Google Strikes $100/ton Deal with US DAC Startup Holocene

Saptakee S
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Google Strikes $100/ton Deal with US DAC Startup Holocene

Google has taken a bold step in the fight against climate change, signing a groundbreaking deal to purchase 100,000 tons of carbon removal from Tennessee-based startup Holocene. The $10Mn direct air capture (DAC) offtake agreement, set for delivery by 2030, establishes a record-low price of $100 per ton for carbon removal credits. This deal is expected to play a pivotal role in reducing the cost of DAC technology which has gained significant attention in global net zero goals.

Big Value, Small Price: What’s Inside Google’s $100 Price Tag

Achieving a price of $100 per ton for DAC removal is no small feat. Google made this possible by committing to an upfront payment, which provides Holocene with the necessary capital to scale its operations. But that’s not the only factor driving down costs.

The U.S. government’s 45Q tax credit, resulting from the Inflation Reduction Act, has been instrumental. This tax credit offers up to $180 per ton of carbon removed, providing a crucial financial incentive for companies like Holocene to invest in carbon capture technology.

Despite the optimism, Holocene has yet to deliver carbon removal on a large scale. The company only recently launched its first pilot plant in May 2024, which captures 10 tons of CO2 annually. Still, Holocene is confident that its innovative approach, coupled with Google’s financial backing, will enable it to meet the ambitious 100,000-ton target by the early 2030s.

The Looming Lithium Shortage
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Worldwide lithium demand is expected to accelerate into 2024 and beyond.

EV sales are still growing every year. Automobile manufacturers have sold more EVs in 2024 than ever. And to power these electric vehicles, you need lithium for batteries that provide consistent, long range. Lithium production is starting to pick up again, and that has contributed to lower prices. The energy transition is happening. And no one can stop it.

Learn why investing in lithium explorers and producers looks promising >>

Betting on Holocene’s Innovate DAC Technology

Holocene’s approach to carbon removal is based on technology developed at the Department of Energy’s Oak Ridge National Laboratory. Unlike many other DAC systems, which rely on energy-intensive processes, Holocene’s solution is designed to be more cost-effective and scalable.

The press release revealed that Holocene uses a combination of liquid and solid-based systems that trap CO2 from the air. This is achieved by passing air through a waterfall mixed with an amino acid, which binds the CO2 molecules. The CO2 is then combined with guanidine to form a solid crystal, which is lightly heated to release pure CO2 for storage.

The company claims its technology stands out using lower temperatures, enabling it to harness waste heat or carbon-free sources. This further reduces energy costs and makes it sustainable.

Most importantly, Google and other tech giants are betting on this kind of DAC technology to slash costs dramatically to meet their carbon reduction goals.

Roadblocks To Commercial Viability

However, this means of cutting emissions still has a long way to go before it becomes commercially viable and scalable. Currently, direct air capture can potentially remove ~ 2,000 tons of CO2 annually and needs to expand massively to create a huge dent in global emissions.

While the deal between Google and Holocene seems promising, the broader carbon removal market remains in its early stages. On the flip side, Google has pointed out certain challenges.

First, the competition for resources such as clean energy is cutthroat to power carbon capture plants and emerging data centers. This clean energy challenge could limit availability and give rise to conflicts. As demand grows, balancing these needs will become critical to ensure both sectors can thrive without straining resources.

A befitting instance of this kind of scenario was when Carbon Capture, the leading DAC developer, was recently forced to relocate its Project Bison facility due to growing competition for clean energy in Wyoming.

The second challenge is that Holocene is still in its early stages and has yet to achieve commercial viability. While it aims to capture 100,000 tons of CO2, this is far less than the billions of tons experts say must be removed annually to avoid severe climate impacts.

Additionally, costs remain high, and the demand for carbon removal services is uncertain. Thus, these costs must drop significantly for DAC projects to gain robust support from businesses and governments.

Image: CO2 capture by DAC, planned projects, and in the Net Zero Emissions by 2050 Scenario, 2020-2030

IEA DAC Source: IEA

Holocene Confident in Breaking Through the Challenges in Carbon Capture

The DAC startup is confident it can scale its operations, aiming to remove 1 million tons of CO2 annually by 2030. Moreover, being equipped with custom-built systems, it has high hopes to meet its carbon capture goals.

Notably, CEO Anca Timofte, a former Climeworks executive, believes Holocene’s technology will be more cost-effective and easier to deploy on a large scale.

The partnership between Google and Holocene is a major step in tackling climate change. By providing funding and committing to buy carbon credits, Google is helping scale direct air capture. If successful, this collaboration could make carbon removal more affordable which is crucial for meeting global climate targets.

Potential Volkswagen Demise Looms, Germany Gears Up for EV Revival

Saptakee S
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Potential Volkswagen Demise Looms, Germany Gears Up for EV Revival

The International Energy Agency (IEA) reported that “In Germany, where battery electric car subsidies ended in 2023, sales of electric cars fell by almost 5% in the first quarter of 2024.” Does this signal the impending downfall of Germany’s EV market? Absolutely not. Although the EV momentum has slowed down with Volkswagen’s planning closure, the German government is making bold moves to revive its domestic EV industry.

Is Volkswagen Shutting Down in Germany as Competition Looms?

Lately, this news has been making rounds as Germany’s home brand Volkswagen plans to shut down factories to cut costs. This is because the company has been facing stiff competition from Chinese EV makers, particularly in its largest market, China.

VW CEO Oliver Blume warned that Germany was losing its competitiveness as a manufacturing hub, noting that the European automotive industry was under significant strain. Industry experts explained this problem somewhat this way- Volkswagen, which launched a €10 billion ($11.1 billion) cost-cutting plan in 2023, struggled in China as local EV brands like BYD gained market share.

Consequently, the automaker saw a 7% drop in deliveries in the Chinese market in the first half of this year. This decline further contributed to an 11.4% fall in group operating profit, which dropped to €10.1 billion ($11.2 billion). Simply put., falling market share in China added to the pressure.

The transition to EVs disrupted Germany’s traditional automobile industry. In another media report, we discovered that car suppliers like ZF Friedrichshafen planned to cut up to 14,000 jobs in Germany by 2028 due to financial pressure and reduced orders. Amid all this clamor and turmoil, Volkswagen indicated that plant closures were a possible option to “future-proof” its business.

Volkswagen’s Alarm Prompts Urgent Government Action

Looking ahead, the German government has served some good news for its domestic EV industry. The coalition approved a new tax proposal to boost the EV market after last year’s sudden end to the subsidy program slowed progress. The initiative came just after Volkswagen blew the whistle of closing down. Notably, new registrations of EVs in Germany plummeted by 36.8% in July compared to the previous year. This highlighted the urgency for a renewed tax policy.

The plan, which is part of a larger package designed to revitalize the German economy, introduces significant tax reductions for company fleets of electric and zero-emission vehicles. Starting in 2024, companies will be able to write off up to 40% of the value of newly purchased EVs, gradually decreasing to 6% by 2028.

The government expects this tax relief to cost around €465 million ($514 million) annually.

Germany Pushes for EV Growth with New Tax Breaks

Chancellor Olaf Scholz’s cabinet also raised the price threshold for company cars eligible for tax breaks from €75,000 to €95,000. This change will benefit a broader range of vehicles, including luxury models from German automakers. Economy Minister Robert Habeck emphasized the importance of the car industry to the country’s economy, calling it a “cornerstone” that must keep up with global competition, especially from China.

battery electric vehiclesHowever, while the auto industry association VDA praised the government’s initiative, critics argued the tax breaks would primarily benefit high-income earners. Environmentalists also doubted whether the new measures would significantly boost EV sales, especially after the sudden halt to consumer subsidies late last year, which led to a 70% drop in new EV registrations in August.

With Germany’s EV market struggling and competition from China increasing, the government’s move to incentivize corporate EV adoption signals a critical effort to revitalize the country’s automotive industry and ensure it remains competitive on the global stage.

Germany Drives Dynamic Developments in Automotive R&D

Germany has always pushed investment in automotive R&D. Currently, its automotive industry experiencing a major transformation, with digital and sustainable mobility emerging as the top choice for consumers.

In the latest report released by the EU Industrial R&D Investment, German automotive companies increased their R&D investments by 15% in 2022, reaching a total of €52.2 billion. This shows the industry’s commitment to staying competitive and leading the charge in future technologies.

Other than this, German automakers are making a significant impact on the global stage. Data shows:

  • In 2022, 30% of the global automotive R&D investments came from German companies.
  • German manufacturers and suppliers accounted for 72% of all R&D spending by European automotive companies worldwide.

Hildegard Müller VDA President noted,

“The massive investments by the German automotive industry show our determination to turn the transformation into an international success story. The German automotive industry supports the climate goals and wants to make climate-neutral mobility a reality as quickly as possible. We are drivers of transformation.”

Germany EV

Source: VDA Germany

With nearly one-third of global automotive R&D investments coming from Germany, the country is crucial in shaping the industry’s future. This strong focus on innovation, coupled with new EV tax incentives, demonstrates Germany’s commitment to advancing the EV market and tackling emissions. As a result, Germany is set to lead the way toward a brighter, more sustainable automotive future.

Primary Nickel Production Surges 35%: Which Companies Are Nailing It?

Jennifer L
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Primary Nickel Production Surges 35%: Which Companies Are Nailing It?

The second quarter of 2024 brought contrasting trends to the nickel industry. While primary nickel producers increased output year-over-year, mined nickel production faced a decline, reflecting the broader impact of global oversupply. These dynamics continue to reshape the nickel market, affecting producers across the globe.

Primary Nickel Takes the Lead

Primary nickel, which includes materials like ferronickel for steelmaking and intermediate products for EV batteries, saw substantial growth in Q2 2024. Per S&P Global Commodity Insights, the top five publicly listed producers achieved a combined output of 158,937 metric tons. That’s a notable 35.6% increase compared to the same quarter in 2023. 

nickel production of 5 largest primary nickel companies Q2 2023 vs Q2 2024

This surge was driven by the growing demand for refined products, particularly in electric vehicle batteries and stainless steel production.

On the other hand, mined nickel production struggled. The top five producers saw a decline of 23.1%, equating to a drop of 5,362 metric tons, leaving their total output at 17,894 metric tons for the quarter. This pullback signals a deeper challenge for mined nickel producers, especially as global nickel prices remain volatile.

The London Metal Exchange (LME) cash price for nickel plunged to its lowest level of the year in July, dipping to $15,502.60 per metric ton on July 25. Although prices rebounded slightly to $16,383.96/t by September 3, this figure remains 49.9% below the high of $30,958/t recorded in January 2023. 

The steep decline has put pressure on many producers, particularly those operating at higher costs.

Indonesia’s Role in Nickel Oversupply

Despite the global oversupply and price downturn, Indonesia has maintained a strong presence in primary nickel production. The country has contributed significantly to the market surplus, although regulatory delays and restrictions on mining quotas have somewhat tempered their output. 

However, Indonesian producers remain resilient, continuing operations even as global prices struggle to recover.

The key player in the nickel market is striving to minimize Chinese involvement in its new nickel ventures. The country aims to meet the requirements for tax credits under the U.S. Inflation Reduction Act of 2022. 

Indonesia’s rapidly expanding nickel industry has led to an oversupply, causing prices to drop significantly. This surplus has driven nickel prices down as supply exceeds demand, impacting the overall market dynamics.

Jason Sappor, a senior analyst at S&P Global Commodities Insights, noted in a report that the nickel market is likely to remain in oversupply until at least 2028, with price pressures persisting over the medium term.

How Major Nickel Companies Weather the Storm

Companies like Nickel Industries Ltd. managed to increase production despite unfavorable conditions. The company produced 31,975 metric tons of nickel in Q2, a 27.7% year-over-year increase, as reported in June. Bad weather and regulatory hurdles slowed output, but Nickel Industries demonstrated resilience, capitalizing on better operational efficiencies.

top 5 largest primary nickel producers Q2 2024

However, not all primary nickel producers enjoyed growth in Q2 2024. Glencore PLC, the Swiss-based diversified miner, recorded a drop in production, with 5,100 metric tons less than the previous year as seen in the above chart. This decline stems from challenges at their Koniambo joint venture in New Caledonia, which was under care and maintenance due to severe cost overruns.

Canada-based Lundin Mining Corporation also experienced a sharp downturn. The company’s mined nickel production fell by 63.3% in Q2, producing only 1,721 metric tons. Lundin attributed this drop to an underground collapse at its Eagle site in Michigan, which severely limited output. 

Consequently, the company revised its 2024 nickel production guidance down to 7,000-9,000 metric tons, significantly lower than the earlier estimate of 10,000-13,000 metric tons.

Not all miners faced setbacks though. Sweden’s Boliden AB achieved a production increase of 865 metric tons in Q2, pushing its total output to 2,980 metric tons. This uptick was driven by improved ore grades and recovery rates at Boliden’s Kevitsa mine in Finland, helping the company capitalize on operational efficiencies despite the overall market downturn.

A Challenging, Yet Progressing Road Ahead

The nickel market faces continued challenges, with oversupply and price fluctuations expected to persist. Although some primary nickel producers are managing to expand operations, mined nickel output is under strain. The price slump has affected profitability across the board, with companies wary of reducing production for fear of losing market share.

In a separate research and projection, nickel market size could almost double by 2034, reaching around $84 billion. Of this, the market analysis projected that North America would see the fastest market growth between 2024 and 2033. 

nickel market size 2034

The global push for electric vehicles is a key driver of the nickel market, as the metal is essential for lithium-ion batteries. Nickel demand also surges from stainless steel manufacturing, fueled by the growth of construction and infrastructure sectors. 

Additionally, its widespread use in industries like aerospace, electronics, and chemical processing further boosts demand. Nickel’s crucial role in renewable energy, particularly in energy storage, adds to its rising importance. 

As the market adjusts to these pressures, the outlook remains uncertain. Indonesia’s dominance, regulatory delays, and global demand fluctuations will continue to shape the trajectory of both primary and mined nickel sectors in the years ahead.

Orano’s Bold Move: A Multi-Billion Dollar New Uranium Plant Set for Tennessee

Saptakee S
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0
Orano’s Bold Move: A Multi-Billion Dollar New Uranium Plant Set for Tennessee

The France-based nuclear and renewable energy company, Orano has picked Oak Ridge, Tennessee, as the top location for a new multi-billion-dollar uranium enrichment plant. Recently, U.S. legislation banned Russian uranium imports and allocated $2.7 billion for domestic projects.

On September 4, Tennessee officials and Orano USA announced new plans amid ongoing efforts by the Biden administration to decrease dependence on Russian uranium. Thus, this project is poised to give a solid boost to the domestic uranium reserves.

Government and Orano Partnership Bolsters Tennessee’s Nuclear Industry

Tennessee Governor Bill Lee revealed that the upcoming facility will span 750,000 square feet and generate over 300 direct jobs in Roane County. This makes it one of the largest enrichment centers in North America. Lee emphasized that Tennessee is a prime location for nuclear energy investments, highlighting the state’s Nuclear Energy Fund, which was set up to support such initiatives. An additional $10 million was appropriated in the state’s Fiscal Year 2024-2025 budget.

Governor Lee also remarked,

“Our administration created the Nuclear Energy Fund in partnership with the Tennessee General Assembly to support and expand the state’s nuclear ecosystem, and in the last six months, we’ve announced four projects that will further strengthen Tennessee’s position as a leader in safe, clean, and reliable energy for the future. Tennessee is the number one state for nuclear energy companies to invest and thrive, and we are proud to partner with Orano to lead America’s energy independence and drive continued economic growth and greater opportunity for Tennesseans.”

The fund also helps universities and research institutions expand their nuclear education programs. Additionally, Orano is the second company to benefit from the state’s nuclear support programs, further fortifying Tennessee’s role as a key player in the nation’s clean energy future.

The state is solidifying its leadership in nuclear energy by adding this major nuclear fuel enrichment facility. The press release also mentions that this project is backed by Oak Ridge National Laboratory, the TVA, and many other nuclear power plants supplying energy across the Southeast of the state. With its deep expertise and strategic investments, Tennessee is set to play a significant role in advancing the nation’s push for energy independence.

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

Orano’s Nuclear Footprint Grows Across America

Orano is a top player in the global nuclear industry, providing safe and effective solutions for managing nuclear waste. It also excels in uranium mining operations in Canada, Kazakhstan, and Niger. Known for its innovative and cost-efficient production methods, the company is leading in uranium extraction. Beyond mining, it also explores and develops new uranium sites and upgrades old mines. Consequently, this upcoming plant in Tennessee will enhance its U.S. presence and help bolster America’s energy independence.

Jean-Luc Palayer, CEO and President, Orano USA,

“We are very pleased to make this announcement with the great state of Tennessee. The warm welcome, responsive engagement, and established nuclear energy community in Oak Ridge, as well as access to continuous and stable power, have been key factors for this site selection. We’re already preparing for our next required steps, including securing available Federal support and customer commitments, obtaining an NRC license and Orano’s Board approval, but today we celebrate this major milestone towards bringing a new enrichment facility online to help meet our country’s need for an increased, secure domestic nuclear fuel supply.”

The Maryland facility is a top provider of technology and services for decommissioning closed nuclear facilities. It handles used nuclear fuel management, federal site clean-ups, and uranium sale, conversion, and enrichment services.

Commitment to Combat Emissions and Climate Change

Orano is committed to reducing its greenhouse gas (GHG) emissions, aiming for a 25% decrease in direct and indirect emissions (Scopes 1 and 2) by 2025 compared to 2019 levels. This initiative aligns with Orano’s broader goal of addressing its total GHG footprint, including Scope 3 emissions, which come from purchased goods, capital goods, and fuel-related activities.

By 2030, Orano plans to significantly reduce GHG emissions intensity across all scopes. To reach this target, the company is focusing on several key strategies:

  • Enhancing energy efficiency
  • Phasing out fossil fuels
  • Decarbonizing electricity at mining sites
  • Reducing process emissions

Orano

source: Orano

Orano is also incorporating eco-design principles into future projects and operations, ensuring sustainability is integrated from the ground up. Carbon is now a key factor in evaluating new business offers, emphasizing its importance in Orano’s ESG strategy.

Furthermore, the company recently released its earnings reports confirming a stable revenue of around €4.8 billion. Additionally, it aims to maintain an EBITDA margin between 22% and 24%, with a positive net cash flow forecast for the year.

India and UAE Sign Major Agreements with Focus on LNG and Nuclear

Saptakee S
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India and UAE Sign Major Agreements with Focus on LNG and Nuclear

In a historic move, India and the United Arab Emirates (UAE) have recently concluded significant agreements to deepen their energy cooperation and strategic partnerships. The deals cover many sectors, including liquefied natural gas (LNG), nuclear energy, and crude oil. With Prince Sheikh Khaled’s arrival, India’s Prime Minister Narendra Modi exuberantly tweeted,

“It was a delight to welcome HH Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. We had fruitful talks on a wide range of issues. His passion towards strong India-UAE friendship is clearly visible.”

A New Dawn in India-UAE Collaboration

Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s visit to India marked a significant moment for both nations. PM Modi held extensive discussions on Monday with Prince Khaled that concerned strengthening the bilateral relationship between the two countries.

These agreements highlight the growing relationship between the two nations as they collaborate to enhance energy security, develop new technologies, and strengthen economic ties.

India and the UAE have always enjoyed cordial relations, with India increasingly including the UAE as a key partner in its geopolitical strategy. In 2022-23, bilateral trade between the two nations hit around USD 85 billion, highlighting their robust economic relationship. The thriving Indian community in the UAE further emphasizes the deep cultural and social links between the countries.

Both nations continue to emphasize the importance of exploring new areas of cooperation, ensuring mutual benefits, and fortifying their long-standing relationship. Let’s deep dive into the focal points of the pact.

UAE Powers Up India’s Energy Security

One of the key agreements focuses on enhancing the UAE’s participation in India’s Strategic Petroleum Reserves. This is a critical move, as the reserves play a vital role in securing India’s energy future. The Indian government actively involved the UAE in this effort, strengthening its energy security.

Meanwhile, a production concession agreement between Urja Bharat, a joint venture of Indian Oil Corporation Ltd and Bharat Petro Resources Ltd, and the Abu Dhabi National Oil Company (ADNOC) will allow India to bring crude oil from Abu Dhabi Onshore Block 1. This will significantly contribute to India’s energy security by ensuring a steady flow of crude oil.

Notably in 2004, India launched its Strategic Petroleum Reserves to boost energy security. The Indian Strategic Petroleum Reserve Ltd (ISPRL) has filled underground caverns with 5.33 MMT of crude oil at three sites, including 1.5 MMT in Mangalore. ADNOC has stored 5.86 million barrels of crude at the Mangalore site, ready for use during global supply disruptions.

15-Year LNG Supply Agreement with ADNOC

Another breakthrough in the energy sector is the signing of a 15-year deal between ADNOC and Indian Oil Corporation Limited (IOCL). Under this agreement, ADNOC will supply 1 MMTPA of LNG to IOCL. This supply will come from ADNOC’s Ruwais gas project, which focuses on lower-carbon production.

The Ruwais project, which will be powered by clean energy, will consist of two plants with a combined capacity of 9.6 million tonnes of LNG per year. This development is expected to more than double ADNOC’s LNG output, increasing it to 15 million tonnes annually. ADNOC’s ambition to become a major player in the LNG market is evident as it competes with regional rivals like Qatar and Saudi Arabia. This agreement with India is the third long-term LNG supply contract that ADNOC has signed with Indian companies in just over a year, following similar deals with IOCL and GAIL.

Expanding Collaboration in Nuclear Energy

In addition to fossil fuels, the two nations are also eyeing opportunities in nuclear energy. According to the UAE’s official news agency, WAM, the Nuclear Power Corporation of India Limited (NPCIL) and the Emirates Nuclear Energy Corporation (ENEC) have signed a MoU that outlines a framework for the operation and maintenance of the UAE’s first nuclear power plant at Barakah.

Indian Ministry of External Affairs further confirmed that this partnership will allow India to share its expertise in nuclear technology and services and simultaneously explore investment opportunities in the UAE.

Media reports revealed that construction of the Barakah plant, located in Abu Dhabi’s Al Dhafra region, began in 2009. Last week the UAE announced the commercial launch of its fourth and final reactor, which is set to generate 40 terawatt-hours of electricity annually.

Beyond LNG and Nuclear…

Apart from LNG and nuclear, both nations are also eager to collaborate on the latest technologies such as green hydrogen, artificial intelligence, and critical minerals. The MOU between The Abu Dhabi Developmental Holding Company (ADQ) and the Gujrat Government of India outlines plans to establish a food and agriculture park in Ahmedabad by the end of next year.

India UAE

Image copyrights: carboncredits Data source: PM India

India’s External Affairs Ministry spokesperson Randhir Jaiswal also expressed himself on X, saying,

“A new milestone in a historic relationship. His Highness Sheikh Khaled bin Zayed Al Nahyan arrived in Delhi on his first official visit to India.”

This diverse collaboration highlights India and the UAE’s commitment to technological innovation and the shift to cleaner, sustainable energy. By focusing on reducing carbon emissions and embracing green technologies, both nations are positioning themselves as leaders in the global energy transition.

Oil and Gas Sector Sizzles: Top 5 Equity Deals of Q2 2024

Saptakee S
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Oil and Gas Sector Sizzles: Top 5 Equity Deals of Q2 2024

The oil and gas sector are buzzing with activity as equity deals gain momentum. This is because this year has witnessed a good volume of investments, underscoring a vibrant market keen to drive energy innovation and navigate the shifting trends. From major acquisitions to key partnerships, these deals are influencing the future direction of the energy industry.

Deal Activity Sees Slight Uptick with Focus on Sustainability

According to S&P Global, in the recent quarter, the oil and gas industry recorded 85 whole-company and minority-stake deals, totaling $43.93 billion. This represents a modest increase from the same period in 2023, which saw 81 deals valued at $43.82 billion.

Oil and Gas Deal S&P Globalsource: S&P Global

The growing deal activity highlights a trend toward integrating environmental sustainability into the industry’s investment strategies.

Q2 2024’s Top 5 Oil and Gas Tech Equity Deals: CB Insights Snapshot

The following companies have topped the list released by CB Insights this year.

1. HIF Global Secures $164 Million Investment for eFuels Projects

Highly Innovative Fuels (HIF) Global, the electrofuel giant secured a $164 million investment this May to fund its eFuels projects from its existing shareholders and a new partner, Japanese energy company Idemitsu Kosan. Total funding goes to $424 million.

Cesar Norton, President & CEO of HIF Global, expressed enthusiasm about the partnership, stating,

“We are excited to welcome Idemitsu as a new partner in our mission to power the world with renewable energy. This collaboration goes beyond financial support; it symbolizes our shared commitment to a greener future. We’re grateful to our shareholders for their continued support as we develop eFuels facilities globally that could recycle 25 million metric tons of CO2, equivalent to the emissions of over 5 million cars.”

Susumu Nibuya, Executive Vice President, and COO of Idemitsu Kosan mentioned that Idemitsu is concentrating on e-methanol, blue ammonia, and sustainable aviation fuel (SAF) to achieve carbon neutrality by 2050.

This investment marks the first step in a broader four-part collaboration, which includes financial backing, eFuels purchase agreements, market development in Japan, and establishing CO2 supply chains.

2. ICEYE Secures $136M in Series D Funding Round

ICEYE Ltd. is a Finnish company and a spin-off from Aalto University’s Radio Technology Department makes microsatellites. Precisely it is a leader in synthetic aperture radar (SAR) satellite technology. This April, it secured $93M in growth funding to expand its SAR satellite constellation and product offerings.

This oversubscribed round builds on the company’s February 2022 Series D, bringing total funding to $438M. ICEYE experienced strong growth in 2023, ending the year with over $100M in revenue. The new funding will drive the next phase of expansion, focusing on:

  • Increasing demand for its Missions business, with growing interest from governments for defense and civil applications using next-gen SAR satellites.
  • Expanding SAR data services to offer innovative products for tracking Earth’s changes, day, or night, in any weather.
  • Accelerating growth in its Solutions offerings, with significant investment in Flood Insights, Wildfire Insights, and future peril-based analysis for government and commercial use.

CEO Rafal Modrzewski emphasized the support from new investor Solidium, highlighting trust in ICEYE’s mission to lead the global SAR market. The company’s achievements and clear targets intensified investors’ faith. Notably, the deal was facilitated by Citigroup.

3. Aether Fuels Raises $34M to Revolutionize Sustainable Aviation and Shipping

Aether Fuels, a leader in climate technology, secured $34 million in Series A funding from a global group of investors. AP Ventures led the round, joined by Chevron Technology Ventures, CDP Venture Capital, and Zeon Ventures. Previous investors, including Xora Innovation, TechEnergy Ventures, Doral Energy-Tech Ventures, Foothill Ventures, and JetBlue Ventures, also participated.

With this funding, Aether aims to speed up the development of Aether Aurora, its advanced technology for producing sustainable aviation and shipping fuels.

The press release further highlighted that Aether Aurora with its partner GTI Energy will use Fischer-Tropsch’s advanced process to boost fuel production and make it cost effective. This flexible technology can turn different types of waste carbon into jet fuel and other liquid fuels, solving supply issues that other sustainable aviation fuel methods face.

Aether Aurora’s unique ability to create sustainable fuels from any feedstock:

Aether oil and gas

source: Aether

Significantly, Aether will also use the new funding to expand its R&D and plant capacity in the U.S. and Southeast Asia for SAF and other liquid fuels in partnership with strategic allies.

4. SENCO Invests in Strohm with $32M Equity Surge in Thermoplastic Pipeline Innovation

This year, on June 19, SENCO Hydrogen Capital, a private equity firm known for its focus on hydrogen and energy transition investments, announced a significant $32 million (€20 million) equity investment in Strohm, a Dutch company renowned for its innovative pipeline technology, which they call it Thermoplastic Composite Pipelines (TCPS).

The funding aims to boost Strohm’s growth, particularly in hydrogen and carbon capture utilization and storage (CCUS). This partnership is also focused on reducing the carbon footprint of pipeline infrastructure, aiming for a more sustainable energy future.

Martin van Onna, CEO of Strohm says,

“Strohm is a pioneer in the development of TCP and has set itself the goal of significantly reducing CO2 emissions in the pipeline infrastructure sector. “The partnership with SENCO enables us to further scale our technologies and continue our successful expansion, especially in the field of energy transformation around hydrogen and CCUS”

This deal is part of a broader €30 million capital increase in Strohm, with existing shareholders like Chevron Technology Ventures, Shell Ventures, and Evonik Venture Capital also participating. Together, these companies are advancing innovative technologies that support low-carbon energy solutions.

5. LiveEO Raises $27 Million to Revolutionize Climate Risk Management

This June, LiveEO, a leader in transforming satellite data into actionable insights, has raised $27 million (€25 million) in a Series B funding round led by NordicNinja and DeepTech & Climate Fonds (DTCF). This investment will accelerate the development of LiveEO’s AI-driven solutions and expand its team.

NordicNinja is the largest Japanese-backed VC in Europe, and it is focused on deep tech, climate tech, and digital society solutions. DTCF is financed by the German Future Fund.

LiveEO turns raw satellite data into insights that help businesses manage climate risks and improve resilience. The platform is trusted by major companies like Deutsche Bahn and Network Rail to monitor and protect assets. The new funding will further enhance LiveEO’s mission to make industries more sustainable while addressing climate challenges.

Daniel Seidel, co-founder, and co-CEO of LiveEO, elaborated on the company’s mission to leverage satellite data for planetary protection and industrial sustainability. He noted that the new funding will accelerate this mission, helping businesses worldwide navigate climate, environmental, technological, and regulatory challenges.

However, CB Insights had a complete list of companies that secured good investments and contributed to a fruitful quarter this year.

oil and gas deal

Global Funding & Deals: Regional Insights

As we can see from the image Europe dominating the space in Q2 2024, with 9 massive deals totaling to $0.2 billion followed by Latin America.

Oil and Gas Deal

The strategic investments made this year clearly outlines a bright future for the oil and gas industry. As sustainability gains traction across various industries, the significant advancements in natural energy resources and technology will undoubtedly reduce carbon emissions and create a greener world.

How the 2024 Election Will Shape the Future of Biden-Era Climate and Energy Policies

Jennifer L
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How the 2024 Election Will Shape the Future of Biden-Era Climate and Energy Policies

As the 2024 US presidential election approaches, the future of the Biden-Harris administration’s ambitious climate and energy regulations stands at a critical juncture. This election could significantly influence the direction of US energy policy and climate action. It can also potentially shape the nation’s environmental landscape for years to come.

Biden-Harris Administration’s Climate Legacy

The Biden administration has made significant strides in advancing climate and energy policies, with the Inflation Reduction Act (IRA) being a cornerstone of its strategy. Passed in August 2022, the IRA represents a historic $370 billion investment in clean energy and climate initiatives. This landmark legislation can incentivize clean energy production and reduce greenhouse gas (GHG) emissions across various sectors.

Key provisions of the IRA include:

  • Clean Energy Production Tax Credits: These credits aim to support the generation of renewable energy from sources like wind, solar, and geothermal.
  • Investment Tax Credits: These credits are available for investments in renewable energy infrastructure, encouraging the growth of clean energy technologies.
  • Federal Tax Credit for Electric Vehicles: The IRA offers a $7,500 tax credit for the purchase of new electric vehicles (EVs). The incentive’s goal is to promote the adoption of cleaner transportation options.

These tax credits are central to the Biden administration’s efforts to cut emissions from the electricity sector, transportation, and oil and gas industries. The administration has set ambitious emissions reduction goals, including reducing GHG emissions by 50-52% below 2005 levels by 2030. However, the path to achieving these goals has been fraught with challenges.

US GHG emissions reduction target 2030
Chart from America Is All In website

Despite these efforts, many of the administration’s new regulations face significant legal scrutiny, including:

  1. Carbon Capture Requirements: In April 2024, the Environmental Protection Agency (EPA) finalized a rule mandating 90% carbon capture at existing coal-fired power plants by 2032. This regulation aims to mitigate emissions from one of the largest sources of industrial pollution.
  2. Fuel Economy Standards: In June 2024, the US Department of Transportation published final fuel economy standards that require new cars and light-duty trucks to achieve a fleetwide average of 50.4 miles per gallon (mpg) by 2031. This measure is intended to improve fuel efficiency and reduce emissions from the transportation sector.

These regulations are currently undergoing litigation, and their future remains uncertain. The administration has worked to finalize many of these rules before potential Congressional Review Act (CRA) deadlines, which could allow Congress to overturn recent regulations. However, these rules are still vulnerable to challenges in court, particularly from conservative judges.

Trump’s Deregulatory Agenda

Former President Donald Trump’s campaign is promising a significant shift in energy policy if he returns to office. Trump’s platform centers on a deregulatory approach to energy, focusing on “energy dominance” by supporting traditional fossil fuels such as coal, oil, and natural gas. 

Key aspects of Trump’s proposed agenda include:

  • Dismantling Biden-Era Regulations: Trump aims to roll back many of the climate regulations implemented by the Biden administration. This includes repealing emissions-cutting rules and undoing incentives for clean energy.
  • Re-Exit from the Paris Agreement: Trump has indicated a desire to withdraw the US from the Paris Agreement on climate change, reversing the Biden administration’s commitment to international climate goals.
  • Boosting Oil and Gas Leasing: Trump plans to expand oil and gas leasing on public lands and offshore areas, which could increase fossil fuel production and emissions.

Trump’s approach would likely involve issuing executive orders on his first day in office to reverse Biden-era climate policies. According to legal experts, this could include revoking environmental regulations related to carbon emissions, fuel economy, and clean energy. It may also involve restarting or accelerating fossil fuel projects, such as oil drilling in Alaska and expanding natural gas exports. 

Trump’s team has signaled that he would act swiftly to implement these changes. David Bernhardt, former Interior Secretary under Trump, has stated that:

“On Day One, President Trump will rescind every one of Joe Biden’s industry-killing, job-killing, pro-China and anti-American electricity regulations.”

The Impact on U.S. Emissions Reduction Goal

The statement aligns with recommendations in Project 2025, a 900-page deregulatory policy blueprint released by the conservative Heritage Foundation. The plan anticipates a future Republican administration and outlines strategies to dismantle current climate policies. Although Trump has tried to distance himself from the plan, its recommendations reflect his campaign’s direction.

Energy Innovation, a nonpartisan energy and climate policy firm, estimated that fully implementing Project 2025 would cause the US to fall 27% points short of its Paris Agreement goal. 

The latest update from S&P Global Commodity Insights’ North American Power Market Outlook Planning Case anticipates a 52% reduction in US power-sector carbon emissions from 2005 levels by 2030. This projection is driven by clean energy tax credits in the Inflation Reduction Act. However, the planning case does not factor in the EPA’s recently finalized GHG regulations, which face legal vulnerabilities.

US power sector carbon emissions

Some Biden administration rules may be at risk of early Congressional Review Act disapproval if Republicans gain control of the White House and Congress. The Congressional Research Service estimates that rules finalized on or after August 1 could be subject to disapproval resolutions. 

Industry and Environmental Reactions

The energy sector is bracing for potential upheaval, with regulatory uncertainty high. Industry groups are preparing for the possibility of regulatory changes depending on the election outcome. 

Environmental advocates are also mobilizing to defend Biden-era policies if Trump wins. Chris Espinosa of Earthjustice has emphasized the commitment to defending progress on climate regulations against any rollback attempts. 

Remarkably, several climate-focused organizations have united to launch a $55 million advertising campaign in support of Vice President Kamala Harris. The coalition aims to highlight how green initiatives, championed by the Biden-Harris administration, offer long-term economic growth, job creation, and innovation opportunities.

The 2024 presidential election represents a crucial moment for US climate and energy policy. The outcome will determine whether the ambitious goals set by the Biden administration continue or if a shift towards deregulation and increased fossil fuel production takes place. 

Climate Clash: SEC’s Climate Disclosure Rule Faces Legal Showdown

Jennifer L
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Climate Clash: SEC’s Climate Disclosure Rule Faces Legal Showdown

The ongoing litigation over the US Securities and Exchange Commission’s (SEC) climate risk disclosure rule has attracted widespread attention from a broad range of stakeholders, from former SEC officials to institutional investors and advocacy groups, as key deadlines approach. This legal battle is pivotal in determining whether the SEC has the authority to mandate that publicly traded companies disclose specific climate-related risks, such as greenhouse gas emissions and the potential impacts of climate change.

The rule itself is part of the SEC’s broader push to ensure that companies report material risks to their investors, particularly those linked to climate change. The SEC’s justification for the rule is rooted in the notion that climate risks represent financial risks, and investors have a right to access this information in order to make informed decisions. However, the rule has sparked significant debate and has now led to a legal showdown.

The Legal Tug-of-War Over Climate Risk Disclosures

As part of the litigation process, a slew of amicus briefs, or “friends of the court” filings, were submitted by various stakeholders ahead of the September 2024 deadline. These filings are critical to shaping the court’s understanding of the broader implications of the rule and its potential consequences.

Among the most notable filings is one by 25 legal scholars specializing in securities law, along with eight former SEC chairs, commissioners, and division directors, spanning both Democratic and Republican administrations.

In their joint brief, these legal experts argue that the climate disclosure rule is consistent with long-standing laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws grant the SEC the authority to require disclosures deemed necessary to protect investors and serve the public interest.

The brief points out that the SEC has, for decades, mandated disclosures related to environmental issues without significant legal challenges. The scholars contend that climate risks fall squarely within the purview of financial risks that the SEC has historically regulated.

Given the material impact of climate change on certain industries, particularly energy, agriculture, and real estate, proponents of the rule argue that investors need standardized and reliable data to assess these risks.

Investor Support for the SEC Rule

Supporters of the SEC’s climate risk disclosure rule include institutional investors managing more than $2 trillion in assets. Major public pension systems in states like California and New York have voiced their support through a joint brief.

According to these investors, the lack of standardized and comparable climate-related data has long been a gap in financial reporting, hindering their ability to assess the true risks and opportunities associated with climate change. They also highlight that climate risk disclosures are increasingly necessary in a world where many companies are pursuing decarbonization strategies. 

With growing investor demand for transparent, decision-useful information on how companies are managing their climate-related risks, proponents argue that the SEC’s rule could help foster greater trust and efficiency in capital markets.

Opposition and Criticism

Despite the strong support from some quarters, the SEC’s climate disclosure rule has been met with fierce opposition from business groups, conservative advocacy organizations, and several states. The Business Roundtable, which represents over 200 major US companies, has been one of the most vocal opponents. 

In their brief, they argue that while good corporate governance includes addressing climate risks, the SEC is overreaching by mandating these disclosures. They contend that such decisions should be left to company boards, which are in the best position to determine whether climate-related risks are material to their business. They further argue that this requirement goes beyond the agency’s legal authority and could set a dangerous precedent.

Several conservative organizations and state officials have echoed these concerns, accusing the SEC of acting beyond its legislative mandate.

In a joint brief, critics argue that Congress has not authorized the SEC to regulate environmental matters and that by imposing this rule, the agency is stepping into the realm of environmental regulation, which should be reserved for other bodies, such as the Environmental Protection Agency (EPA). They assert that the SEC’s actions amount to an unlawful expansion of its authority and should be struck down.

The Broader Implications 

The outcome of this legal battle is likely to have far-reaching implications. It will not be just for the SEC but for the future of corporate governance and climate risk management in the United States. The case has also highlighted the broader trend of environmental, social, and governance (ESG) considerations becoming more central to business operations and investor decision-making.

A legal expert, Howard Sidman, noted that the volume of filings reflects the significance of the SEC’s proposal. He also pointed out that the rule would affect nearly all public companies, which explains the breadth of interest in the case. 

However, Sidman suggested that the impact of the litigation might be limited for multinational corporations. He observed that the European Union has already implemented stringent emissions disclosure requirements, which many global companies are preparing to comply with. This development positions the EU as a leading global regulator for sustainability-related disclosures, overshadowing the potential influence of the SEC’s rule.

What Comes Next?

The next major milestone in the litigation will occur on September 17, 2024, when the parties to the case file their briefs. Given the complexity of the case and the volume of filings, legal experts predict that it could take several months before a final ruling is issued.

In the meantime, the SEC has paused the implementation of its climate risk disclosure rule, citing regulatory uncertainty. Ultimately, the case will determine whether the SEC has the authority to compel companies to disclose climate-related risks and, by extension, whether investors will have access to the information they need to make informed decisions in an increasingly climate-conscious world.

Nickel’s Wild Ride: Market Surges, Supply Gluts, and the Global Power Play

Jennifer L
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Nickel’s Wild Ride: Market Surges, Supply Gluts, and the Global Power Play

As the global demand for cleaner technologies rises, nickel’s role becomes increasingly vital. However, the market remains volatile, influenced by geopolitical strategies, supply chain dynamics, and fluctuating prices. Understanding these forces is key to navigating nickel’s future in a rapidly changing energy landscape.

In August 2024, the London Metal Exchange (LME) three-month nickel price surged to a six-week high of $17,035 per metric ton by August 20, according to S&P Global data. This rise was primarily driven by short covering from speculators who responded to better-than-expected U.S. economic data. 

Short Covering Sparks Price Surge: A Temporary High?

The improved economic outlook eased fears of an impending U.S. recession, thereby encouraging investors to close their short positions in nickel. Despite this temporary boost, the price retreated to $16,603 per metric ton by August 22 due to an increase in LME nickel stocks.

LME nickel prices August 2024

LME nickel inventories saw a significant increase, climbing from 109,950 metric tons at the end of July to 116,616 metric tons by August 22. This 81.8% increase in 2024 reflects a substantial rise in available stock, contributing to the subsequent price decline. 

In July, the LME recorded its largest monthly increase in open tonnage for the year, with a 12,942 metric ton rise. This boost was attributed to higher refined class 1 nickel inflows from China, pushing China’s share of LME nickel open tonnage from 27.8% in June to 35.2% in July. 

This increase in Chinese stock was notably due to refined nickel from Indonesia entering the LME system for the first time, following the approval of Indonesia’s first nickel brand, DX-zwdx, by the LME in May 2024.

China’s Nickel Influx and Indonesia’s Strategic Moves 

Indonesia, a major player in the nickel market, is actively working to reduce Chinese ownership in new nickel projects. The Asian country’s goal is to qualify for tax credits under the U.S. Inflation Reduction Act of 2022. 

The Act offers a $7,500 tax credit for electric vehicles, but companies with at least 25% ownership by a “covered nation,” including China, are ineligible. This regulation has prompted Indonesia to seek new investment structures, with China-based companies potentially being limited to minority stakes.

The Indonesian government’s efforts also reflect its broader strategy to diversify its investments and appeal to other foreign investors. However, significant barriers remain. Reports indicate that major European companies, such as BASF and Eramet, have decided against investing in Indonesian nickel projects due to concerns over environmental, social, and governance (ESG) issues. Additionally, Indonesia’s recent policy shifts, including a proposed moratorium on new nickel pig iron plants, could further deter non-Chinese investment.

The rapid growth of Indonesia’s nickel industry has caused an oversupply in the market, leading to a significant decline in prices from the peaks seen in 2022 and 2023. This surplus has put downward pressure on nickel prices as supply outstrips demand, affecting the broader market dynamics.

Nickel Prices

Why 2024’s Nickel Prices May Stay Low Despite the Hype

Looking ahead, despite potential short-term gains from a possible U.S. interest rate cut in September, the nickel market’s overall outlook remains subdued. The prevailing weak fundamentals in the global primary nickel market suggest that current price gains may not be sustainable. 

The S&P Global Commodity Insights has maintained its 2024 forecast for the average LME three-month nickel price at $17,083 per metric ton. This forecast represents a 21.2% decline from the 2023 average price, reflecting ongoing challenges in the market.

In terms of investment trends and market projections, China’s dominance in Indonesia’s nickel sector is expected to continue. The S&P Global data below shows that the combined share of Indonesia and China in global primary nickel production could increase from 69.6% in 2023 to 77.5% by 2028. 

LME nickel price forecast

This marks a significant rise from their 49.8% share in 2019, prior to the implementation of Indonesia’s nickel ore export ban. The continuing influence of Chinese investments underscores the strategic importance of Indonesia in the global nickel supply chain.

The nickel market is currently experiencing a short-term slump due to oversupply, with prices expected to remain low throughout 2024. Analysts at S&P Global Commodity Insights predict that primary nickel stocks will reach a four-year high, limiting any significant price recovery this year. 

However, the long-term outlook is more positive, driven by growing demand from the electric vehicle and renewable energy sectors. Despite the current challenges, nickel’s critical role in the energy transition suggests that demand and prices will strengthen in the future.

Puro.earth Joins Forces with Frontier to Drive Carbon Removal Credits

Jennifer L
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Puro.earth Joins Forces with Frontier to Drive Carbon Removal Credits

Puro.earth, a leading platform specializing in durable carbon dioxide removal (CDR), has been approved as a qualified credit issuer for Frontier, a groundbreaking initiative created by Stripe, Alphabet, Shopify, Meta, McKinsey, and thousands of companies using Stripe Climate. 

Frontier, known for its commitment to accelerating permanent carbon removal technologies, has pledged to purchase over $1 billion in carbon removals by 2030. 

Pioneering Carbon Removal with Verified Credits

Puro.earth is the first issuer of carbon credits focused exclusively on engineered carbon removal. Founded in 2019, the Finland-based platform connects companies seeking to neutralize their carbon footprint with verified projects that remove carbon dioxide from the atmosphere.

Puro.earth’s approval signals the company’s adherence to the high standards required by Frontier, marking a significant milestone in the carbon removal sector. This qualification enables Puro.earth to issue carbon credits for suppliers within the Frontier ecosystem. This is contingent on the approval of the relevant measurement, reporting, and verification (MRV) methodologies. 

The platform’s CO2 Removal Certificates (CORCs), which ensure that carbon is stored for at least 100 years, will now be available to certify projects under Frontier’s umbrella. CORCs, which represent one metric ton of CO2 removed from the atmosphere, are verified removals that will be recorded in Puro.earth’s transparent registry. 

The CORCs are generated by verified carbon removal projects using engineered methods such as biochar production, direct air capture, and carbonated building materials. They provide a level of accountability and accessibility that encourages confidence in carbon offsetting efforts.

Puro.earth’s rigorous certification process ensures that each project meets high standards for permanence and scalability.

As a certifier, Puro.earth provides third-party verification of carbon removal technologies, offering companies and investors assurance that their carbon offsets contribute to meaningful, long-lasting carbon reductions.

Since its launch, Puro.earth has issued over 180,000 CORCs from more than 40 certified projects globally. The marketplace has attracted major corporate buyers, including Microsoft, Swiss Re, and Shopify, which have purchased CORCs to meet their net-zero commitments. Puro.earth has become a key player in the carbon removal market by facilitating large-scale adoption of engineered solutions and establishing industry standards for carbon credit integrity. 

Catalyzing the Carbon Removal Market

The most recent partnership with Frontier marks another significant milestone for Puro.earth.

Puro.earth CEO Antti Vihavainen expressed enthusiasm for the partnership, highlighting its role as a pivotal force in carbon removal by providing capital to early-stage projects. Vihavainen emphasized the significance of Frontier’s transparent approach, saying that:

“Their initiative to publicly share progress and their offtake agreement template is instrumental in building market structure and encouraging other buyers. We’re proud to provide Puro’s framework for certifying durable carbon removals for use by Frontier suppliers.”

Frontier’s initiative plays a critical role in the global effort to combat climate change by funding and accelerating the deployment of carbon removal technologies. 

Frontier project map
Frontier project map. Image from company website

Frontier, launched in 2022, is a mission-driven marketplace aimed at advancing the development of carbon removal technologies. Spearheaded by Stripe, along with partners like Alphabet, Shopify, Meta, and McKinsey, Frontier plays a critical role in driving large-scale investment and adoption of innovative solutions to remove carbon dioxide from the atmosphere. The company’s goal is to foster a robust and scalable carbon removal ecosystem to combat climate change.

In its first year, Frontier secured over $1 billion in commitments from corporate partners to fund the development of carbon removal technologies. Notable buyers like Stripe and Shopify have already committed significant funds, leading to contracts with companies such as Climeworks and Charm Industrial. By focusing on innovative and scalable carbon removal solutions, Frontier is positioning itself as a crucial catalyst for reaching net zero emissions.

To date, the initiative has contracted about $317 million involving various projects around the globe, with the following pathways:

Frontier project pathways
From company website

Scaling Carbon Removal Solutions Together

Frontier operates by pooling funds from its member companies to pre-purchase carbon removal credits from cutting-edge projects. This pre-commitment of capital guarantees future revenue for carbon removal startups, enabling them to scale faster and bring costs down. Frontier focuses on high-potential technologies such as direct air capture, bio-oil sequestration, mineralization, and enhanced weathering.

As a key market maker, Frontier provides a streamlined pathway for companies to invest in reliable, verifiable carbon removal projects. By de-risking early-stage innovations and creating demand, Frontier accelerates the commercialization of carbon removal solutions that are critical for achieving global climate goals.

The initiative is designed to create demand for permanent carbon removal, pushing the development of solutions that go beyond carbon offsets and aim for long-term, verifiable climate impact. The partnership with Puro.earth offers Frontier suppliers access to rigorous certification processes that verify carbon removal projects, positioning both organizations at the forefront of climate action.

Their collaboration is set to drive the growth of the carbon removal industry, enabling new revenue streams and encouraging corporate buyers like Microsoft and Shopify to neutralize their emissions effectively.

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