Google, Stripe, H&M, Shopify of Frontier Invest $80M in Carbon Removal Credits

Jennifer L
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Google, Stripe, H&M, Shopify of Frontier Invest $80M in Carbon Removal Credits

The Frontier coalition, comprising companies like Google, Stripe, H&M, and Shopify, has committed $80 million toward innovative carbon removal technologies. This investment supports two pioneering startups that generate carbon removal credits: CO280 and CREW. 

Notably, the deal highlights the premium price paid to incentivize innovation:

  • CO280: $48 million at $214 per metric ton, securing the removal of 224,500 metric tons of CO₂ between 2028 and 2030.
  • CREW Carbon: $32.1 million at $447 per metric ton, capturing 71,878 metric tons of CO₂ using limestone filtration.

While these carbon credit prices far exceed the target of $100 per ton, they reflect the coalition’s strategy to support early-stage technologies and drive costs down over time, ultimately making carbon removal scalable and affordable.

Why Frontier’s Model Matters

If the world continues to take its current path in carbon emissions, achieving the critical 1.5°C temperature limit is impossible. 

carbon removal pathway to limit global temperature rise

To avert the worst impacts of climate change, reducing emissions alone won’t suffice. Most climate models emphasize the need to permanently remove gigatons of carbon dioxide already present in the atmosphere and oceans. 

While methods like planting trees and soil carbon sequestration help, they are unlikely to scale adequately. A gigaton-scale portfolio of innovative, permanent carbon removal solutions is essential to meet this challenge. This is where the Frontier coalition comes in.

Frontier is an advance market commitment (AMC) established to accelerate the development of permanent carbon removal technologies by guaranteeing future demand. Founded by Stripe, Alphabet, Shopify, Meta, and McKinsey, and supported by tens of thousands of businesses using Stripe Climate, Frontier aims to purchase over $1 billion of carbon removal between 2022 and 2030.

How Frontier Works

Frontier operates by aggregating demand from participating buyers to set an annual maximum spend on carbon removal. Suppliers of carbon removal technologies apply for consideration through regular requests for proposal (RFP) processes. 

Frontier’s team of technical and commercial experts evaluates these suppliers and facilitates purchases on behalf of the buyers. For early-stage suppliers, agreements may involve low-volume pre-purchases, while larger suppliers ready to scale may enter into offtake agreements to purchase future tons of carbon removal at an agreed price upon delivery.

how Frontier carbon removal model works

The coalition prioritizes carbon removal solutions that are:

  • Durable: Capable of storing carbon permanently (over 1,000 years).
  • Cost-Effective: With a pathway to affordability at scale (less than $100 per ton).
  • High Capacity: Potential to contribute significantly to carbon removal efforts (over 0.5 gigatons per year).
  • Net Negative: Maximizing the net removal of atmospheric carbon dioxide.
  • Verifiable: Employing scientifically rigorous and transparent methods for monitoring and verification.
  • Safe and Legal: Adhering to high standards of safety, compliance, and environmental outcomes. 

The coalition’s AMC approach de-risks innovation by pre-purchasing carbon offset credits. This provides startups with financial certainty to scale technologies and lower costs. 

While in early development, carbon capture technologies are critical to addressing climate change. Unlike nature-based solutions like reforestation, these solutions directly remove emissions from industrial processes.

Frontier’s goal is to make carbon removal both scalable and affordable, fostering long-term decarbonization strategies. Its recently announced $80 million investment involving CO280 and CREW will support the deployment of innovative carbon capture technologies. These investments aim to reduce carbon removal costs and deliver scalable solutions.

Let’s take a closer look at each of these carbon removal startups’ technologies.

CO280: The Carbon Negative Developer

CO280 empowers businesses with innovative tools to tackle carbon emissions and align with net-zero goals. Its advanced platform simplifies carbon footprint assessments, emissions tracking, and offsetting strategies, offering real-time insights for decision-making. Here’s how the company tackles the carbon dilemma:

CO280 approach
Image from CO280 website

The carbon capture startup is using the oil industry’s carbon capture and storage (CCS) technology. By focusing on transparency, CO280 ensures that businesses can make measurable progress toward sustainability while adhering to global standards.

With a blend of data-driven solutions and strategic partnerships, CO280 is shaping the future of the voluntary carbon market, making it a vital ally for organizations seeking actionable climate impact.

CREW Carbon: Redefining Wastewater Management

CREW Carbon is at the forefront of climate innovation with its cutting-edge technology that enhances wastewater treatment while capturing greenhouse gases permanently using limestone. The company’s systems transform the environmental impact of wastewater management, making the process safer and more efficient.

By integrating advanced carbon removal solutions, the startup addresses two critical challenges simultaneously: 

  1. Reducing emissions from wastewater and 
  2. Preventing harmful gases from entering the atmosphere. 

The image shows how the company’s technology seamlessly integrates into wastewater treatment.

CREW carbon solution
Image from CREW website

The carbon capture startup also supports projects focused on reforestation, clean energy, and carbon removal, ensuring each initiative meets rigorous sustainability standards. The company prioritizes accessibility and transparency, simplifying the carbon offset process with tools and education for users at all levels.

Beyond the Target: A Broader Vision for Carbon Markets

Frontier plays a crucial role in shaping the future carbon credit market by supporting these innovative removal companies. It helps startups raise additional funds through purchase commitments, enabling large-scale deployment.

With backing from major companies like Stripe, Alphabet, and Shopify, Frontier drives innovation that aligns with global decarbonization targets, aiming for 1,500 GW of storage capacity by 2030.

Long-term projections indicate that billions of tonnes of carbon removal will be needed by 2050. According to BCG, voluntary demand from large corporations will primarily drive this market.

BCG carbon removal credit demand projection 2030-2040

By 2030, demand for durable carbon removal could reach 40–200 million tonnes annually, valued at $10–$40 billion. By 2040, demand may climb to 80–870 million tonnes per year, with a market value of $20–$135 billion.

Initiatives like Frontier show how private-sector collaboration can transform carbon removal into a cornerstone of the global energy transition. It offers opportunities for both buyers and suppliers to participate in accelerating carbon removal technologies. Buyers can join the commitment to create demand, while suppliers can apply to have their technologies evaluated and potentially funded.

By fostering collaboration between credit buyers and suppliers, Frontier aims to drive innovation and scale in the carbon removal industry, contributing to global efforts to mitigate climate change.

Nickel Supply Woes: Innovations Steering a Sustainable EV Future

Saptakee S
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Nickel Supply Woes: Innovations Steering a Sustainable EV Future

This December, the International Council on Clean Transportation (ICCT) released a report- “A Global and Regional Battery Material Outlook” that emphasized the need for major vehicle markets to achieve 100% BEV sales for new light-duty vehicles by 2035 and heavy-duty vehicles by 2040. This is in conjunction with the Paris Agreement’s target of limiting global warming to below 2°C. The report shows that progress is lagging behind this trajectory for many nations. And this is why they are setting ambitious targets and exploring new measures to accelerate vehicle electrification. Consequently, this transition will drive a sharp rise in demand for batteries and essential materials like nickel, lithium, and cobalt.

Nickel Demand Soars with EV Batteries

Governments worldwide are adopting policies to expand battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) to combat global warming and air pollution. 

The surge in EV adoption has significantly boosted demand for nickel, a key component in battery production. This analysis highlights trends in battery technology and the growing importance of nickel while exploring strategies to manage the demand for this material.

To begin with, let’s study the growth trajectory of electric vehicles as explained in the ICCT report.

  • Baseline projections estimate that global annual battery demand for road transport will grow from 808 GWh in 2023 to 3.8 TWh by 2030, reaching 7.0 TWh by 2040.
  • Light-duty vehicle (LDV) BEV battery demand alone is expected to increase ninefold by 2050, while heavy-duty vehicles (HDVs) will see a 24-fold jump.

icct report nickel battery demand

Moving on nickel’s role in the battery landscape continues to evolve. The silvery-white metal plays a vital role in high-performance batteries like lithium nickel manganese cobalt oxide (NMC) variants. This variant has higher nickel content and unique features like better energy storage and vehicle range. Thus, as EV adoption rises, nickel demand is expected to soar. 

  • The global nickel demand for EV batteries will reach 1.4 million metric tons (Mt) by 2030 and 2.2 Mt by 2040.

Image: Annual global demand for nickel under the baseline and demand reduction scenarios, all with the baseline battery technology share

nickel demand nickel supply

Tracking Nickel Demand for Batteries Across Regions

China

Nickel demand for batteries in China is expected to grow significantly, increasing from 93 kt in 2023 to 273 kt in 2030 and 379 kt in 2040. This rise is mainly due to the emergence of high-nickel NMC variants, even when the overall share of NMC batteries declines. However, policy measures like recycling programs and the promotion of smaller battery sizes could help reduce nickel demand by up to 29% by 2050.

United States

In the U.S. demand for nickel demand is set to surge from 50 kt in 2023 to 359 kt in 2030 and 471 kt in 2040. This reflects rising sales of high-nickel, low-cobalt NMC variants, such as NMC811. Additionally, recycling and changes in cathode composition are expected to moderate long-term demand growth.

European Union

The EU forecasts demand for nickel to increase from 71 kt in 2023 to 353 kt in 2030 and 623 kt in 2040. High-nickel variants, including NMC811 and NMC955, will dominate the market. However, smaller battery sizes and recycling could cut demand by 29% in 2035 and 16% by 2050.

MUST READ: Powering the Future of Nickel with NMC 811 Batteries 

India and Indonesia

Emerging economies like India will see a nickel demand surge, projected from 1 kt in 2023 to 20 kt in 2030 and 67 kt in 2040. Notably, industrialists predict that this growth will be driven by expanding BEV sales, especially two- and three-wheelers, and the adoption of high-nickel variants.

In Indonesia, nickel demand will climb from 0.18 kt in 2023 to 8 kt in 2030 and 27 kt in 2040. Indonesia’s rich nickel resources make it a top player in NMC battery production, potentially driving higher demand under NMC-dominant scenarios. On the contrary, a shift to high LFP market shares could reduce nickel demand.

Tackling Nickel Supply Challenges Amid Surging Demand

From the above study, we saw that high-nickel NMC batteries currently drive global nickel demand, with China, the United States, and the European Union leading this surge. However, advancements in battery technologies present viable pathways to reduce reliance on nickel.

For example, expanding LFP battery adoption could decrease nickel demand by 33% by 2030 and 21% by 2040 compared to baseline projections. Similarly, sodium-ion batteries, a promising technology with minimal nickel content, are expected to replace some LFP batteries. Thereby, further alleviating supply pressures.

These emerging technologies showcase the industry’s adaptability in overcoming supply chain challenges and addressing rising material costs. The growing shift toward diverse battery chemistries demonstrates the potential to balance material demand while maintaining electrification goals.

LFP NMC nickel

Strategies for a Sustainable Supply Chain

Ensuring a sustainable battery supply chain requires proactive strategies to manage nickel demand effectively. Key approaches include:

  1. Material Innovation: Developing and scaling low-nickel or nickel-free battery chemistries like sodium-ion and solid-state batteries to reduce dependency on critical materials.
  2. Battery Recycling: Investing in advanced recycling technologies to recover nickel and other valuable materials from used batteries, creating a circular economy.
  3. Smaller Batteries: Promoting EV models with smaller battery sizes to optimize material use and reduce the strain on raw material supplies.

Boosting Domestic Battery Production and Mining Capacities

Financial incentives are vital for strengthening domestic battery production and supporting material supply chains. Policies like the U.S. Inflation Reduction Act (IRA) provide tax credits for battery manufacturing, while the EU’s Battery Fund aims to boost battery production across Europe. These initiatives offer financial support to local manufacturing and foster self-reliance and industry growth.

nickel critical minerals demand mining

A robust EV supply chain also requires upstream investments in mining and refining capacities. Under baseline scenarios, nickel mining is projected to meet 97% of global demand by 2030. ICCP predicts if LFP batteries gain more market share then nickel supply could exceed demand to adapt to the industry dynamics. 

Disclaimer: Visuals and Data Source

Alaska Energy Metals: An Emerging Nickel Player

However, mining and refining capacities face challenges, such as long project lead times and regional concentration. Governments with domestic reserves can step in with financial support to expand operations. For instance, the IRA mandates that some critical EV battery materials must be mined, refined, or recycled in the U.S. or allied countries. Subsequently, this ensures stable material flows, secures supply chains, and strengthens local economies.

By diversifying mining and refining capacities while promoting alternative battery chemistries, the industry can balance growth with sustainability and resource conservation.

Significantly amid all these challenging market conditions, an emerging player is targeting U.S. nickel independence. Alaska Energy Metals Corporation (AEMC) is leading efforts to support the U.S. energy transition through its flagship Nikolai project in Alaska. The site holds a significant resource of nickel, copper, cobalt, and platinum group metals. And the Canadian Nickel Junior is sourcing them sustainably.

Thus, a company like AEMC will play a significant role in reducing U.S. reliance on imports with robust exploration plans for nickel and other critical minerals. 

Antimony: The Unsung Hero of Solar Energy and National Defense

Jennifer L
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0
Antimony: The Unsung Hero of Solar Energy and National Defense

In the rapidly changing global energy landscape, one material has become a cornerstone for renewable energy and defense sectors: antimony. This versatile mineral is pivotal in solar technology, battery advancements, and military applications.

However, recent geopolitical tensions have highlighted vulnerabilities in its supply chain, emphasizing the need for nations to secure sustainable sources. Companies like Military Metals Corp are stepping up to bridge the gap, ensuring antimony’s availability in an increasingly resource-scarce world.

Renewable Energy’s Secret Weapon

The transition to renewable energy relies heavily on advanced materials, and antimony is no exception. In solar panels, this mineral enhances the efficiency of perovskite solar cells by improving light absorption and charge transport. This results in higher energy conversion rates, making solar panels more effective at capturing sunlight. 

Additionally, antimony compounds increase thermal stability, allowing panels to endure extreme conditions without frequent replacements.

Energy storage is another area where antimony shines. Liquid-metal batteries, a promising solution for storing solar energy, depend on antimony’s unique properties. These batteries enable efficient capture and distribution of excess solar power, addressing the intermittency challenges of renewable energy sources. 

With solar installations projected to grow exponentially, antimony’s role in making this energy transition feasible cannot be overstated. The EIA projects solar capacity to reach over 300 GW by 2030 and around 700 GW by 2050.

US solar capacity projections

The Silent Shield: Antimony’s Role in Defense Systems

Beyond renewable energy, antimony is indispensable to national security. The Department of Defense (DoD) uses this critical mineral in 200+ types of munitions, including percussion primers, stab detonators, and armor-piercing rounds. 

Moreover, antimony alloys enhance the durability and reliability of lead-acid batteries used in military vehicles and equipment.

Antimony’s role in flame retardants further underscores its importance in defense. Military uniforms, equipment, and vehicles rely on antimony-based compounds for fire resistance, ensuring the safety of personnel in combat scenarios. Furthermore, antimony-containing semiconductors are critical for infrared sensors and night-vision devices, key technologies for modern warfare.

Breaking China’s Grip: Global Efforts to Secure Antimony Supplies

China controls nearly 50% of global antimony mining and 80% of processing, creating a bottleneck in the supply chain. Recent export restrictions by China, citing dual-use applications of the mineral for both civilian and military purposes, have exacerbated this dependence. 

These restrictions pose significant challenges for countries like the United States, which relies on imports for over 80% of its antimony consumption.

China’s export controls also affect antimony’s availability for renewable energy technologies. The U.S. solar industry, a critical player in the clean energy transition, faces potential disruptions due to limited access to the material for solar panel production. 

As trade tensions escalate, securing alternative sources becomes a strategic imperative. Antimony is one of the critical minerals that China restricted export more recently in October this year. 

Diversifying Antimony: The Key to Supply Chain Resilience

Countries worldwide are taking steps to reduce reliance on Chinese antimony. 

Over two years, global antimony drilling activity totaled 625 holes, with 88 yielding significant intervals. Australia dominated with 444 holes, including 65 significant finds, reflecting its active exploration sector. The USA followed with 44 holes and 10 significant intervals. 

antimony drilling activity 2024

Other contributions came from Canada, New Zealand, and Namibia. Emerging interest in regions like Bosnia, Indonesia, and Slovakia highlights a global push to secure antimony resources, driven by rising demand in energy and defense sectors. 

This data underscores strategic exploration efforts amid tight global supply chains and geopolitical tensions impacting mineral accessibility.

  • In the U.S., the Department of Defense awarded $15.5 million to Perpetua Resources to explore antimony production from the Stibnite Gold Project in Idaho. 

Similarly, Spearmint Resources in Canada has doubled its acreage at the George Lake South Antimony Project, recognizing the mineral’s strategic value.

Moreover, international collaboration is gaining momentum. Nations like Australia, Belgium, and India are investing in antimony processing facilities. Meanwhile, African countries such as Mozambique and Tanzania are emerging as alternative mining hubs. These efforts aim to create resilient supply chains that can withstand geopolitical shocks.

Antimony’s dual role in solar technology and defense highlights its unique importance. This underscores the need for a balanced approach to resource allocation, ensuring that both renewable energy goals and national security needs are met.

The escalating U.S.-China trade war further complicates this balance. Tariffs, export restrictions, and retaliatory measures threaten to disrupt global markets, making it imperative for industries to innovate and adapt.

Surging Prices and Market Outlook

The global antimony market is under intense pressure due to surging demand and constrained supply. In December 2024, antimony trioxide prices soared by almost 232% compared to last year, reaching $38,000 per metric ton. This is largely driven by China’s export restrictions and heightened geopolitical tensions. 

The mineral’s critical role in defense, solar panels, and battery technologies has made it a highly sought-after resource.

Global demand for antimony is expected to rise sharply in the coming years, particularly as renewable energy and defense sectors expand. Analysts predict that its market value could grow significantly, driven by advancements in solar technology, energy storage, and defense applications.

Demand for this critical mineral is forecasted to reach $3.5 billion by 2030. However, the market remains vulnerable to supply chain disruptions, with China’s dominance continuing to exert influence on global prices.

Efforts to address these challenges include investments in alternative sources and recycling initiatives. Countries like the U.S. and Canada are accelerating domestic production, while companies like Military Metals Corp are spearheading exploration projects to tap into previously untapped reserves. 

Military Metals Corp: Leading the Antimony Revolution

Military Metals Corp is an emerging key player in ensuring a stable antimony supply. The company’s strategic assets in Slovakia and Canada aim to reduce dependency on Chinese imports by revitalizing historical mining sites with untapped potential.

Trojarova, Slovakia: Military Metals has identified significant antimony-gold mineralization at this site, with historical estimates indicating high-grade deposits. By extending underground adits and exploring deeper veins, the company plans to unlock valuable resources for both defense and renewable energy applications.

West Gore, Nova Scotia: Once Canada’s largest antimony producer, this site holds immense potential for modern exploration. Historical data suggests significant quantities of this mineral and gold in waste dumps and tailings, providing a cost-effective avenue for resource extraction.

Military Metals’ commitment to sustainable practices and strategic exploration ensures a reliable supply of antimony, bolstering both energy independence and defense readiness.

What Comes Next for Antimony?

To meet antimony’s growing demand, a multi-faceted approach is essential:

  • Investment in Domestic Mining: Expanding mining operations in countries like the U.S. and Canada can reduce reliance on imports and strengthen supply chain resilience.
  • Technological Innovation: Developing alternative materials and recycling methods can alleviate pressure on antimony resources.
  • International Cooperation: Collaborative efforts among nations can diversify supply chains and ensure equitable access to critical minerals.

Antimony is more than just a mineral; it is a linchpin for renewable energy and national security. As the world navigates the complexities of the clean energy transition and geopolitical tensions, ensuring a stable supply of this critical resource is paramount. The time to act is now, and antimony’s story is one of resilience, innovation, and opportunity.

U.S. Battery Storage Hits a New Record Growth in 2024

Jennifer L
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U.S. Battery Storage Hits a New Record Growth in 2024

The U.S. battery storage market achieved unprecedented growth in 2024, fueled by the need for renewable energy integration and improved grid stability. With nearly 9.2 gigawatts (GW) of new capacity installed in late November, the year surpassed previous records, per S&P Global data. This highlights the sector’s rapid expansion and future potential.

Power Surge: How Battery Storage Is Transforming the U.S. Grid

Large-scale lithium-ion battery storage installations in the U.S. reached new heights in 2024, surpassing the previous year’s record of 8.4 GW, according to S&P Global data. 

By November 25, developers had added 9.2 GW of new capacity, setting a new benchmark for the industry. The third quarter alone accounted for 3.6 GW of these additions, representing a 52.5% increase compared to the same period in 2023. This remarkable growth pushed the nation’s cumulative battery storage capacity to 26.3 GW.

US large-scale energy storage Q4 2024

Most installed battery systems are designed for 1 to 4 hours of discharge, with many directly connected to solar farms. These hybrid setups provide dual benefits: 

  • Renewable energy generation, and 
  • Storage for use during peak demand periods or when solar production wanes.

Among the major projects completed in 2024, Quinbrook Infrastructure Partners’ Gemini Solar Plus Storage Project in Nevada stands out. This massive facility, which became fully operational in July, combines a 690-MW solar farm with a 380-MW/1,416-MWh battery system. It delivers power under a 25-year agreement with NV Energy, supporting grid reliability and renewable energy adoption.

Charging the Future with Expanding Battery Projects Pipeline

The pipeline for future battery storage projects in the U.S. remains robust, reflecting sustained confidence in the sector. By the third quarter, developers had begun construction on 14.2 GW of new battery power capacity, with an additional 2 GW in advanced development. 

Of this total, over 6.4 GW targets completion by the end of 2024, although actual commissioning timelines often extend beyond initial projections.

Looking further ahead, the U.S. battery storage market has a planned pipeline of 143 GW of non-hydro energy storage projects through 2030. This includes ambitious goals for the next few years, including:

  • 43.6 GW in 2025,
  • 37.3 GW in 2026, and
  • 33.8 GW in 2027.

These figures highlight the industry’s rapid evolution and its critical role in the energy transition.

Battery Storage Key to 60% Carbon Reduction

Battery storage is emerging as a critical driver of the energy transition, with costs falling and adoption accelerating. Major companies are expanding their offerings to meet surging demand fueled by the rise of AI and data centers. Both of these will significantly increase energy consumption, driving substantial growth in the global battery storage market.

Electric vehicles (EVs) alone will replace millions of barrels of oil daily by 2030, intensifying the need for large-scale energy storage in the power sector.

According to the International Energy Agency (IEA), achieving net-zero emissions requires energy storage capacity to grow six-fold by 2030. This means reaching 1,500 GW by that period. 

  • Batteries are expected to drive 90% of this expansion, increasing 14-fold to 1,200 GW, while other technologies like pumped storage and compressed air provide support.

lithium battery storage IEA

This rapid growth calls for annual battery deployment to rise by 25%. Batteries could account for 60% of carbon reductions by 2030, both directly through EVs and solar PV systems and indirectly via electrification and renewable energy integration.

As battery storage scales up, it remains essential to decarbonizing the energy sector and ensuring electricity security worldwide. In the U.S., certain states are leading the charge in battery storage development and planning.

Who is Leading the Battery Charge?

Per S&P Global analysis, California maintains its dominance with 11.9 GW of installed capacity as of November 25, most of which operates within the California Independent System Operator’s (CAISO) service area.

Texas follows with 8.1 GW of installed capacity, supported by its vast renewable energy resources and deregulated energy market. Arizona (2.1 GW) and Nevada (1.3 GW) also feature prominently, while no other state has surpassed the 1 GW threshold.

US large-scale energy storage by state

When it comes to planned projects, Texas leads with 59.3 GW of battery storage in development, far outpacing California’s 35 GW. Nevada ranks third with 15.5 GW, followed by Arizona (9.1 GW) and Oregon (5.3 GW).

This geographical distribution highlights the growing regional diversity in battery storage investments, driven by varying energy demands, renewable energy policies, and state-level incentives.

Toward a Clean Energy Future with Solar + Storage

The 2024 additions reflect a healthy mix of hybrid and standalone systems, showcasing the versatility of battery storage solutions. Of the nearly 9.2 GW added this year, around 6 GW were standalone projects, while 3.2 GW were hybrid systems, mostly colocated with solar farms.

These hybrid setups are particularly valuable for enhancing the efficiency of renewable energy projects. By combining solar generation with battery storage, hybrid facilities can store excess solar power during the day and discharge it during periods of high demand or low solar output. 

This ability to smooth energy supply and demand makes hybrid systems a critical component of the grid’s transition to cleaner energy sources. 

The Atrisco Solar Plus Storage Project in New Mexico is another noteworthy example of hybrid development. This facility includes a 360-MW solar farm paired with a 300-MW/1,200-MWh battery system.

The project delivers power under a 20-year agreement with the Public Service Company of New Mexico, underscoring the long-term viability and economic benefits of such projects.

The rapid growth of the U.S. battery storage market in 2024 reflects broader efforts to decarbonize the energy system. By enabling the integration of renewable energy and improving grid reliability, battery storage is becoming an indispensable tool for achieving national and state-level clean energy goals.

Rio Tinto Bets Big: $2.5B Lithium Expansion in Argentina’s ‘White Gold’ Rush

Jennifer L
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Rio Tinto Bets Big: $2.5B Lithium Expansion in Argentina’s ‘White Gold’ Rush

Rio Tinto Group has announced a major $2.5 billion investment to expand its Rincon lithium project in Argentina. This move aligns with President Javier Milei’s push to deregulate the country’s economy and attract foreign investment. As demand for lithium continues to soar, this expansion positions Rio Tinto as a significant player in the battery materials market.

Scaling Up Lithium’s Next Frontier

The Rincon project in Argentina’s Andean salt flats is set to become one of the world’s leading lithium operations. It is part of the “lithium triangle”, home to over half of global resources. 

The expansion will enable an annual production capacity of 60,000 metric tons of battery-grade lithium carbonate, up from its current 3,000-ton starter plant. Construction of the expanded facility will begin in mid-2025, subject to permitting, with the first production scheduled for 2028. The project’s full ramp-up to capacity is anticipated to take three years.

This ambitious undertaking is a response to the booming demand for lithium, a.k.a. white gold. It is a key component in electric vehicle (EV) batteries and renewable energy storage. Despite recent declines in lithium prices due to oversupply and a dip in EV demand, Rio Tinto is forging ahead. 

seaborne China lithium price

Jakob Stausholm, Rio’s CEO, emphasized that the long-term outlook for lithium remains robust, driven by the global shift toward green energy. He further noted that:

“Building on Argentina’s supportive economic policies, skilled workforce, and exceptional resources we are positioning ourselves to become one of the top lithium producers globally. This investment alongside our proposed Arcadium acquisition ensures that lithium will become one of the key pillars of our commodity portfolio for decades to come.”

Leveraging Innovative Technology

The Rincon project will use direct lithium extraction (DLE) technology, a novel method that is considered more environmentally friendly than traditional lithium extraction techniques. Unlike conventional methods, consuming large quantities of water, DLE conserves water, reduces waste, and ensures consistent production of high-quality lithium carbonate. 

direct lithium extraction DLE process
Image from Cleantech Lithium

Currently, 13 DLE projects are operational, with a combined output expected to reach 124,000 tonnes in 2024. Benchmark data predicts DLE could supply 14% of global lithium by 2035, producing 470,000 tonnes of lithium carbonate equivalent (LCE). This projection highlights its growing importance in battery and EV markets.

Direct lithium extraction forecast

However, according to RBC Capital Markets analyst Kaan Peker, while DLE holds promise, it also carries risks due to its relatively unproven nature. Potential challenges include cost overruns, delays in ramp-up, and technological hurdles. Despite these concerns, Rio Tinto remains confident in its ability to deliver on its commitments.

Argentina’s Lithium Boom: Policy Meets Opportunity

The Rincon investment underscores Argentina’s potential as a global lithium powerhouse. The South American nation is the world’s 4th-largest lithium producer and boasts the largest lithium reserves globally. 

Argentina’s lithium production could surge from 43,719 metric tons in 2023 to over 261,000 metric tons by 2027. By 2028, it is set to overtake Chile as South America’s leading lithium producer, capturing 13.1% of global lithium production, a significant rise from 4.4% in 2023. This growth is bolstered by record-breaking mine production and lithium reserves as seen below.

Argentina lithium reserves 2014 to 2023

The country’s economic reforms, spearheaded by President Milei, have created a favorable environment for foreign investors. Central to this effort is the Incentive Regime for Large Investments (RIGI), a legislative framework offering tax benefits, currency stability, and trade incentives. These measures provide regulatory certainty for 30 years, safeguarding projects like Rincon from future policy changes.

Stausholm described Rincon as a “poster child” for the RIGI program, praising the initiative’s ability to attract and protect foreign investments. Rio Tinto’s decision to proceed with Rincon’s expansion highlights the company’s confidence in Argentina’s resources, workforce, and supportive policies.

Beyond Rincon: Rio’s Bold Moves in the Battery Market

Rio Tinto’s investment in Rincon is part of a broader strategy to position lithium as a cornerstone of its commodity portfolio. The company recently acquired Arcadium Lithium, a U.S.-based miner, for $6.7 billion, signaling its commitment to becoming a leading player in the lithium market. 

Moreover, Rio is exploring lithium opportunities in Chile, including a potential stake in Codelco’s Maricunga project. The mining giant is also planning to build Europe’s largest lithium mine in Serbia.

Despite the challenges posed by fluctuating lithium prices, Stausholm affirmed Rio’s commitment to accelerating Arcadium’s projects and ensuring the timely delivery of Rincon’s additional production. By 2028, Rincon’s output can significantly contribute to the global lithium supply.

In addition to lithium, Rio Tinto is also keen on expanding its footprint in Argentina’s copper sector. Through its Nuton venture, the company holds a stake in the Los Azules copper project, which recently cleared key permitting hurdles. 

Stausholm expressed Rio’s interest in furthering its copper investments in Argentina, emphasizing the importance of delivering on existing commitments before pursuing new opportunities.

Rio Tinto’s $2.5 billion investment in the Rincon lithium project marks a significant milestone in its efforts to build a world-class battery materials portfolio. This investment not only strengthens Rio Tinto’s position in the global lithium market but also highlights Argentina’s emergence as a key player in the energy and mining sectors. 

By leveraging advanced technology like DLE, committing to sustainable practices, and capitalizing on Argentina’s favorable investment climate, Rio Tinto’s project could play a pivotal role in the green energy transition.

Microsoft’s $9 Billion Power Move: Revolutionizing U.S. Clean Energy and Communities

Jennifer L
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Microsoft’s $9 Billion Power Move: Revolutionizing U.S. Clean Energy and Communities

Microsoft has taken a significant step in the global renewable energy transition by partnering with Acadia Infrastructure Capital to launch the Climate and Communities Investment Coalition (CCIC). This ambitious $9 billion initiative aims to develop 5 gigawatts (GW) of renewable energy projects across the United States over the next five years. 

The move underscores Microsoft’s commitment to sustainability and highlights corporations’ growing role in accelerating clean energy development.

Sparking a Green Revolution: How Microsoft and Acadia are Powering Up the Future

Acadia Infrastructure Capital specializes in driving investments into North America’s proven energy transition infrastructure. The company strategically deploys tax credits and structured/common equity into mid-market, real asset-based opportunities. By focusing on bespoke product structuring, Acadia goes beyond conventional investment approaches to adapt seamlessly to the dynamic energy market landscape.

The CCIC is designed to address the dual challenges of: 

  1. Expanding clean energy capacity, and 
  2. Ensuring that communities benefit from the renewable energy transition. 

The coalition’s projects are expected to generate enough power for nearly 1 million homes. It can also prevent about 15 billion pounds of carbon emissions annually.

These efforts align with Microsoft’s long-standing commitment to reducing its carbon footprint and achieving sustainability goals.

The coalition’s first project is a 210-megawatt (MW) solar farm in Texas. It is financed in collaboration with Matrix Renewables and supported by the Sustain Our Future Foundation. The project serves as a model for how corporate investment can drive the renewable energy sector forward while providing tangible benefits to local communities.

Corporate-Led Climate Action

Dr. Brian O’Callaghan, Vice President at Acadia Infrastructure Capital, emphasized the coalition’s mission to fast-track corporate-led renewable energy financing. He stated that:

“The CCIC’s reason for being is to accelerate corporate-led renewable energy financing with real tangible benefits to local communities.”

This approach not only aids in achieving environmental goals but also delivers economic and social benefits.

The CCIC initiative is strategically designed to assist businesses in accessing Renewable Energy Certificates (RECs). Also known as renewable energy credits, RECs are essential for offsetting carbon emissions and greening supply chains. These certificates will enable participating corporations to meet sustainability targets while supporting the U.S. energy transition.

Just a few days ago, Meta also announced a similar move of purchasing green credits from 4 big solar energy projects in the U.S. The deal will produce 760 megawatts of solar power that the big tech can use to negate its carbon emissions.

Tech Meets Climate: Microsoft’s Role in a Global Green Shift

Microsoft’s role as an anchor member of the CCIC reflects its broader sustainability vision. The tech giant has been a leader in climate action, with initiatives ranging from reducing its carbon emissions to designing zero-water data centers.

Unlike other recent renewable energy announcements, Microsoft has not tied the CCIC projects to specific data centers. Instead, the RECs generated are expected to flow into Microsoft’s general sustainability efforts, supporting its commitment to becoming carbon-negative by 2030, which means removing more carbon than it emits.

Microsoft’s Path to Carbon Negativity by 2030

The tech giant aims to remove all emissions since 1975 by 2050. However, achieving this ambitious goal involves tackling complex challenges, particularly the reduction of Scope 3 emissions, comprising over 96% of its carbon footprint. These emissions largely stem from purchased goods, capital goods, and the use of sold products.

Microsoft scope 3 emissions
Chart from Microsoft 2024 Environmental Sustainability Report

Despite progress, Microsoft’s total emissions rose by 29.1% in FY23 compared to 2020, driven by infrastructure investments. Still, the company has reduced Scope 1 and 2 emissions by 6% through clean energy procurement and efficiency initiatives.

Microsoft 2030 carbon negative target
Chart from Microsoft 2024 Environmental Sustainability Report
  • To scale clean energy, Microsoft expanded its renewable energy portfolio to 19.8 GW across 21 countries by 2023.

It signed power purchase agreements in countries like Brazil, Poland, and New Zealand. The tech company became the first major entity to use 24×7 clean energy services for its Washington data center.

Microsoft also focuses on data center efficiency, achieving a PUE of 1.12 and reducing hardware needs for Azure by 1.5%, cutting embodied carbon. The company is electrifying its fleet, with plans to achieve a 100% electric fleet by 2030.

To address unavoidable emissions, Microsoft is investing in carbon dioxide removal (CDR) projects, contracting over 5 million metric tons annually starting in 2030. In 2023, it secured landmark deals, including reforestation in the Amazon and bioenergy with carbon capture. These efforts highlight Microsoft’s commitment to driving sustainability and global decarbonization.

The CCIC further strengthens Microsoft’s renewable energy portfolio, which includes diverse projects across the globe. Danielle Decatur, Director of Environmental Justice at Microsoft, highlighted the coalition’s significance:

“The CCIC program provides us opportunities to meet our goals through high-quality renewable energy procurement.”

A Triple Win for Corporate Climate Leaders

The CCIC’s success relies on its ability to attract additional corporate members. With Microsoft’s leadership and Acadia’s expertise, the coalition is actively recruiting other companies to amplify its impact.

Tim Short, Managing Partner at Acadia, described the coalition as offering a “triple win” for corporations with these aspects: 

  1. clean energy, 
  2. improved earnings, and 
  3. meaningful community impact.

One of the standout features of the CCIC is its focus on community benefits. The coalition aims to:

  • Expand access to affordable clean energy for low-income households.
  • Create local jobs and promote economic inclusion.
  • Support diverse contractors and suppliers, ensuring equitable growth.

With these goals, the CCIC emphasizes environmental justice, ensuring that renewable energy projects contribute positively to underserved communities. By involving more corporations, the CCIC aims to scale its impact significantly, accelerating the transition to a sustainable energy future.

Microsoft and Acadia’s partnership set a benchmark for how businesses can lead in the renewable energy space while delivering tangible benefits to local communities. By combining financial resources, technological innovation, and a commitment to social equity, the coalition can help shape the U.S. clean energy landscape over the next five years.

Boosting Aviation Carbon Credits: ICAO Greenlights Verra’s VCS Program for CORSIA Carbon Market

Saptakee S
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0
Boosting Aviation Carbon Credits: ICAO Greenlights Verra’s VCS Program for CORSIA Carbon Market

On December 12, Verra mentioned in its press release that The United Nations International Civil Aviation Organization (ICAO) has approved using the Verified Carbon Standard (VCS) Program during the first phase (2024–2026) of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

This decision marks a significant milestone for the emerging CORSIA carbon market. Subsequently, airlines with a vital new source of carbon credits can meet their aviation emissions mitigation mandates.

Additionally, ICAO released an updated Eligible Emissions Units document, outlining specific VCS credit categories and vintages approved for use in CORSIA’s initial phase.

Aviation’s Carbon Footprint Set to Soar by 2050

Air travel has become a major contributor to global carbon emissions. Climate experts predict it will be one of those toughest sectors to decarbonize in the coming decades. North America is expected to remain the top emitter, while Asia’s aviation market, driven by China and India, is projected to grow the fastest. The Asia-Pacific region overall is likely to reduce its gap with North America, solidifying its position as the second-largest emitter.

Statista has presented Bloomberg BNEF data showcasing aviation-related carbon emissions which are set for a sharp rise across all regions over the next 30 years. In 2019, North America generated an estimated 293 million metric tons of CO₂ from aviation, but it can exceed 440 million metric tons by 2050. The Asia-Pacific region trailed at 230 million metric tons in 2019 but is forecasted to reach 418 million metric tons by 2050.

  • Globally, aviation emissions could reach nearly 2 billion metric tons by mid-century—almost 2X the pre-pandemic levels of 2019 and nearly 4X the emissions recorded in the 1990s.

Addressing this steep rise will require bold, innovative strategies to decarbonize air travel and mitigate its impact on climate change.

aviation carbon footprint

CORSIA’s First Phase: Expanded VCS Eligibility

With this approval, the number of Verified Carbon Units (VCUs) that may become eligible for CORSIA labels will get a significant boost. While most VCUs are covered under this decision, ICAO has excluded specific project types and methodologies.

What’s Included?

Here’s what remains eligible for Agriculture, Forestry, and Other Land Use (AFOLU) projects in REDD+ countries:

  1. Small-scale projects: Those generating less than 7,000 tCO2e of reductions and removals annually.
  2. Projects using specific methodologies: These include VM0012, VM0017, VM0021, VM0022, VM0024, VM0026 (and VMD0040), VM0032, VM0033, VM0036, VM0041, and VM0042.
  3. “Nested” projects: Projects integrated into jurisdictional REDD+ accounting under Scenario 2a or Scenario 3 of Verra’s Jurisdictional and Nested REDD+ (JNR) Framework.

Additionally, Verra’s new REDD methodology (VM0048) has been made eligible for CORSIA’s first phase under these guidelines.

What’s Excluded?

Verra has raised concerns about certain exclusions in CORSIA’s first phase (2024–2026) eligibility rules, highlighting inconsistencies in how they’ve been applied across crediting programs. The organization is actively working with ICAO to address these issues in future eligibility decisions.

So, the key exclusions that are under review are:

1. Cookstove Methodologies

Credits from methodologies AMS-II.G. and VMR006 were excluded from the VCS Program but remain eligible under other programs using similar methods. Verra questions this inconsistency and urges ICAO to reassess these exclusions.

2. Carbon Capture and Storage (CCS)

Methodologies under sectoral scope 16, which includes CCS projects, have been excluded. While ICAO is still evaluating if carbon dioxide removal (CDR) activities meet CORSIA requirements, Verra emphasizes that CCS extends beyond CDR and plays a critical role in limiting global warming. Verra believes CCS projects meet CORSIA criteria and should be fully eligible, particularly in countries with ICAO-approved greenhouse gas programs covering these activities.

3. Certain AFOLU Projects

AFOLU (Agriculture, Forestry and Other Land Uses) projects not “nested” into jurisdictional REDD+ frameworks were excluded despite using advanced methodologies. Verra argues for stronger recognition of these projects’ high-quality accounting, particularly under methodologies like:

  • VM0045 Methodology for Improved Forest Management Using Dynamic Matched Baselines from National Forest Inventories
  • VCS Methodology VM0047 Afforestation, Reforestation, and Revegetation,
  • VCS Methodology VM0048 Reducing Emissions from Deforestation and Forest Degradation.

Furthermore, Verra stresses the importance of fair and consistent eligibility criteria for CORSIA. By addressing these exclusions, ICAO can ensure better access to high-quality carbon credits and support impactful climate action in the aviation sector.

Mandy Rambharos, CEO, Verra noted,

“VM0047 provides a scientifically robust approach for projects removing carbon from the atmosphere through tree planting or the restoration of ecosystems. The ICVCM’s approval of VM0047 is a testament to the methodology’s rigor and credibility and an important milestone in driving global investment to high-integrity ARR projects—a critical nature-based approach to carbon removals.”

icao verraSource: ICAO

Article 6 Authorization and Updates for CORSIA

Verified Carbon Units (VCUs) from 2021 onward must have an “Article 6 Authorized – International Mitigation Purposes” label to qualify for use under CORSIA. This requirement aligns with the Paris Agreement’s mitigation framework. Verra’s Article 6 Label Guidance provides detailed information on these labels, and an updated version, reflecting decisions from COP29, will be released early next year.

Moving on, Verra is also finalizing additional assurance requirements. This will ensure there is no double claiming of mitigation outcomes for VCUs with vintages from 2021. These requirements will soon be published to guide project proponents in meeting the necessary standards.

Next Steps for Verra

Verra plans to release a new CORSIA Label Guidance document in the coming weeks. This document will provide details on several key updates, including:

  • The VCS Program’s revised CORSIA eligibility.
  • New labels differentiating between the pilot phase (2021–2023) and the first phase (2024–2026).
  • Instructions for project proponents to request CORSIA labels for VCUs generated by their projects.

Additionally, the press release highlighted that the Verra Registry has already been updated to show these changes. This means VCUs with CORSIA labels from the pilot phase will be automatically updated to display the new label designations, ensuring consistency with the latest eligibility decisions. These steps aim to streamline the process and enhance clarity for stakeholders as CORSIA’s first phase progresses.

This approach offers more flexibility to airlines to meet CORSIA requirements and supports the global aviation industry’s efforts to carbon neutrality. Moreover, the expanded eligibility is expected to create more demand for VCUs while supporting credible emissions reduction efforts worldwide.

LATEST: Verra Unveils Guidance for ICVCM CCP Label on Carbon Credits

In another scenario, on December 13, Verra published a detailed guide to help project proponents apply the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles (CCP) label to Verified Carbon Units (VCUs).

Verra mentioned,

The release of ICVCM CCP Label Guidance, v1.0 follows the ICVCM’s recent approvals of the Verified Carbon Standard (VCS) Program (May 2024), VCS Methodology VM0048 Reducing Emissions from Deforestation and Forest Degradation (November 2024), and VCS Methodology VM0047 Afforestation, Reforestation, and Revegetation (December 2024).

Automatic Labeling for Approved Projects

When the ICVCM approves a methodology, projects using it automatically receive the CCP label on their issued VCUs provided they meet all additional criteria. However, there are situations where projects may need to manually request the CCP label.

This includes cases where VCUs were not automatically labeled but still qualify for the label, or when a project updates its methodology to an ICVCM-approved version for past verification periods. To facilitate this process, Verra will launch a digital form for CCP label requests in 2025, accompanied by detailed instructions to guide users through the application process.

Updating to ICVCM-Approved Methodologies

Verra has released two guidance documents to streamline methodology updates:

  • Methodology Change and Requantification Procedure, v4.0 allows projects to update their methodology or version for past verification periods.
  • Procedure to Change Methodology through a Project Description Deviation, v4.0 helps projects transition to a different methodology or version for current and future monitoring periods.

With these updates, Verra aims to make it easier for projects to meet ICVCM standards, ensuring high-quality carbon credits while supporting global climate action. The new guidance provides the tools needed for projects to align with evolving standards in the voluntary carbon market.

US-China Trade War: Can the US Beat China’s Critical Minerals Grip?

Jennifer L
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0
US-China Trade War: Can the US Beat China’s Critical Minerals Grip?

The escalating trade war between the United States and China is reshaping the global energy transition. As the two largest economies exchange restrictions and tariffs, the impact on clean energy technologies—especially those reliant on critical minerals and international supply chains—is becoming increasingly apparent.

These geopolitical tensions could stall renewable energy adoption or accelerate innovations and diversification strategies to reduce dependence on China’s dominance.

China’s Critical Minerals Ban: A Strategic Signal

In December 2024, China escalated tensions by banning exports of key minerals to the United States. The targeted minerals—essential for technologies in semiconductors, defense, and renewable energy—are gallium, germanium, antimony, and graphite. 

China exports of critical minerals

This marks a new phase in the trade war, with China signaling its readiness to leverage its dominance in these materials as a geopolitical tool.

Combs and Trivium China co-founder Andrew Polk noted that those restrictions suggest that the largest Asian economy is “ready to counter the US moves much more aggressively”. 

While the immediate effects are muted, given prior restrictions on these minerals, the potential for broader economic pain looms large. For example, graphite, a vital material for lithium-ion battery anodes, is critical for electric vehicle manufacturing and grid storage systems. 

  • China controls 80% of global graphite output and processes 70% of it, making its dominance a significant bottleneck in the clean energy supply chain.

Here are the other critical minerals that China has a substantial grip on as per the Grantham Research Institute on Climate Change and the Environment analysis:

China's control of critical minerals mining and refining

As seen above, China also controls over half of the global processing capacity for aluminum, indium, lithium, silicon, and rare earth elements (REEs), while also leading in REE extraction.

So, how can this control impact the most needed transition to clean energy, particularly for the U.S.? 

Rising Costs for Key Technologies:

The price of EV batteries, solar panels, and other clean technologies could rise as supply chain disruptions drive costs. Batteries, which already represent a significant portion of an EV’s cost, require vast quantities of graphite.

Any further restrictions could exacerbate pricing pressures, slowing consumer adoption of EVs and renewable energy solutions. EVs’ high price tags are one of the biggest hurdles for buyers. 

Diversification Challenges:

While the U.S. and its allies are pursuing alternatives, building domestic supply chains or sourcing from other nations takes time. Recent investments include a $150 million loan to accelerate graphite mining in Mozambique and a proposal to reopen a gold mine in Idaho to extract antimony for military applications.

These efforts, while promising, are years away from meeting current demand. For instance, the proposed reopening of the Yellow Pine mine in Idaho could bolster domestic antimony supply, but full-scale operations are unlikely before 2027.

Economic Ripple Effects:

A U.S. Geological Survey found that a complete ban on gallium and germanium exports could reduce U.S. GDP by $3.4 billion. While niche applications dominate these materials, their use in semiconductors, LEDs, and military components underscores their strategic importance.

U.S. Strikes Back: Tariffs and Supply Chain Resilience

President Donald Trump’s administration has pledged to impose steep tariffs on Chinese imports, ranging from 10% to potentially 100%. These measures aim to curb dependence on Chinese goods but risk further inflating costs for clean energy technologies.

Efforts to counter China’s influence include bolstering domestic production and securing new trade agreements. However, the U.S. relies heavily on Chinese manufacturing for components like solar panels and wind turbine parts. This highlights the challenges of quickly achieving supply chain independence.

Global Ripple Effects: Beyond the US and China

The trade war is not only impacting U.S.-China relations; it is reverberating across the globe. 

Europe, Japan, and other nations reliant on Chinese-made clean energy components face similar vulnerabilities. For instance, Europe has ambitious offshore wind targets but remains dependent on Chinese supply chains for cost-effective production.

China’s dominance in solar panel and wind turbine manufacturing gives it leverage over global renewable energy development. However, disruptions in its supply chain could also hurt its economy, as nations shift toward alternative suppliers and technologies.

China renewable growth, wind and solar Q3 2024

China’s Paradox: Leading with a Dominant Grip on Supply Chains

China’s position in the clean energy sector is paradoxical. On one hand, it dominates the production of critical materials and components. On the other, it is also a leader in renewable energy deployment, accounting for more than half of global offshore wind installations in 2023.

  • China also produced over 80% of the world’s solar panel supply in 2023, making any disruption in trade a significant challenge for global renewable energy targets.

This dual role creates mutual dependencies. While China can disrupt global supply chains, its economy benefits from being the world’s primary supplier of clean energy components. This tension underscores the complexity of the trade war’s impact on both nations.

The US-China trade war, while disruptive, presents opportunities to accelerate innovation and diversification in the energy sector. Here’s how:

  • Innovation in Battery Materials:
    Researchers are exploring alternative chemistries that reduce reliance on graphite and other materials dominated by China. Advancements in solid-state batteries and recycling technologies could lessen dependence on traditional supply chains.
  • Strengthening Domestic Supply Chains:
    The U.S. and its allies are increasing investments in mining and processing critical materials domestically or through friendly nations. Check out how this energy metals company is doing just that, strengthening U.S. energy independence. Moreover, diversifying supply sources not only reduces reliance on China but also enhances energy security.

The Bigger Picture: Trade Wars and Climate Goals

Global clean energy goals depend on the rapid deployment of renewable technologies. The International Renewable Energy Agency (IRENA) estimates that renewable energy capacity must triple by 2030 to meet climate targets. 

renewable power triple pledge 2030 wind energy

Trade wars and supply chain disruptions threaten to derail these efforts, particularly in regions heavily dependent on Chinese imports. Even more solar and wind energy together take up over 80% (8,991 GW) of the 2030 renewable tripling pledge.

At the same time, the conflict could drive nations to prioritize long-term energy independence and sustainability. Balancing these competing dynamics will require strategic planning, investment, and international cooperation. The stakes are high—not just for the U.S. and China but for the entire planet.

The US-China trade war highlights the delicate balance between geopolitical rivalry and global cooperation in the clean energy transition. It serves as a stark reminder of the interconnectedness of global supply chains and the need for collective action to secure a sustainable future.

Carbfix and CarbonQuest Unite to Revolutionize Carbon Capture in North America

Saptakee S
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0
Carbfix and CarbonQuest Unite to Revolutionize Carbon Capture in North America

CarbonQuest, the U.S.-based carbon capture and storage (CCS) provider, and Carbfix, Europe’s leading CO2 mineral storage operator have announced a groundbreaking partnership to tackle emissions from “hard-to-abate” industries in North America.

Both companies will deploy Distributed Carbon Capture and Storage (DCCS) solutions, making decarbonization more accessible and efficient for medium-scale emitters in the United States and Canada.

Unlocking the MOU between Carbfix and CarbonQuest

Under the Memorandum of Understanding (MOU), CarbonQuest and Carbfix will combine their expertise to address carbon emissions and mineralization at point sources. Their joint efforts will focus on industries such as manufacturing and utilities that face unique challenges in reducing emissions.

Subsequently, by locating emitters near mineralization-ready sites, the partnership will streamline the creation of onsite CCS projects for both new and existing facilities.

Innovative Technology at the Core

CarbonQuest’s modular DCCS technology features compact solid sorbents that can capture CO2 in space-constrained settings. This system works seamlessly in industrial facilities, utility infrastructure, and campus power generation setups such as Combined Heat and Power (CHP) systems and fuel cells. The captured CO2 is then liquefied for easy transport to mineralization sites or local businesses.

On the other side, Carbfix offers a transformative solution by dissolving CO2 in water and injecting it into porous basaltic rock formations. Within two years, the CO2 transforms into stable carbonate minerals, effectively turning it into stone.

Carbfix’s technology is already commercially established across Europe. However, through this partnership Carbfix can expand to new locations for CO2 mineralization, thereby pushing commercial growth across North America.

Edda Aradóttir, CEO of Carbfix noted,

“Carbfix is excited to partner with CarbonQuest to advance our interest in North America. We see tremendous potential for carbon mineralization in a variety of business scenarios from co-location or mineralization hubs, and this MOU will ensure that, together, we can bring meaningful projects to reality in the U.S. and Canada,”

Shane Johnson, CEO of CarbonQuest said,

“Our partnership with Carbfix will accelerate the adoption of carbon capture throughout North America,”. “Together we see numerous opportunities in both new and existing applications. Carbfix’s solution is a cost-effective and permanent way to mineralize captured CO2 even for emitters located far from a mineralization hub. This aligns with our goals to make the end-to-end CO2 capture and mineralization as local as possible.”

CarbonQuest: Capturing CO2 Through Modular Solutions

CarbonQuest offers a modular solution to capture CO2 emissions from small- and medium-scale emitters before they reach the atmosphere. Their broader goal is to help businesses achieve their GHG Protocol requirements and Science-Based Targets (SBTi) while significantly lowering their carbon footprint. One such way is to reduce their Scope 1 emissions.

Furthermore, they integrate their innovative carbon capture system with other sustainable solutions to accelerate emissions reductions and improve energy savings. For example, they connect with renewable energy sources like solar power, energy efficiency systems, and partial electrification to boost the decarbonization efforts of companies.

Image: Building Carbon Capture™: Explore how the integrated four-step process works for carbon capture.

carbonQuest carbon captureSource: CarbonQuest

The company’s patented carbon capture system is scalable and adaptable under various environments, making it ideal for owners and operators of facilities or onsite distributed power systems.

This is how CarbonQuest’s Sustainable CO2™ solution supports the circular economy by turning captured carbon into a resource for other industries.

Carbfix: Leveraging a Decade of Expertise in CO2 Mineral Storage

Carbfix provides a natural and permanent CO2 storage solution by transforming CO2 into stone underground in under two years. The company partners with businesses worldwide to promote safe, scalable carbon mineral storage through feasibility studies, pilot programs, facility construction, and full-scale commercial operations.

Permanent carbon mineralizationcarbfix carbon captureSource: Carbfix

Some of their key projects are:

Silverstone Project

Project Silverstone is a cutting-edge initiative funded by the EU to implement full-scale CO2 capture, injection, and mineral storage at Iceland’s Hellisheði ON Power plant. This project will transform the plant into one of the world’s first geothermal power facilities with a near-zero carbon footprint. By 2030, Silverstone is expected to deliver 10% of Iceland’s Climate Action Plan targets for energy and industrial sectors not covered by the EU ETS.

Nesjavellir Pilot Plant

In 2023, Carbfix launched a pilot carbon capture and storage (CCS) plant at the Nesjavellir geothermal site in Iceland. Developed under the H2020 Geothermal Emission Control project, the plant started injecting CO2 and H2S into the ground. This pilot optimized Carbfix’s capture technology and laid the foundation for future large-scale projects.

Thus, Carbfix’s innovative approach ensures permanent and safe underground CO2 storage, contributing to global climate recovery efforts.

By combining innovative solutions and expertise, CarbonQuest and Carbfix are paving the way for a sustainable future while helping businesses achieve net-zero emissions. All in all, this collaboration marks a crucial milestone for North America’s journey toward decarbonization.

Source: Carbfix and CarbonQuest announce a Memorandum of Understanding to Pursue distributed Carbon Capture and mineralization Projects in North America  – Carbfix

Gone with the Wind: Is This the End for Wind Energy?

Jennifer L
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0
Gone with the Wind: Is This the End for Wind Energy?

For years, wind energy has symbolized the clean energy transition. Towering turbines onshore and offshore have driven significant progress in reducing carbon emissions. However, recent setbacks in the global offshore wind industry have raised concerns about its future. 

Rising costs, delayed projects, and shifting investment priorities force governments and companies to reassess their ambitious wind energy targets. While countries like China continue dominating the sector, others, including the United States and European nations, struggle to keep pace.

Profit vs. Progress: Why Energy Giants Are Scaling Back Offshore Ambitions

The offshore wind sector faces mounting challenges, with profitability concerns leading to significant withdrawals. Most recently, five energy companies, including Shell and Lyse, pulled out of Norway’s first large-scale floating offshore wind tender. The project, slated for 1.5 GW of capacity, has been deemed too risky due to profitability, timelines, and industrial maturity concerns.

Norway’s government capped state support at NOK 35 billion (EUR 3 billion), which critics argue is insufficient to attract large-scale investments. Energy Minister Terje Aasland defended the cap, stating it would be enough to launch 500 MW of floating wind capacity. 

However, energy companies like Fred. Olsen Seawind and Hafslund have opted out, citing Norway’s restriction on mainland-only connections, which limits the profitability of exporting energy to other countries.

This follows a pattern seen elsewhere in Europe, where rising costs and regulatory constraints are driving companies to reconsider offshore wind projects. Denmark’s Ørsted, a global leader in renewables, has also exited several offshore wind opportunities, highlighting broader challenges within the sector.

Skyrocketing Costs Blow Offshore Wind Goals Off-Course

Globally, the offshore wind industry is grappling with escalating costs.

  • Over the past two years, the average cost of offshore wind projects has risen by 30% to 40%, reaching $230 per megawatt-hour (MWh). This is more than 3x the cost of onshore wind, placing significant pressure on developers.

cost of capital for renewables, wind energy

Inflation, supply chain disruptions, and high interest rates have further exacerbated the financial strain.

Equinor, a leading player in renewable energy, recently withdrew from offshore wind projects in Vietnam, Spain, and Portugal, citing unsustainable costs. Paal Eitrheim, Equinor’s head of renewables, noted that:

“It’s getting more expensive, and we think things are going to take more time.” 

Similarly, Shell, another energy giant, is scaling back its offshore wind ambitions. Shell sold its stakes in projects across Massachusetts, South Korea, Ireland, and France, signaling a strategic retreat from leading offshore developments. A company’s spokesperson stated in an email to S&P Global:

“While we will not lead new offshore wind developments, we remain interested in offtakes where commercial terms are acceptable and are cautiously open to equity positions if there is a compelling investment case.”

Shell CEO Wael Sawan admitted that the company lacks the competitive advantage to generate material returns in renewable generation. This sentiment is echoed by other oil majors like BP.

The withdrawal of these energy giants underscores a fundamental shift in priorities, with many companies now favoring onshore renewables like solar and wind, which are less affected by rising costs and regulatory hurdles. These challenges come at a time when global governments have set lofty targets for offshore wind energy.

Global Shortfalls and Missed Targets

Governments around the world have pinned their hopes on offshore wind as a key driver of the clean energy transition. The International Renewable Energy Agency (IRENA) initially projected a need to increase global offshore wind capacity from 73 GW to 494 GW by 2030 to meet climate goals. 

renewable power triple pledge 2030 wind energy
Chart from IRENA
  • However, revised estimates now suggest the industry will fall short by one-third, delaying this milestone until after 2035.

The U.S. Offshore Wind Dilemma

The U.S. offshore wind industry, for instance, is at a crossroads. The country aimed to install 30 GW of offshore wind by 2030 but has less than 200 MW operational as of mid-2024.

Despite federal support through tax credits and lease auctions, the sector faces significant challenges. The outgoing administration of President Joe Biden issued permits for 15 GW of projects and held six lease sales. However, the recent election of President-elect Donald Trump raises concerns about future policy support, as his campaign promised to dismantle the industry’s progress.

Carl Fleming, a renewable energy policy advisor, noted that market conditions alone make it unlikely for the U.S. to meet its 2030 goals, regardless of political leadership. Delays in project approvals and a lack of supply chain investment have hindered progress. Analysts predict the country will achieve less than half of its target due to these challenges. 

The European Wind Shortfall

Europe, which currently accounts for 40% of global offshore wind capacity, is also falling behind. Rising costs and lengthy approval processes have slowed progress.

Nations like the UK, Germany, and the Netherlands are projected to meet only 60% to 70% of their 2030 targets. Even Norway, a country with abundant wind resources, is struggling to attract developers due to perceived risks and limited support mechanisms.

Future auctions will require far larger investments to meet the targets, putting additional pressure on developers and governments alike.

Rebecca Williams, deputy CEO of the Global Wind Energy Council, expressed cautious optimism, stating that with the right policies, targets remain achievable. However, delays and financial constraints make it increasingly unlikely that Europe will meet its goals within the set timelines.

China’s Offshore Wind Boom

While Western markets struggle, China continues to dominate the offshore wind sector.

  • In 2023, China accounted for more than half of the world’s new offshore wind installations, adding 6.3 GW of capacity. 
new wind capacity by region 2023
Chart from DIGITIMES Asia

The country’s state-owned enterprises benefit from low financing costs, subsidies, and locally produced components, enabling rapid deployment.

China’s dominance is expected to grow further, with annual installations projected to reach 16 GW over the next few years. However, the country’s closed market limits opportunities for international developers to participate or benefit from its advancements.

The Winds of Change: Adapting to a Shifting Energy Landscape

Remarkably, a recent market development suggests renewed enthusiasm. Energy giants BP and JERA have partnered to create JERA Nex BP, a $6 billion joint venture aimed at becoming one of the world’s largest offshore wind developers. Combining their existing assets, the venture boasts a potential net generating capacity of 13 GW. 

BP CEO Murray Auchincloss emphasized the company’s “capital-light” growth approach, while JERA CEO Yukio Kani highlighted offshore wind’s critical role in the energy transition.

With 1 GW of current capacity, 7.5 GW in development, and 4.5 GW of secured leases, this collaboration seems to bring back confidence in offshore wind’s role in the energy transition. 

Ultimately, the offshore wind industry is facing significant headwinds, but it remains a vital part of the clean energy transition. The current challenges highlight the need for governments and developers to adapt, innovate, and collaborate to ensure wind energy remains viable.

China’s rapid progress offers valuable lessons on the benefits of state support and localized manufacturing, while the struggles in Western markets underscore the importance of addressing financial and regulatory barriers.

The question is not whether offshore wind will survive but how it can evolve to meet the demands of a rapidly changing energy landscape.

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