xe-100 reactors. This funding builds on the initial $160 million from DOE’s Office of Nuclear Energy, awarded in 2020.”

These innovative nuclear technologies are designed to offer flexible electricity output and provide process heat for various industrial applications, including desalination and hydrogen production.

Advanced nuclear reactors can power homes and businesses sustainably. They have almost zero GHG, can efficiently use fuel, and are safe. The innovative designs can significantly increase the safety and performance of the existing reactors. Advancing these latest nuclear technologies will expand access to clean energy and open new market opportunities. It will also help preserve essential infrastructure and maintain vital supply chain capabilities.

Uraniumsource: EIA

Biden’s $500M Investment to Transform Nuclear Energy

From a report published by DOE, we discovered that President Biden’s Inflation Reduction Act allocates up to $500 million for high-assay low-enriched uranium (HALEU)—an important material needed to develop and deploy advanced reactors. Simply put, this contract allows uranium conversion into usable fuel forms for advanced reactors. HALEU enhances reactor performance with longer-life cores and better fuel utilization.

Nuclear power is America’s largest clean energy source and this step will enable meeting emissions targets and the US’s pledge to triple global nuclear power by 2050. DOE is expanding the HALEU supply chain for advanced reactors, including recycling spent fuel from government research reactors. Current U.S. reactors use uranium fuel enriched up to 5% with uranium-235. However, most advanced reactors need HALEU, enriched between 5% to 20%, to achieve smaller, versatile designs with high safety and efficiency.

According to DOE, U.S. domestic nuclear capacity has the potential to scale from ~100 GW in 2023 to ~300 GW by 2050—driven by the deployment of advanced nuclear technologies.

Image: New nuclear build-out scenarios and implications for industrial base capacity requirements.

Nuclearsource: DOE

Comprehensive Biochar Carbon Removal Guide Revealed

Jennifer L
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Comprehensive Biochar Carbon Removal Guide Revealed

Hamerkop and the International Biochar Initiative (IBI) have unveiled a comprehensive guide titled “A Manual for Biochar Carbon Removal,” aimed at biochar producers, investors, and stakeholders. This manual compares certification standards, provides practical project design guidance, and details associated costs. Thus, it facilitates a clearer understanding of biochar carbon removal and certification processes.

Hamerkop, an advisory firm specializing in climate finance, carbon offsetting, and energy access, partnered with IBI to create this manual. It serves as an essential roadmap, offering insights into the certification of biochar carbon removal credits and aiding participants in navigating the complexities of biochar certification and various standards available in the market.

How Capable is Biochar in Sequestering Carbon?

Biochar, a carbon-rich material produced from organic matter through pyrolysis, has garnered significant attention for its carbon sequestration potential. Unlike natural decomposition, which releases greenhouse gases (GHGs), transforming biomass into biochar locks carbon into a stable form. 

As such, it prevents carbon release and allows it to be stored for centuries. This property makes biochar a potent tool in combating climate change.

Biochar carbon removal process
Source: Carbonfuture

The manual introduces biochar and its role in the voluntary carbon market, where biochar projects can generate carbon removal credits. These credits can be sold to companies seeking to offset their carbon emissions, thus providing a financial incentive for biochar production. 

  • Certification plays a crucial role in ensuring the credibility and effectiveness of biochar carbon removal efforts, which the manual underscores.

A significant section of the manual is dedicated to comparing existing biochar methodologies and standards, including: 

  • Puro.earth, 
  • Verified Carbon Standard (VCS), 
  • Carbon Standards International (CSI), Riverse, and 
  • Climate Action Reserve (CAR). 

By evaluating these standards, the guide helps biochar producers and investors choose the most appropriate approach for their specific projects.

Comparing Biochar Standards

The manual details the criteria and requirements of each standard, such as eligible feedstocks, production technologies, and end-use applications. For instance, Puro.earth mandates rigorous audits and detailed records of carbon removal activities, while Verra’s VCS ensures biochar projects are additional and not part of business-as-usual operations. CSI, on the other hand, offers methodologies tailored for both large-scale and small-scale biochar production.

In addition to providing an overview of certification standards, the manual offers practical guidance on designing biochar projects. It covers considerations such as project scale, biomass feedstock selection, production technologies, and end-use applications, assisting project developers in creating robust and effective biochar carbon removal initiatives.

The manual also highlights the variability of biochar properties based on feedstock and production parameters. Different feedstocks can yield biochar with varying carbon content, nutrient availability, and physical properties. 

The guide discusses how these variations impact the carbon sequestration potential and other benefits of biochar, such as soil improvement and water retention.

More notably, a cost comparison of the various certification pathways is included to help stakeholders budget for their biochar projects. The guide details fees associated with each standard, including registration, audit, and issuance costs, providing a comprehensive understanding of the financial implications of biochar certification.

The infographics below, first shared by Olivier Levallois in LinkedIn, details the cost comparison per biochar standard.

biochar carbon removal cost by standard

By offering a calibrated analysis of different carbon accounting methods and providing clear, practical guidance, the manual aims to simplify the process for biochar producers and investors. This, in turn, promotes the growth of the biochar industry as a viable solution for reducing greenhouse gas emissions and mitigating climate change. 

Biochar’s Rapid Expansion and Projections

The guide’s release comes at a crucial time as the world seeks effective solutions to mitigate climate change. Biochar’s ability to sequester carbon and improve soil health makes it a promising option. 

Biochar has emerged as a prominent technology for durable carbon dioxide removal (CDR). It has the potential to remove up to 6% of global emissions annually.

In 2023, biochar carbon removal accounted for over 90% of delivered carbon credits, according to CDR.fyi. Currently, the biochar industry produces at least 350,000 metric tonnes annually and is on a steep growth trajectory. By 2040, the industry aims to deliver a gigaton of biochar carbon removal.

carbon removal suppliers, biochar top 1
Source: cdr.fyi report

This rapid expansion is driven by strong industry optimism and significant financial projections. Revenues are expected to skyrocket from $600 million in 2023 to nearly $3.3 billion by 2025. This growth reflects the increasing recognition of biochar’s role in combating climate change and its value in the carbon credit market.

The industry’s optimistic outlook and robust growth trajectory highlight biochar’s potential as a key player in global carbon removal efforts.

The collaboration between Hamerkop and the International Biochar Initiative underscores the importance of stakeholder engagement and industry best practices in advancing biochar as a sustainable carbon removal strategy.

Shell’s Polaris Project Fuels Canada’s Carbon Capture Revolution

Jennifer L
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Shell’s Polaris Project Fuels Canada’s Carbon Capture Revolution

Shell Canada’s recent approval of the Polaris carbon capture project marks the beginning of significant investment in emissions-reducing technology, according to federal Natural Resources Minister Jonathan Wilkinson. 

The Minister predicts 20 to 25 carbon capture and storage (CCS) projects will start in Canada within the next decade. This is spurred by a new federal investment tax credit, covering up to 50% of CCS project capital costs.

Wilkinson further noted that the tax credit is crucial for heavy industry companies to make final investment decisions. The Shell Polaris project is a direct result of this incentive.

Pioneering Investment in Emissions Reduction

The CCS project will capture 650,000 tonnes of CO2 annually from the Scotford refinery near Edmonton, Alberta.

Shell’s Polaris carbon capture project will mitigate about 40% of direct CO2 emissions from the Scotford refinery and 22% from its chemicals complex. Although the project’s cost remains undisclosed, it is expected to start operations by the end of 2028.

Additionally, Shell announced the development of the Atlas Carbon Storage Hub in partnership with ATCO EnPower. The first phase of Atlas will be connected to Polaris via a 22-kilometer pipeline, providing permanent underground storage for CO2 captured by Polaris. This CCS project just received a green light. 

Polaris is Shell’s second carbon capture and storage (CCS) project in Canada. The first project, Quest, completed in late 2015 at the Scotford complex, cost $1.3 billion. It has captured and stored about 1 million tonnes of CO2 annually since its inception.

All these are part of the energy giant to achieve its 2050 net zero emissions target outlined in the chart.

Shell 2050 net zero goal
SHELL NET ZERO GOAL. Chart from Shell’s Report

CCS technology, which captures and compresses CO2 emissions from industrial processes for safe underground storage, is considered one of the most effective ways to decarbonize heavy-polluting industries like oil, gas, and cement production.

Canada considers this carbon management essential for reaching its net zero emissions target.

How Carbon Capture And Storage Can Support Canada’s Path to Net Zero

Currently, Canada has a few CCS projects operational, storing about 44 million tonnes of CO2 since 2000. The federal plan to cut emissions by 40-45% below 2005 levels by 2030 and reach net zero by 2050 requires tripling national CCS capacity by 2030. This involves adding facilities capable of capturing at least 15 million tonnes of CO2 annually.

The International CCS Knowledge Centre in Regina states that achieving this goal calls for implementing CCS across various heavy industries. These include power generation, cement, steel, fertilizer manufacturing, mining, and petrochemicals.

Apparently, Shell’s industry heavily needs this carbon capture technology to decarbonize. 

Canada aims to achieve significant reductions in the oil and gas sector as outlined in its Emissions Reduction Plan. The goal is to cut emissions from 191 million tonnes in 2019 to 110 million tonnes by 2030.

Under the International Energy Agency’s Updated Roadmap to Net-Zero Emissions by 2050, carbon capture and storage technologies need rapid scaling to capture 1.2 gigatonnes (Gt) globally by 2030 and 6.2 Gt by 2050, accounting for about 15% of total required GHG reductions. 

Recognizing this challenge and opportunity, Canada’s G7 peers like the United States, the United Kingdom, Germany, and the European Union prioritize carbon management technologies through national strategies and significant investments.

According to the Canada Energy Regulator’s (CER) “Canada’s Energy Futures 2023” report, carbon management is crucial for domestic emissions reductions. In the CER’s Global Net-Zero Scenario, CCUS sequesters nearly 60 million tonnes (Mt) annually in Canada by 2050, with 25 Mt from heavy industry. 

In a slower global transition (Canada Net-Zero Scenario), CCUS costs fall more slowly, capturing 80 Mt annually due to greater global fossil fuel demand. 

Decarbonizing Heavy Industries 

Canada boasts vast geological storage resources, presenting opportunities to store both domestic and international CO2, potentially generating revenue and investment from abroad.

Key storage areas include:

  • Western Canadian Sedimentary Basin (WCSB): Spanning from British Columbia to Manitoba. It includes regions that could store about 4.2 gigatonnes of CO2, equivalent to over 66 years of British Columbia’s emissions.
  • Williston Basin: Primarily in southern Saskatchewan, offering additional significant storage capacity.
  • Southern Ontario and Quebec: Contain several sedimentary basins that may also be suitable for CO2 storage.

The estimated capacity of Canada’s saline aquifers within these sedimentary basins exceeds 100 billion tonnes. That would be sufficient for hundreds of years of CO2 storage.

Offshore Storage Potential:

  • Nova Scotia and Newfoundland and Labrador: These regions have suitable seabed geology for conventional subseabed CO2 storage.

Canada CCS map saline aquifers and sedimentary basins

These extensive storage capacities and geological resources position Canada as a potential leader in global carbon capture and storage. There are over 40 proposed CCS projects in Canada, according to the IEA. 

The most prominent CCS proposal comes from the Pathways Alliance, a group of oilsands companies planning a CA$16.5 billion pipeline to transport captured carbon from 14 sites to a storage location near Cold Lake. Although a final investment decision is pending, Minister Wilkinson believes the project will proceed.

Mayor Rod Frank welcomed the news, stating that the addition of Polaris to Alberta’s Industrial Heartland aligns with the county’s economic development and environmental sustainability goals.

“These carbon capture projects will create new jobs, support our economy and enhance investment attractiveness while capturing emissions that would otherwise be released into the atmosphere.”

Google Ditches Carbon Offsets, Here’s Its New Net Zero Focus

Jennifer L
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Google Ditches Carbon Offsets, Here’s Its New Net Zero Focus

Google has stopped buying cheap carbon offsets that previously supported its carbon neutrality claim. The company, facing increased emissions due to artificial intelligence and data centers’ massive power use, now aims for net zero carbon by 2030. 

Since 2007, the tech giant claimed carbon neutrality by purchasing offsets to match emissions from its operations. However, their latest report states:

“Starting in 2023, we’re no longer maintaining operational carbon neutrality.”

The shift marks a move towards more substantial emission reductions and advanced carbon removal solutions.

Google’s Approach to 2030 Net Zero Goal 

In 2021, Google set an ambitious target to achieve net zero emissions across all operations and value chains by 2030. This includes reducing 50% of Scope 1, Scope 2, and Scope 3 emissions from a 2019 baseline, and investing in nature-based and technology-based carbon removal solutions to neutralize the rest. 

The Science Based Targets initiative (SBTi) will validate Google’s absolute emissions reduction target.

Google’s net zero goal aligns with the IPCC’s definition and will adapt as global standards evolve, aiming to balance anthropogenic emissions with removals while maximizing positive planetary impact.

Achieving net zero emissions involves navigating significant uncertainties, including the environmental impact of AI and the clean energy transition. The Big Tech anticipates an initial rise in total greenhouse gas emissions before reductions align with the net zero goal.

In 2023, Google’s GHG emissions were 14.3 million tCO2e, a 13% year-over-year increase and 48% higher than in 2019, driven in part by a 37% rise in Scope 2 (market-based) emissions.

Google's GHG / carbon emissions 2023
Chart from Bloomberg

The rise was also mainly due to increased data center energy consumption and supply chain emissions. Integrating AI into products poses further challenges, as the energy demands and emissions associated with AI are expected to grow. Below is Google’s data center carbon-free energy (CFE) map.

Google CFE Map

Google carbon-free energy map with data center operations
Google CFE percentage in every grid region in which we have data center operations, including third-party-operated facilities

Despite the GHG emissions increase, the overall growth rate of emissions slowed compared to previous years. Key emissions trends are:

Emissions reductions:

  • All Scope 1, 2 (market-based), and 3 absolute emissions across operations and value chain increased in 2023.
  • This includes emissions from data centers, office operations, supply chains, and consumer hardware devices.

Residual emissions:

  • 2023 marked the initiation of the tech company’s carbon removal strategy.
  • Google is in the early stages of establishing impactful partnerships and have begun contracting for carbon removal credits.

Google’s Carbon Credits Strategy

Google aims to neutralize its residual emissions with high-quality carbon credits by 2030. Starting in 2023, the search engine firm shifted its strategy from maintaining operational carbon neutrality to accelerating various carbon solutions and partnerships. 

As seen in the chart below from Bloomberg, Google’s carbon offsets plummeted to zero in 2023, from 3 million tons of carbon credits.

Google's carbon offsets
Chart from Bloomberg

The goal now is to play a significant role in advancing both nature-based and technology-based carbon removal solutions to mitigate climate change.

To support the advancement of carbon removals, Google addresses the key challenges these solutions face. Technology-based solutions, for instance, currently lack scale and are often expensive, operating mostly as small pilots. To tackle this, the company pledged $200 million in 2022 to Frontier, an advance market commitment aimed at accelerating carbon removal technologies by guaranteeing future demand. 

In 2023, Google completed its first carbon credit offtake deals through Frontier, including agreements with Charm Industrial, CarbonCapture, and Lithos Carbon.

Another challenge is the reluctance of corporations to participate in the nascent carbon removal market. Google believes governments and companies must play complementary roles in demonstrating and scaling promising carbon removal approaches. 

In March 2024, Google pledged to match the U.S. Department of Energy’s Carbon Dioxide Removal Purchase program dollar for dollar. The tech giant plans to contract at least $35 million in carbon removal credits over the next 12 months.

Advancing Carbon Removals

Google is committed to working with partners to identify and scale promising carbon removal solutions, hoping other companies will join the effort. 

Google contracted carbon removal portfolio
From Google environmental report

In addition to these partnerships, Google.org provided a $1 million grant in 2023 to the Integrity Council on Voluntary Carbon Markets (ICVCM) to support high-integrity solutions. This grant brought Google.org’s total contributions to strengthening carbon markets to over $7 million. This fund supports organizations like The Gold Standard, Rocky Mountain Institute, the Voluntary Carbon Market Initiative, and Climate Action Data Trust.

Beyond purchases and partnerships, Google drives advancements in research and technology. In 2023, the company introduced the Google Carbon Removal Research Awards, providing over $3 million in funding to universities and academic research institutions. 

These funds support scientific studies on carbon removals, including the effects of ocean alkalinity enhancement on coastal ecosystems and the potential of enhanced weathering projects in forests.

By the end of 2023, Google signed three carbon credit offtake deals, purchasing around 62,500 tCO2e of removal credits, contracted for delivery by 2030. Google recognizes this as just the beginning and is committed to accelerating its carbon removal efforts in the years to come, continually evolving its approach to counterbalance its residual emissions.

Why Shell Hit the Brakes on New Rotterdam’s Biofuel Plant

Saptakee S
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Why Shell Hit the Brakes on New Rotterdam’s Biofuel Plant

Shell Nederland Raffinaderij B.V., a subsidiary of Shell, is pausing construction at its massive biofuel facility in Rotterdam. The 820,000tpa capacity site at Shell Energy and Chemicals Park will halt work temporarily to focus on other vital aspects of the company. So, what is the exact reason behind Shell’s massive decision? Will this impact its operations, global market value, and employees by large? Read and discover more…

Why did Shell take this Bold Decision?  

Explaining straightway, Wael Sawan, CEO of Shell wants to prioritize the company’s most profitable ventures, particularly in oil and gas. This approach has resulted in the company pulling out of less profitable renewable and hydrogen projects. The outcome of this decision is the temporary halt of the Rotterdam biofuels project. Shell is also conducting a thorough valuation review of this unit. The 820,000t unit was also set to produce sustainable aviation fuel (SAF), apart from renewable diesel. According to media reports, they aimed to start operations in 2025, but now it has been postponed to the end of the decade.

Another key reason for ceasing the unit is to slow down activities and reduce contractor strength for better cost control. They believe this will help optimize and streamline project sequencing. With this new amendment, Shell aims to reevaluate project delivery and maintain competitiveness in the current economic scenario.

Huibert Vigevano, Shell’s downstream head confirmed that,

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project. We are committed to our target of achieving net-zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy.”

UBS analyst Joshua Stone remarked,

“The pause was consistent with Shell’s strategy to focus on returns. The delays further highlight that the advanced biofuels market is not an easy one. The oil majors have dipped their toes and found it challenging.”

Shell Canada Greenlights Major Carbon Emission Cut

As this news came as a shock to many, there is a silver lining for our news readers. Meanwhile, Shell Canada recently achieved the final investment decision (FID) for CCS projects, including the Polaris project and the Atlas Carbon Storage Hub, in partnership with ATCO EnPower. The media release notes that Polaris (100% Shell-owned) can reduce Scope 1 CO2 emissions at Shell’s Scotford refinery by capturing and storing up to 40% and by up to 22% at the chemicals complex. The operations are slated to begin by the end of 2028.

Moving on, Shell Eastern Trading has acquired Pavilion Energy from Carne Investments, gaining 100% control. This is another significant milestone that happened last month. Pavilion Energy, based in Singapore, operates a global LNG trading business with 6.5 mtpa of contracted supply, alongside shipping, and gas supply activities in Asia and Europe. This acquisition manifests Shell’s LNG portfolio. It also provides strategic access to key markets, increasing flexibility to meet energy security needs in Asia and Europe.

Even though it might seem uncanny for companies to halt projects in progress, Shell is not the first company to announce it. Energy giant BP recently announced a pause on two biofuel projects in Germany and the U.S.

Media agencies like the Financial Times have reported that Biofuel prices have been under downward pressure recently. This is because of reduced demand in Europe following Sweden’s biofuel mandate cut, alongside increased supplies from the U.S. However, Shell shares increased by 1.3% at 1106 GMT, showing a rise of over 12.5% this year.

Shell has a market cap or net worth of $235.01 billion. The enterprise value is $277.77 billion. As of the most recent data, Shell’s stock price in the last 5 days was $73.25 per share, as shown in the image below.

Shell

source: stockanalysis

NYSE: SHEL · IEX Real-Time Price · USD 73.25

How Shell Uses Carbon Credits to Shape the Future

Shell’s carbon credits play a crucial role in their goal to become a net-zero emissions energy business. These credits help Shell and its customers offset emissions, adhering to the mitigation hierarchy: avoid, reduce, and compensate. Notably, Shell selects projects certified by the Verified Carbon Standard, Gold Standard, and the American Carbon Registry. In the ESG sphere, the company helps generate carbon credits from nature-based projects and technologies. In 2023, Shell’s net carbon intensity (NCI) included 20 m carbon credits, with 4 m linked to energy product sales.

Shell’s Net-zero emissions by 2050 (Scope 1, 2, and 3), reported by Shell’s Energy Transition Strategy, 2024

Emissions from internal operations (Scope 1 and 2)

  • Halve Scope 1 and 2 emissions by 2030 (2016 baseline).
  • Eliminate routine flaring from Upstream operations by 2025.
  • Maintain methane emissions intensity below 0.2% and achieve near-zero methane emissions by 2030.

Emissions from sold products (Scope 3):

  • Reduce the net carbon intensity (NCI) of the energy products we sell by 9–12% by 2024, 9–13% by 2025, 15–20% by 2030, and 100% by 2050 (2016 baseline).
  • Ambition to reduce 15-20% customer emissions from their oil products use by 2030 (Scope 3, Category 11) (2021 baseline)

Global Market Insights reports that the European biofuel market size exceeded USD 26.5 B in 2023 and is likely to register a 6.7% CAGR from 2024 to 2032, owing to the rising concerns about climate change and demand for sustainable energy sources. The European government aims to boost renewable fuels to approximately 14% of transport energy by 2030, with substantial demand. With this prediction, we can hope the future of energy giants like Shell is promising, amid the biofuel boom.

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