Element Resources to Build America’s Largest $1.85B Green Hydrogen Plant in California

Aiden Green
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Element Resources to Build America’s Largest $1.85B Green Hydrogen Plant in California

Element Resources has received approval to build the Lancaster Clean Energy Center, a $1.85 billion green hydrogen plant in California. Once finished, this facility will be North America’s biggest green hydrogen plant. It can produce 22,000 tons of green hydrogen every year.

The project aims to meet the rising demand for clean energy. It will also help the United States shift from fossil fuels to sustainable energy sources.

Sun-Powered and Self-Sufficient: A Hydrogen First

The Lancaster Clean Energy Center stands out for its commitment to sustainability and innovation. The facility will run on 100% solar energy, using over 650 megawatts (MW) of solar power. Also, long-duration battery storage systems will support it. This setup lets the plant run 24/7 without needing grid electricity or fossil fuels. This way, hydrogen production stays clean and emission-free.

Lancaster Clean Energy Center
Source: Element Resources

The plant will use advanced electrolyzers. These machines split water into hydrogen and oxygen with electricity. The hydrogen produced is called “green” because it comes from renewable energy sources.

Traditional methods, on the other hand, burn fossil fuels and release greenhouse gases. The facility will produce gaseous and liquid hydrogen. It will distribute them with zero-emission fuel cell trucks.

The Project’s Environmental and Community Benefits

Reducing Carbon Emissions:

One of the main goals of the Lancaster Clean Energy Center is to reduce carbon emissions. If the plant produces 22,000 tons of green hydrogen each year, it can replace diesel or natural gas in transport and industry.

This switch could cut carbon dioxide emissions by over 200,000 tons annually, helping California reach its climate goals. These goals aim to cut greenhouse gas emissions by 40% below 1990 levels by 2030.

green hydrogen for net zero Element Resources
Source: Element Resources

Improving Air and Water Quality:

Using green hydrogen instead of fossil fuels also improves air quality. Hydrogen fuel produces only water vapor as a byproduct, which helps lower local air pollution and benefits public health.

The Lancaster plant will use groundwater from a nearby aquifer. It will only take 15–20% of the water that was used for farming on the same land. This change will ease the pressure on local water resources and promote sustainable development.

Supporting Local Communities

The project will create jobs during construction and operation. This includes roles for contractors, engineers, electricians, and plant workers. Local businesses that provide equipment and services will benefit too. This will help boost the regional economy.

The growth of green hydrogen plants also comes from tax incentives and state programs. One key program is California Jobs First. It promotes clean energy and boosts economic growth in the area.

The Role of Green Hydrogen in the Energy Transition

Green hydrogen is viewed as a vital solution for cutting carbon emissions in hard-to-electrify sectors. This includes heavy-duty transportation, shipping, and steelmaking.

Green hydrogen is different from fossil fuels. It doesn’t release harmful gases when used. This makes it important for countries and regions aiming to meet strict emissions targets.

Making hydrogen from renewable sources also boosts energy security. It lowers the need for imported oil and gas.

The Lancaster Clean Energy Center is part of a larger trend toward adopting green hydrogen across North America. The market for green hydrogen is growing rapidly, with projections showing that it could meet up to 22% of the world’s energy needs by 2050.

In the United States, government incentives from the Inflation Reduction Act are boosting major projects. They also speed up the shift to clean energy.

US green hydrogen market by source 2032
Source: GMInsights

Here are three notable green hydrogen plants in the U.S.:

  1. SoHyCal (California): The largest operational green hydrogen plant in North America, producing up to three tons daily using solar power, supporting hydrogen refueling stations. It could fuel up to 210,000 cars or 30,000 city buses annually once fully operational by mid-2025.

  2. Sauk Valley (Illinois): Operated by Invenergy, this plant produces about 40 tons annually, using solar energy to supply hydrogen for industrial and power generation uses.

  3. St. Gabriel (Louisiana): A joint venture by Plug Power and Olin, under construction to produce 15 tons daily, aiming to reduce CO₂ emissions and create jobs. Operation can start by the end of 2025.

Hydrogen Goes Global: A Market on the Rise

The global green hydrogen market is growing fast. It is set for major expansion in the next ten years.

Estimates say the market, worth about $7.98 billion in 2024, might grow to between $25 billion and $60 billion by 2030, depending on the source. The annual growth rates could range from around 22% to almost 39% from 2025 to 2030. This growth comes from more government support, new technology, and higher demand in many industries.

global green hydrogen market 2030
Source: Grand View Research

Government initiatives worldwide are critical drivers. Countries like India, Japan, Germany, and the United States are pushing hard on hydrogen. They have started strong strategies and funding programs. Their goal is to boost green hydrogen production and build the needed infrastructure.

  • For example, India aims to produce 5 million metric tons annually by 2030, while Japan targets 20 million tons by 2050.

These policies support global goals from the Paris Agreement. They position green hydrogen as a key way to cut emissions in hard-to-electrify areas like steelmaking, heavy transport, and chemical manufacturing.

New technology is lowering the costs of electrolyzers and renewable energy. This makes green hydrogen production cheaper and more practical. Renewable energy sources, such as solar and wind, work with electrolyzers to create clean hydrogen. This method ensures steady hydrogen production, which helps with energy storage and keeps the grid stable.

Also, infrastructure investments are growing worldwide. This includes hydrogen production plants, refueling stations, and distribution networks to meet rising demand.

From Lancaster to the World: A Blueprint for Clean Hydrogen

Looking ahead, green hydrogen could supply up to 24% of global energy needs by 2050, with the market potentially reaching $700 billion by 2040. Asia-Pacific, Europe, and parts of the Middle East and Latin America have many renewable resources. These regions are becoming leaders in green hydrogen development.

North America, especially states like California, is quickly embracing hydrogen technologies. They aim to achieve bold climate goals and build clean energy economies.

The Lancaster facility could set a new standard for large-scale green hydrogen production in North America. As more areas and companies aim for net-zero carbon goals, projects like this show how useful and efficient green hydrogen can be. 

The plant’s output will help with transportation, public transit, port operations, and aviation. This will aid in decarbonizing many sectors and will inspire more investment and growth in the sector.

The Element Resources initiative represents a major step forward for green hydrogen in North America. As the largest green hydrogen plant on the continent, it will serve as a model for future projects and play a crucial role in the transition to a sustainable energy future.

Japan’s Exclusive Economic Zone (EEZ) Unleashes Massive Offshore Wind Potential

Aiden Green
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Japan’s Exclusive Economic Zone (EEZ) Unleashes Massive Offshore Wind Potential

Media agency, The Maritime Exclusive, reported that Japan’s parliament has passed a pivotal amendment that will allow offshore wind projects in the country’s Exclusive Economic Zone (EEZ)—marking a major shift in the nation’s clean energy strategy.

First introduced in January 2024, the legislation aims to unlock over 4 million square kilometers of Japan’s EEZ for renewable energy development. Until now, wind farms have been limited to Japan’s territorial and internal waters.

Japan Unlocks Its Ocean to Tap Wind Energy

The Maritime Exclusive also highlighted, “according to the Japan Wind Power Association (JWPA), Japan’s EEZ holds the potential for up to 552 GW of offshore wind capacity primarily from deep-water floating turbines—a technology well-suited to the country’s geography.”

Key Features of the Amendment:

  • Designated Zones: The bill enables specific areas within the EEZ to be earmarked for offshore wind development.

  • Interagency Council: It mandates the Ministry of Economy, Trade and Industry (METI) to set up a coordinating council to work with local authorities, industry players, and other stakeholders.

  • Environmental Oversight: The legislation streamlines government-led environmental assessments, ensuring that renewable energy expansion does not come at the cost of marine biodiversity.

This legal reform not only boosts Japan’s ambitions to scale offshore wind but also strengthens its energy security and progress toward net-zero emissions by 2050.

2024: Cumulative installed capacity of Wind Power in Japan: 5,840.4MW (2,720 units)

japan wind
Source: JWPA

Energy Independence Meets Climate Action

Japan has long relied on fuel imports, especially after the 2011 Fukushima disaster reduced nuclear power use. Fossil fuels still dominate Japan’s energy supply. Offshore wind power offers a way to cut imports and add stability to the energy system.

The Japan Wind Power Association estimates offshore wind could produce 3.6 gigawatts (GW) of electricity by 2030. Japan targets 10 GW by 2030 and 45 GW by 2040. Offshore wind farms offer a steady energy supply, not influenced by land use or sunlight.

Offshore wind energy produces no greenhouse gases while operating. This makes it a strong tool against climate change. Electricity from offshore turbines replaces power from coal or liquefied natural gas. This shift aids Japan’s goal of carbon neutrality by 2050.

Japan’s latest Strategic Energy Plan aims for renewables to make up 40–50% of the energy mix by 2040. Offshore wind is expected to contribute 4–8% of that total. These projects avoid land use problems and urban conflicts, making them suitable for densely populated areas.

To protect marine ecosystems, the law includes environmental assessments. These surveys will look at risks like noise pollution and habitat disruption, ensuring projects align with ecological safeguards.

Offshore Wind Needs to Hit 2,000 GW by 2050 to Stay on Climate Track

In 2020, the Ocean Renewable Energy Action Coalition (OREAC) set a bold target: 1,400 GW of offshore wind by 2050 to align with the 1.5°C climate goal. Since then, leading institutions like the International Renewable Energy Agency (IRENA) have raised the bar, now calling for at least 2,000 GW of offshore wind by mid-century to reach net-zero emissions.

However, the world remains far behind. As of now, only 35 GW of offshore wind is installed globally. Even with current momentum, we’re only expected to reach 234 GW by 2030, according to GWEC Market Intelligence. Only the European Union has set a long-term target—300 GW by 2050.

wind energy
Source: GWEC

To close the gap, governments and private players must act fast. This decade is critical to unlock offshore wind’s full potential and keep climate goals within reach.

The law also makes Japan a more appealing partner for joint ventures. International companies may seek research collaborations, technology exchanges, and co-investment projects in Japan. This will strengthen Japan’s market presence and influence policy in the Asia-Pacific region.

Overcoming Offshore Wind Challenges

Despite strong government backing, developers may face technical, social, and financial challenges. Building turbines in deep waters and harsh weather areas adds complexity and cost. Securing stable financing and public support will be crucial. Engaging with fishermen and coastal communities early will help reduce opposition.

The success of these projects relies on teamwork. National agencies, local stakeholders, and private investors must work together. Effective grid planning and better port infrastructure are essential. They help maximize the benefits of offshore wind for consumers.

What Does This Mean for Japan’s Net-Zero Future?

As per Japan’s Ministry of Environment, the country’s greenhouse gas emissions and removals for FY2023 totaled 1,017 million tonnes of CO₂ equivalent (Mt CO₂e)—the lowest level ever recorded.

This marks a 4.2% drop (44.9 Mt CO₂e) from FY2022 and a 27.1% decline (378.1 Mt CO₂e) compared to FY2013, continuing the country’s steady progress toward its 2050 net-zero goal.

Japan emissions

The decline was largely driven by two key factors: a cleaner energy mix, with renewables and nuclear combined surpassing 30% of power generation, and lower energy demand, mainly due to reduced industrial output in the manufacturing sector.

Subsequently, this new law also fits in Japan’s energy policy. With technology, global demand, and government backing, offshore wind could lead to a major energy shift for the country. If done right, this law may lower energy imports, cut emissions, and encourage similar laws in Asia.

Meta Partners with Constellation to Power Illinois AI Data Centers with Nuclear Energy

Aiden Green
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Meta Partners with Constellation to Power Illinois AI Data Centers with Nuclear Energy

Meta has signed a 20-year energy deal with Constellation Energy to supply nuclear power to its growing AI data centers in Illinois. Beginning in 2027, this agreement will ensure a steady supply of clean energy. This will help Meta grow its AI operations and cut carbon emissions.

Nuclear energy is low in carbon and reliable, making it a good choice for big tech companies. As these companies increase their green power commitments, they also face more regulatory pressure.

Why Meta Is Betting Big on Nuclear for Its AI Future

Meta signed a long-term contract to support its growing energy needs. This is important as its AI infrastructure expands in Illinois. AI data centers use a lot of electricity, and nuclear power provides a reliable and strong energy source.

data center electricity demand due AI 2030
Source: IEA

Moreover, nuclear doesn’t emit greenhouse gases while running. This makes nuclear a strong alternative to fossil fuels, which still dominate much of the U.S. energy landscape.

Constellation Energy will supply energy from the Clinton Clean Energy Center. This nuclear plant currently powers about 800,000 homes. As part of the deal, the plant will boost output by 30 megawatts to meet increased demand from Meta’s operations.

The agreement lets Meta boost its AI skills using clean energy, not coal or gas. This helps the tech giant lead in the shift to sustainable power.

The Environmental Edge of Meta’s Nuclear Pact

Nuclear power plays a key role in reducing carbon footprints. Unlike fossil fuels, nuclear energy does not emit CO2 when generating electricity. Meta’s new deal helps the company limit its environmental impact while supplying the massive energy needs of AI systems.

Nuclear power accounts for about 20% of the U.S. energy supply. This helps reduce the emissions that contributes to climate change.

The World Nuclear Association says that since 1971, nuclear energy use has stopped more than 64 gigatons of CO2 emissions. That equals removing every car from U.S. roads for 14 years. Worldwide, about 10% of power comes from nuclear.

nuclear power share of electricity global 2024
Source: Our World in Data

Meta boosts the argument for nuclear energy in climate efforts by using Illinois’ nuclear network. This network already provides more than half of the state’s electricity.

The Clinton plant will keep running under this deal. This helps the environment by stopping new fossil-fuel plants from being built. It also cuts down the need for carbon-heavy peaker plants used during peak power times.

What’s the Economic Impact of This Energy Agreement?

The Clinton Clean Energy Center will maintain more than 1,100 local jobs and generate roughly $13.5 million in annual tax revenue. That’s a big boost for the state’s economy. It shows how clean energy investments help the environment and support local jobs.

Meta’s partnership with Constellation shows that nuclear power is not only good for the environment but also makes economic sense. By securing fixed energy costs in the long term, companies like Meta can avoid price volatility in fossil fuels. With AI and data center growth accelerating, this kind of cost stability becomes even more critical.

How Does This Fit Into Tech’s Clean Energy Strategy?

Tech companies increasingly look to clean energy like nuclear to power their operations while reducing emissions. Meta plans to reach 100% renewable energy use for all global operations by 2025. The map below shows where its renewable energy projects are.

Meta renewable energy projects map
Source: Meta

Signing long-term clean energy deals supports this goal. It also helps the company meet climate reporting and disclosure rules from investors and governments.

According to the International Energy Agency, global investments in renewable energy will surpass $1 trillion annually. Much of this growth is being driven by corporate buyers like Meta, who are paving the way with large-scale power purchase agreements.

The partnership with Constellation boosts Meta’s goal to lead in sustainability. It also helps support clean energy infrastructure.

Why Does Nuclear Energy Appeal to Big Tech?

Nuclear energy offers constant output, unlike solar or wind, which depend on the weather. For data centers that require 24/7 energy supply, this reliability is critical. It avoids downtime and reduces the need for diesel generators or carbon-heavy energy backups. With AI functions demanding even more power than traditional digital systems, nuclear becomes a logical choice.

Federal energy policies are also evolving to support expanded nuclear capacity. The Biden administration, for example, has called for tripling global nuclear capacity by 2050. That momentum adds long-term policy backing for deals like Meta’s, helping reinforce nuclear’s key role in the clean energy grid.

The Market Trends Behind This Move

Meta’s move reflects a growing trend among tech leaders to sign long-term clean energy contracts. Market leaders like Amazon, Google, and Microsoft have already invested heavily in solar and wind. Now, these companies are focusing on nuclear power. They want clean energy that’s always available. This energy can support big operations, like AI data centers.

This trend aligns with expected growth in clean energy investments, particularly in more reliable forms of power. The U.S. market continues to prioritize decarbonization, and nuclear energy stands out by offering consistent output with zero emissions during operation. Meta’s decision highlights nuclear’s rising appeal in a changing energy market.

What Challenges Still Remain?

Despite nuclear power’s advantages, scaling up remains difficult. New plants face long construction times and high upfront costs. The U.S. is only building a few new reactors, and existing infrastructure requires upgrades. Modernizing the grid and improving energy storage are crucial. They will help ensure clean energy supplies run smoothly.

Still, Meta’s investment helps keep the conversation active around nuclear’s potential. It supports existing plants, encourages innovation, and strengthens demand for new regulatory solutions and financing methods.

More notably, President Donald Trump recently signed a series of executive orders aimed at revitalizing and transforming the U.S. nuclear energy sector. These orders focus on accelerating reactor development, easing regulatory barriers, increasing domestic uranium production, and reforming the U.S. Nuclear Regulatory Commission (NRC).

Meta’s energy deal with Constellation signals a new chapter for tech’s relationship with clean power. As AI continues to drive up energy needs, reliable and carbon-free sources like nuclear will become essential for managing environmental impact and meeting corporate climate targets.

TotalEnergies Expands UK Renewables with 435 MW Acquisition

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TotalEnergies Expands UK Renewables with 435 MW Acquisition

TotalEnergies has made a big move in the UK clean energy sector. The oil major acquired a 435-megawatt (MW) renewable energy portfolio from Low Carbon. This portfolio includes large-scale solar power plants and advanced battery storage projects.

The acquisition boosts TotalEnergies‘ role in the UK energy market. It also aids the country’s shift to greener power sources.

Olivier Jouny, Senior Vice President of Renewables at TotalEnergies, remarked:

“We are delighted with the acquisition of these projects from Low Carbon. Located in the south of England, they benefit from favorable sunlight and complement our integrated electricity portfolio in the UK, which includes 1.1 GW of gross installed offshore wind, 1.3 GW of gross combined cycle gas turbine, and more than 600 MW of solar projects under development.”

Why Is This Acquisition Important?

The new portfolio adds 350 MW of solar energy and 85 MW of battery storage to TotalEnergies’ assets in the UK. This addition is essential because it helps the UK work toward its goal of having 70% of its electricity come from renewable sources by 2030. The clean energy from these projects is enough to power about 100,000 homes each year.

The oil major now manages over 600 MW of solar energy projects under development in the UK. These new assets join the company’s existing wind and gas power supplies, creating a more balanced and low-carbon energy mix. A diverse energy mix helps ensure a stable supply of electricity while reducing the use of fossil fuels.

Batteries: The Unsung Heroes of Solar Power

Solar power depends on sunlight, so it does not always generate electricity consistently. For example, solar panels produce less power on cloudy days or at night. Battery storage systems address this issue. They store extra electricity when the sun shines and release it when solar production decreases.

TotalEnergies’ 85 MW of battery storage increases the reliability of solar power. These batteries can provide electricity during periods of high demand or when solar generation is low. This reduces the need for backup energy from fossil fuels, which helps lower overall carbon emissions.

Environmental Benefits of the New Renewable Portfolio

The newly acquired projects are expected to deliver more than 350 gigawatt-hours (GWh) of electricity each year. This is a major step toward reducing the use of fossil fuels in power generation. Solar energy produces far fewer carbon emissions than traditional sources, such as coal or natural gas.

Replacing 350 GWh of fossil-fuel-based electricity with solar power could reduce 50,000–60,000 tonnes of CO₂ emissions every year. The addition of battery storage makes this impact even greater by helping to match electricity supply with demand. This reduces the need for gas-fired power plants during times of high energy use or low solar production.

TotalEnergies’ strategy supports the UK’s Clean Power 2030 roadmap, shown below, which aims for a renewable-led electricity grid. This acquisition aligns with both the company’s and the nation’s goals for a cleaner, low-emissions future.

UK Clean Power 2030 target
Source: UK Government website

Estimated CO₂ Emissions Reduction

Switching 350 GWh of fossil-fuel electricity to solar power can cut CO₂ emissions by about 50,000 to 60,000 tonnes each year. This estimate is based on typical UK grid emission factors for displaced fossil generation.

Additional Impact from Battery Storage

The 85 MW battery storage will boost carbon savings. It allows more renewable energy to be used when needed. This also cuts down on fossil fuel backup.

Studies and industry data suggest that each megawatt of battery storage can avoid 500–1,000 tonnes of CO₂ emissions annually. For 85 MW of battery capacity, this translates to an additional annual reduction of 42,000 to 85,000 tonnes of CO₂ emissions.

Combined Annual CO₂ Savings

TotalEnergies’ expansion could reduce CO₂ emissions by 92,000 to 145,000 tonnes each year. This estimate comes from combining reductions from solar and battery storage. The figure shows how clean electricity generation and better grid reliability from energy storage work together.

Riding the Renewable Wave in the UK and Globally

The renewable energy market is growing quickly, both in the UK and around the world. In the UK, solar photovoltaic (PV) capacity could reach 20 gigawatts (GW) by 2025. At the same time, energy storage is becoming more important, with the UK energy storage market expected to be worth about £1.5 billion by 2030.

UK annual demand forecast energy storage
Source: UK Government website

As shown by the chart above, demand could reach almost 10 GWh by 2030 and then double to 20 GWh by 2035. The British government has encouraged the growth of BESS by launching innovation competitions.

One recent example is the Longer Duration Energy Storage Demonstration (LODES), which offered £69 million in funding for start-ups and supported new types of battery technologies.

Globally, renewable energy could grow by 12% each year for the next five years. This growth comes from two main factors. First, government rules promote clean energy. Second, companies want to reduce their emissions.

Energy companies, like TotalEnergies, are driving this change. They are buying renewable assets and forming new partnerships.

TotalEnergies already owns 1.1 GW of offshore wind and 1.3 GW of gas capacity in the UK. The new 435 MW portfolio strengthens the company’s ability to provide a full mix of clean energy sources.

TotalEnergies Electricity
Source: TotalEnergies

The oil giant can meet the UK’s rising energy demand by using solar, wind, gas, and battery storage. This approach also helps them stick to climate goals.

Powering the Path to Net Zero

Last year, TotalEnergies launched an initiative called “Our 5 Levers for Sustainable Change.” This program aims to involve all employees in reducing emissions by improving energy efficiency and using low-carbon technologies throughout the company’s operations.

In 2024, TotalEnergies reduced emissions from its operated sites by more than 36% compared to 2015 levels. This achievement was supported by over 200 projects focused on cutting emissions, which together eliminated 1.3 million tons of carbon dioxide equivalent (CO₂e).

TotalEnergies scope 1+2 carbon emissions 2023
Source: TotalEnergies

The company recently updated its emissions target for 2025 to 37 million tons (Mt) of CO₂e per year. It plans to reduce its net Scope 1 and Scope 2 emissions by 40% by 2030, compared to 2015. This goal includes using 5 million carbon credits from nature-based projects. These credits will be reserved for emissions that cannot be eliminated after 2030 and will be used gradually, at about 10% per year.

By the end of 2024, TotalEnergies had invested about $750 million in projects to reduce emissions. These investments help save 1.5 million tons of CO₂e annually and reduce energy costs by more than $100 million each year.

While emissions from flexible power generation increased slightly, this was due to the addition of combined-cycle gas turbines (CCGTs) in the U.S. and the U.K. These turbines support the company’s expansion of low-carbon electricity.

Despite this, TotalEnergies’ total emissions fell by 25% compared to 2015 levels, showing significant progress toward its net-zero goals.

By investing in both solar power and battery storage, TotalEnergies is helping to ensure that clean electricity can be used at any time, not just when the sun is shining or the wind is blowing. This increases the reliability of the energy system and reduces the risk of power interruptions.

TotalEnergies’ recent acquisition from Low Carbon shows how big energy firms are leading the shift to cleaner, more dependable energy. The company is expanding its renewable energy portfolio, which supports national and global efforts to cut carbon emissions and protect the environment.

Doubling SAF Production by 2025: IATA’s Push for Greener Skies Still Faces Big Hurdles

Aiden Green
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Doubling SAF Production by 2025: IATA’s Push for Greener Skies Still Faces Big Hurdles

The International Air Transport Association (IATA) has announced a major target: doubling global Sustainable Aviation Fuel (SAF) production to 2 million tonnes (2.5 billion liters) by 2025. That would mark real progress for a sector under increasing scrutiny for its carbon emissions. Yet even with that increase, SAF would still make up just 0.7% of total aviation fuel use—a sliver of what’s needed to decarbonize the skies.

The aviation sector accounts for nearly 2% of global CO₂ emissions, and SAF is currently seen as the most viable near-term solution to cut that number. Unlike conventional jet fuel, SAF is derived from renewable feedstocks like waste oils and organic waste, and can reduce lifecycle emissions by up to 80%.

Still, airlines are far from breaking their dependency on fossil fuel. Today, 99% of aviation fuel remains petroleum-based, and without major policy interventions, that may not change fast enough.

Aviation emissions SAF
Source: ICAO

Why Scaling SAF Remains So Hard—and Expensive

IATA further explains that sustainable aviation fuel (SAF) costs about five times more than regular jet fuel. This high price comes from the complex process of making SAF, which uses advanced technology and hard-to-find raw materials. On top of that, airlines face extra costs to meet government rules in places like the EU and the UK. For example, European airlines may have to spend an extra $1.7 billion just to follow SAF requirements.

Willie Walsh, IATA’s Director General, said,

“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs. And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate.”

For smaller airlines, these costs are especially punishing. That’s why IATA and industry leaders are calling for stronger government support—tax credits, subsidies, and policy reforms that can level the playing field with fossil fuels.

Without such support, there’s a risk that SAF production could stagnate right when it needs to ramp up.

Walsh further says,

“This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization. Raising the cost of the energy transition that is already estimated to be a staggering $4.7 trillion should not be the aim or the result of decarbonization policies. Europe needs to realize that its approach is not working and find another way.”

Government Support: The Missing Link?

Progress is visible in some regions. The Biden administration has launched green aviation programs in the U.S., though many in the sector say the funding and guarantees still fall short. Meanwhile, Norway and Sweden are setting the pace with robust incentives that make SAF more accessible and affordable.

These countries show that smart policy can align environmental and economic goals. Their models could be copied elsewhere, especially in emerging markets where aviation growth is exploding.

IATA urges governments to focus on three key priorities:

  1. Fixing the policy imbalance: Redirecting a portion of the $1 trillion in annual fossil fuel subsidies could boost SAF economics dramatically.

  2. Building integrated energy strategies: A long-term plan must ensure SAF gets a fair slice of the renewable energy supply and infrastructure.

  3. Supporting CORSIA: IATA wants more Eligible Emissions Units (EEUs) available under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). So far, only Guyana has made its carbon credits available to airlines under the scheme.

Building the SAF Market: IATA’s Initiatives

To help scale up the SAF market, IATA is supporting two key programs:

  • SAF Registry (via CADO): A global system to track SAF usage and emissions reductions. It ensures compliance with standards like CORSIA and the EU ETS.

  • SAF Matchmaker: A platform that connects airlines seeking SAF with producers who have it, helping both sides find better deals and drive volume.

Together, these tools aim to bring more transparency and efficiency to a market that’s still in its infancy.

The Global SAF Market in 2030: A Long Climb Ahead

The U.S. Department of Energy aims to produce 3 billion gallons of sustainable aviation fuel (SAF) per year by 2030, scaling up to 35 billion gallons annually by 2050 to meet the entire aviation sector’s demand. These fuels are expected to cut greenhouse gas emissions by at least 50%.

SAF supply

Key trends shaping the SAF market:

  • High prices continue to slow adoption

  • Investor interest is rising, especially in new tech like waste-to-fuel systems that could cut costs

  • Policy action will determine how fast production scales

With the right mix of investment and regulation, SAF could become cost-competitive with fossil fuel sooner than many expect.

India: A Growing Aviation Power Makes a SAF Play

India is stepping into the spotlight with bold SAF goals. As the world’s third-largest oil consumer and third-largest aviation market, India has launched the Global Biofuels Alliance to accelerate the adoption of alternative fuels, including SAF.

The country aims for a 2% SAF blend in international flights by 2028. To reach this goal, India plans to offer guaranteed pricing, capital support, and technical standards.

IATA is partnering with ISMA (Indian Sugar & Bio-Energy Manufacturers Association) and Praj Industries to guide India on feedstock sustainability and lifecycle assessments—critical steps toward building a globally recognized SAF ecosystem.

Can the Aviation Industry Afford to Go Green?

While the goal to double SAF production is commendable, cost remains the industry’s biggest concern. Airlines operate on razor-thin margins and can’t absorb high fuel costs without passing them on to passengers.

What’s needed is a system-wide alignment:

  • Governments must provide financial support through subsidies and grants
  • Airlines must commit to long-term SAF purchase agreements
  • Investors must back scalable, cost-cutting tech
  • Consumers must favor low-carbon travel options

The stakes are high, but so is the potential. SAF offers the most immediate path to decarbonize long-haul aviation, where electric or hydrogen options won’t be viable anytime soon.

Doubling SAF output to 2 million tonnes by 2025 is a strong step. But to meet net-zero goals by 2050, the world needs to go far beyond. That means bold policies, faster tech innovation, and deeper collaboration between governments, airlines, and energy producers.

Spain’s €700 Million Plan to Boost Energy Storage and Renewable Power

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Spain’s €700 Million Plan to Boost Energy Storage and Renewable Power

Spain has launched an ambitious €700 million (around $796 million) program to increase its energy storage capacity. This plan will add 2.5 to 3.5 gigawatts (GW) of storage. It includes pumped hydro, thermal energy storage, and battery systems. The goal is to improve how Spain uses renewable energy and to make its electricity grid more reliable and flexible.

This article explains what the program involves, how energy storage benefits the grid and environment, the market opportunities it creates, and who will benefit from this major investment.

Inside Spain’s €700M Storage Surge

The European Commission approved a new support scheme. It targets large-scale energy storage projects in Spain. It focuses on technologies like standalone battery energy storage systems (BESS), pumped hydro energy storage (PHES), and thermal energy storage. The program supports hybrid projects, which combine storage with renewable energy, such as solar or wind farms.

Spain’s electricity grid already generates more than half of its power from renewable sources. Renewable energy, such as solar and wind, can be unpredictable. Sometimes, they produce too much electricity, and other times, not enough. Without storage, excess renewable energy often goes unused or wasted.

Spain renewable energy share
Source: Rystad Energy

This program helps by storing surplus energy when production is high and releasing it when demand rises. This reduces waste and decreases reliance on fossil fuel power plants that fill in gaps when renewable output is low.

  • The funding will cover up to 85% of eligible project costs, including civil works, storage systems, and auxiliary equipment.

The Ministry for Ecological Transition and the Demographic Challenge (MITECO) manages the program through the Institute for Energy Diversification and Saving (IDAE). Applicants have until mid-July 2025 to submit proposals. Almost half of the funds will go to Andalusia. Galicia and Castilla-La Mancha will also receive support for regional growth.

Strong and Steady: Why Storage Makes the Grid Smarter

Energy storage plays a key role in balancing electricity supply and demand. When the sun shines or the wind blows strongly, renewable sources can generate more electricity than the grid needs. Storage systems capture this excess energy, holding it until it’s needed—such as during cloudy periods or at night.

This capability makes the grid more stable and flexible. It helps stop blackouts by making sure power is ready, even when renewable energy changes. A stronger grid helps homes, businesses, and industries. It gives steady electricity and cuts down on interruptions.

In 2023, renewable energy sources made up nearly one-quarter of Spain’s final energy consumption, as seen below. Spain surpassed its 2020 target set by the Renewable Energy Directive, achieving a RES share that was 1.2 percentage points higher than the 20% goal.

Spain renewable energy share in consumption 2023
Source: European Commission

Energy storage also reduces the need for fossil fuel power plants to operate as backup. This lowers greenhouse gas emissions and cuts fuel costs. Spain’s plan to add 2.5 to 3.5 GW of storage capacity will significantly improve the grid’s ability to integrate renewable energy sources.

The program requires projects to be completed within 36 months of receiving funding, with operations starting by the end of 2029. Subsidy amounts vary by technology, for example:

  • €250 per kWh for battery energy storage systems (BESS)
  • €300 per kWh for grid-forming BESS and thermal energy storage
  • €1,500 per kW for new pumped hydro projects
  • €1,000 per kW for existing pumped hydro projects

SEE MORE: The Battery Shift: How Energy Storage Is Reshaping the Metals Market with LFPs Taking Charge

Expanding Energy Storage and Net Zero Goal

Spain’s 2030 net greenhouse gas reduction target is set at 32%, which represents an average annual reduction rate (CAGR) of -3.6%. If the country does not adopt more ambitious measures, it could fall short of its 2050 net-zero goal by about 100 million metric tons of CO₂ equivalent. This will be about 40% below the required reduction, as seen below.

Spain net zero roadmap
Source: Bain & Company

Investing in energy storage helps Spain meet its climate goals. This includes achieving carbon neutrality by 2050. Storing renewable energy instead of wasting it helps the country rely less on fossil fuels. This also cuts down greenhouse gas emissions.

Pumped hydro, thermal storage, and battery systems are effective technologies. They help balance the fluctuations in renewable energy generation. This means cleaner electricity is available more consistently, reducing the need to burn coal, natural gas, or oil.

The program also boosts local economies. It creates jobs in construction, tech development, and operations. Expanding energy storage draws green businesses and sparks innovation. This boost further strengthens Spain’s clean energy sector.

By improving energy autonomy and security, the plan helps Spain reduce reliance on imported fuels. This enhances long-term economic stability while protecting the environment.

Market Opportunities in Energy Storage

Spain’s new support scheme positions the country as a leader in the growing global energy storage market. Analysts expect this market to grow by 21% each year until 2030, per Bloomberg data. This growth is fueled by more renewable energy use and global grid upgrades.

global energy storage additions 2030
Source: Bloomberg

Europe’s energy storage market alone could reach €16.5 billion ($18.7 billion) by 2027. Spain’s plan to fund 80 to 120 projects will give it a strong share of this expanding sector.

The program supports hybrid projects. These projects mix storage with renewable generation. This boosts efficiency and cuts costs. Spain provides a stable environment for investors and developers. This is thanks to support from the European Union and helpful national policies.

Companies that focus on advanced battery tech, thermal storage, and pumped hydro are already interested. The government’s open call for applications allows these stakeholders to act quickly and secure funding.

Who Benefits from Spain’s Energy Storage Program?

The €700 million fund helps many groups. This includes local governments, private companies, and research institutions. This inclusive approach encourages teamwork across different sectors and regions. It spreads economic and environmental benefits all over Spain.

The program will create skilled jobs in construction, engineering, manufacturing, and technology. It will also drive innovation in energy storage technologies and grid management.

By reducing fossil fuel use and improving grid reliability, the plan helps protect the environment and public health. It also enhances Spain’s energy independence, reducing vulnerability to global fuel price fluctuations.

Spain is boosting its energy infrastructure with big storage solutions. This shows other countries how to increase their renewable energy use. With the right technology and funding in place, Spain is well-positioned to lead Europe’s clean energy transition.

Europe’s Corporate Giants, STOXX 50, Commit to Offset Over 80 Million Tonnes of CO₂ by 2030

Jennifer L
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0
Europe’s Corporate Giants, STOXX 50, Commit to Offset Over 80 Million Tonnes of CO₂ by 2030

Europe’s top publicly traded companies are stepping up in their climate commitments. They are making strong promises to offset a large part of their greenhouse gas emissions. A new study from the Berlin climate platform goodcarbon shows that 29 of the 50 companies in the EURO STOXX 50 index will buy 81.8 million tonnes of carbon offset credits by 2030. This will help them reach their net-zero goals.

This trend shows a change in how companies tackle climate action. They are not just cutting direct emissions. They are also investing in voluntary carbon markets (VCMs) to balance their carbon footprint.

The analysis reviewed the 2023 and 2024 sustainability reports of top firms such as Siemens, Airbus, Unilever, Schneider Electric, and Allianz, among others. Companies see voluntary offset commitments as smart tools. They help address tough emissions and support nature-based climate solutions.

Unlocking Climate Finance Through Early Commitments

Many companies want to buy carbon credits, which is a good sign for a growing market. However, most still rely on spot market purchases. This means they buy credits close to when they need them. This method offers flexibility but misses a major opportunity for climate impact.

Goodcarbon suggests an alternative way: making early, binding financial commitments to specific climate projects.

Companies can promise to buy a set amount of carbon credits ahead of time. They can specify the funding amount, where the project will be, and when they want delivery. The actual payment can happen later.

This early commitment strategy would:

  • Enable climate project developers to secure upfront financing, allowing for better long-term planning.
  • Help unlock additional environmental and community co-benefits.
  • Protect companies from rising prices in the future. Carbon credit prices are likely to increase due to higher demand by 2030.

Jérôme Cochet, Co-Founder and CEO of goodcarbon, emphasized the untapped potential:

“We estimate that these companies have allocated approximately one billion euros for voluntary CO₂ compensation by 2030. Given the urgency of the climate crisis, this isn’t a huge amount. But companies could significantly boost the impact of these funds simply by making them available sooner—without any extra cost.”

This model can help make sure that money for climate action starts working now, not years later.

The Role of goodcarbon in Facilitating Nature-Based Solutions

Founded in 2021, goodcarbon connects companies to top-notch nature-based carbon projects. These projects focus on CO₂ sequestration, protecting biodiversity, and developing communities. It helps businesses buy reliable offsets while also supporting them in adding these offsets to their long-term sustainability plans.

The platform stands out because it helps companies connect with project developers. This boosts transparency and ensures strict scientific checks. Projects are chosen for three main reasons:

  • Climate effectiveness,
  • Benefits to biodiversity, and
  • Fair sharing of advantages with local communities.

In April 2024, goodcarbon secured a €5.25 million seed funding round to scale its services and expand its library of carbon offset projects. The company focuses on “goodcarbon Originals.” These are carefully chosen nature-based projects. They meet high standards for integrity, additionality, and community impact. These include:

  • Mangrove restoration efforts in Southeast Asia;
  • Agroforestry and regenerative agriculture initiatives in Latin America;
  • Peatland protection and rewetting projects in Northern Europe.

Goodcarbon wants to reduce project developers’ financial risk. They encourage early investment with binding contracts, which helps increase access to capital for high-impact solutions.

The Broader Context of Voluntary Carbon Markets

Voluntary carbon markets are seen as important additions to cutting emissions directly. In VCMs, companies buy carbon credits from certified projects. These projects help remove or avoid emissions. Examples include reforestation and renewable energy development.

According to data from the Ecosystem Marketplace SOVCM 2025 Report, the total value of carbon credits traded in the VCM decreased by 29% in 2024, reaching $535 million. This amount is lower compared to previous years.

However, this market value is still nearly twice (1.9 times) as high as it was in 2018, largely because prices have remained relatively stable. More notably, the decline in market value corresponds to a 25% reduction in transaction volume rather than a drop in overall demand.

carbon credit market value 2024
Source: Data from Ecosystem Marketplace SOVCM 2025 Report

Buyers have become more selective, prioritizing higher-quality carbon credits. As a result, prices have not fallen significantly. This pattern indicates that although market liquidity has decreased, the fundamental interest in carbon credits—particularly those with strong environmental credibility—continues to be robust.

Each credit represents one tonne of CO₂ equivalent avoided or removed from the atmosphere. However, VCMs are also under scrutiny. Critics have pointed to issues with:

  • Additionality (ensuring that projects wouldn’t happen without credit sales),
  • Permanence (guaranteeing long-term CO₂ storage),
  • Leakage (preventing emissions from shifting to other areas), and
  • Double-counting.

In response, new integrity frameworks are emerging. The Integrity Council for the Voluntary Carbon Market (ICVCM) recently launched its Core Carbon Principles. Meanwhile, the EU’s Carbon Removal Certification Framework (CRCF) will standardize project quality across the bloc.

Despite their imperfections, VCMs are gaining traction. In early 2025, BloombergNEF reported that voluntary carbon markets are more “connected and coordinated.” This shows they are becoming more mature and scalable.

The market could grow from $2 billion in 2022 to over $50 billion by 2030, fueled by net-zero pledges and regulatory shifts.

voluntary carbon credit demand growth
Source: McKinsey & Company

Corporate Leadership and Climate Accountability

For Europe’s top firms, the decision to engage in long-term carbon offsetting is both a strategic and reputational move. Stakeholders are watching how companies act on their climate promises.

Here are some EURO STOXX 50 companies with clear carbon offsetting strategies as part of their net-zero commitments. They lead in the VCM as supported by their sustainability or ESG reports.

1. Siemens (Germany)

Siemens has committed to becoming carbon neutral by 2030. Their sustainability reports highlight investments in renewable energy, energy efficiency, and purchasing high-quality carbon credits to offset residual emissions. Siemens actively participates in voluntary carbon markets and supports nature-based solutions as part of their climate strategy.

2. Airbus (France)

Airbus has set ambitious targets to reduce CO₂ emissions with a focus on sustainable aviation fuels and carbon offsetting. Their ESG disclosures include commitments to invest in carbon credits and nature-based projects to compensate for emissions that cannot yet be eliminated. The airline is part of industry collaborations promoting carbon neutrality by 2050.

3. Unilever (Netherlands/UK)

Unilever’s net-zero plan includes reducing emissions across its value chain and offsetting residual emissions via verified carbon credits. Their sustainability reports emphasize nature-based solutions such as reforestation and regenerative agriculture projects. The company has multi-year agreements to purchase carbon offsets and integrates these into its broader climate action framework.

4. Allianz (Germany)

Allianz commits to net zero by 2050 and uses carbon offsetting to address residual emissions. Their ESG disclosures mention investments in high-integrity carbon credits, especially nature-based projects that also provide biodiversity and community benefits. The company supports early carbon finance commitments to scale climate projects.

5. Schneider Electric (France)

Schneider Electric integrates carbon offsetting as part of its comprehensive sustainability strategy. Their multi-year AI-native ecosystem initiative supports better carbon tracking and reduction, including offsets for residual emissions. The company discloses clear targets and investments in voluntary carbon markets and nature-based solutions.

Firms like Microsoft, Meta, Google, and Unilever have already entered multi-year agreements for nature-based offsets. The Euro Stoxx 50 analysis shows that many European giants are following suit in their carbon offset strategies.

Still, more action is needed as :

  • Of the 50 companies reviewed, only 29 have disclosed voluntary offset targets.
  • Many offset commitments remain vague, lacking detail on volume, project type, or timeline.
  • Some companies are trying insetting. This means they invest in cutting emissions in their own value chains, which might become more popular along with offsets.

There is also a growing push for third-party verification and independent auditing of carbon credits. Platforms like goodcarbon play a role here by curating verified projects and enhancing market trust.

Time to Activate Dormant Climate Capital

The goodcarbon analysis shows that about €1 billion in potential climate finance is unused in corporate climate strategies. If committed early through agreements, these funds could back many impactful projects worldwide. They would provide long-term benefits for the climate, ecosystems, and local communities.

As carbon prices increase and climate deadlines near, companies can gain an advantage. Smart carbon offsetting strategies help STOXX 50 companies secure quality credits and show climate leadership.

The message is clear: offsetting isn’t a last-minute task. It’s a climate finance opportunity that, if acted on now, could reshape how businesses contribute to a net-zero future.

NuScale Secures NRC Approval for 77 MWe SMR Design, Advancing U.S. Nuclear Innovation

Saptakee S
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0
NuScale Secures NRC Approval for 77 MWe SMR Design, Advancing U.S. Nuclear Innovation

NuScale Power has won design approval from the U.S. Nuclear Regulatory Commission (NRC) for its upgraded 77 megawatt-electric (MWe) small modular reactor (SMR). This marks a key moment for the U.S. nuclear energy industry.

NuScale first submitted its Design Certification Application (DCA) for its 160 MWt (50 MWe) small modular reactor (SMR) design in March 2017. The NRC later approved, making it the first SMR design to earn NRC certification. Thus, this second NRC-approved SMR design builds on NuScale’s previous 50 MWe model.

This announcement boosts the push for reliable, low-carbon energy as demand for cleaner electricity grows. NuScale, now the only SMR firm with NRC-approved designs, is set to play a major role in the energy transition.

Carrie Fosaaen, Vice President of Regulatory Affairs and Services, noted,

“NuScale is proud to have worked with the NRC and to have met its stringent regulatory application process as we continue to lead the way in the SMR industry with our second design approval. “With today’s announcement, NuScale continues to advance with ENTRA1 Energy in the commercialization of our SMR technology inside ENTRA1 Energy Plants while remaining steadfast in our mission to improve the quality of life for people around the world through safe, clean energy.”

NuScale’s SMR: Designed for a Low-Carbon Future

NuScale Power Corporation was founded in 2007. It developed the first and only SMR to receive NRC design certification. Its special pressurized water reactor design focuses on flexibility, safety, and carbon-free energy.

Each NuScale module can be combined into multi-module plants producing up to 924 MWe with 12 units. This technology supports various applications, including:

  • Electricity generation

  • District heating

  • Desalination

  • Hydrogen production

  • Process heat for industry

As countries shift to cleaner energy, NuScale’s compact, scalable design meets the needs of both emerging economies and developed nations, replacing old infrastructure.

John Hopkins, NuScale President and Chief Executive Officer, said,

“We are thrilled that the NRC has approved our second SDA application, this time for our 77 MWe design. This marks a historic moment not only for NuScale, but the entire industry, as NuScale and ENTRA1 move closer to meeting the demands of clean energy users. For more than a decade, our team has proudly worked alongside the NRC to achieve the successful approval of our designs. The NRC is domestically and internationally recognized and respected for its rigorous safety standards, and this approval is a crucial step toward meeting our goal of providing clean, reliable, and, most importantly, safe energy to off-takers and consumers.”

Uprated SMR Design Boosts Capacity and Economics

The press release reveals that NuScale applied for the uprated 250 MW thermal (77 MWe) reactor on January 1, 2023. The NRC’s early approval, expected later in 2025, highlights the strong safety and regulatory performance of NuScale’s advanced reactor design.

Each NuScale Power Module™ in this new setup generates 77 MWe. Up to six modules can work together in a single plant, totaling 462 MWe—about a third of a conventional reactor’s size. The upgraded design keeps all the passive safety features from the 50 MWe version while enhancing energy output and cost-effectiveness.

NuScale’s reactors use natural forces like convection and gravity to cool the core without

Needing extra power, water, or human help, these features boost safety. They make the technology perfect for remote or decentralized energy markets.

NUSCALE SMR

Study details of technical specification here: NPM-technical-specifications.pdf

ENTRA1 Energy: Commercializing America’s First SMR Fleet

The NRC’s approval lets ENTRA1 Energy, NuScale’s global partner, market these upgraded SMRs. ENTRA1 has exclusive rights to deploy and run NuScale’s nuclear technology worldwide. They plan to build “ENTRA1 Energy Plants™” with NuScale’s reactors to meet the rising demand for carbon-free, reliable energy.

ENTRA1 provides higher output per module. This means it can offer flexible power solutions for utilities, data centers, and hydrogen production hubs. The company plans to serve both the U.S. and international markets. Its scalable model delivers zero-emission electricity.

The company handles the entire project cycle—development, investment, deployment, and operations—offering a complete solution for next-generation nuclear energy.

What’s Next: Global Deployment and Engineering Work in Romania

With NRC certification, NuScale’s upgraded SMR design can be used in future construction and operation permit applications. This opens new project opportunities in the U.S. and abroad, especially in areas needing reliable, emissions-free power.

NuScale is already planning engineering work for Romania’s RoPower project, a 462-MWe power plant that will feature six NuScale modules. Production of 12 modules is currently underway in South Korea with Doosan, a key partner in building the production pipeline.

  • To support this next development phase, the U.S. Department of Energy (DOE) has invested over $575 million in NuScale’s design and licensing efforts.

This support shows how SMRs are seen as vital to U.S. energy security and climate goals.

Electricity generation for data centres by fuel in the United States, Base Case, 2020-2035

US nuclear
Source: IEA

A Nuclear Resurgence in the U.S. Backed by Policy and Private Investment

SMRs are gaining traction as the U.S. seeks to replace old coal plants and meet net-zero targets. SMRs, like NuScale’s, can be set up faster than large nuclear plants. They also cost less and are safer. Their modular, factory-built design contributes to these advantages.

NuScale is the only SMR company that has NRC-certified designs. This gives it a regulatory edge and strong credibility in a field where safety matters. The NRC’s approval shows investors and policymakers that SMR technology is viable.

The Biden administration and earlier policies under Trump have supported SMRs. These small modular reactors are vital for the country’s nuclear revival. They offer a stable, emissions-free option to fossil fuels. This is important as grid reliability and decarbonization are now top priorities.

SMRs Power Up the Path to Net Zero

The NRC’s approval of NuScale’s 77 MWe SMR is a milestone for the global nuclear industry. With solid support from the U.S. government, NuScale is ready to lead the SMR market. Strategic partnerships like ENTRA1 and interest from projects like RoPower boost its position.

Utilities and countries want reliable, dispatchable, and carbon-free power. SMRs provide a strong solution. They support renewable energy, enhance energy security, and are key to decarbonizing global energy systems.

NuScale’s recent success points to a bright future for advanced nuclear energy, where innovation, safety, and sustainability unite to power the next generation.

Ioneer Boosts Rhyolite Ridge Lithium-Boron Reserve by 308%, Targets Low-Cost Production

Saptakee S
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Ioneer Boosts Rhyolite Ridge Lithium-Boron Reserve by 308%, Targets Low-Cost Production

Ioneer Ltd just delivered a major update on its 100%-owned Rhyolite Ridge Lithium-Boron Project in Nevada. The company announced a huge 308% increase in Ore Reserves, along with fresh economic projections for the project.

Ioneer’s High-boron Strategy: Weathering the Weak Lithium Market

The miner revealed that the Ore Reserve has jumped by 186.6 million tonnes, bringing the total to:

  • 246.6 Mt at 1,464 ppm lithium and 5,444 ppm boron,
  • Containing 1.92 Mt of Lithium Carbonate Equivalent (LCE)
  • And 7.68 Mt of Boric Acid Equivalent (BAE)

Nearly 48% of the Mineral Resource has now been converted into Reserve. Ioneer claims this makes Rhyolite Ridge the world’s largest known lithium-boron deposit.

The project is now expected to produce:

  • 17,200 tonnes of LCE per year (life-of-mine average)
  • 60,400 tonnes of boric acid per year

But for the first 25 years, the company plans to focus on high-boron ore (Hi-B), which would boost output to about 19,200 tonnes of LCE and 116,400 tonnes of boric acid annually.

Lithium’s Low-Cost Advantage Despite Market Woes

With lithium prices under pressure, Ioneer is leaning into boric acid as a stable revenue stream. Boric acid is used in everything from agriculture and construction to pharmaceuticals. For the first 25 years, it’s expected to account for about 25% of revenue.

It’s because of this boron credit, Rhyolite Ridge is now projected to sit in the lowest cost quartile for global lithium production:

  • US$5,745/t all-in sustaining cost (battery-grade lithium hydroxide)
  • C1 cost of US$3,858/t after boric acid revenue offsets
ioneer lithium
Source: Ioneer

Capital Costs and Future Upside

Ioneer has also refined its cost estimates using detailed engineering. It now expects to spend US$1.67 billion to bring the project online, including a 10% contingency. Around 70% of engineering work is already complete.

The team has taken a more conservative stance on plant uptime and equipment maintenance, prioritizing long-term reliability over short-term gains.

Still, there’s room to grow. Recent testwork showed that reducing leach time from 3 days to 2 could boost acid yield by 7–14%, increasing lithium and boron output with minimal added costs. This faster process will be adopted once a new mine plan is ready.

Stockpiles and Stage 2 Potential

Hi-B ore will be the priority early on, which means a large amount of low-boron (Lo-B) ore will be stockpiled. This shift explains the lower life-of-mine mining cost ($9.90/t) compared to the first 25 years ($23.50/t). Much of the later production will come from these stockpiles.

Interestingly, Ioneer is exploring the option of using gravitational concentration to upgrade Lo-B ore by 1.4 to 2.0 times, potentially making it ideal for a future Stage 2 processing facility.

Rhyolite Ridge: A Key Lithium Project Powering the EV Future

Rhyolite Ridge is one of only two advanced lithium projects in the U.S. and is already fully funded up to the Final Investment Decision stage. Its valuable boron by-product and smart, cost-saving design stand out as a low-cost and sustainable operation.

Over its 26-year life, the project is expected to support battery production for more than 50 million electric vehicles. Thus, it’s all set to boost the U.S. lithium supply and will help reduce fossil fuel dependence. Overall, it supports the shift to low-carbon transport.

Furthermore, by processing materials directly on-site, Ioneer avoids the delays and costs of shipping to off-site facilities. This allows faster and more efficient production of lithium carbonate, which is a critical material for EV batteries.

Broadly speaking, Ioneer works closely with industry leaders and stakeholders who share a common vision: advancing electrification and cutting emissions.

Smart, Sustainable Operations

What sets Rhyolite Ridge apart is its world-class, environmentally focused design. The entire operation is built around sustainable practices:

  • Low Water Use
    Uses around 4,000 acre-feet of water each year — about the same as seven irrigation pivots. It means the mine uses very little water and recycles contact water as much as possible.
  • Lower Emissions
    Relies on carbon-free energy and keeps greenhouse gas emissions to a minimum. Runs on a closed-loop steam system that generates green energy with zero carbon dioxide (CO₂) emissions.
  • It doesn’t rely on outside electricity from the grid.
  • Smaller Footprint
    No evaporation ponds. No tailings dam. Less impact on the environment.

Why Market Challenges Remain for Ioneer?

While the long-term vision looks strong, recent lithium price declines have made investors cautious. Earlier this year, Ioneer lost Sibanye-Stillwater as a joint venture partner, partly due to the weak pricing environment.

lithium prices
Source: Shanghai Metals Market

Despite this, Ioneer remains confident. Its strategy of front-loading boron-rich ore could provide valuable cost support, especially if lithium prices remain volatile. The company says its diversified product mix and large reserve base position Rhyolite Ridge as a top-tier global project.

Bezos Earth Fund’s AI for Climate and Nature Reveals First Grantees

Jennifer L
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Bezos Earth Fund’s AI for Climate and Nature Reveals First Grantees

Bezos Earth Fund, founded by billionaire Jeff Bezos, founder and former CEO of Amazon, launched a major initiative called the AI for Climate and Nature Grand Challenge in April 2024. The program pledges up to $100 million to support teams using artificial intelligence (AI) to solve environmental problems. Recently, it revealed its first grantees or recipients of the fund. 

The funding initiative focuses on real-world solutions. It aims to reduce carbon emissions and protect wildlife using smart technology. The goal is to link AI experts with environmental groups. This helps them use AI to solve tough climate and nature problems.

Many of these organizations have strong ideas but lack the tech expertise or funding to apply AI. This is where the Bezos Earth Fund comes in, offering grants and encouraging teamwork across fields.

The challenge focuses on four main areas:

  • Sustainable proteins. Finding AI tools that speed up the discovery and production of plant-based or alternative proteins.
  • Biodiversity conservation. Using AI to track endangered species, protect ecosystems, and stop threats like illegal logging.
  • Power grid optimization: Developing smarter, cleaner ways to store and distribute renewable energy.
  • Wildcard innovations. Supporting creative AI ideas that don’t fit into a standard category but have strong environmental potential.

Let’s get to know who these grantees are and what they do.

Grantees Tackling Carbon Removal and Climate Solutions

In May 2025, the Bezos Earth Fund announced its first 24 grantees, each receiving $50,000 to build out their ideas. Some of the most impactful focus on climate mitigation and carbon removal, including:

  • Carbon Sim: CO₂ Removal Accelerator (Yale University)

This project uses AI-powered simulations to test and improve strategies for carbon dioxide removal (CDR). It aims to help scientists quickly evaluate which methods—like soil enhancement or ocean capture—are the most effective at storing carbon.

  • EV Charging Optimization (Cornell University)

Cornell’s team is creating a tool that uses real-time AI to manage charging for electric vehicles (EVs). It adjusts when and how cars are charged so they act as energy storage for the power grid. This can support the shift to renewable energy and help reduce emissions.

  • Livestock GPT

Another Cornell project, Livestock GPT is a generative AI tool that helps dairy farmers cut methane emissions. It includes a chatbot that gives feed and farm advice—especially for use in emerging economies—helping reduce climate-warming gases from livestock.

These climate-focused grantees aim to tackle emissions directly while making climate solutions more scalable and accessible.

Why This Matters for Climate and Nature

AI has the potential to supercharge global environmental efforts—but only if it’s applied wisely and equitably. The AI for Climate and Nature Grand Challenge is helping turn that potential into reality by:

  • Giving environmental groups access to cutting-edge AI tools
  • Funding early-stage ideas with clear pathways to impact
  • Encouraging partnerships between tech and nature experts
  • Supporting scalable, verifiable, and science-backed solutions
  • Helping meet global climate targets faster and more affordably

The need for innovation in climate and nature solutions has never been greater. According to the Intergovernmental Panel on Climate Change (IPCC), global greenhouse gas emissions must be cut by nearly 50% by 2030 to keep warming below 1.5°C and avoid the worst impacts of climate change.

At the same time, the World Economic Forum estimates that over $44 trillion of economic value—more than half of global GDP—is moderately or highly dependent on nature and its services, underscoring the stakes for biodiversity loss.

The Power of AI in Climate Action

AI is increasingly recognized as a game-changer for environmental action. A 2023 report by Boston Consulting Group found that AI could help reduce global greenhouse gas emissions by up to 10%—the equivalent of 2.6 to 5.3 gigatons of CO₂e—by 2030, if deployed at scale across sectors like energy, transport, and agriculture.

Key AI applications to accelerate climate progress

Yet, a 2022 survey by Microsoft and Goldsmiths University revealed that only about 43% of environmental organizations felt “AI-ready”. They cited barriers such as lack of funding, technical expertise, and access to data.

Bridging the Gap: The Role of the Grand Challenge

The Bezos Earth Fund’s AI for Climate and Nature Grand Challenge directly addresses these barriers by providing critical funding and technical support to early-stage projects. By awarding $50,000 seed grants to 24 diverse teams in its first round, the initiative is lowering the entry threshold for nonprofits, universities, and startups to experiment with AI-driven solutions.

This approach is vital, as early-stage funding for climate tech remains scarce—just 6% of global venture capital in 2023 went to climate-related startups, according to PwC. And in 2024, VC deals for climate tech innovations further drop from 2023, per Pitchbook data.

climate tech investment 2024
Source: Pitchbook

The Grand Challenge also fosters collaboration between AI experts and environmental practitioners, a proven recipe for success. For example, projects like Carbon Sim (Yale) and Livestock GPT (Cornell) are bringing together machine learning specialists, ecologists, and farmers to co-design tools that are both scientifically robust and practical for real-world use. Such partnerships help ensure that solutions are not only technologically advanced but also grounded in local knowledge and needs.

AI in Action: Use Cases Beyond Carbon

Other grantees use AI to help the environment. They reduce food waste, create better plant-based proteins, and protect forests. Here are some of them and their innovations that attracted Bezos Fund’s investment:

  • University of Leeds – Food Waste to Protein. This project uses AI to turn food waste into sustainable protein. The software finds the best microbes and fermentation methods.

  • Wageningen University – OLiMPuS Platform. This open-source AI platform helps scientists find new plant and fermented proteins that feel and taste like milk and meat.

  • BGCI-US – Forest Monitoring and Illegal Logging Detection. Using drones and AI, this project tracks over 500 endangered timber species and detects illegal logging in real time.

  • AI-powered Forest Monitoring in the Amazon. Another grantee is working in the Amazon rainforest, combining satellite data with AI to detect changes in forest cover.

  • AI for Coral Reef Health (University of Miami). This project uses underwater cameras and AI models to assess the health of coral reefs. It can detect bleaching and pollution damage early.

AI isn’t just about crunching data. It’s also a strong tool for early detection, quick decision-making, and scaling nature-positive solutions.

Scaling Up: What Happens Next?

The $50,000 planning grants are just Phase I. Later in 2025, up to 15 teams will move to Phase II, receiving $2 million each over two years to scale and implement their solutions. This will allow them to move beyond prototypes and test their tools in real-world settings.

The Bezos Earth Fund says it’s also building partnerships with AI labs, tech companies, and universities to support the technical side of the challenge. At the same time, it wants to train environmental groups on how to use and trust AI, ensuring that solutions are not only powerful but practical.

The projects supported by the Bezos Earth Fund are still in early stages, but they point toward a future where smart software can support a healthy planet. Whether it’s managing forests, cleaning up farms, or inventing new kinds of food, AI is now part of the climate and conservation toolbox.

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