Fashion Meets Climate Action: Levi’s Net Zero in First Climate Transition Plan

Jennifer L
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Fashion Meets Climate Action: Levi’s Net Zero in First Climate Transition Plan

Levi Strauss & Co. (Levi’s), a global leader in denim and lifestyle apparel, has released its first climate transition plan, aiming to achieve net zero emissions by 2050. It lays a roadmap to reach near-term greenhouse gas (GHG) reduction targets by 2030 and achieve longer-term climate goals. 

Levi’s plan follows similar commitments made by brands like the H&M Group and Reformation, reflecting a growing trend in the fashion industry towards sustainable practices.

How Levi’s Plans to Achieve Net Zero

Levi’s 2050 net zero emissions goal involves both direct and indirect emissions throughout its entire value chain. This includes emissions from manufacturing processes, transportation, product usage, and end-of-life disposal. 

  • In 2023, the fashion firm’s total GHG emissions were over 3.7 million tons of CO2e. Of this, only 12 thousand tons of CO2e were Scope 1 and 2 emissions. 
Levi's carbon emissions 2023
Source: Levi’s Climate Transition Plan report

The company’s strategy is guided by the Science-Based Targets initiative (SBTi), ensuring that its climate action aligns with the Paris Agreement’s objective of limiting global warming to 1.5°C. It focuses on three areas to guide its climate actions.

  1. Internal Operations and Scope 1 & 2 Emissions: 

To reach its long-term goal, Levi Strauss has set specific interim targets for 2025. 

The apparel giant is prioritizing a reduction in direct (scope 1) and energy-related (scope 2) emissions. This involves investing in energy-efficient technologies, and renewable energy, and implementing a global energy management system to guide strategic decisions. 

By 2025, the company aims for a 90% reduction in these emissions, compared to its 2016 baseline as shown below. For Scope 3 emissions, which include the supply chain’s carbon footprint and product life cycle, the company targets a 40% reduction per product by 2025.

Levi's 2030 net zero goals
Source: Levi’s Climate Transition Plan report

  1. Engaging the Supply Chain to Tackle Scope 3 Emissions: 

The second part of the strategy focuses on the broader value chain, tackling the significant impact of scope 3 emissions from global suppliers. Levi Strauss is working towards Science-Based Targets (SBT) by promoting sustainable materials, offering supplier financing for energy reduction efforts, and supporting circularity initiatives. 

A key goal is to reduce scope 3 emissions related to apparel production by 42% by 2030, using a 2022 baseline. This target addresses 72% of the company’s total Scope 3 emissions, emphasizing a substantial focus on reducing indirect emissions across the value chain. These efforts include encouraging sustainable farming practices and enhancing transparency in supply chains.

Levi's Scope 3 emissions 2023
Source: Levi’s Climate Transition Plan report

Focusing on Scope 3 or value chain emissions is critical as they account for over 99% of the company’s total carbon footprint. The company’s goal is for 100% of its key suppliers to adopt renewable electricity by 2025.

  1. Governance and Advocacy: 

Levi’s aims to embed climate risks and opportunities into its overall business strategy to ensure strong governance throughout the transition. This includes regular updates on their progress through sustainability reports, ensuring accountability and alignment with international frameworks like the TCFD (Task Force on Climate-Related Financial Disclosures) and CDP (Carbon Disclosure Project).

According to Jeffrey Hogue, Chief Sustainability Officer at Levi’s, the climate transition plan is part of the company’s longstanding commitment to addressing climate change. He also noted that:

“These steps will not only move us toward our Net Zero climate ambition by 2050 but also strengthen our own business’s resilience to the effects of climate change.”

Renewables at the Core: Levi’s Push for 100% Green Energy by 2025

To reduce its Scope 1 and 2 emissions, Levi Strauss has committed to using renewable energy in its own operations. The company has already transitioned many of its facilities to renewable electricity and is actively investing in solar and wind power for its global offices and retail outlets. 

Notably, it seeks to achieve 100% renewable electricity in all company-operated facilities by 2025. It also aims to reduce freshwater usage in water-stressed areas by 50% from a 2018 baseline by 2025. These targets align with global climate science and further the company’s broader sustainability goals.

Levi Strauss also recognizes the role of sustainable product design in achieving its net zero ambitions. The company focuses on extending the life of its products through durable design, using organic cotton, and reducing the use of water-intensive processes. Levi’s® WellThread™ collection, for example, incorporates circular design principles, making garments that are easier to recycle.

Leading the Industry Shift Towards Sustainability

Achieving net zero requires collective action, and Levi Strauss emphasizes engaging with stakeholders across its value chain. This includes not only suppliers but also consumers, employees, and investors. The denim company encourages consumers to adopt more sustainable behaviors, such as washing jeans less frequently and opting for cold water washes.

Levi Strauss has also joined industry coalitions like the Fashion Industry Charter for Climate Action, which unites fashion brands in taking bold actions to reduce carbon emissions. Through these partnerships, Levi’s aims to drive industry-wide changes and influence policies that support a transition to a low-carbon economy.

Since 2000, global fiber production has nearly doubled, rising from 58 million tonnes to 116 million tonnes in 2022. It is projected to reach 147 million tonnes by 2030 if current non-sustainable practices continue. 

This industry growth comes with significant environmental costs. The fashion sector is the 2nd-largest water consumer and contributes 2%-8% of global carbon emissions. Without changing current practices, the industry’s share of the carbon budget will increase to 26% by 2050. 

Additionally, 85% of textiles are dumped annually, and less than 1% is recycled. 

The fashion company’s climate transition plan offers a promising path forward. By setting science-backed targets and engaging both internal and external partners, Levi Strauss. is taking concrete steps to reduce its environmental impact while inspiring others to help the fashion industry become more sustainable.

More Power per Punch: Nuclear Energy Outshines Fossil Fuels

Jennifer L
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More Power per Punch: Nuclear Energy Outshines Fossil Fuels

Power density is essential for evaluating how efficiently a system works. It is a measurement of the power it can handle or produce compared to its size or volume. 

The infographic compares the power density of different energy sources—wood, oil, coal, and uranium—based on how much energy each can generate in megawatt hours (MWh). The comparison uses a baseline of 11 MWh, which is the average annual electricity consumption of an American household.

As you can see, nuclear energy is by far more efficient. This is because just a small amount of uranium can generate as much power as large quantities of fossil fuels or wood. Here’s the breakdown:

  • Wood: You need about 2.5 tons of wood to generate 11 MWh of electricity. This hefty amount shows how low wood’s energy density is compared to other fuel sources.
  • Oil: It takes 7.4 barrels of oil to produce the same 11 MWh. While oil is more energy-dense than wood, it still requires a significant amount to reach this energy target.
  • Coal: Producing 11 MWh takes about 1.5 tons of coal. This makes coal more efficient than wood and oil in terms of energy density.
  • Uranium: Amazingly, just 100 grams of uranium can generate 11 MWh. This emphasizes the incredible energy density of nuclear fuel compared to traditional fossil fuels or biomass.

nuclear energy by Uranium Royalty CorpThe Heavyweight Champ of Low Emissions

The infographic clearly shows that uranium has a much higher energy density than traditional energy sources. While renewables and biomass are important for combating carbon emissions, nuclear energy is much more efficient. It can meet large-scale energy demands with very little fuel. 

Right now, nuclear power provides 10% of the world’s electricity. 

According to the US Energy Information Administration (EIA), nuclear power is projected to increase by 22% between 2022 and 2050.

However, as overall electricity generation grows, nuclear’s share is set to decline, dropping from around 10% of global electricity generation to about 8% by 2050.

With its high power density, nuclear energy is crucial for reducing emissions and meeting global energy needs in this era of clean energy transition.

Notably, energy-related emissions make up about 80% of all human-related greenhouse gas emissions in the U.S. and EU. Despite electricity accounting for only 20% of total energy consumption, it generates over 40% of energy-related emissions. 

Burning fossil fuels like coal, oil, and gas releases around 34 billion tonnes of CO2 annually, with coal contributing 45%, oil 35%, and gas 20%. In contrast, nuclear power produces significantly lower carbon emissions. 

  • According to the UN IPCC, nuclear energy emits about 12 grams of CO2 equivalent per kWh. This is closely the same as wind and much lower than solar, making it a cleaner electricity source.

Talking about environmental impact, nuclear energy is superior and a cleaner resource. 

safest and cleanest energy sources

It can significantly lower emissions by using less material making it a better sustainable alternative to fossil fuels and biomass.

Learn More >> The Atomic Awakening: Unplugging The Energy Crisis | Fueled by Uranium

Solar Power to Grow 400% by 2030, Beating Down Coal

Jennifer L
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Solar Power to Grow 400% by 2030, Beating Down Coal

The International Energy Agency (IEA) recently released its World Energy Outlook 2024, highlighting big shifts in global energy trends. Solar power is at the forefront of this transformation, with projections showing that global solar electricity generation could grow fourfold by 2030. This growth is set to accelerate the decline of coal and reshape the global energy mix. 

Solar’s Big Moment: The Future of Power Generation

According to the report, global energy markets stabilized in 2023, with natural gas prices dropping after a spike in 2022 and energy demand growing by 2.1%, aligning with the pre-2020 average. However, under the Stated Policies Scenario (STEPS), demand growth is expected to slow to 0.7% annually until 2030. Most of this growth will be in emerging markets and developing economies. 

Efficiency improvements and increased electrification are key factors, with the Announced Pledges Scenario (APS) showing a slight decline in energy demand, and the Net Zero Emissions (NZE) Scenario indicating a more significant drop.

oil and natural gas price by scenario, 2010 - 2050
Source: IEA Energy Outlook 2024 Report

Electricity demand is set to grow across all scenarios, driven by economic progress, electrification of transport (such as electric vehicles), and the rising need for data centers. 

By 2033, solar is expected to surpass nuclear, wind, hydro, and natural gas as a major electricity source. Eventually, it could even overtake coal to become the largest source of electricity worldwide. This marks the beginning of what the IEA calls the “age of electricity,” where clean energy growth and efficiency gains gradually reduce our reliance on fossil fuels.

By 2035, electricity’s share of global consumption will reach 26% in STEPS, 29% in APS, and 36% in the NZE Scenario. In particular, China’s electricity demand is expected to surpass the combined demand of advanced economies by 2030.

electricity demand growth by scenario 2023-2035
Source: IEA Energy Outlook 2024 Report

How Renewables Are Reshaping Energy Markets

The rise of solar power is part of a larger shift toward cleaner energy sources. The IEA predicts that as more renewable energy like solar and wind comes online, global carbon dioxide (CO2) emissions from energy will reach their peak around 2025. This could be a major step forward in reducing the impact of climate change. 

However, the IEA warns that these changes alone aren’t enough to meet the goals of the Paris Agreement, which aims to limit global warming to well below 2°C, preferably to 1.5°C, above pre-industrial levels. Even with the growth of renewables, CO2 emissions are expected to fall only 4% below 2023 levels by 2030. This would still result in a global temperature increase of about 2.4°C—higher than the desired target.

To reach the 1.5°C target, the IEA outlines a path that it calls “increasingly narrow, but achievable.” This path requires three things:

  • a rapid shift to clean energy technologies,
  • faster adoption of electric systems, and
  • a big reduction in emissions—around 33%—by 2030.

Achieving these goals will demand new policies and large investments in renewable energy, especially in regions that still rely heavily on fossil fuels. 

The IEA suggests that along with expanding clean energy, improving energy efficiency is crucial to keeping global energy demand in check, even as economies and populations grow.

Electricity’s Rise For Cleaner Power 

The World Energy Outlook 2024 also explores various possibilities, including the growth of electric vehicles, energy demand from data centers, and the rising need for air conditioning due to more frequent heat waves. 

No matter the scenario, the IEA expects that demand for coal, oil, and natural gas will peak soon. This shift represents a turning point as the world moves from fossil fuels to renewable energy. 

Coal, which has been a major energy source, could start its decline by 2025, particularly as renewables like solar and wind gain ground in Asia, where coal has traditionally been dominant. Moving away from coal is crucial for reducing the carbon footprint of electricity production and for improving air quality in growing urban areas.

solar capacity by 2030

For oil and gas, demand is expected to peak around 2030 before gradually decreasing. The transition away from these fuels will be slower because of their key roles in transportation, petrochemicals, and manufacturing. 

  • The adoption of clean technologies, such as renewables and EVs, is driving a peak in demand for oil, natural gas, and coal by 2030. Yet, additional investment in clean energy is necessary to make more carbon emissions reductions.

However, as EVs become more popular and cleaner alternatives become available, the reliance on oil is expected to drop. The demand for natural gas is also projected to decline as options like green hydrogen and advanced battery storage become more viable. These alternatives are vital for hitting climate goals and ensuring energy security.

Achieving Net-Zero 2050 with Renewables

The report emphasizes that the growth of renewable energy is central to reshaping the world’s energy system. By 2030, renewable energy capacity could grow to nearly 3x of its current size. 

While this progress is significant, it’s still not enough to reach the ambitious goals to triple renewable capacity. To meet these goals, the IEA stresses the need for more policy support, innovation, and investment in renewables. 

  • Remarkably, solar and wind could provide nearly 60% of global electricity by 2050. However, fossil fuels still met 80% of global energy needs in 2023, though their demand could peak by 2030. 

One major factor driving the rise of clean energy is the falling cost of solar and wind power, which has made them competitive with traditional fossil fuels. The IEA estimates that solar capacity could exceed 16,000 gigawatts (GW) by 2050, a huge jump from current levels. 

solar manufacturing capacity and use, 2023 and 2030

This growth is supported by advancements in battery technology, which help balance the fluctuations of renewable energy sources like solar. In its latest forecasts, the IEA has increased its estimates for battery storage, showing more optimism about the role of these technologies in making renewable energy systems work smoothly.

battery manufacturing capacity and use, 2023 and 2030

Despite these promising trends, the IEA stresses that more action is needed to reach climate goals. To stay on track for net-zero emissions by 2050, the world needs more investments in renewable energy and policies that support the shift away from fossil fuels. This could include carbon pricing, subsidies for renewable projects, and regulations that push industries to be more energy efficient. 

According to the IEA, the world has the tools to move to a cleaner energy future, but it will take a lot of effort to make the transition happen quickly enough.

A $1.46 Billion Boost for First-of-Its-Kind Carbon Capture and Clean Fuels

Jennifer L
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A $1.46 Billion Boost for First-of-Its-Kind Carbon Capture and Clean Fuels

Carbon capture and storage (CCS) is gaining momentum as an important solution for reducing global carbon emissions. With significant projects like Gevo’s $1.46 billion Net-Zero 1 plant in South Dakota and a surge in CCS developments worldwide, the industry is expanding rapidly. 

Gevo’s Groundbreaking SAF Plant

Gevo Inc., a Colorado-based alternative fuels company, has been offered a $1.46 billion loan by the U.S. Department of Energy (DOE) to build a “clean” fuels plant in eastern South Dakota that captures carbon emissions. 

The facility, named Net-Zero 1, aims to produce sustainable aviation fuel (SAF), renewable diesel, and renewable naphtha using corn feedstock in Lake Preston. The plant aims to produce SAF while incorporating carbon-negative production processes to offset tailpipe emissions. 

SAF refers to a broad category of biofuels and synthetic fuels intended to replace conventional jet fuel. These fuels still produce tailpipe emissions, but they are counterbalanced by a carbon-negative production process.

Gevo has taken a significant step towards expanding its carbon capture and storage capabilities by acquiring Red Trail Energy LLC’s ethanol plant and associated carbon capture and storage (CCS) assets in North Dakota last month. Valued at $210 million, this acquisition supports Gevo’s ambitious plans to establish Net Zero-1. 

The Richardton, North Dakota facility, brings critical assets to Gevo’s strategy, especially its permitted CO2 storage infrastructure. This site is capable of storing up to 1 million metric tons of CO2 annually, though Red Trail has only used less than 20% of this capacity so far. 

Net-Zero 1 would be the first SAF facility of its kind in the U.S., as noted by the DOE. The conditional loan was one of two announced on the same day; the other, worth $1.44 billion, was offered to Montana Renewables for expanding a renewable fuels plant in Great Falls.

Gevo expects to close the deal in 2025, with third-party project equity making up most of the project’s funding. 

The company has partnered with Summit Carbon Solutions, which is developing a pipeline to transport the captured CO2 to a storage site in North Dakota, to manage its carbon emissions. 

With capitalized interest during construction, the loan guarantee could provide Gevo with a borrowing capacity of $1.63 billion. The said financing is subject to specific conditions and an environmental review by the DOE.

Global Growth and Trends in Carbon Capture Projects

Globally, the CCS landscape is seeing a significant expansion, according to the Global CCS Institute report. The think tank’s 2024 annual status update highlights a notable increase in projects worldwide, with 291 CCS projects in advanced development or under construction as of mid-2024. 

carbon capture capacity of CCS since 2010
Chart from Global CCS Institute report

This figure represents a substantial growth from 147 projects in mid-2023. It shows the rising momentum of CCS technology as governments across the globe implement policies to combat climate change. There are now 50 operational CCS projects worldwide, but the majority remain in the design and permitting stages.

The total CO2 capture capacity of these projects has also increased, growing from 177 million metric tons annually in 2023 to 231 million metric tons by mid-2024. However, this growth comes despite setbacks, including several high-profile cancellations. 

For instance, Navigator CO2 Ventures recently scrapped plans for a 1,300-mile CO2 pipeline in the U.S. Midwest. The reason for this is the challenges faced in securing state permits. 

Still, government incentives, such as federal tax credits for CCS, have been instrumental in driving new projects in the US. Currently, 13 CCS projects are under construction, primarily associated with hydrogen, ammonia, and ethanol production facilities, which are often easier to retrofit with CCS technology. 

Moreover, a growing number of direct air capture (DAC) projects are in development, catering to the increasing demand for carbon credits. These credits are seen as more easily verifiable than those from traditional carbon capture methods. 

Government subsidies and supportive regulations have played a crucial role in boosting CCS deployment. 

The Global CCS Institute’s report emphasizes the need for continued public funding. Without a price on CO2 or mandatory capture regulations, many CCS projects may struggle to remain financially viable. The case of Alcoa Corporation is an example of this.

A Push for CO2 Compensation 

Alcoa Corporation is pursuing $80 million in CO2 compensation from the Spanish government, seeking reimbursement for carbon-related costs incurred between 2018 and 2021 at its San Ciprian aluminum and alumina production complex. 

The compensation is critical for Alcoa as it faces increasing competitive pressure in the European market. Its neighboring countries like France offer significant carbon credits and subsidies to support smelters. These subsidies make French operations more viable compared to those in Spain. 

CEO William Oplinger echoed the need for equal support to ensure the competitiveness of Alcoa’s operations in Spain.

The Pittsburgh-based company’s challenges in Spain extend beyond the lack of CO2 compensation. It is also working on a strategic cooperation agreement with Ignis Equity Holdings to secure the future of the San Ciprian complex. Under this agreement, Ignis will invest €25 million for a 25% stake in the facility, while Alcoa commits €75 million to ongoing operations. 

Additionally, Alcoa seeks access to around $85 million in restricted cash controlled by unions at the site to help cover operating expenses.

These ongoing developments in carbon capture across companies and countries underscore both the opportunities and challenges facing the sector. As more projects move from planning to execution, the potential of CCS to play a critical role in achieving climate targets becomes increasingly clear. 

Verra To Cut Workforce By 25%, CEO Mandy Rambharos Confirms

Saptakee S
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Verra To Cut Workforce By 25%, CEO Mandy Rambharos Confirms

Verra’s CEO Mandy Rambharos made an intensely grim announcement on October 21st about company restructuring. Coming to the point directly, she said,

“Today, I informed our team of a difficult but necessary decision to reduce our workforce by roughly 25 percent. This step, though not made lightly, is critical to aligning our resources with our core priorities and ensuring that Verra remains agile and capable of leading in a rapidly changing environment. This realignment will allow us to focus more intently on maintaining the rigor and integrity of our standards programs, providing stronger support for our stakeholders, and continuing to work collaboratively across the ecosystem to bolster environmental and social markets.”

In her press statement, she stressed the importance of sharing Verra’s vision and reinforcing its commitment to make climate action more impactful. Additionally, she highlighted the need for sustainable development in voluntary carbon markets (VCM). This involves constant evaluation of how to serve stakeholders in a better way in an evolving market environment.

Rambharos also highlighted the insights from the 2024 Stakeholder Survey. She noted that Verra had recognized the recent challenges in project review times, stakeholder engagement, clarity in processes, and technical solutions. This prompted the decision to restructure and streamline operations to address these challenges, even with a reduced workforce.

The CEO reaffirmed Verra’s mission and expressed confidence that these changes will strengthen the organization, making it more resilient and capable of leading the future of VCM.

In 2023, Verra laid new foundations and enhanced ongoing initiatives aimed at advancing climate action and sustainability. The company expects these standards programs to be highly successful in the future.

A major achievement in the Verified Carbon Standard (VCS) Program was the launch of a new REDD methodology (VM0048) and a module (VMD055) that focused on preventing unplanned deforestation. These tools are meant to channel funding to forest conservation. The program also updated several existing methods and progressed with developing the next version of the VCS.

To expand its reach, the program worked with the Integrity Council for the Voluntary Carbon Market (ICVCM) and teamed up with governments and financial institutions. Additionally, Verra initiated work on a Scope 3 Standard Program to help companies lower the carbon emissions in their supply to achieve their climate goals.

However, last year the carbon credit certifier made headlines for approving “worthless” offsets which would dampen its integrity. In January 2023, The Guardian performed a high-profile investigation and claimed that over 90% of its rainforest offset credits are likely “phantom credits”. It means they may not reflect “real” carbon reductions. Having received serious criticism over the quality of its products, David Antonioli, the former CEO of Verra, had to step down in May 2023.

But that’s not the end of the story, Verra’s VCM and GHG crediting program is still touted to be one of the most trustworthy and globally acclaimed.

Nevertheless, downsizing the workforce by 25% is a tough decision regardless of the reasons behind it. We hope CEO Mandy Rambharos succeeds in her efforts and upholds Verra’s goodwill as outlined in this announcement.

India’s Cleantech Boom: Can It Challenge China’s Reign?

Saptakee S
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India’s Cleantech Boom: Can It Challenge China’s Reign?

As governments across the world push for cleaner energy, the competition between India and China for cleantech dominance intensifies. China’s early investment in clean energy technology and manufacturing has given it a significant lead. However, India is rapidly building its capacity, aiming to grab the spotlight in the global market.

This analysis explores the current landscape, identifying strengths, weaknesses, and what lies ahead for both nations in the cleantech race.

China’s Technological Edge and Cost Advantage

China remains a global leader in clean energy manufacturing. The country’s investments in solar PV, battery technology, and wind energy have solidified its dominance. China’s advantage stems from its ability to manufacture at a lower cost while maintaining high technological sophistication.

For instance, in solar PV manufacturing, China controls key parts of the supply chain, including wafers and polysilicon, both essential for solar panel production.

S&P Global highlighted that while countries like India are taking big steps, China’s manufacturing output and efficiency continue to overshadow most nations. Its cleantech products are not only produced at a lower cost but have also overcome previous concerns about quality. This quality and competitive pricing have allowed Chinese manufacturers to grow their market share, even in sectors like wind energy, where they face strong competition.

According to a Wood Mackenzie report, China now commands the manufacturing landscape across major clean technologies.

  • It holds 60% of the wind foundation market and an impressive 97% share of solar PV wafer production.
  • China’s dominance extends beyond manufacturing, with booming electric vehicle (EV) sales further highlighting its leadership in the sector.

China Cleantech

India’s Growing Investment in Cleantech Market

India is starting to invest more in its global cleantech market. This is getting a push with its low-cost manufacturing base and government support.

For example, the Production-Linked Incentive (PLI) scheme, has helped reduce solar PV manufacturing costs by up to 24%, making India competitive in the global market. This program aims to establish domestic manufacturing for critical clean energy components like solar modules and batteries.

Additionally, India’s energy efficiency program has been in place for years, and the country recently introduced a hydrogen policy focused on producing low-carbon hydrogen through domestic electrolyzer manufacturing.

India’s clean energy sector has seen a massive uptick in investment. In 2023, the country invested $68 billion in clean energy projects, a 40% increase compared to the 2016-2020 average. Almost 50% of this spending was directed toward low-emissions power generation, particularly solar PV.

Conversely, India’s fossil fuel investments also grew by 6% to $33 billion in 2023, as the country continued to grapple with rising fuel demand.

Image: Past and future energy investment in India in the Announced Pledges Scenario and the Net Zero Emissions by 2050 Scenario, 2016-2030

cleantech India IEASource: IEA

After evaluating the current scenario, we can say that India is on the brink of a clean energy revolution. Prime Minister Narendra Modi’s commitment to add 500 gigawatts (GW) of clean energy by 2030 will certainly help India to be a global leader in renewable energy. But the question remains how is the country planning to meet this ambitious target?

2024 Looks Rosy for India…

After years of slow progress, 2024 has marked a turning point for India’s renewable energy sector. Solar panels and wind turbines are being installed at a commendable pace. Media reports reveal that 18.8 GW of new renewable energy capacity was added till August this year. This way more than the total capacity of last year.

According to the International Energy Agency (IEA), India is on track to add 34 GW by the end of the year, with projections showing growth will nearly double to 62 GW annually by 2030.

On October 14, India’s power ministry announced a plan to upgrade its power grid to support renewable energy expansion through 2032. The project involves a $109 billion investment and aims to bolster Prime Minister Narendra Modi’s vision for clean India.

India is also benefiting from Western countries’ efforts to diversify supply chains and reduce reliance on China. The US and the EU have enacted tariffs and trade restrictions on Chinese products, giving Indian manufacturers an opening to supply premium-priced markets, particularly in solar PV. By 2028, S&P Global predicts that India could become the second-largest solar PV manufacturing region after China.

Industry experts predict that this rapid expansion might outpace China’s growth rate in the second half of the decade, positioning India as the world’s fastest-growing clean energy market.

But is it as rosy as it seems to be? The answer is probably no. We unlock the challenges below.

A Lingering Challenge for India’s Clean Tech Future

However, India still faces several challenges. Despite the progress and one of the fastest growing economies, Indian manufacturers remain dependent on China for inputs like wafers and polysilicon. Thus, India is not yet 100% self-sufficient in these areas.

Furthermore, as the country is growing so does its energy demand. By 2050, energy demand in India is expected to outpace every other region in the world. This growing demand could put enormous pressure on its energy system, which still heavily relies on imported fossil fuels like crude oil and natural gas.

And with this rising demand comes the risk of increased carbon emissions, particularly if fossil fuel consumption continues to grow for transportation, power generation, and industrial use.

S&P Global analyzed that India is also moving slower than China in wind energy and battery manufacturing, While the country is scaling up battery production, it’s unclear whether it can meet its goal of self-sufficiency by 2030. In wind energy, India’s infrastructure is better suited for onshore projects, and it may struggle to compete with China in the growing offshore wind market.

Risks of Trade Barriers and Global Oversupply

One of the major risks facing India’s cleantech expansion is potential trade barriers. As the US and EU focus on domestic reindustrialization, Indian cleantech exports could become targets for new tariffs, especially in sectors like solar PV and batteries. There’s a delicate balance between encouraging global supply chain diversification and protecting domestic industries.

Additionally, in some cleantech sectors like electrolyzers, global oversupply could make it difficult for Indian manufacturers to remain competitive. Although India is expected to produce more electrolyzers than it needs by 2030, stiff competition from established players could drive prices down, potentially limiting India’s growth in this space.

India Cleantech Trade barrier S&P global

Can India Compete Without China?

China dominates global supply chains, making it unrealistic for India to fully take over its manufacturing space, according to the Economic Survey 2023-24. The survey, presented by Finance Minister Nirmala Sitharaman, emphasized that India may need Chinese investment and technology to boost its manufacturing sector. Instead of distancing from China, partnering with its expertise could be key to driving India’s cleantech growth.

The Survey pointed out that,

“It may not be the most prudent approach to think that India can take up the slack from China vacating certain spaces in manufacturing. Indeed, recent data cast doubt on whether China is even vacating light manufacturing.”

This is self-explanatory.

China’s dominance in the cleantech sector is undeniable, but India is making strides to close the gap. With strategic government support and lower production costs, India has the potential to become a key supplier of cleantech products to the US and Europe.

According to the Australian research group Climate Energy Finance (CEF), Chinese companies have invested over $100 billion in overseas clean energy projects since early 2023 to avoid U.S. and other tariffs.

China Cleantech

Source: Climate Energy Finance

This shows that China’s lead in technology and cost efficiency will secure its position as a global leader for the foreseeable future. On the contrary, India’s future success will depend on overcoming its reliance on Chinese inputs. Some viable options are accelerating technological advancements and avoiding trade barriers that could hinder its growth.

From reliable economic surveys and reports, we can conclude that while India may not surpass China anytime soon, its role in the global cleantech supply chain is expanding, and the competition has just begun…

General Motors Invests $625M in Lithium Americas to Boost Nevada’s Thacker Pass Lithium Project

Saptakee S
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0
General Motors Invests $625M in Lithium Americas to Boost Nevada’s Thacker Pass Lithium Project

Good news for the electric vehicle (EV) industry- General Motors (GM) and Lithium Americas have inked a $625 million joint venture to develop the Thacker Pass lithium project in Nevada. This partnership is another power play to boost the U.S. domestic supply chain for EV batteries and reduce reliance on lithium imports, particularly from China.

The Background: Lithium Americas Secured $2.3B DOE Loan to Drive Thacker Pass Development

In March 2024, Lithium Americas secured a $2.3 billion loan from the U.S. DOE through its Advanced Technology Vehicles Manufacturing (ATVM) Loan Program. This funding will support the development of the Thacker Pass lithium project in Nevada.

However, before Lithium Americas can access the loan, they must contribute $195 million, which will be used to cover expenses for construction and ramping up production. Additionally, General Motors (GM) will also provide a line of credit to help fund these requirements.

General Motor’s Key Investment in 2023

Back in January 2023, General Motors made a substantial investment in Lithium Americas, agreeing to provide $650 million. This was divided into two parts: the first $320 million was delivered immediately and used to advance the first phase of Thacker Pass.

But the second part of the investment, or Tranche 2, encountered some changes. Both companies decided to revise the terms due to a company reorganization. Tranche 2 was supposed to be completed by the end of 2023.

On August 30, 2024, Lithium Americas and GM extended the deadline for Tranche 2 of their investment agreement to explore better options for GM’s additional investment. They ended the original agreement when they signed a new joint venture deal. This new deal was announced on October 16.

Unlocking the Latest JV

The latest press release mentions that General Motors has agreed to invest $625 million in cash and letters of credit for a 38% stake in the Thacker Pass project. Lithium Americas, which will manage the project, retains a 62% interest and will contribute $387 million to the joint venture. The funds will be used to develop the first stage of the project, which might cost around $2.9 billion.

Jonathan Evans, President and CEO of Lithium Americas

“Our relationship with GM has been significantly strengthened with this joint venture as we continue to pursue a mutual goal to develop a robust domestic lithium supply chain by advancing the development of Thacker Pass. Today’s joint venture announcement is a win-win for GM and Lithium Americas. GM’s JV Investment demonstrates their continued support and helps us to unlock the previously announced $2.3 billion DOE Loan. We will be working closely with GM to advance towards the final investment decision, which we are targeting by the end of the year.”

Domestic Lithium Supply to Support GM’s EV Ambitions

One of the highlights of the joint venture is GM’s expanded offtake agreement. It extends for up to 100% of lithium production from Thacker Pass’ first stage for 20 years. This agreement will help GM ensure a steady supply of lithium for its future EV batteries.

GM also secured the right to acquire up to 38% of production from the project’s second stage, with the ability to negotiate first offers for any remaining volumes.

The company’s investment in Thacker Pass is driven by the need to secure a long-term supply of lithium as the company continues to scale up its EV production.

According to Jeff Morrison, SVP, of Global Purchasing and Supply Chain of General Motors remarked,

“We’re pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain. Sourcing critical EV raw materials, like lithium, from suppliers in the U.S., is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”

Lithium

GM’s Net Zero Pathway 

The Michigian-based EV maker aims to achieve carbon neutrality in their global products and operations by 2040.

General Motors

Source: GM

As described in GM’s sustainability report, significant progress made to reduce Scope 3 emissions include:

  • Battery production and expansion through Ultium Cells LLC- JV with LG Energy Solution, which is manufacturing cells for its Ultium Platform.
  • Collaborating with Tesla to integrate the North American Charging Standard (NACS) for their EVs. It will start in 2025.
  • Investing in home, workplace, and public charging infrastructure in the U.S. and Canada.
  • Investing in hydrogen fuel cell technology to reduce the carbon emissions of medium- and heavy-duty vehicles.
  • Addressing the barriers to EV ownership in the United States through dealership education and engagement.

Lithium Prices and Market Challenges

While the deal is progressing the lithium market is also fluctuating simultaneously.

MINING.COM reported that prices of battery-grade lithium hydroxide have experienced a sharp decline, falling to $9,800 per ton in October 2024 from $22,275 a year earlier. This marked a significant drop from the peak prices which were around $85,000 per ton in late 2022.

Despite these market challenges, Lithium Americas continues to advance the project, positioning itself to benefit from a projected long-term demand increase for lithium as the EV market expands. The company’s shares saw a 20.2% rise after the JV announcement. This showed investor confidence in the project’s potential.

Thacker Pass: The Gateway to North American Lithium Battery Supply Chain for EVs

The Thacker Pass project is well underway, with approximately 40% of the engineering design already completed. Major site preparations are progressing, with earthworks for the process plant excavation nearing completion and preparations for concrete placement underway.

Located in northern Nevada’s Humboldt County, Thacker Pass is home to the largest known lithium deposit in North America. 385 million tonnes of measured and indicated resources, equivalent to six million tonnes of lithium carbonate. The mine is expected to produce enough lithium to power one million electric vehicles annually, a critical contribution to the growing U.S. EV market.

Lithium Americas LithiumSource: Lithium Americas

Lithium Americas is focused on getting the project ready for final investment decisions by the end of the year.

  • The project’s first phase targets a production capacity of 40,000 tonnes of lithium carbonate per year, with significant progress anticipated in the next few years.

What’s Next for Thacker Pass?

The next steps for the joint venture include finalizing engineering designs and procurement contracts as well as securing the final investment decision by the end of 2024. GM’s involvement in the project will help Lithium Americas unlock the DOE’s loan. Subsequently, this will provide the necessary financial support to fully develop the project.

As part of the agreement, GM and Lithium Americas are working closely with Bechtel, the project’s engineering, procurement, and construction management contractor. It can create around 1,800 direct jobs during its three-year construction period.

In the coming months, the Thacker Pass project will focus on de-risking and advancing construction to ensure it meets its targets for lithium production. Once operational, the mine will significant role in securing a domestic supply of lithium. Consequently, supporting the growing demand for EVs and pushing the U.S. clean energy transition.

Key Implications in the future:

  • Thacker Pass could provide lithium for up to 800,000 EVs annually, reducing U.S. reliance on foreign suppliers.
  • It supports the U.S. goal of net-zero greenhouse gas emissions by 2050, aligned with President Biden’s climate goals.
  • A domestic lithium supply chain would lower carbon emissions, transport costs, and supply chain risks for U.S. car manufacturers.
  • Sustainably sourced battery materials would help produce electric vehicles with a smaller carbon footprint.

Notably, Lithium Americas is also in a strong position to meet the growing demand for EV batteries. It will continue to secure additional funding to fuel its motive. However, at this moment, partnering with GM will significantly impact the domestic lithium market and in a good way.

Source: Lithium Americas News Release and General Motors Sustainability Report 

SEE MORE: The Fastest Developing North American Lithium Junior

Nickel Power: Will Demand for EVs Drive Supply to New Heights by 2030?

Jennifer L
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Nickel Power: Will Demand for EVs Drive Supply to New Heights by 2030?

As the world accelerates its shift towards renewable energy, the role of electric vehicles (EVs) in reducing carbon emissions has become more critical. This transition depends heavily on advancements in battery technology, which is pivotal for mass EV adoption. 

A key player in this evolution is nickel, an essential material in battery production that has gained increasing attention due to its impact on EV performance and range. This article delves into the demand-supply dynamics of nickel in the EV battery sector and its role in the broader energy transition as reported by the International Renewable Energy Agency (IRENA).

Nickel’s Essential Role in EV Batteries

EV batteries consist of several critical components, with nickel playing a significant role in cathode chemistry. Nickel-rich batteries, such as Nickel Manganese Cobalt (NMC) and Nickel Cobalt Aluminum (NCA) chemistries, have become prevalent. These chemistries are favored due to their high energy density, which translates to longer driving ranges—a critical factor for widespread EV adoption. 

As a result, nickel-rich batteries accounted for over half of the EV battery market in 2023, even as newer alternatives like Lithium Iron Phosphate (LFP) gained traction. Class I nickel, essential for EV batteries, accounts for only about 30% of total nickel production.

Nickel helps improve the energy density of batteries, allowing vehicles to travel further on a single charge. This advantage makes nickel-rich chemistries particularly valuable for larger vehicles like trucks and long-haul freight, where range and efficiency are crucial. As EV adoption spreads to these heavier vehicle segments, the demand for nickel-based batteries is expected to remain robust.

Alaska Energy Metals Nickel Banner

How EV Adoption is Shaping Nickel’s Demand

The rapid increase in EV adoption is directly linked to the rising demand for battery materials, including nickel. In 2023, global EV sales reached about 14 million units, representing 18% of total automobile sales. 

By 2030, adhering to a 1.5°C scenario for climate goals would require sales reaching around 60 million units annually. This growth is expected to drive the demand for EV batteries to over 4,300 GWh per year, a significant increase from 2023 levels.

Nickel demand is closely tied to this trend, given the material’s crucial role in enhancing battery capacity. 

As of 2023, global nickel production reached 3.6 million tonnes, with Indonesia and the Philippines supplying nearly 60% of the world’s nickel. By 2030, demand for nickel in EV batteries is projected to rise to 18%, up from 8% in 2022, potentially reaching between 0.53 million and 1.09 million tonnes, depending on battery technology scenarios. 

  • The overall global nickel demand is expected to range from 3.9 to 4.7 million tonnes annually by 2030.
nickel demand from EV batteries 2022 and 2030
Source: IRENA report

This expansion would see global nickel supply grow from 3.6 million metric tons (Mt) in 2023 to potentially 5.6 Mt per year by 2030. The ability of nickel production to keep pace with EV battery demand will be critical to avoiding supply bottlenecks that could hinder EV growth.

Beyond EVs, nickel’s importance extends to other applications like battery energy storage systems (BESS). As countries integrate more renewable energy sources into their grids, BESS becomes crucial for managing energy fluctuations and ensuring a stable supply. 

The demand for BESS is expected to grow 6-fold between 2023 and 2030, complementing the growth in EV battery needs. While lithium remains the cornerstone of most battery chemistries, nickel’s contribution to BESS underscores its broadening role in energy storage solutions.

From Mine to Market: Navigating the Nickel Supply Chain 

IRENA’s outlook for nickel supply is positive. However, challenges remain in ensuring that this supply materializes. 

Despite this growing demand, the analysis indicates a lower risk of supply shortages compared to other critical materials, with a projected supply of 4.6 to 5.6 million tonnes by 2030. 

nickel supply and demand 2023 and 2030
Source: IRENA report

However, while general nickel supplies seem adequate, concerns over high-purity Class I nickel for EV batteries persist. 

Current projections suggest sufficient Class I nickel supply until 2028, but without expansion of production, shortages could arise by the end of the decade. Innovations in battery technology could significantly reduce reliance on nickel, potentially halving demand for EV batteries if alternatives gain traction.

Current projections show a potential increase in production, but this hinges on new mining projects and expansions coming online. The Asia-Pacific region, which currently dominates global battery production, is expected to see its share decrease slightly as Europe and North America ramp up capacity. 

However, ensuring sufficient nickel supply will require substantial investment in mining operations and refining capacity across multiple regions.

The potential for supply-demand imbalances remains, as the range of estimates for nickel production varies significantly. For example, the difference between the highest and lowest projections represents about 60% of the current supply, highlighting the uncertainty in meeting future demand. 

Market conditions, regulatory frameworks, and technological advancements will all play a role in determining how much of this projected supply will be realized by 2030.

The transition to electric vehicles is reshaping the global demand for battery materials, with nickel emerging as a critical component. Its role in enhancing battery energy density makes it indispensable for long-range EVs and larger vehicles like trucks. As global EV adoption surges, the demand for nickel is set to increase, requiring a corresponding expansion in supply to prevent shortages that could slow down the energy transition.

Why the Nuclear Energy Market Is Poised for a Major Comeback

Jennifer L
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Why the Nuclear Energy Market Is Poised for a Major Comeback

Uranium prices may have dropped recently, but the long-term outlook for this critical energy resource is glowing. With game-changing technologies on the horizon and new uranium projects underway, the market is on for an exciting comeback.

The uranium market has seen recent short-term pressure, with spot prices falling below $80 per pound after peaking at $107 in February. Despite this decline, uranium prices remain 30% higher than last year, providing significant returns for producers, according to new analysis from BMO Capital Markets. 

The World Nuclear Association Symposium in London has highlighted mixed market signals, particularly supply chain issues and delays. These are currently affecting the overall sentiment, noted BMO analyst Alexander Pearce in a market commentary.

Uranium Spot Prices Dip, Long-Term Demand Surges

Although spot prices have softened, BMO Capital Markets projects a strong outlook for uranium demand. The investment banking subsidiary of BMO projected it to grow at an annual rate of 2.9% through 2035. This increase is largely driven by China’s aggressive push to build new nuclear reactors and the potential for reactor restarts in North America. 

China, which is investing heavily in nuclear energy as a cleaner alternative to coal, is expected to be a major player in the global uranium market.

Pearce emphasized the long-term demand outlook noting that they foresee a potentially higher uranium demand over the medium to long term. This optimism is fueled by several factors, including:

  • geopolitical shifts, 
  • growing global demand for clean energy, and 
  • new nuclear technologies such as small modular reactors (SMRs).

Supply Chain Challenges and Growth Projections

On the supply side, BMO anticipates 2024 will see the first significant increase in uranium supply in years. This growth is expected to come from older uranium projects catching up with rising demand. 

While uranium prices remain below the peak seen earlier in 2024, the general trend suggests a robust market with significant upside potential, particularly as nuclear energy plays an increasingly vital role in global energy strategies.

The World Nuclear Association estimated that demand will continue to increase by 2040 while supply will be limited. Thus, there would be a big gap between the metal’s supply and demand requirements by that year.

uranium supply and demand projections 2040

The Role of Advanced Nuclear Technologies

Oklo, a Sam Altman’s nuclear power startup, is spearheading the development of SMRs. The California-based nuclear company highlighted the growing importance of advanced nuclear technologies in meeting rising energy needs. 

In an interview, Brian Gitt, Oklo’s head of business development emphasized the urgent need for reliable, clean energy sources, particularly for energy-intensive industries like data centers and manufacturing. Gitt specifically stated that:

“We’re seeing two big trends: rising power demand and the need for clean energy.”

SMRs are emerging as a flexible and efficient solution for power generation, particularly in areas with high energy demand. By placing SMRs close to energy-hungry facilities, companies can avoid the long waits associated with grid expansion, providing faster and more localized energy solutions. 

small modular reactors market size 2030

While still in the development phase, SMRs hold promise for revolutionizing how nuclear energy is deployed, offering a cleaner and more sustainable option compared to traditional power plants. However, the widespread commercial adoption of SMRs is still a few years away. 

Gitt acknowledged this, stating that while the technology shows great promise, its impact remains largely theoretical at this stage. Yet, the continued development of SMRs is seen as crucial to addressing future energy needs. This is particularly true as traditional energy sources like natural gas and coal face increasing regulatory challenges and environmental concerns.

The U.S. Revives Its Nuclear Future with Oak Ridge Mega Project

While the debate over energy policy continues, it is clear that nuclear power—both in its traditional form and through new technologies like SMRs—has a crucial role to play in the future of global energy. 

Just recently, in a significant development for the energy sector, French company Orano USA announced plans to build a multibillion-dollar uranium enrichment facility in Oak Ridge, Tennessee. This investment marks the largest single capital infusion in Tennessee’s history that can revitalize the region’s role as a leader in nuclear innovation. Commentators considered this as reminiscent of the Manhattan Project during World War II.

Orano USA specializes in the uranium supply chain and nuclear fuel cycle services. This new Oak Ridge facility will focus on producing low-enriched uranium for commercial nuclear reactors, unlike the highly enriched uranium once used for weapons. The 920-acre site will house a 750,000-square-foot multi-structure plant.

The facility will be transferred from the U.S. Department of Energy (DOE) to Orano USA through a tax incentive agreement. The plant is a critical part of the U.S. government’s strategy to secure its nuclear future. 

Congress recently allocated $2.8 billion to support domestic uranium enrichment, and Orano USA will tap into these funds. The company’s investment symbolizes the beginning of what many are calling the “second Manhattan Project,” as Oak Ridge once again takes center stage in the race to advance nuclear technology.

Oak Ridge, often referred to as the “Secret City,” is now a hub for more than 150 nuclear companies. These include NANO Nuclear Energy and Kairos Power, both of which are building advanced reactors in the area.

Uranium and Nuclear at the Forefront of Clean Energy 

The announcement comes amid growing concerns over the U.S.’s ability to compete with China and Russia in both nuclear power and weapons technology. While China continues to expand its nuclear capabilities and Russia remains a dominant player in uranium enrichment, the U.S. has seen a resurgence in nuclear research and development. 

As countries look for ways to meet their growing energy needs while reducing carbon emissions, uranium and nuclear technology are likely to remain at the forefront of this conversation.

BMO Capital Markets’ analysis shows that the demand for uranium will continue to rise. While supply-side challenges remain, the potential for significant uranium production growth offers hope for balancing demand. With recent market development, the future of uranium looks bright, offering solutions to the world’s energy challenges.

ADNOC Boosts Stake in Fertiglobe for Global Low-Carbon Ammonia Growth

Saptakee S
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ADNOC Boosts Stake in Fertiglobe for Global Low-Carbon Ammonia Growth

ADNOC, the UAE’s leading energy company, has completed its acquisition of OCI Global’s majority stake in Fertiglobe. Now ADNOC has 86.2% ownership of Fertiglobe, with 13.8% remaining publicly traded on the Abu Dhabi Securities Exchange (ADX). The acquisition marks a critical step in ADNOC’s strategy to dominate the global low-carbon ammonia market and further its ambitions in chemicals.

Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, highlighted the importance of this acquisition, stating, 

“ADNOC’s majority shareholding in Fertiglobe marks another milestone in the delivery of our ambitious international chemicals growth strategy and goal to become a top five chemicals player. Fertiglobe will be the vehicle through which ADNOC advances its low-carbon ammonia business, supporting our efforts to enable a just, orderly, and equitable global energy transition.”

Fertiglobe: A Rising Power in Low-Carbon Ammonia

Ammonia is a key solution for decarbonizing industries like marine fuel, power, and agriculture, which account for 80% of global emissions. 

Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, is a strategic asset in ADNOC’s chemical growth. It exports nitrogen products to 53 countries and holds a 10% share of global ammonia and urea trade. Last year, the company shipped its first batch of ISCC PLUS-certified renewable ammonia from Egypt. This clean product will help produce near-zero emissions soda ash for Unilever in India.

Additionally, the company has delivered several low-carbon ammonia shipments from the UAE, using hydrogen and carbon capture technology. Its renewable ammonia cuts emissions by 73%, accelerating the shift to cleaner energy.

Fertiglobe recently achieved a major milestone by securing a €397 million renewable ammonia offtake contract through the H2Global initiative. This contract is valid till 2033.

Fertiglobe ADNOC

Source: Fertiglobe

A Key Player in ADNOC’s Low-Carbon Fuel Ambition

Talking about the acquisition, ADNOC plans to integrate its stakes in existing and upcoming low-carbon ammonia projects into Fertiglobe. 

  • Significantly, this includes two major projects in Abu Dhabi, which will add 2 million tons per annum (mtpa) to Fertiglobe’s ammonia capacity. The company’s total capacity will increase from 1.6 mtpa to 8.6 mtpa, with more projects in the pipeline.

Thus, with ADNOC’s backing, Fertiglobe can become one of the top five global leaders in chemicals markets and low-carbon ammonia production, which is a key fuel in the energy transition.

Fertiglobe will continue its expansion under the leadership of CEO Ahmed El-Hoshy, who has been instrumental in building OCI’s ammonia and methanol business in the U.S. and Europe. He will lead the next expansion phase of Fertiglobe. The company’s current management team will remain intact as ADNOC rolls out the new strategy.

Moving on, Ahmed El-Hoshy, also highlighted the strategic importance of this move. He said,

 “This transaction reinforces our long-term outlook and ambition to meet global demand for low-carbon solutions. As part of ADNOC’s ecosystem, we are excited to unlock the full potential of our portfolio.”

Low-Carbon Fuels and Renewable Ammonia Expansion

Industry experts predict demand for low-carbon ammonia will grow to 24 million tons by 2032 and Fertiglobe is just capitalizing on this demand. It will further help ADNOC reach its target of capturing 5% of the global low-carbon hydrogen market by 2030. 

This aligns with the UAE’s National Hydrogen Strategy. The company plans to unveil a detailed growth strategy during its Capital Markets Day in Q1 2025, outlining its roadmap for further expansion and innovation.

ADNOC’s Sustainability Milestones 

We discovered from the company’s sustainability report that ADNOC is allocating $15 billion (AED 55 billion) to invest in various decarbonization projects, including carbon capture, electrification, new CO₂ absorption technology, hydrogen, and renewables. 

This investment will increase to $23 billion (AED 84.4 billion) in early 2024. Additionally, the company has raised its carbon capture capacity target to 10 mtpa by 2030. This is 2x its previous goal of 5 million tonnes. 

ADNOC

Source: ADNOC

By 2025, ADNOC aims to improve energy efficiency by 5% (based on 2018 levels) and keep upstream methane intensity below 0.15%. 

By 2030, it plans to produce 1 million tons of low-carbon ammonia annually, reduce operational emissions intensity by 25% (compared to 2019), and safely sequester 10 million tons of CO₂ per year. ADNOC is also targeting a 5% share of the global low-carbon hydrogen market and near-zero methane emissions in its operations. 

By 2045, the company plans to deploy 100 GW of renewable energy capacity through Masdar, eliminate routine flaring, and achieve net zero operational emissions.

In summary, ADNOC’s acquisition positions Fertiglobe to lead in the low-carbon ammonia market. The plan holds immense promise for sustainable energy growth in UAE and international markets while delivering long-term value to shareholders. 

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