Microsoft’s $80B Investment to Set the U.S. AI Innovation on Fire

Saptakee S
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0
Microsoft’s $80B Investment to Set the U.S. AI Innovation on Fire

As the new year ushered, Microsoft revealed its boldest plan of investing $80 billion in artificial intelligence. This funding will be used to develop cutting-edge data centers worldwide to power AI models and cloud-based applications. The company further revealed that more than 50% of this investment will take place in the United States. This huge decision bolsters its confidence in the American economy and dedication to technological leadership.

Brad Smith, Microsoft’s president and vice chairman, outlined this bold vision in the blog post noting,

“The country has a unique opportunity to pursue this vision and build on the foundational ideas set for AI policy during President Trump’s first term. Achieving this vision will require a partnership that unites leaders from government, the private sector, and the country’s educational and non-profit institutions. At Microsoft, we are excited to take part in this journey.” 

This Year, Microsoft Takes the AI Lead

AI relies heavily on advanced computing power that requires specialized data centers equipped with thousands of interconnected chips. Microsoft’s substantial investment will enable the expansion of these facilities and expand AI innovation on a global scale. Smith highlighted that this effort would not only support AI model training but also drive the deployment of AI-enabled applications worldwide.

The initiative further strengthens Microsoft’s partnership with OpenAI. Since ChatGPT’s launch in 2022, the demand for AI integration has surged across industries and corporate sectors. These AI endeavors also got some fresh boost when Sam Altman recently penned down in his blog,

“We are now confident we know how to build AGI as we have traditionally understood it. We believe that, in 2025, we may see the first AI agents “join the workforce” and materially change the output of companies. We continue to believe that iteratively putting great tools in the hands of people leads to great, broadly-distributed outcomes.”

Now coming to AI’s impact in general, Smith added,

“Each of these eras was marked by what economists call a General-Purpose Technology, or GPT. In contrast to single-purpose products, GPTs boost innovation and productivity across the economy. Ironworking, electricity, machine tooling, computer chips, and software all rank among history’s most impactful GPTs.”

Thus, the $80 billion investment plan can in every way push the tech giant ahead in the AI race and challenge its competitors like Google, Meta, and xAI directly.

Education, Innovation, Collaboration: America’s AI Advantages

However, the efforts will not be confined solely to Microsoft. The tech giant is envisioning to work closely across the private sector, government, educational institutions, and non-profits to achieve these goals. The approach will be that – the private sector’s innovation, supported by government policies can drive AI advancements to the next level. Basic research at universities and funding for private enterprises will also be vital to this effort.

Moreover, America has a strong educational system that will spread AI skills across diverse sectors. Technology platforms and non-profits can also provide tools for individuals to integrate AI into their careers.

Smith also added more clarity to the company’s plans noting,

“Our success, however, depends on a broad and competitive technology ecosystem, much of which is based on open-source development. This includes our longstanding competitors, chip suppliers, applications companies, systems integrators, service providers, and the millions of software developers who use our products to create customized solutions working for our customers.”

Fortunately, the U.S. has several other advantages apart from its robust educational system. American companies lead in advanced technology- from chips and AI models to software applications. They are also building AI systems that prioritize trust, security, and responsible use.

Microsoft, for instance, designs AI that protects privacy, cybersecurity, and digital safety. These technologies are deployed globally through highly secure data centers that meet stringent U.S. standards.

Global corporate investment in artificial intelligence (AI) worldwide from 2013 to 2023, by investment activity (in billion U.S. dollars)global AI investmentSource: Statista

Promoting Domestic AI Exports: A Key Priority for 2025

One of the top priorities for 2025 and the key motive behind this massive investment is promoting American AI exports. The post highlighted President Trump’s executive order in 2019 stressing the need to open global markets for American AI while safeguarding critical technologies from competitors.

Since then, generative AI has spread its wings. Yet again the rapid growth of China’s AI industry has intensified competition as both nations vie to be international leaders. The blog post revealed another scenario of Chinese dominance exemplifying the telecom industry.

Lessons from the Telecom Industry

The past two decades of telecommunications exports provide valuable insights. Initially, companies like Lucent, Alcatel, Ericsson, and Nokia set standards for innovative products. However, Huawei, backed by subsidies from the Chinese government, quickly gained ground.

By offering affordable products to developing countries, Huawei’s technology became the backbone of many nations’ telecom networks. This dominance later raised concerns about cybersecurity, which became a major issue for the U.S. in 2020.

Today, China appears to be replicating this strategy with AI. The Chinese government is offering subsidized access to scarce chips and building local AI data centers in developing nations. Their goal is clear: countries that adopt China’s AI platforms early will likely remain reliant on them not just now but also in the future.

A Winning Strategy for the U.S.

While the U.S. government has concentrated on securing sensitive AI components through export controls, a bigger challenge lies ahead. The real competition will be about which country can spread its AI technology globally the fastest. And Smith believes America can inevitably win this race by developing a smart, international strategy to promote its AI solutions worldwide.

Elaborating further, the U.S. will need to swiftly position American AI as the preferred choice. This will require collaboration with allies and a unified effort to promote U.S. technology globally. In this perspective, the U.S. is supported by growing international regulatory cooperation among North America, Europe, and the Asia-Pacific. Thus, by continuing to lead initiatives like G7 AI diplomacy, the U.S. can showcase its AI leadership globally.

Additionally, Google, Amazon, and many more private companies are also investing heavily to power up America’s AI, computing, and data center space. This commitment and sincere efforts are also fuelling America’s dream to win the AI race.

US AI Market share

Microsoft’s Investment Plans Fuel America’s AI Future

On an optimistic note, Smith once again voiced himself confidently that the United States is well-positioned to outpace China in the global AI competition. Well, American products are more trusted than Chinese counterparts, globally. Moreover, exceptional private-sector investment and balanced export control policies further give the U.S. an international edge.

According to Grand View Research Market Insights,

  • The U.S. generative AI market size was estimated at USD 4.06 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 36.3% from 2024 to 2030.

Microsoft’s investments in the past and plans for the future are the right kind of testament to American optimism for the AI race. Last year, the company announced plans to invest over $35 billion in 14 countries within three years to build secure and reliable AI and cloud data center infrastructure. This plan will broadly span across 40 countries, including some regions of the Global South, where China has heavily invested.

Secondly, Microsoft is partnering with the UAE’s sovereign AI company, G42, to develop AI infrastructure in Kenya. Additionally, the company is teaming up with BlackRock and MGX to create a global investment fund to raise a whopping $100 billion. This fund will support AI infrastructure projects to boost the global AI supply chain.

In conclusion, we can envision that Microsoft’s $80 billion investment is a huge leap for the U.S. AI industry. By focusing on infrastructure, workforce empowerment, and global partnerships, the company is helping the nation stay at the forefront of AI technology.

Morgan Stanley, Citi and Bank of America Exit Net-Zero Alliance: What’s Next for Sustainable Finance?

Jennifer L
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Morgan Stanley, Citi and Bank of America Exit Net-Zero Alliance: What’s Next for Sustainable Finance?

Several major U.S. banks, including Morgan Stanley, Citigroup, and Bank of America, have recently announced their departure from the Net-Zero Banking Alliance (NZBA). This global coalition was established to help financial institutions align their lending and investment portfolios with the Paris Agreement’s climate goals.

However, this wave of exits highlights the growing tension between climate commitments and political pressures, particularly in the U.S.

A Retreat from Climate Commitments: U.S. Banks’ Bold Move

The NZBA, launched in 2021 under the umbrella of the Glasgow Financial Alliance for Net Zero (GFANZ), committed its members to achieving net-zero greenhouse gas emissions by 2050.

The alliance required banks to set interim targets, reduce emissions associated with their portfolios, and report progress transparently. It also encouraged funding for projects like renewable energy and reforestation to offset emissions.

By 2023, the NZBA had gained significant traction, with over 100 member banks collectively representing 40% of global banking assets. This made it a key player in mobilizing financial resources for the transition to a low-carbon economy. Yet, political and market dynamics have increasingly complicated these ambitions.

Political Backlash and Legal Challenges

In the U.S., political opposition has intensified against net-zero initiatives. Republican-led states have accused financial institutions of prioritizing climate goals over economic interests. 

In November, Texas and 10 other states sued major asset managers like BlackRock, Vanguard, and State Street, alleging antitrust violations tied to climate activism. These lawsuits argued that such actions limited fossil fuel financing, reduced coal production, and raised energy prices.

This political climate has pressured banks to distance themselves from alliances perceived as restrictive or politically charged. Morgan Stanley, Citigroup, and Bank of America’s decisions to exit NZBA follow earlier withdrawals by Goldman Sachs, Wells Fargo, and others, citing similar concerns.

So, What Now After the Exit?

Despite leaving the NZBA, these banks remain committed to their sustainability goals. Morgan Stanley reiterated its pledge to report on interim financed emissions targets for 2030, emphasizing its continued support for clients transitioning to greener practices. 

The bank has committed to achieving net-zero financed emissions by 2050. To support this long-term objective, Morgan Stanley has set the following 2030 targets for major emitting sectors:

Morgan Stanley net zero targets

The firm plans to collaborate with clients to develop and implement strategies that facilitate the transition to a low-carbon economy. Additionally, Morgan Stanley emphasizes the importance of transparent reporting and has committed to disclosing its progress toward these goals regularly.

Citigroup also noted its progress on independent net-zero goals, while Bank of America stated it would continue working with clients to meet their sustainability needs.

Citigroup has pledged to achieve net-zero greenhouse gas (GHG) emissions by 2050, including both its operations and the emissions associated with its financing activities. As part of this commitment, Citi aims to decarbonize its own operations by 2030. 

The bank has developed a Net Zero Framework that includes:

  • calculating baseline financed emissions for carbon-intensive sectors,
  • identifying appropriate climate transition pathways,
  • setting emissions reduction targets for 2030 and beyond, and
  • implementing strategies through client engagement. 

Citibank 2030 emissions targets

Similarly, Bank of America remains committed to achieving net-zero GHG emissions across its financing activities, operations, and supply chain before 2050. To support this goal, the bank has set interim targets for 2030, focusing on reducing emissions in key sectors such as auto manufacturing, energy, and power generation.

Bank of America net zero targets

  • Their strategy includes mobilizing $1 trillion by 2030 through their Environmental Business Initiative to accelerate the transition to a low-carbon, sustainable economy.

Additionally, Bank of America achieved carbon neutrality in its operations in 2019 and continues to work towards making its operations more sustainable.

These approaches reflect a strategic balancing act among major bankers. On the one hand, these institutions seek to maintain credibility as leaders in sustainable finance. On the other, they aim to avoid political and financial risks that could arise from their association with climate-focused alliances.

Broader Challenges Facing NZBA

The challenges confronting NZBA extend beyond political opposition. Questions about the availability and quality of carbon credits, critical for offsetting emissions, have raised concerns about the alliance’s effectiveness. Ensuring that credits meet stringent environmental and social standards is essential to maintaining the credibility of net-zero commitments.

Operational complexities also pose difficulties. For instance, NZBA requires members to harmonize emissions reporting and reduction efforts across diverse portfolios and jurisdictions. This has led to administrative bottlenecks and slowed progress in achieving interim goals.

Another challenge is the perception of double regulation. Flights between the UK and the European Economic Area (EEA), for example, face overlapping compliance requirements under both CORSIA and local emissions trading schemes. 

Similarly, banks must navigate overlapping climate regulations across multiple frameworks, further complicating their compliance efforts.

GFANZ’s Evolving Role

The Glasgow Financial Alliance for Net Zero (GFANZ), which oversees NZBA and other sectoral alliances, has adapted its strategy in response to these challenges. 

GFANZ announced it would no longer require financial institutions to join specific alliances to benefit from its guidance. Instead, it will focus on addressing critical gaps in data, investment, and public policy to accelerate the transition to net zero. The Alliance stated in a statement that it has:

“achieved its initial goal of developing the building blocks of a financial system capable of financing the transition to net zero.” 

This shift aims to unlock over $5 trillion annually to modernize energy systems and decarbonize economies globally. By prioritizing actionable investments and public-private partnerships, GFANZ hopes to sustain momentum despite recent defections.

But What Does it Mean for Sustainable Finance?

The exits from NZBA signal broader uncertainties in the sustainable finance sector. While financial institutions recognize the importance of addressing climate risks, they face competing pressures from stakeholders with differing priorities. 

Investors demand accountability on climate goals, yet political forces challenge these commitments, particularly when viewed as detrimental to traditional industries like fossil fuels.

Moreover, the scaling back of collective initiatives like NZBA could slow progress in mobilizing the trillions of dollars needed for the low-carbon transition. Without unified frameworks, banks may pursue fragmented approaches, reducing the overall effectiveness of global climate action.

Opportunities And the Road Ahead for Net Zero Banking

Despite these setbacks, opportunities remain for financial institutions to lead in sustainable finance. By leveraging innovative tools like sustainable bonds and green loans, banks can support decarbonization while mitigating political and financial risks. 

Moreover, investing in renewable energy, sustainable agriculture, and emerging carbon capture technologies offers pathways to align profitability with climate goals.

The exits of major U.S. banks from NZBA highlight the delicate interplay between climate ambition and political realities. While these developments may slow collective action, they also underscore the need for adaptable strategies to sustain progress. By addressing challenges proactively, the financial sector can continue to play a pivotal role in the global transition to a sustainable future.

Constellation Secures Groundbreaking $1 Billion Clean Nuclear Energy Deal with Federal Government

Saptakee S
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0
Constellation Secures Groundbreaking $1 Billion Clean Nuclear Energy Deal with Federal Government

Constellation, the largest producer of clean, emissions-free energy in the United States, has secured over $1 billion in contracts from the U.S. General Services Administration (GSA). Under this agreement, Constellation will deliver clean energy to more than 13 federal agencies and implement energy efficiency measures in five GSA-owned facilities in the National Capital Region.

Joe Dominguez, Constellation President and CEO revealed some crucial aspects of this deal. He said, 

“For many decades, Constellation’s nuclear fleet has provided carbon-free, reliable, American-made energy to millions of families and institutions. Frustratingly, however, nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed. Under this agreement, the United States government joins Microsoft and other entities to support continued investment in reliable nuclear energy that will allow Constellation to relicense and extend the lives of these critical assets. In combination with the Crane restart announced previously, Constellation and its partners will add approximately 1,100 MWs of 24/7 clean energy by 2028, enough energy to power over one million homes.”  

Constellation’s New Energy Upgrades to Cut Emissions at Federal Facilities

The company announced that it has signed a 10-year, $840 million contract which is the largest in GSA’s history. Starting in 2025, it will supply over 1 million megawatt hours of power annually. Notably, part of this power will come from the company’s planned investments to enhance plant output.

Additionally, the company also secured a $172 million Energy Savings Performance Contract to improve energy efficiency at five GSA-owned facilities in the National Capital Region. It includes the Elijah Barrett Prettyman U.S. Courthouse, the William B. Bryant Annex, the Orville Wright Federal Building, and the Wilbur Wright Federal Building, all located in Washington, DC. The fifth building, the Harvey W. Wiley Federal Building is in College Park, Maryland.

GSA Administrator Robin Carnahan shared more details on this agreement,

“This historic procurement locks in a cost-competitive, reliable supply of nuclear energy over a 10-year period, accelerating progress toward a carbon-free energy future while protecting taxpayers against future price hikes. We’re demonstrating how the federal government can join major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone.”

U.S. Nuclear Generation and Generating CapacityUS nuclear generation

A Sustainable Transformation

Under the contract, Constellation will implement various energy-saving measures to enhance efficiency and lower emissions. These upgrades will include installing advanced LED lighting systems, improving building weatherization, and replacing or enhancing windows. Additionally, new and upgraded heating, ventilation, and air conditioning (HVAC) systems will be installed alongside modernized building control equipment.

These facilities are crucial for federal operations and their energy upgrades are vital for a sustainable infrastructure. Most importantly all these upgrades substantially reduce greenhouse gas emissions and cost for federal buildings.

Construction will start this month and will last about 42 months. During this time, Constellation will manage installations, upgrades, and maintenance. Moreover, it will train GSA staff to ensure they can run and maintain the new systems. This training is vital for long-term energy savings and efficiency.

Constellation’s Nuclear Vision: Shaping the U.S. Clean Energy Future

In the U.S., nuclear energy provides about 20% of the country’s total power and 50% of its carbon-free energy. It offers steady, clean power, which keeps the electric grid stable and reliable even in extreme weather. This, in turn, boosts American energy security and independence. Moreover, it creates good jobs that strengthen communities.

Constellation Energy is America’s largest nuclear energy producer. In 2023, its nuclear plants achieved an impressive 94.4% capacity factor. Together with its hydro, wind, and solar facilities, the company powers 16 million homes, supplying 10% of the nation’s clean energy.

On December 17, 2024, the company launched a pilot project in Washington D.C. to allow consumers to power their homes with 100% clean nuclear energy. The program offers nuclear power at 11.99 cents per kilowatt-hour, which is cheaper than the current supply rate from the local utility. By choosing carbon-free nuclear energy, D.C. residents can cut their energy bills while conserving the environment.

Net Zero Commitment

Each year, Constellation’s clean energy operations prevent 125 million metric tons of carbon emissions. That’s the same as removing 29 million gas-powered cars from the road.

All these initiatives point toward a carbon-free future and reducing Scope 1 and 2 GHG emissions. The company’s climate goals are further explained in the image below:            

constellation climate goals

Source: Constellation

We can conclude by saying that Constellation’s commitment to advancing clean nuclear energy for federal buildings marks a new era for the U.S. energy landscape.

More Power per Punch: Nuclear Energy Outshines Fossil Fuels

carbon credits

Philippines Aims for Nickel Dominance with New Mining Reforms

Jennifer L
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Philippines Aims for Nickel Dominance with New Mining Reforms

Philippine President Ferdinand Marcos Jr. is set to revitalize the country’s mining sector, particularly its nickel industry, through a proposed reform to the Philippine Mining Act of 1995. The legislation aims to streamline taxation, incorporate environmental considerations, and foster greater stakeholder involvement. These moves could position the country as a leader in the global nickel market.

Revamping Mining Laws to Boost Nickel Industry

The reform bill introduces a four-tier, margin-based royalty system, ranging from 1.5% to 5%, based on mine location. Additionally, environmental factors will play a central role in the approval process for new mines. This approach replaces the current system, which varies based on specific mining agreements and applies royalties only to mines in designated mineral reservations. 

Moreover, the proposed reforms will include essential aspects of project approvals that weren’t there before, per S&P Global analyst Paul Manalo. For instance, local community and local government involvement and biodiversity.

The bill is currently awaiting Senate approval. Yet, it has received strong endorsements from government officials and industry stakeholders. Michael Toledo, chairman of the Chamber of Mines of the Philippines, expressed optimism: 

“The president himself mentioned to me that he is fully aware of mining’s importance to our country’s socioeconomic growth and of the issues that hinder the industry from attaining its full potential.”

Sustainability and Innovation at the Core of New Policies

President Marcos has been a vocal advocate for responsible and sustainable mining practices since taking office in mid-2022. During the 2023 Presidential Mineral Industry Environmental Award ceremony, he emphasized the importance of clean and efficient extraction processes that restore mined lands, noting that:

“We must also foster innovation by driving research into new methods of mineral processing—methods that reduce waste and energy consumption.” 

Marcos reiterated his commitment to refining mining policies to align with these priorities. The Philippines is the second-largest producer of mined nickel in 2023 as seen in the chart. 

2023 Nickel Production by Country

It maintained its position last year, boasting 13.4 million metric tons of reserves and resources. The country produced 387,000 metric tons of nickel last year, trailing only Indonesia, according to S&P Global Market Intelligence data. 

Philippine share of global deposits for nickel and others reserves and resources

However, the government and industry leaders are eager to boost production further and expand the value chain by processing nickel domestically.

Toledo highlighted the need for collaboration with international partners, such as South Korea, Japan, and the European Union, to access alternative smelting technologies. He further noted that mineral extraction and processing are the foundation of the clean energy supply chain. Currently, there isn’t enough ore being mined to meet the demands of facilities still in development.

Digital Transformation in Mining Permits

The Philippine government is taking steps to improve regulatory processes in the nickel and other metals industry, too. In October 2024, a digital application system for mining permits was launched in three regions, with plans for nationwide expansion. This initiative aims to reduce permitting times to two years, significantly faster than the current timeline.

Additionally, the Department of Environment and Natural Resources (DENR) is drafting an executive order to clarify conflicting interpretations of existing mining royalty laws. In the first quarter of 2024, the Philippines approved 785 mining-related permits, including the following:

  • mineral production sharing agreements, 
  • financial or technical assistance agreements, and 
  • exploration permits. 

Despite these approvals, 1,509 applications remain under review.

Prices and Prospects for the Nickel Market

Globally, nickel prices experienced significant volatility in late 2024. It was driven by macroeconomic and political developments following Donald Trump’s U.S. presidential election victory.

The LME three-month nickel price fell to a 4-year low, influenced by various concerns like Trump’s economic policies and rising LME inventories. Investor sentiment was further impacted by China’s fiscal stimulus package, which failed to meet expectations.

Although prices temporarily rose after Trump’s victory, they quickly declined as market concerns about higher tariffs on Chinese imports and prolonged high interest rates intensified. By late November, nickel prices rebounded due to Indonesia’s tighter mining policies and a 50-fold surge in nickel ore imports.

Amid all these, an emerging nickel player is making a huge wave in the United States – Alaska Energy Metals Corporation (AEMC). The company is advancing U.S. nickel independence. Its flagship Nikolai project in Alaska boasts substantial resources of nickel, copper, cobalt, and platinum group metals critical for renewable energy and electric vehicles (EVs).

The Canadian nickel junior prioritizes sustainability and critical mineral supply, reducing U.S. reliance on imports.

Yet, the price volatility highlights the market’s sensitivity to global economic and geopolitical events. However, despite the price challenges in 2024, the Philippine Chamber of Mines remains optimistic about nickel’s long-term prospects.

  • Global nickel production is estimated to grow to more than 4 million metric tonnes in 2030.

global nickel production forecast

Demand for the metal, driven by the global energy transition, is expected to remain robust. Nickel is a key component in batteries for EVs and renewable energy storage, making it indispensable for achieving net-zero emissions targets.

One factor of uncertainty is the geopolitical impact of U.S. President Donald Trump’s return to office. Trump has threatened to disrupt existing trade relationships, potentially affecting global metals trade flows.

On this note, Toledo said that while Trump’s re-election could slow the push for net zero, it won’t stop it entirely. With rich nickel reserves and strategic reforms on the horizon, the Philippines is well-positioned to strengthen its role in the global mining landscape.

The proposed legislation’s emphasis on sustainability, innovation, and efficiency could unlock new opportunities, attract international investments, and elevate the country’s status as a key supplier in the clean energy transition. 

If the bill passes, the nickel mining industry could become a cornerstone of the Philippines’ economic growth in the years ahead.

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

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

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2025 Uranium Outlook: Will this Critical Commodity Endure its Golden Glow?

Saptakee S
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0
2025 Uranium Outlook: Will this Critical Commodity Endure its Golden Glow?

Top research agencies and industrialists are expecting a steady uranium production in 2025. They believe demand will be driven by rising global demand for nuclear energy as a zero-carbon power source.

In 2024, the market saw an activity uptick, with producers reopening mines and planning expansions to meet the needs of nations like the US, Canada, and the EU. Additionally, adoption and investment in small modular reactors significantly increased uranium demand.

So, what’s in store for uranium in 2025? Can supply keep pace with soaring demand, or will it crumble under the pressure? And what’s the price forecast looking like? Let’s study the report to find out the answers…

2024’s Most Significant Uranium Deals

The demand for nuclear energy has risen leaps and bounds as countries seek low-carbon power to meet their energy demands. Electrification, big data centers, and artificial intelligence (AI) are fueling the push for more reliable and clean energy sources.

uranium production

We have seen many retired power plants being reactivated, and new nuclear construction projects are happening worldwide. This is because, in this new dawn, governments and companies are prioritizing nuclear power as the pillar of energy transition. And this scenario directly connects with the global uranium supply chain.

Significantly, the global uranium market is responding to this increased demand for nuclear energy. Uranium mining stocks surged in 2024 after top tech companies like Meta, Google, Microsoft, and Oracle, announced their entry into nuclear to satiate the energy demand of their data centers. This further shows demand for uranium is going to rise.

One of the most notable deals of last year was Paladin Energy’s acquisition of Canadian company Fission Uranium for CA$1.14 billion. This deal was delayed but recently got clearance from Canadian authorities under the Investment Canada Act. Now Paladin will own Fission’s advanced PLS project in Saskatchewan- Canada’s premium uranium province. 

Apart from this, several other uranium deals progressed smoothly:

  • Uranium Energy Corp. resumed operations at Willow Creek in Wyoming, marking a key milestone in the company’s production efforts.
  • Paladin Energy Ltd. successfully restarted its Langer Heinrich mine in Namibia, achieving commercial production.
  • Boss Energy began its first drum of uranium produced at its Honeymoon project in Australia in April 2024.
  • IsoEnergy’s acquisition of Anfield Energy expanded its uranium resources significantly. The company’s measured and indicated uranium resources increased to 17 million pounds, with inferred resources now at 10.6 million pounds. This positions IsoEnergy as a potential key player in the U.S. uranium market.

More Power per Punch: Nuclear Energy Outshines Fossil Fuels

carbon credits

Global Rise in Uranium Activity

Russia’s state-owned Rosatom has been offloading its stakes in Kazakhstan’s uranium mines, with Chinese companies stepping in as key buyers. Notable deals include selling 49.979% of Rosatom’s share in the Zarechnoye mine and transferring a 30% stake in the Khorasan-U joint venture to Chinese firms. These moves reflect a shift toward regional and China’s emergence in the uranium market.

Moving on, in Canada, Cameco Corp. has ambitious plans to increase annual output at its McArthur River mine from 18 million to 25 million pounds, alongside extending the operational life of its Cigar Lake mine. Recently, the US Nuclear Regulatory Commission has also approved Urenco USA’s request to amend its license, allowing for uranium enrichment levels of up to 10% at its New Mexico facility.

France has injected €300m ($330m) into uranium major Orano to revamp the country’s uranium industry. Additionally, Brazil is partnering with mining firms to revive uranium production which is stagnant since Indústrias Nucleares do Brasil SA began operating its sole mine in 1982.

Thus, globally, several countries and companies are stepping up initiatives to expand uranium production.

Uranium Supply and Demand Estimates (2008-2040E)uranium mining

Source: Sprott (UxC and Cameco Corp. Data as of 9/30/2024)

Tax and Trade Tensions: Can Uranium Rise Above the Challenges?

S&P Global has highlighted several challenges for uranium production ranging from timeline to geopolitical tensions, tax policies, and technical challenges faced by some uranium mining giants. We have explained these challenges below:  

To begin with the U.S., Trump’s statement about imposing a 25% tariff on all products from Mexico and Canada has given rise to some serious concerns. In 2023 Canada supplied 27% of uranium to U.S. nuclear plants, making it the largest supplier.

However, the U.S. faces challenges in boosting domestic production. According to the US Energy Information Administration, the U.S. purchased 40.5 million pounds of U3O8 in 2022.

Industry experts predict that utilities will push to ensure uranium imports from Canada remain unaffected by potential tariffs, as Canada is a critical and reliable partner.

Geopolitical tensions have further complicated the uranium trade. In May, the U.S. banned imports of Russian uranium, which accounted for 11.8% of its 2022 uranium supply. In response, Russia restricted enriched uranium exports to the U.S. which escalated trade tensions.

Even leading uranium producers faced substantial setbacks. Kazakhstan’s NAC Kazatomprom, the world’s largest producer, reduced its 2025 output target due to difficulties in securing sulfuric acid, a key material for extraction. Similarly, Orano suspended mining activities at its Somair project as it faced financial strains and permit issues.

Uranium’s Future: Predictions for 2025

Uranium prices had a rollercoaster year in 2024. S&P Global reported that the Platts-assessed spot price of U3O8 peaked at $106.75 per pound in February.

In November 2024, Uranium spot price retraced to $77.08, according to the Sprott Uranium Report. Despite the dip, prices remain higher compared to historical levels, with the Sprott Physical Uranium Trust helping to stabilize around $80.

Image: Uranium Miners vs. Spot Uranium (2014-2024)

uranium priceSource: Sprott (Bloomberg and TradeTech LLC. Data from 9/30/2014 to 9/30/2024)

Looking ahead, several factors are driving optimism for uranium’s 2025 future. A persistent supply crunch, growing focus on nuclear energy, global energy policies, and geopolitical shifts will drive demand in the future.

  • While short-term volatility may persist, experts predict uranium prices will rebound to $90–$100 per pound by mid-2025.

However, significant investments in new mines, conversion plants, and enrichment facilities will be needed to ramp up uranium production. Moreover, overcoming the challenges we have explained before would also play a significant role in uranium’s bright future. 

Equinor’s $3B Financing Deal for Empire Wind 1 Project: A Turning Point for U.S. Offshore Wind?

Saptakee S
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0
Equinor’s $3B Financing Deal for Empire Wind 1 Project: A Turning Point for U.S. Offshore Wind?

Equinor announced that its Empire Wind 1 offshore wind project in the United States has secured a financing package exceeding $3 billion. A financial close was reached in December 2024 that bolstered the company’s renewable energy initiative. Empire Wind 1 will provide clean energy to 500,000 homes in New York after being fully operational in 2027.

Jens Økland, acting executive vice president for Renewables in Equinor noted,

“This is an important milestone for Equinor, in line with our plan to enhance value and reduce exposure in the Empire Wind 1 project. As we now enter full execution mode, we continue our efforts to increase robustness and value-creation in the project.” 

Equinor Powers Up New York’s Green Future

Equinor further revealed that the total capital investment for Empire Wind 1 is $5 billion, inclusive of fees related to the South Brooklyn Marine Terminal (SBMT). The investments rely on future tax credits (ITCs) to strengthen financial viability. Construction has already begun on the 80,000-acre project that is located 15-30 miles southeast of Long Island.

Moving on, the company finalized the project’s investment decision earlier in 2024 and has planned to farm down its stake in Empire Wind 1 to a new partner. This strategy aims to enhance project value while minimizing risk exposure.

Additionally, Equinor executed a 25-year Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) in June 2024. Under this agreement, power will be supplied at a strike price of $155 per megawatt-hour to ensure stable revenue flow for the project.

Job Creation and Economic Impact

Empire Wind 1 will significantly boost local employment and infrastructure. The redevelopment of the South Brooklyn Marine Terminal as a state-of-the-art offshore wind hub will support over 1,000 union jobs during the construction phase.

On completion, the terminal will serve as the project’s operations and maintenance hub. It will also house the onshore substation connecting Empire Wind 1 to the New York City grid. This arrangement will make Empire Wind 1 the first offshore wind project to integrate directly into the city’s power network.

Molly Morris, senior vice president for Renewables in Equinor Americas said,

“Today’s financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth and fuel a new American supply chain. Our redevelopment of the South Brooklyn Marine Terminal is already putting more than 1,000 people to work. Equinor is proud to play a part in advancing domestic energy solutions safely, efficiently, and for the long term.”  

Strong Financial Backing

The financing package for Empire Wind 1 reflects strong lender confidence in the project’s viability. Furthermore, leading financial institutions showed keen interest that helped in achieving competitive terms.

The press release also mentioned that the final group of lenders included some of the most experienced players in the renewable energy sector, as well as several of Equinor’s long-standing banking partners.

Empire Wind Supporting New York’s Renewable Energy Goals

New York State has set ambitious renewable energy targets, and Equinor’s offshore wind projects are playing a pivotal role here. Empire Wind is being developed in two phases: Empire Wind 1 and Empire Wind 2. While Empire Wind 1 has a contracted capacity of 810 MW, Empire Wind 2 has the potential to generate 1,260 MW. Together, the two projects are expected to supply clean energy to more than one million homes.

Empire Wind 2 is currently being re-evaluated for future solicitations. Meanwhile, Empire Wind 1’s first power delivery is anticipated in the mid-2020s which will further advance New York’s transition to renewable energy.

History of Empire Wind

  • 2017: Equinor acquired the Empire Wind lease area after the Bureau of Ocean Energy Management’s auction in December 2016.
  • 2020: BP acquired a 50% stake in Equinor’s Empire Wind and Beacon Wind assets for $1.1 billion.
  • 2022: Equinor signed an agreement to transform South Brooklyn Marine Terminal (SBMT) into a premier offshore wind hub.
  • April 2024: Equinor assumed full ownership of Empire Wind projects, while BP took over the Beacon Wind assets, through a cash-neutral transaction.
  • June 2024: Equinor secured the PSA with New York State for a 25-year power supply agreement at $155/MWh.

Equinor Empire Wind

Source: Equinor: Empire Wind

South Brooklyn Marine Terminal: A Game-Changer for Offshore Wind

The South Brooklyn Marine Terminal is set to become the largest dedicated offshore wind port facility in the U.S. This redevelopment underscores Equinor’s commitment to fostering local economic growth and advancing renewable energy infrastructure.

The terminal will handle staging, pre-assembly, and long-term maintenance operations for Empire Wind 1. This will certainly solidify its support for New York’s clean energy transformation goals.

Future Prospects for the U.S. Offshore Wind Energy 

NYSERDA President and CEO Doreen M. Harris noted in the earlier press release,

“Major renewable energy infrastructure projects such as Empire Wind 1 are a crucial component in reaching toward New York’s climate goals. NYSERDA applauds Equinor for its ongoing commitment to investing in New York’s green economy, including the redevelopment of South Brooklyn Marine Terminal, and helping to stand-up New York’s offshore wind industry one significant milestone at a time.”  

Thus, Equinor’s investment in Empire Wind aligns with the U.S. offshore wind industry’s growing momentum. The project’s integration into the New York City grid highlights its importance in meeting urban energy demands sustainably. By harnessing strong wind resources off Long Island’s coast, Empire Wind 1 is taking a huge step to decarbonize the energy sector.

u.s. offshore windSource: National Renewable Energy Laboratory Offshore Wind Market Report

With a reliable financing backup and proper construction plans, Empire Wind 1 is all set to deliver renewable energy to New York. Equinor is hopeful that the project’s success could lead by example for future offshore wind initiatives across the U.S.

Meta and WRI Unveiled AI-Powered Global Tree Canopy Map

Jennifer L
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Meta and WRI Unveiled AI-Powered Global Tree Canopy Map

Meta, the World Resources Institute (WRI), and Land & Carbon Lab have introduced a game-changing tool for environmental monitoring: the first-ever global map of tree canopy height at a 1-meter resolution.

This cutting-edge AI-powered map can detect individual trees worldwide, addressing longstanding gaps in the forest carbon credit market. It is also a leap forward in environmental science, offering unprecedented insights into tree distribution, canopy height, and forest health.

Unparalleled Precision: 50 Million Sq. Km Mapped at 1-Meter Resolution

The innovative map leverages artificial intelligence to analyze more than a trillion pixels from 18 million satellite images. The result is a highly accurate global dataset with a mean absolute error of just 2.8 meters. Such precision is critical for monitoring and verification purposes, especially in areas where accurate data has historically been challenging to obtain. 

According to Meta, the model establishes a global baseline for tree canopy height, enabling improved understanding and management of forest ecosystems. 

The dataset reveals that approximately one-third of Earth’s landmass—about 50 million square kilometers—has a canopy height above 1 meter. By providing such granular data, this tool offers invaluable insights into the state of global forests, facilitating more targeted and effective conservation efforts.

A notable feature of the initiative is its commitment to open access. The data and models are freely available on platforms such as AWS, Google Earth Engine, and GitHub. Thus, it is accessible to researchers, policymakers, and businesses worldwide. This approach encourages innovation across various fields, from carbon credit verification to environmental conservation.

Meta emphasized the significance of democratizing AI technology, stating:

“Democratizing access to artificial intelligence can be an important tool in unlocking finance for and increasing transparency in mitigating and adapting to climate change.”

Land & Carbon Lab, convened by WRI and the Bezos Earth Fund, is a leading organization dedicated to monitoring and analyzing global land and carbon dynamics. Their Global Tree Canopy Height dataset provides high-resolution, globally consistent measurements of tree heights, offering critical insights into forest structure and carbon storage.

The company delivers accurate and up-to-date information by leveraging advanced satellite imagery and machine learning techniques. Their work enhances our understanding of Earth’s ecosystems and informs strategies to protect and restore vital natural resources.

Laconic and Planet Labs made a similar effort. They partnered for a monitoring system that aims to improve the accuracy of forest carbon projects.

Revolutionizing Forest Carbon Markets

One of the map’s most significant applications is its potential to transform carbon markets. 

Forests play a critical role in carbon sequestration, but accurately monitoring and verifying forest carbon credits has been a persistent challenge. High-resolution data provided by this map enhances the ability to track tree growth, particularly in sparse or small-scale forests.

Providing detailed data on tree distribution and canopy height helps identify areas that require immediate attention or are best suited for reforestation. This level of detail is particularly valuable for managing degraded lands, where precision is crucial for effective restoration.

This improved tracking capability ensures greater transparency and accountability in carbon markets. Meta highlighted this point, noting that: 

“forest-based carbon removal and the use of technology to better monitor, report, and verify carbon sequestration are essential components of Meta’s carbon removal strategy.”

By addressing these challenges, the map strengthens the integrity of carbon markets and supports global efforts to combat climate change. It also facilitates the creation of actionable strategies for carbon removal and forest restoration, ensuring that investments in these areas yield measurable results.

Meta has been investing heavily in carbon removal initiatives, including nature-based carbon projects. Carbon removal is a key part of its strategy to reduce carbon emissions.

carbon removal projects backed by Meta

Advanced AI at Work

The technological backbone of the map is an AI model called DiNOv2, which employs Self-Supervised Learning (SSL) to process vast amounts of unlabeled satellite imagery. SSL enables the model to learn patterns and features in data without requiring manual labeling, making it highly scalable and robust.

DiNOv2’s capabilities extend beyond canopy height mapping. It can also support applications like tree detection and segmentation, providing even more tools for researchers and conservationists. 

Moreover, the open-access nature of the model enables stakeholders from diverse fields to leverage the dataset for various applications, from scientific research to practical conservation initiatives.

By leveraging this advanced AI technology, Meta and its partners have created a tool that is not only highly accurate but also adaptable to various environmental challenges.

You can explore the tool via Google Earth Engine here.

A Transformative Step for Carbon Market Integrity

Carbon markets are increasingly recognized as a vital tool for addressing climate change. However, their success depends on accurate monitoring and verification of carbon sequestration efforts. 

The market has been under intense scrutiny because of various nature-based carbon removal projects suspected and accused of dubious impact. This resulted in decreasing trust and confidence in the market. 

The high-resolution tree canopy map addresses this need by providing reliable data that enhances transparency and accountability. By enabling precise monitoring of tree growth and forest health, the map helps verify that carbon removal projects are delivering on their promises. This, in turn, builds trust among market players and encourages greater investment in forest-based carbon removal initiatives.

Meta, WRI, and Land & Carbon Lab have not only created a powerful tool but also set an example of how technology, collaboration, and accessibility can drive meaningful change in addressing the world’s most pressing environmental challenges.

AI’s Energy Hunger Is Straining America’s Power Grids — And Your Home Appliances

Jennifer L
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AI’s Energy Hunger Is Straining America’s Power Grids — And Your Home Appliances

Artificial intelligence (AI) is revolutionizing industries, but it’s also creating significant challenges for power grids across the U.S. The rapid rise of AI data centers is consuming enormous amounts of electricity, disrupting the flow of power, and causing issues for millions of Americans. 

A closer look by Bloomberg reveals how these facilities impact homes and the national grid.

The Hidden Cost of the AI Boom: Distorted Power Supply

AI data centers are concentrated near major cities like Chicago and Northern Virginia’s “data center alley,” where distorted power is becoming a growing concern. These distortions, known as “bad harmonics,” occur when the smooth wave pattern of electricity is disrupted. 

Think of it like static noise on a speaker when the volume is too high. This irregularity can cause appliances to overheat, motors in refrigerators to rattle, and, in extreme cases, sparks or electrical fires.

Distorted power isn’t just inconvenient—it’s expensive. Harmonics-related issues could lead to billions in damages, as they degrade home electronics and strain the aging infrastructure of power grids.

What Causes Power Distortions?

The surge in AI-driven data centers puts unprecedented pressure on the power grid. Unlike population growth, which creates steady, predictable demand, data centers require massive electricity loads, equivalent to powering thousands of homes.

These facilities are being built faster than grid upgrades can keep up, especially as the nation grapples with aging infrastructure and rising demand for electric vehicles (EVs).

power distortions caused by data center
Note: Map shows local average of sensors’ worst total harmonic distortion readings from February to October; areas with an average of 8% or more are deemed as exceeding accepted industry limits. Significant data center activity is defined as at least 10 MW of live capacity across one or more facilities. Total data center capacity for labeled cities are for the relevant metro areas; Bay Area refers to the San Francisco and Santa Clara metro areas.

Whisker Labs, a company that tracks power quality using sensors in nearly a million homes, found that homes closer to data centers are more likely to experience distorted power. 

According to Bloomberg’s analysis of Whisker Labs’ data, over 75% of areas with severe power distortions are within 50 miles of data centers.

data center effect on power grid

Where Is the Problem Worst?

The issue is particularly bad in areas like Chicago and Northern Virginia. For instance, in Loudoun County, Virginia, home to a massive concentration of data centers, 6% of sensors showed power distortions exceeding the industry limit of 8%.

In Chicago, more than a third of sensors recorded high distortion levels over nine months.

While urban areas are more affected, rural regions aren’t immune. Even in sparsely populated areas, homes near data centers are more likely to experience bad harmonics than those farther away.

Why Bad Harmonics Matter

Poor power quality, such as bad harmonics, reduces efficiency and shortens the lifespan of appliances. Worse, it signals deeper problems in the grid. 

Bad harmonics happen when electrical currents deviate from their smooth, wave-like motion, typically at 60 revolutions per second. Industry engineering standards set acceptable limits for these deviations in local power lines. 

  • If distortions consistently exceed 8% from the ideal wave pattern, they can lower efficiency and cause equipment to wear out more quickly.

Power Distortions Are More Common Near Data Centers

Harmonics are like potholes on a highway—minor at first but potentially catastrophic if ignored. Over time, these disruptions can escalate into voltage surges, flickering lights, and even widespread blackouts.

Thomas Coleman, CEO of Structure Energy Solutions, warns that harmonics are just one symptom of a “perfect storm” of grid stressors. These include extreme weather, the electrification of transportation, and the growing reliance on renewable energy sources.

The U.S. is the global leader in data center capacity, with Northern Virginia hosting more than twice the operational capacity of its next biggest competitor, Beijing. Yet, the country’s power grid hasn’t been adequately prepared for the surge in demand. 

The nation’s electricity use will rise 16% in the next 5 years—triple the growth forecasted just a year ago—driven largely by data centers. And AI power-hunger will double data center’s energy requirements by 2030. 

US data centers power use under 4 scenarios EPRI analysis

As the AI boom continues, the risk of grid failures and power distortions is likely to increase. Most utilities lack the tools to measure harmonics at the residential level, making it harder to address the problem.

Are There Solutions?

Fortunately, there are ways to manage these challenges. Data centers in Virginia are now required to build their own substations and transformers, isolating them from residential power circuits. Additionally, utilities are installing filters and capacitors to stabilize the flow of electricity and reduce harmonics.

Dominion Energy, which serves much of Northern Virginia, is building a new transmission line to improve reliability in “data center alley.” 

However, even these efforts may fall short as hundreds more data centers come online in the next few years.

The North American Electric Reliability Corporation (NERC) is studying the impact of data centers on power systems and plans to release a report in 2025. Their findings could help shape strategies to strengthen the grid and ensure power quality for consumers.

Why Power Quality is Important

Most people don’t think about the quality of electricity flowing through their homes, but it’s a critical issue. Poor power quality can cause long-term damage to appliances, increase energy costs, and pose safety risks. 

Carrie Bentley, CEO of Gridwell Consulting, believes the problem can be solved if addressed early. She particularly said that:

“If you know it exists, it is easy to fix.” 

Improving power quality is also about fairness. Consumers pay for reliable electricity, and utilities are responsible for delivering it. Hasala Dharmawardena, a senior engineer at NERC, emphasized this noting that:

“Embedded in your contract with your utility is the right to receive a certain quality of power.” 

As AI transforms industries and accelerates data center growth, its energy demands will continue to strain power grids. Addressing the issue will require investment in infrastructure, stricter regulations, and new technologies to monitor and manage power quality. By taking action now, utilities and regulators can protect homes, preserve appliances, and ensure the grid can support the digital economy of the future.

Why Cleantech Funding Slowed Down in 2024—And Where It Still Boomed?

Saptakee S
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Why Cleantech Funding Slowed Down in 2024—And Where It Still Boomed?

According to the latest Crunchbase report, global investment in sustainability is hitting a four-year low. To be more precise, this was a year of lull for cleantech equity funding with dropping deal counts. All data and analysis indicated a slowdown across the board.

However, the story isn’t all grim.

While major sectors like batteries, wind, and solar took big hits, others gained momentum. Carbon capture, storage, and reuse saw strong growth. Hydrogen startups also continued to attract significant funding. This shift reflects a strategic focus on areas and specific sectors with high long-term sustainability potential. Notably, investors are doubling down on what they believe will drive future climate solutions.

So, let’s dive deeper into this report…

Big Equity Bets Amid Overall Funding Dip

On a brighter note, even though the overall equity funding has weakened, mega-rounds show cleantech is still attracting major investments. Several companies secured large financings across sectors like fusion energy, carbon capture, energy storage, and electric vehicles (EVs).

cleantech

These deals show a strong focus on innovative solutions for clean energy and sustainability. Here are the top players grabbing massive cleantech deals.

Pacific Fusion

Pacific Fusion, a Fremont, California-based startup, grabbed headlines with a massive $900 million Series A in October. Led by General Catalyst, the investment is a stellar example of high confidence in the company’s ambitious goals. Pacific Fusion is pioneering pulsed magnetic inertial fusion, a technology it claims could deliver “limitless, clean, on-demand power.” This groundbreaking approach has all the potential to transform it into a leader in the race for next-generation energy.

Intersect Power

This month, Intersect Power, a developer of clean energy projects, raised over $800 million. The financing round was led by TPG Rise Climate Fund and Google. Notably, Google has teamed up with Intersect Power and TPG Rise Climate to launch a $20 billion partnership that promises to transform the energy source for data centers. The company’s success is an example of the growing appeal of integrated clean energy projects that directly address large-scale energy needs.

Form Energy

In the energy storage sector, Form Energy secured a $405 million Series F in October, led by T. Rowe Price. The Massachusetts-based company is developing low-cost, long-duration battery systems designed to stabilize renewable energy grids. These advanced systems aim to ensure a reliable power supply even as renewables like wind and solar become more prevalent.

Apart from these mega players other cleantech innovators also secured substantial investments. Crunchbase named carbon transformation company Twelve, battery materials maker Sila, and EV charging provider Electra in their list.  

These standout deals demonstrate that, despite a broader funding decline, transformative technologies in cleantech continue to draw significant capital. Investors are betting big on innovations that promise a sustainable future.

Debt Financing Gains Ground in Cleantech

Another interesting aspect is the rise of debt financing for the cleantech sector this year. It’s a stark contrast to the projected slowdown of equity funding. Crunchbase highlighted that in 2024, at least five debt deals surpassed $1 billion, totaling over $14 billion. This figure represents nearly half the year’s equity funding which shows the emergence of debt financing in cleantech growth.

cleantech

This surge in debt financing reflects a shift in how companies fund their expansion. Infrastructure-heavy cleantech firms, particularly those reaching maturity, are turning to debt for a more sustainable alternative. These companies use their assets and revenue to secure debt which helps them to grow without diluting shares. This approach also attracts investors looking for safer options.

Climate-Focused Investors Dominate 

This year climate-focused funds and strategic investors dominated the cleantech funding space. While general venture and growth firms played a role, most deals were driven by funds and companies with a clear focus on sustainability. Crunchbase data revealed Lowercarbon Capital and Breakthrough Energy Ventures, led the pack, and each involved in at least 34 deals.

Lowercarbon, co-founded by Chris Sacca, the early investor in Twitter and Uber, made waves as a frequent lead investor. One prominent deal was its recent $150 million Series B co-led for Heirloom, a company pioneering in direct air capture technology.

Breakthrough Energy Ventures had a strong year, supporting major funding rounds for Pacific Fusion and Form Energy. The fund also focused on seed and early-stage startups which showcased its commitment to innovation.

TPG Rise, another big player, took part in seven deals but made massive investments in companies like Intersect Power and Twelve. 

Crunhbase also included Chevron and Shell. The former participated in eight deals through its Chevron Technology Ventures and Chevron New Energies divisions. Shell and its venture arm, Shell Ventures, were involved in seven investment deals.

In conclusion, this report shows that while overall cleantech funding declined in 2024, some sectors experienced growth. Last but not least, experts believe that a balance of debt and equity funding is essential to keep the cleantech market thriving in the future.

LanzaTech and Technip Energies Win $200 Million DOE Funding for Innovative CO2-to-Ethylene Project

Saptakee S
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0
LanzaTech and Technip Energies Win $200 Million DOE Funding for Innovative CO2-to-Ethylene Project

LanzaTech Global, Inc. (NASDAQ: LNZA) and Technip Energies, a leading French engineering company focused on clean energy, recently secured funding of $200 million from the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED). This funding will support their joint project, known as Project SECURE (Sustainable Ethylene from CO2 Utilization with Renewable Energy).

Arnaud Pieton, CEO at Technip Energies noted,

“We are pleased to receive the Phase 1 award from the OCED and begin the engineering design work to progress the development of this innovative technology. The global population is expected to continue to rise by 2050, bringing with it a greater demand for consumer goods that rely on ethylene. While addressing this growing demand, we absolutely need to decarbonize ethylene production. We not only need to do something about carbon but very importantly with carbon. That is what our partnership with LanzaTech on this technology is all about. Leveraging our long-lasting leadership in ethylene, we are committed, together with LanzaTech, to develop this technology at scale and continue to explore ways to decarbonize ethylene production.”

Turning Carbon into Ethylene: A Game-Changing Solution

Project SECURE, led by Technip Energies and LanzaTech, introduces a revolutionary way to produce sustainable ethylene for commercial use.

As defined in the press statement,

  • The process takes captured carbon dioxide from ethylene production and recycles it with low-carbon intensity hydrogen to create sustainable ethanol and ethylene.

This scalable solution could transform ethylene production globally by replacing fossil fuels. It further highlights the companies’ commitment to lower emissions while advancing clean energy goals.

Technip Energies and LanzaTech plan to launch the project in the U.S. Gulf Coast region, integrating directly into an existing ethylene cracker. There are over 370 ethylene steam crackers worldwide. Eight of these in the U.S. use Technip Energies’ technology. Thus, it creates huge potential for replicating the process globally.

Dr. Jennifer Holmgren, Chair and CEO of LanzaTech stated,

“We are thrilled to reach this milestone and commence work on this important project. Ethylene is a key building block for thousands of chemicals and materials, and is often referred to as the world’s most important chemical. Our project not only increases the efficiency and value of existing ethylene production infrastructure, but also creates high-quality jobs and supports local communities. Circularizing our global carbon economy requires combining ambition with action, and we are grateful for the shared vision and support of the OCED to advance this replicable technology, strengthening our domestic manufacturing base for valuable commodities.”

OCED’s Phased Approach for Oversight and Funding

The Office of Clean Energy Demonstrations (OCED) is driving clean energy innovation by partnering with private companies to deliver large-scale demonstration projects. Their goal is to speed up the adoption of clean energy solutions and ensure a fair transition to a decarbonized future.

OCED has pledged up to $200 million for Project SECURE, covering design, engineering, construction, and equipment for a commercial-scale integrated technology unit. The first phase has received nearly $20 million.

During this phase, Technip Energies and LanzaTech will complete a Front-End Engineering Design (FEED) study. They will prepare detailed project plans, fulfill requirements for the National Environmental Policy Act (NEPA) review, and collaborate with local communities and labor groups.

The oversight will extend to monitoring Project SECURE’s progress at each stage. OCED will evaluate the project’s implementation quality, community benefits, and overall advancement before approving further funding. This phased approach ensures accountability of both companies and aligns with their mission to support impactful projects.

Beyond Ethylene: LanzaTech’s Carbon Recycling for All Industries

LanzaTech has been operating at a commercial scale since 2018, leading the way in carbon recycling technology. Supported by past DOE funding, the company goes beyond ethylene production to capture waste carbon from energy-intensive industries. Instead of releasing or sequestering emissions, they transform them into valuable ethanol and raw materials.

For example: LanzaTech results in taking carbon sources from steel mills

LanzaTechSource: LanzaTech

Innovative Biorecycling Process

The company’s process mimics a brewery but with an interesting twist. Instead of using yeast to convert sugar into alcohol, its proprietary microbes consume carbon emissions to produce ethanol and other building blocks. These materials can then be turned into fuels, chemicals, and consumer goods.

This is how LanzaTech works with industries to turn waste carbon into valuable products instead of letting it go to landfills or the atmosphere. They call it a “CarbonSmart” initiative. This innovative technology not only lowers emissions but also demonstrates how waste can power a cleaner, smarter world.

Notably, every year, approximately 500 million tonnes of carbon are embedded into materials and chemicals, with 88% coming from virgin fossil sources.

Technip Energies: Pioneering Clean Energy Solutions Worldwide

Technip Energies is a global leader in technology and engineering. They are driving innovation in key areas like LNG, hydrogen, ethylene, sustainable chemistry, and CO2 management. The company plays a vital role in advancing energy, decarbonization, and circular economy markets.

Through its two core business segments—Technology, Products, and Services (TPS) and Project Delivery—Technip Energies turns innovative ideas into scalable industrial solutions.

In 2023, the company generated €6 billion in revenue and is listed on Euronext Paris. Its American Depositary Receipts also trade over the counter.

Reducing Greenhouse Gas Emissions

Revealed in the latest sustainability report, the company’s direct (scope 1) and indirect (scope 2) emissions come from office operations, industrial sites, and data centers. Their goal is to reduce scope 1 and 2 emissions by 30% by 2025 and achieve net zero by 2030.

Technip EnergiesSource: Technip Energies

In 2023, Technip Energies reported total scope 1 and 2 greenhouse gas emissions of 18,845 tonnes CO2eq (location-based) and 14,743 tonnes CO2eq (market-based)

  • The company achieved a 28% reduction in market-based emissions compared to the 2021 baseline. This reflects significant progress toward its sustainability goals.

Overall, this funding is a great backup for LanzaTech and Technip Energies to advance carbon recycling for a low-carbon future.

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