Why Chevron Updated Biofuels and Geothermal in Its Energy Strategy to Cut Carbon

Saptakee S
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Why Chevron Updated Biofuels and Geothermal in Its Energy Strategy to Cut Carbon

Chevron is adjusting its clean energy strategy at a time when global attention on emissions continues to rise. At the WSJ CEO Council, CEO Mike Wirth shared how the company plans to grow its traditional oil-and-gas business while steadily expanding into biofuels, geothermal power, and a few select emerging technologies. His message was clear: Chevron wants to stay practical, invest in what works now, and keep improving its carbon profile without making unrealistic leaps.

Chevron Bets on Biofuels to Boost Profits and Cut Carbon

Even though Chevron exited a U.S. biomass diesel trade group last year, it maintains that strong financial returns remain possible through smarter feedstocks and better use of existing refinery assets.

Wirth put biofuels at the center of Chevron’s renewable plans. He said these fuels offer a real-world, ready-to-use solution for cutting emissions, especially because they work in today’s engines, pipelines, and fueling systems. Unlike early-stage technologies that still need major breakthroughs, biofuels can scale faster and support industries that cannot switch to electricity overnight.

  • The global biofuels market size is estimated at USD 141 billion in 2025 and can reach around USD 257.61 billion by 2034, at a CAGR of 6.9%.

global biofuel market

Expanding Refineries to Meet Growing Demand

The oil major already runs nine biorefineries around the world, and it recently boosted capacity at its Geismar, Louisiana, site. The company expanded renewable diesel output there from about 90 million gallons to 340 million gallons a year. Wirth explained that this growth helps Chevron serve transportation and maritime sectors, where demand for drop-in fuels remains high.

Additionally, partnerships also play a key role. Chevron works with Bunge and Corteva to produce canola-based feedstocks and teams up with Optimus Power to integrate B100 biodiesel into municipal fleets. Its Renewable Energy Group supplies lower-carbon fuels made from used cooking oil and animal fats, and Chevron has become Singapore’s second-largest marine biofuels supplier.

With ISCC certification in key U.S. ports, Chevron has a strong hold to serve global shipping customers who want cleaner fuels.

Geismar Expansion Stands Out

In this context, more than 40 major biofuel projects worldwide aim to deliver around 260,000 barrels per day by 2030. Chevron’s own Geismar expansion stands out as one of the largest of the 31 new projects tracked. The company is also converting units at traditional refineries, such as El Segundo, to produce about 10,000 barrels per day of renewable fuel.

Research and development efforts continue behind the scenes. At the Ames Technology Centre, Chevron is advancing catalytic technologies for multiple fuels—renewable diesel, biodiesel, SAF, and renewable natural gas—to improve efficiency and cut emissions even further. Its RNG projects are also growing through partnerships with CalBio in California and dairy farms in Michigan.

Geothermal Steps Alongside Biofuels

Along with biofuels, Wirth highlighted geothermal energy as a promising and reliable clean power source. He described geothermal as a natural fit for Chevron because the company already has decades of subsurface experience from oil-and-gas operations.

Chevron is exploring enhanced geothermal systems that could significantly boost output from traditional geothermal wells. He also said partnerships will play an important role as the company works to scale these technologies and support utility-scale power generation. Because geothermal power does not depend on weather, it can help balance grids as more intermittent energy enters the system.

This interest reflects a broader industry shift. Many energy analysts now see next-generation geothermal as a strong candidate for 24/7 clean electricity, especially for data centers and industrial facilities. Chevron believes it can use its drilling and reservoir expertise to help bring this technology forward.

Connecting the Strategy to Chevron’s Emissions Profile

Chevron’s emissions numbers show why the company wants practical solutions.

In 2024, Chevron reported total greenhouse gas (GHG) emissions of approximately 671 million tonnes of CO₂‑equivalent (tCO₂e). This figure includes emissions from direct operations as well as the broader value chain, with Scope 3 emissions — mainly from the use of sold products — accounting for roughly 92% of the total.

  • Scope 1 — Direct Operational Emissions: It comes from company-controlled operations such as fuel combustion and flaring, totaled around 53 million tCO₂e in 2024.
  • Scope 2 — Indirect Emissions: arising from purchased electricity, steam, and heat, were approximately 2 million tCO₂e in 2024, calculated using both market‑based and location‑based approaches.
  •  Scope 3 — Value Chain Emissions: reached about 616 million tCO₂e in 2024. The bulk of these emissions comes from Category 11: Use of Sold Products, which includes the CO₂ released when customers consume Chevron’s fuels.
Chevron emissions
Source: Chevron Sustainability Report 2024

Chevron has still made progress in areas it directly controls. Flaring intensity has dropped 22% since 2013, and methane intensity has fallen between 20% and 25%. The company aims to cut upstream emissions intensity to 3 kg CO2e per barrel by 2028, representing a 66% reduction from 2016. Independent assessments show Chevron outperforming about 71% of its oil-and-gas peers on emissions management.

Biofuels help reduce lifecycle emissions in the products Chevron sells, which supports these intensity goals. Geothermal also contributes by lowering operational footprints, especially when combined with carbon capture or renewable power procurement.

Taps Carbon Credits to Offset Emissions

Biofuels and RNG connect directly to the carbon credit market. Both can generate certified greenhouse gas reductions under systems like ISCC. These credits help Chevron and its customers offset certain emissions and meet regulatory and voluntary climate requirements. They also support compliance markets under Article 6, especially for SAF and RNG.

Chevron continues to invest in carbon capture and storage. The Gorgon CCS project in Australia has stored more than 10 million tonnes of CO2 since 2019. While CCS alone cannot solve Chevron’s Scope 3 challenge, it remains an important part of the company’s long-term net-zero plan.

Wirth stressed that Chevron does not expect one single solution to dominate. Instead, the company is building a portfolio that lets it adapt to changing policies, especially as energy rules shift under the current U.S. administration.

Investors following Chevron’s commitment to spend $10 billion on low-carbon investments by 2028 see biofuels and geothermal as the clearest opportunities for near-term commercial value. These technologies lower emissions while supporting Chevron’s core business model.

A Practical Path Through the Energy Transition

Statista reported that the global biofuel consumption is projected to reach 217.72 million metric tons in 2025, marking an increase of roughly seven million metric tons compared to 2024.

By 2030, the combined annual demand for ethanol and biodiesel is expected to approach 230 million metric tons. The United States is forecasted to continue as the world’s largest biofuel consumer.

Biofuel consumption worldwide from 2000 to 2024, with a forecast until 2030 (in million metric tons)

biofuel demand

The company’s updated strategy shows a company trying to move forward without losing sight of real-world constraints. It plans to keep growing its oil-and-gas business while lowering carbon intensity and expanding into renewable fuels, geothermal, carbon capture, hydrogen, and other emerging technologies. Significantly, Wirth also noted growing interest in nuclear energy and the company’s venture investments in fusion companies.

In simple terms, Chevron is choosing a practical, step-by-step transition. Biofuels offer quick wins. Geothermal adds stable, clean power. Nuclear and fusion represent longer-term bets. Together, they form a balanced path that blends its strengths with rising pressure to cut emissions.

Microsoft Backs InPlanet’s Enhanced Rock Weathering Push to Remove 28,500 Tons of CO₂ in Brazil

Saptakee S
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Microsoft Backs InPlanet’s Enhanced Rock Weathering Push to Remove 28,500 Tons of CO₂ in Brazil

Microsoft (MSFT Stock) has signed a new agreement with InPlanet to remove more than 28,500 tonnes of CO₂ between 2026 and 2028. It marks another major step forward for both tropical Enhanced Rock Weathering (ERW) and corporate-backed climate solutions.

InPlanet is pushing the boundaries of nature-based climate innovation. The company aims to remove gigatons of CO₂ from the atmosphere. At the same time, it works to restore tropical soils. As a result, it helps support healthier ecosystems and fight climate change.

Now, that mission has received powerful reinforcement.

Tropical Rock Weathering: Turning a Natural Process Into Scalable Climate Action

Rock weathering has always helped regulate Earth’s climate. Over time, rocks slowly react with CO₂ and remove it from the atmosphere. As a result, they help stabilize the planet’s temperature. Enhanced Rock Weathering speeds up this natural process. It works by spreading finely crushed silicate rock on farmland. Then, rain, heat, and soil microbes interact with the minerals. This way, CO₂ is captured and locked into more stable forms.

Dual Benefits: Climate and Agriculture

However, ERW does more than capture carbon. It also supports farmers. The added minerals improve soil fertility and reduce acidity. Moreover, they lower dependence on synthetic fertilizers. In addition, ERW helps build long-term soil resilience. This is especially important in tropical regions where weathering happens faster. In such places, ERW delivers climate and agricultural benefits together.

Over the past 24 months, it has demonstrated how this technique delivers real-world results. Farmlands treated with silicate rock powder showed clear improvements in soil health, reduced fertilizer use, and lower need for agricultural limestone. In this case as well, these outcomes directly support farmers while ensuring lasting climate benefits.

Brazil: The Perfect Climate for Scalable ERW

Today, InPlanet operates the largest ERW program in Brazil, covering more than 12,000 hectares of farmland, roughly equivalent to the size of San Francisco. With around 1200 mm of annual rainfall, nutrient-depleted agricultural soils, and immense agricultural capacity, Brazil provides one of the most promising landscapes on Earth for meaningful, high-quality carbon dioxide removal through weathering.

The country has a tropical climate, heavy rainfall, and vast farmland. Together, these conditions enable faster mineral weathering. Meanwhile, abundant basalt deposits support sustainable rock sourcing.

Also, Brazil’s 84% renewable-powered grid keeps operational emissions low. This strengthens the climate integrity of ERW projects. On top of that, ERW materials are fully certified for agricultural use in Brazil. Therefore, adoption becomes easier, faster, and more credible.

inplanet erw
Source: InPlanet

Setting a Global Benchmark With Verified ERW Credits

Trust is everything in carbon markets, and InPlanet has taken a major step toward building long-term confidence in ERW. In January, Isometric issued 235.53 independently verified ERW credits to InPlanet—the first verified Enhanced Weathering credits in the world. These credits were delivered to Adyen through ClimeFi and marked a turning point for the sector.

This achievement proves that strong science, rigorous monitoring, and robust verification are not only possible in ERW—they are already happening in the field. Isometric’s Enhanced Weathering Protocol incorporates leading academic insights, demanding MRV frameworks, and transparency to help push the broader CDR industry toward higher integrity standards.

Under the new Microsoft agreement, every credit will be issued through Isometric’s framework and listed on the Isometric Registry. In addition, anonymized project data will be shared through Cascade Climate’s ERW Data Quarry, supporting open scientific collaboration and helping accelerate knowledge-sharing across the global carbon removal community.

Microsoft Bolsters Its Position as the World’s Largest CDR Buyer

Microsoft continues to stand out as the single largest corporate buyer of carbon removal in the world. By 2025, the company had already contracted over 8.2 million tonnes of carbon removal, and its total commitments keep rising. Major purchases include 3.3 million tonnes from Stockholm Exergi, alongside major volumes across BECCS, biochar, ERW, and nature-based solutions. Reports also highlight its long-term engagement in forestry-based CDR, including major commitments like 18 million tonnes from Rubicon, illustrating its portfolio depth.

In 2024 alone, Microsoft secured commitments for nearly 22 million tonnes of carbon removal credits, surpassing the combined totals of all earlier years. This aggressive expansion aligns with its goal to become carbon negative by 2030, guided by a “do our best and remove the rest” philosophy. Significantly, the company is working to cut operational emissions while also backing technologies that remove unavoidable and legacy carbon.

microsoft carbon removal

Furthermore, the rise of AI and data center energy demand has only sharpened its climate urgency. Rather than slowing sustainability progress, it is doubling down on reliable, scientifically credible climate solutions. Its investment in InPlanet reinforces trust in ERW as a viable, scalable pillar of global decarbonization.

Microsoft emission
Source: Microsoft

Why This Deal Boosts Market Confidence

This agreement is more than a simple procurement deal. It reflects growing confidence in a technology that can transform agriculture, strengthen farmer resilience, and deliver measurable, long-term climate benefits. Moreover, it shows that tropical regions—often facing intense climate stress—can lead the way in carbon removal. It also underscores an important truth: credible climate action relies on rigorous science, transparency, innovation, and strong partnerships.

At the same time, ERW is gaining attention in the carbon market. In 2025, ERW credits typically ranged from $230 to $400 per tonne, reflecting their permanence, scientific rigor, and verification under trusted standards like Isometric and Puro.earth. Looking ahead, as supply scales, prices are expected to decline toward $100 per tonne by 2030, but quality and credibility will remain central.

Ultimately, InPlanet aims to remove gigatons of CO₂ while restoring tropical soils for future generations. With support from Microsoft, verified standards like Isometric, and growing field data, Enhanced Rock Weathering in the tropics is moving from promise to a proven, scalable climate solution.

Google Joins ReNew Energy for 150 MW Solar Project in India to Cut Scope 3 Emissions

Jennifer L
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Google Joins ReNew Energy for 150 MW Solar Project in India to Cut Scope 3 Emissions

Google and ReNew Energy Global have signed a long-term agreement to develop a 150 megawatt (MW) solar power project in Rajasthan, India. This is another step for major tech companies to get clean energy and cut emissions. The project will start operations in 2026. It will boost renewable capacity in one of India’s fastest-growing clean energy markets.

Google will buy environmental attributes from the solar plant. This will help the company tackle emissions in its value chain, also called Scope 3 emissions. The project will generate clean electricity that adds to India’s broader goal of building a cleaner, more reliable energy system.

Vrushali Gaud, Global Director of Climate Operations at Google, remarked:

“Clean, affordable electricity is central to our growth ambitions, both for our own infrastructure and for our value chain this novel agreement with ReNew is a critical strategic step; it brings new solar capacity onto the grid in a key region, and helps address challenging portions of our value chain emissions. We are committed to supporting India’s clean energy journey through this collaboration and contributing and contributing positively to the national grid.”

How Environmental Attributes Power Corporate Climate Goals

The solar scheme will have a capacity of 150 MW. It is expected to generate around 425,000 megawatt-hours (MWh) of electricity each year after it starts in 2026. This amount of power is enough to meet the annual electricity needs of more than 360,000 households in India.

Even though the project is medium-sized compared to India’s largest solar parks, it is important. This is because it connects to a long-term commercial agreement. The sale of environmental attributes helps make the project financially viable. Long-term procurement deals provide revenue certainty. This certainty is key to financing and building renewable projects.

The agreement also expands ReNew’s portfolio of corporate clean energy contracts. By late 2025, its commercial and industrial renewable capacity will be around 2.7 GW. This shows strong interest from corporate buyers in India’s clean energy market.

India’s Solar Market: Rapid Growth and Scale

India’s solar energy sector has grown significantly over the past decade and continues to expand rapidly. As of early 2025, total installed renewable capacity in India exceeded 180 GW, with almost half coming from solar and wind power. Solar alone accounted for 119 GW of that renewable base—about 63% of the country’s total renewable capacity.

solar power growth India

The Government of India wants to achieve 500 GW of non-fossil fuel capacity by 2030. This goal has boosted investment and encouraged private sector involvement in solar projects nationwide. The country added a record 22 GW of renewable capacity in the first half of 2025, further showing strong growth momentum.

Industry forecasts project continued expansion. India’s solar energy market is expected to grow from about 122.5 GW in 2025 to nearly 295.8 GW by 2030. This shows an annual growth rate of around 19%. This growth is driven by policy support, falling technology costs, and increasing demand for clean power from industry and households.

Why Google Is Betting on Clean Energy in India

Google’s deal with ReNew highlights a trend. Big companies are increasingly securing renewable energy directly. Tech firms like Amazon and Microsoft have made big clean energy deals worldwide. They aim to meet climate goals and power energy-heavy operations, such as cloud data centers.

Google buys environmental attribute certificates to help reach its goal of using 100% carbon-free energy by 2030. The solar project helps Google show that it generates clean energy in India. It may also offset emissions beyond what it directly uses.

The project also contributes to reducing Scope 3 emissions, which include indirect emissions in a company’s value chain. Many corporations find that direct renewable energy procurement helps address emissions they cannot eliminate through internal operations alone.

Google clean energy emission reductions

Google’s Clean Energy Procurement

Google is one of the world’s largest corporate buyers of clean energy. From 2010 to 2024, the company signed more than 170 clean energy contracts, totaling over 22 gigawatts (GW) of capacity. These deals include solar, wind, and other clean power sources across many regions.

In 2025, Google continued expanding its clean energy supply. Other clean energy deals in 2025 include:

  • A 15-year renewable supply contract in the United States for about 1.5 terawatt-hours (TWh) of clean electricity from a large solar plant in Ohio.

  • A corporate wind power purchase agreement in Belgium to reduce roughly 27,000 tons of CO₂ emissions per year.

  • Renewable energy progress in Ireland that will help data centers reach 60% carbon-free energy on an hourly basis in 2025.

Google’s long-term goal is to use 100% carbon-free energy every hour of the day by 2030. Clean energy procurement remains a central part of this strategy as electricity demand continues to grow.

India’s Broader Renewable Energy Landscape

India stands as one of the world’s fastest-growing renewable energy markets. The country is currently ranked among the top global producers of renewable power. It ranks third globally in solar power generation and fourth in total renewable energy installed capacity. This reflects the rapid expansion of solar and wind capacity in recent years.

Solar power has experienced particularly strong growth. India surpassed the 120 GW solar capacity milestone in 2025, a notable benchmark toward the 2030 renewable goals. Annual additions continue to track high, with utility-scale deployments making up the majority of solar capacity.

India annual solar manufacturing projections
Chart from SolarPower Europe

India is boosting its solar manufacturing capacity. This move is key to cutting costs and ensuring supply chain security in the long run. Solar module capacity is expected to hit 160 GW by 2030, while cell manufacturing capacity might grow to 120 GW. This would greatly strengthen the local industry and cut down on imports.

In addition to large utility projects, states such as Rajasthan and Gujarat lead in installation and policy support. Rajasthan alone holds over 37 GW of installed renewable capacity, making it one of the country’s key hubs for solar energy.

Looking Ahead: India’s Renewable Energy Trajectory

Despite strong growth, India’s solar market faces challenges. A lot of renewable energy capacity is still in development and not yet running.

The country also needs to expand its transmission infrastructure. This will help ensure reliable power delivery across regions. Some projects face delays due to regulatory and land acquisition issues. This can push commissioning past the planned timelines.

Financing and grid integration also remain areas of focus. India is moving toward higher renewable energy targets. Energy storage and hybrid solutions, which mix solar with wind or storage systems, are becoming popular.

india electricity sources
Source: CEA and NPP (https://iced.niti.gov.in/energy/electricity/generation)

Moreover, investing in battery energy storage systems helps balance the energy supply. This improves grid stability, especially during peak demand times.

Even with these hurdles, India’s solar sector outlook remains strong. Analysts expect steady growth for the rest of the decade. And solar energy will keep driving clean energy capacity expansion. Policy support and corporate off-take agreements like Google’s will play an important role in shaping this trajectory.

Voluntary Carbon Market in 2026: Top Forecasts and What They Mean for Investors

Saptakee S
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Voluntary Carbon Market in 2026: Top Forecasts and What They Mean for Investors

2026 is shaping up to be a defining year for the voluntary carbon market (VCM). After years of criticism, uncertainty, and volatility, the market is entering a more mature phase. Corporate climate ambition is higher than ever. Investment is flowing in at record levels. At the same time, integrity standards are tightening, regulators are stepping in, and the supply of truly high-quality credits remains tight. The result is a market that is growing quickly, becoming more disciplined, and rewarding projects that deliver real, durable climate impact.

Throughout 2025, momentum built rapidly. Companies retired more credits than in any first-half period before. Capital committed to new projects tripled. Asia emerged as a powerhouse. And by the time 2026 arrives, the market is not just bigger; it is more credible, more competitive, and more strategic than previous years.

Below is a closer look at where the market stands, how big it could get, and what matters most as we move through 2026.

Voluntary Carbon Market Size: Growth Accelerates Into 2026

Different analysts see the market through different lenses, but they all agree on one thing: the VCM is expanding fast.

Roots Analysis takes a conservative but confident view. They expect the market to reach around USD 1.7 billion in 2026, rising from USD 1.6 billion in 2025, before accelerating sharply to nearly USD 47.5 billion by 2035 with a strong 38% CAGR. Their outlook focuses heavily on verified, high-quality credits, especially removals and premium nature-based solutions, supported by more than 6,200 companies pursuing science-based climate targets.

vcm voluntary carbon market carbon credits
Source: Roots Analysis

Mordor Intelligence is far more aggressive. They anticipate a significantly larger base market of USD 15.83 billion in 2025, implying around USD 23.8 billion in 2026 and rising to USD 120 billion by 2030, driven by rapid growth across renewable, waste, and forestry project pipelines.

Meanwhile, Regreener estimates the 2026 market at USD 3.04 billion, but still growing at a rate of more than 20% CAGR, while Bloomberg reports that 2025 saw record-breaking retirements and unprecedented capital inflows. In fact, companies retired more credits in the first half of 2025 than in any previous period, while more than USD 10 billion was committed to new carbon credit generation—three times 2024 levels.

Despite the different price tags, the direction of travel is clear. Demand is rising. Market value is expanding. And confidence is slowly returning as integrity improves.

Voluntary carbon credit market VCM
Source: Modor Intelligence

Asia-Pacific Takes Control While the West Shapes Quality

  • Asia-Pacific is more than just a participant in the VCM. It is becoming its center of gravity.

Forecasts suggest the region could grow at a staggering 36–58% CAGR, outpacing every other geography. China leads through massive renewable deployment and methane initiatives. India is transitioning from voluntary participation toward compliance under its Carbon Credit Trading Scheme, opening huge domestic demand. Indonesia’s peatlands, forestry investments, and regional alliances like the Asia Carbon Alliance further accelerate supply and credibility.

  • North America remains the biggest buyer base, likely capturing 30–37% of market share in 2026. Major U.S. corporates—especially tech giants—continue to sign some of the largest removal deals ever recorded.

Microsoft alone accounted for the majority of durable CDR in 2025, driving enormous confidence and setting procurement benchmarks. Meanwhile, digital platforms and MRV innovations are cutting verification costs and improving transparency.

  • Europe, however, is shaping the market’s integrity story. Policies like CBAM, aviation ETS rules, and the Green Claims Directive are forcing companies to prove climate claims with credible, traceable credits. The SBTi has also strengthened demand for long-lived removals, often commanding price premiums of more than 300% compared to avoidance credits.

Removals Lead the Charge as Premium Credits Tighten

One of the biggest structural shifts heading into 2026 is the clear transition from cheap avoidance credits to scarce, premium removal credits.

Analysts expect removal credits to grow at nearly 56% CAGR, fueled by:

Prices reflect this reality. Nature-based removals such as afforestation and reforestation range between USD 7 and USD 24 per tonne, though premium verified projects fetch significantly higher rates.

Meanwhile, technology-based removals like DAC remain extremely expensive, often trading above USD 170–USD 500 per tonne, with corporates willing to pay because supply is limited and permanence is strong.

Waste methane management is another standout, growing above 50% CAGR, driven by landfill methane reductions and oil and gas methane capture. Consumer-facing brands are also accelerating credit purchases, with companies like JPMorgan financing hundreds of millions into project pipelines.

However, supply is tightening. For the first time, many analysts believe retirements are overtaking issuances for premium credits. That creates scarcity, price resilience, and intense competition for the best credits.

vcm Carbon credit market

Technology, Policy, and Capital Push the Market Forward

Three forces now shape the future of the voluntary carbon market.

Corporate climate ambition remains the strongest driver. More companies have net-zero pledges than ever before. Many have 2030 milestones approaching fast, forcing real action rather than PR commitments.

Policy alignment is transforming the VCM into a bridge between voluntary and compliance markets. ICVCM’s Core Carbon Principles are setting a global quality baseline. Paris Agreement mechanisms are increasingly connecting voluntary and regulatory systems, while countries like Singapore and EU regulators demand credibility and restrict low-quality credits.

Investment is scaling. Billions of dollars are now flowing into biochar, engineered removals, forestry restoration, and digital trading infrastructure. ETFs and blended finance vehicles are also appearing, enabling institutional participation.

Together, these shifts push the VCM from experimentation to execution.

Challenges Remain—but They Build Resilience

Despite the progress, 2026 is not a smooth ride. This is because market fragmentation remains high. Around two-thirds of transactions still happen privately, which limits transparency and market trust. Price volatility persists, too, especially for nature-based credits, which have ranged between USD 7 and USD 24 per tonne entering 2026.

Integrity concerns have not disappeared either. Any scandal instantly shakes confidence. Meanwhile, premium credit supply simply cannot keep pace with demand before 2030, particularly for engineered removals and high-quality land projects.

Yet, these challenges are forcing discipline rather than collapse. Standards are tightening. Buyers are getting smarter. Developers are investing earlier. And regulators are closing loopholes.

What 2026 Means for Developers, Buyers, and Investors

  • For project developers, 2026 is a golden opportunity. Asia-Pacific offers unmatched scale. Removal technologies are gaining priority. Certification under credible frameworks will unlock long-term value.
  • For buyers, the message is simple: quality first. Durable, verified credits cost more but protect brand trust and climate outcomes. Transparent platforms and reliable MRV tools are essential.
  • For investors, the VCM represents one of the fastest-growing climate asset classes. Returns look strong, but diversification is key given volatility and evolving rules.

To summarize, 2026 is not about hype. It is about maturity. Record retirements in 2025, rising capital flows, Asia’s leadership, stricter governance, and accelerating removals all signal a market that is finally stabilizing after turbulence.

Hut 8 Pivots From Bitcoin to AI With $7B Google-Backed Deal to Power Data Centers

Jennifer L
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0
Hut 8 Pivots From Bitcoin to AI With $7B Google-Backed Deal to Power Data Centers

Several companies this year that once focused on Bitcoin mining are now moving into artificial intelligence (AI) infrastructure. This change is part of a larger trend. The demand for AI computing power has grown faster than firms can build it. At the same time, profits from traditional crypto mining have fallen due to lower rewards and rising costs.

Mining companies are now using their energy infrastructure and data centers for AI workloads. This shift goes beyond just mining Bitcoin.

One clear example of this shift is Hut 8 Corp., a company known for Bitcoin mining. The company made a major announcement. It signed a 15-year lease agreement with cloud infrastructure provider Fluidstack worth about $7 billion to provide data center space and power for AI computing. This deal marks a big step in the company’s strategy to pivot from crypto mining to AI infrastructure.

Hut 8’s Strategic AI Deal

Hut 8’s $7 billion agreement involves its River Bend campus in Louisiana. The lease covers 245 megawatts (MW) of computing capacity that will be used for AI workloads. This capacity will support high-performance computing clusters, which are needed to run advanced AI models. The first data hall is scheduled to be operational by early 2027.

The lease is structured for 15 years, giving Hut 8 a long-term revenue stream from AI infrastructure. The company also has options to expand capacity.

Under the agreement, the site could grow far beyond the current 245 MW. FluidStack has the right of first offer for up to an extra 1,000 MW at River Bend if expansion occurs.

This deal is supported financially by Google, which acts as a financial backstop. A financial backstop means Google guarantees lease payments if the tenant cannot pay them. This reduces the financial risk for Hut 8 and makes the project more bankable. Major banks like J.P. Morgan and Goldman Sachs are also involved in financing.

Fluidstack will operate the data center, and the AI models that run there are expected to support work by Anthropic, a major AI research company. This partnership between Hut 8, Fluidstack, and Anthropic shows how crypto mining firms are now engaging with the AI ecosystem.

Asher Genoot, CEO of Hut 8, noted:

“Scaling frontier AI infrastructure is, at its core, a power challenge. Hut 8’s power-first, innovation-driven development model enables us to originate and develop greenfield data center sites at the pace and scale required by leading model developers.”

Why Crypto Miners Are Pivoting

Traditional Bitcoin mining uses specialized machines called ASICs. These machines solve complex math problems to earn new Bitcoin.

Over time, rewards from mining have become smaller. For example, after the 2024 Bitcoin halving event, block rewards were cut by half. This made mining less profitable for many companies.

Mining also uses a lot of energy. It consumes ~173 TWh annually (2025), or ~0.5% global electricity, ~10 GW continuous power equivalent to Poland. Bitcoin mining, for instance, has been using more power each year since 2015, from about 0.15 TWh to over 170 TWh in 2025.

Bitcoin Mining Annual Energy Use (TWh)

Moreover, crypto miners often build large data halls with high-capacity, 100+ MW power lines, cooling systems, and backup generators. These systems are expensive to build, but they are well-suited for another purpose: hosting AI computing workloads. High-performance AI computing also needs a lot of power, cooling, and space for hardware.

AI computing workloads rely heavily on graphics processing units (GPUs). GPUs are different from ASICs but require similar infrastructure. They need high power delivery and advanced cooling. Crypto miners already own these facilities. Many are now turning them into AI data centers to avoid letting them sit idle or lose money.

This strategy also helps companies diversify revenue. Mining revenue can be volatile. It depends on the price of Bitcoin, mining difficulty, and energy costs.

AI infrastructure leasing, on the other hand, can offer predictable long-term income. A 15-year lease, like Hut 8’s deal, can provide stable revenue even if crypto markets fluctuate.

From Hash Rate to Compute Power: A Sector-Wide Shift

Hut 8 is not alone in this transformation. Other former crypto mining firms are pursuing similar paths. For example, CoreWeave, another company with roots in crypto mining, shifted its operations to focus on AI compute services.

By mid-2025, CoreWeave reported revenue of more than $1.2 billion and a valuation of about $48 billion. The firm now runs dozens of data centers with GPU capacity for AI workloads.

In addition, companies like TeraWulf have partnered with Fluidstack in long-term agreements to provide hundreds of megawatts of compute power in New York. Such deals reflect growing interest in AI and high-performance computing (HPC) infrastructure.

The shift from crypto mining to AI computing is also fueled by wider market expectations. Industry analysts project strong growth in AI infrastructure demand.

Some forecasts suggest the global AI infrastructure market may grow over 20% each year until the early 2030s. This growth is fueled by demand for generative AI and other advanced models. This growth requires substantial investment in data centers, high-power computing hardware, and supporting networks.

Artificial Intelligence (AI) Infrastructure Market

One report says the AI infrastructure market could grow from about $47 billion in 2024 to over $499 billion by 2034. However, these numbers differ depending on the source and method used. Such expansion suggests that large computing capacity will be needed to support model training, inference, and cloud-based AI services.

How Wall Street Is Pricing the AI Pivot

Hut 8’s announcement had a noticeable impact on its stock price. After news of the $7 billion lease broke, the company’s shares climbed significantly in pre-market trading.

In one report, shares surged about 21% following the announcement. Score gains across the year, 79%, also reflect changing investor sentiment toward the company’s growth strategy.

Hut 8 stock

The AI infrastructure strategy could help stabilize Hut 8’s financial performance. Analysts note that long-term leasing deals like this can produce predictable net operating income.

Hut 8 might earn about $6.9 billion in net income during the first 15 years of the lease. If they exercise renewal options, this could rise to nearly $17.7 billion.

Stable companies offering long-term data center services can secure financing more easily. They also tend to keep investment-grade credit ratings. This is different from the ups and downs of crypto mining revenue. Earnings rely a lot on Bitcoin prices and network difficulty.

High Stakes, High Power, High Competition

Despite the growing interest, the shift from crypto mining to AI infrastructure is not without challenges. Building and operating AI data centers requires expertise in data center management, network architecture, and cloud services. Some crypto mining firms need to invest in new equipment, such as GPUs and networking gear, to support AI workloads.

Competition in this sector is also intense. Big cloud providers and large data center companies, like Amazon, Microsoft, and Google, have a lot of experience and money for AI computing. Crypto-turned-AI firms must find a way to compete effectively by offering differentiated services or cost advantages.

There are also questions about energy use and sustainability. High-performance AI computing requires substantial electricity and cooling. Companies must balance growth in capacity with environmental and regulatory concerns.

As global demand for data center power increases, firms may face pressure to use renewable energy or adopt energy-efficient designs.

The Rise of Hybrid Crypto–AI Business Models

The trend of crypto miners pivoting to AI infrastructure shows how industries adapt to changing economic and technology landscapes. Firms like Hut 8 are using their existing strengths—power infrastructure and data centers—to meet rising demand for AI computing. Deals like the $7 billion, 15-year lease with Fluidstack and support from Google highlight this shift.

Some analysts believe that combining crypto mining expertise with AI infrastructure services could create new hybrid business models. These might include GPU-as-a-Service offerings, HPC leasing, and partnerships with major AI developers. For instance, Hut 8’s GPU-as-a-Service subsidiary has already deployed more than 1,000 Nvidia H100 GPUs to serve AI clients.

Other companies are making similar moves as the market for AI capacity expands rapidly. While challenges remain, the pivot could help stabilize revenue and position former miners in a growing and increasingly essential part of the technology economy.

DHL Signs Major SAF Deal with Neste Ahead of New EU Rules

Jennifer L
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DHL Signs Major SAF Deal with Neste Ahead of New EU Rules

On December 16, 2025, DHL Express confirmed a new fuel agreement. The company signed a binding offtake contract with the renewable fuels producer Neste. Under this deal, DHL will receive 50 million liters of Sustainable Aviation Fuel (SAF) for deliveries in 2026.

The fuel will be used in DHL’s air cargo flights to help reduce carbon emissions. This deal is one of the first under the tightened ReFuelEU Aviation rules, which increase SAF requirements at European airports starting in 2026.

DHL moved early to lock in supply. The company expects SAF prices to rise once the new rules begin in January. Securing supply now helps DHL manage future costs and ensure fuel availability as demand grows.

ReFuelEU Aviation: Redrawing the Fuel Mix

The ReFuelEU Aviation regulation is part of the European Union’s plan to cut aviation emissions. The regulation sets minimum shares of SAF that fuel suppliers must deliver at EU airports. These required shares increase each year. The goal is to reduce greenhouse gas emissions from flights over time.

In 2025, fuel suppliers must blend about 2% SAF into jet fuel at EU airports. This percentage increases to 6% by 2030 under the regulation. Rules will continue rising toward 70% by 2050. Aircraft operators that fail to meet these requirements may face penalties.

EU clean fuel target for aviation

These mandates follow global climate goals, including the aviation industry’s pledge to reach net-zero carbon emissions by 2050. SAF is central to these plans because it can cut lifecycle CO₂ emissions compared with traditional jet fuel.

However, SAF remains more costly and less widely produced than conventional jet fuel. That has raised concerns about supply, prices, and the ability of airlines and cargo carriers to meet future mandates.

The EU aims to help address this by revealing a $108 billion investment plan to help decarbonize the sector.  The funding will help ramp up the production and use of cleaner fuels like SAF for aviation and maritime.

Why DHL’s SAF Contract Matters? Net Zero Goals and Emissions Reduction Progress

DHL’s contract with Neste covers 50 million liters of SAF for delivery in 2026. The fuel will help power part of DHL’s air cargo flights in Europe. Neste will supply SAF made from renewable waste and residue materials. These feedstocks reduce lifecycle emissions compared with fossil fuels.

This agreement puts DHL among the early adopters of SAF under the new EU rule changes. It shows the growing role of long-term fuel contracts in securing carbon-reducing fuels. These contracts also help SAF producers plan and finance future production capacity.

Deals like DHL’s offer two key benefits:

  • Price certainty: Buyers secure fuel at a set price before markets tighten and costs rise.
  • Supply assurance: Long-term contracts guarantee volumes when the total SAF supply is limited.

For logistic operators like DHL, these benefits help manage operational costs and regulatory compliance. Beyond these is the environmental benefit for the logistics company.

DHL Group has committed to reaching net-zero greenhouse gas emissions by 2050 across all its logistics operations. This target aligns with global climate goals and covers air, road, and supply chain activities.

DHL Group net zero goals
Source: DHL Group

To stay on track, DHL has set clear interim goals and actions:

  • Cut total emissions to below 29 million metric tons of CO₂e by 2030, down from about 40 million metric tons.
  • Increase the use of sustainable fuels, including SAF, across air freight operations.
  • Source over 30 percent of transport fuels from sustainable alternatives by 2030.
  • Electrify more than 66% of last-mile delivery vehicles used for parcel delivery.
  • Improve fuel efficiency through better flight planning, routing, and load optimization.
  • Work with fuel suppliers and partners to secure long-term SAF supply contracts.

DHL has already begun using SAF on selected air routes and has signed multiple long-term fuel agreements, including this recent one with Neste. These steps help reduce emissions now while preparing for tighter climate rules in the coming years.

Inside the Global SAF Supply Crunch

The SAF market is still small compared with overall aviation fuel demand. Current production is limited but growing. In 2023, global SAF output climbed to around 600 million liters—about double the 300 million liters produced in 2022.

Total SAF in 2024 reached about 1.3 billion liters (nearly 1 million tonnes) worldwide. Even with this growth, SAF accounted for only about 0.3% of global jet fuel use in 2024.

Despite these gains, production remains far below what is needed to meet future emissions targets. According to industry forecasts, global SAF output could grow sixteen-fold by 2030 to roughly 6.1–8.2 billion gallons per year (about 23–31 billion liters). Other reports estimate SAF production near 10 billion liters by 2030.

SAF supply forecast 2030

Even with this expansion, SAF would still represent a small share of total aviation fuel demand unless growth accelerates well beyond these projections.

In addition to volume limits, SAF supply faces other challenges:

  • High costs: SAF currently costs two to five times more than conventional jet fuel in many markets.
  • Feedstock limits: SAF feedstocks, such as used cooking oil and agricultural residues, are in demand from other industries, which limits scaling potential.
  • Infrastructure gaps: Distribution and blending facilities are still being built in many regions.

Because of these limits, SAF supply is expected to stay tight relative to demand through at least the late 2020s.

Growth Forecasts Meet Real-World Constraints

Despite challenges, the SAF market is forecast to grow strongly as policy mandates and corporate commitments expand.

Market analysts project the global SAF market value at around US$2.06–2.08 billion in 2025. By 2030, the industry could reach US$25–26 billion. This implies a compound annual growth rate (CAGR) above 60 percent through the late 2020s.

SAF market 2034

In terms of production volume, analysts expect large increases, with forecasts ranging from several billion gallons per year by 2030. The expansion reflects rising demand due to regulatory pressure, corporate sustainability goals, and growing aviation activity.

By 2050, much larger SAF volumes may be necessary. One global industry assessment suggests the aviation sector may need around 500 million tonnes of SAF by 2050 to achieve net-zero emissions.

SAF requirement for net zero aviation 2050
Source: IATA

Currently, global SAF production is only about 2 million tonnes and represents less than 1 percent of total aviation fuel consumption. Bridging the gap will require dramatic increases in production capacity and feedstock supply over the next 25 years.

What This Signals for Aviation’s Low-Carbon Shift

DHL’s 50 million-liter SAF agreement with Neste highlights several key trends in aviation fuel markets:

  • Early action: Fuel buyers are signing long-term contracts ahead of tighter regulations.
  • Supply competition: With limited SAF output, early offtake deals secure fuel before wider market tightening.
  • Growing corporate role: Logistics firms and airlines are increasingly active buyers of SAF.
  • Market scale-up: SAF volumes are rising, but still far short of future demand needs.

DHL’s contract is not an isolated case. Large buyers around the world are seeking stable SAF supply to meet regulatory targets and sustainability goals. As SAF production capacity expands slowly, long-term agreements and supportive policies will be vital to growing the market.

The company’s early move shows how policy changes are shaping business decisions today rather than in the distant future. In this environment, SAF is no longer a niche fuel. It is becoming a necessary part of the future aviation fuel supply.

2026: The Year Nuclear Power Reclaims Relevance With 15 Reactors, AI Demand, and China’s Expansion

Saptakee S
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2026: The Year Nuclear Power Reclaims Relevance With 15 Reactors, AI Demand, and China’s Expansion

After a challenging year, the global nuclear industry is preparing for a meaningful rebound in 2026. New reactor startups, plant restarts, and strong policy backing are reversing the slowdown seen in 2025. At the same time, rising electricity demand from artificial intelligence and data centers is giving nuclear energy a renewed role as a stable, carbon-free power source.

According to BloombergNEF, global nuclear capacity is expected to grow again next year after shrinking in 2025. While long construction timelines and high costs remain hurdles, governments and major corporations are once again looking to nuclear to meet long-term energy needs.

A Weak 2025 Sets the Stage for Recovery

The nuclear sector struggled in 2025. Only two reactors entered service through November, while seven were permanently shut down. As a result, global nuclear capacity declined by around 1.1 gigawatts, marking one of the industry’s weakest years in recent memory.

However, this downturn appears short-lived. BloombergNEF expects about 15 reactors to come online in 2026, adding close to 12 gigawatts of new capacity. This shift reflects years of planning finally materializing, along with growing political and commercial support for nuclear power.

More importantly, the rebound signals confidence that nuclear can play a larger role in energy security and decarbonization, especially as electricity demand accelerates.

world nuclear capacity
Source: IAEA

The Palisades Restart Marks a Historic Moment

One of the most symbolic developments in the U.S. is the planned restart of the Palisades nuclear plant in Michigan. If successful, it would become the first nuclear facility in the country to return to service after entering decommissioning.

Owned by Holtec International, Palisades is targeting an early 2026 restart. The project has received $1.52 billion in federal loan support and officially transitioned back to operational status in August. Once fully operational, the plant is licensed to run through at least 2031. Holtec also plans to apply for a 20-year license extension in early 2026.

This restart reflects a broader shift in U.S. nuclear policy. Instead of allowing aging plants to shut down, policymakers are increasingly focused on extending reactor lifetimes, upgrading existing facilities, and bringing retired plants back online where possible.

world nuclear

Data Centers Drive New Energy Choices

At the same time, the rapid expansion of AI and cloud computing is reshaping power markets. In 2025, major technology companies signed several U.S. deals for gas-fired power, alongside clean energy contracts, as they raced to secure fast and reliable electricity supplies.

Big Tech firms have long been leaders in renewable energy procurement. However, the urgency to expand computing capacity has pushed them to also consider gas-fired and nuclear power. Speed, reliability, and 24/7 availability have become critical factors.

According to the International Energy Agency, gas-fired power plants are currently the largest source of electricity for U.S. data centers. This is expected to continue in the near term, as renewable projects face grid connection delays and policy bottlenecks. Still, the IEA expects clean power, including nuclear, to play a larger role after 2030 as installed capacity grows.

U.S. Policy Accelerates Nuclear and SMR Deployment

U.S. government policy is now closely aligned with this shift. The Trump Administration has emphasized “energy dominance” and reliable power to support AI leadership. The Department of Energy is working to remove barriers to co-locating data centers with new generation sources, including nuclear plants on federal land.

Recent executive orders aim to increase US nuclear energy capacity from 100GW to 400GW by 2050. It also aims to add 5 gigawatts of additional capacity by upgrading existing nuclear reactors and to have 10 newly designed large reactors under construction by 2030.

As part of this push, the DOE recently selected the Tennessee Valley Authority and Holtec as the first recipients of $400 million each in cost-shared funding to advance early deployments of advanced light-water small modular reactors.

Officials say these projects will help deliver new nuclear generation in the early 2030s, strengthen domestic supply chains, and support a broader nuclear renaissance. In addition, retired coal plant sites across the U.S. could host up to 174 gigawatts of new nuclear capacity, offering faster development timelines and existing grid connections.

us nuclear

Modest Growth Expected Through the Decade

Looking ahead, the U.S. nuclear industry expects gradual but steady growth. BloombergNEF estimates around 7% net growth, or roughly 7 gigawatts, by the end of the decade. This will primarily result from plant restarts, power upgrades, and license extensions for reactors that are set to expire before 2035.

Earlier frameworks under the Biden administration targeted as much as 200 gigawatts of new nuclear capacity by 2050. These ambitions are now being accelerated by stronger political support and rising demand from AI-driven infrastructure.

Still, challenges remain. Large-scale nuclear projects take years to build and face complex regulatory processes. As a result, small modular reactors and life-extension projects are expected to play a larger role in the near to medium term.

China Continues to Lead Global Expansion

While the U.S. focuses on restarts and SMRs, China remains the world’s most active nuclear builder. The country has approved 10 new nuclear generating units with a total investment of about $27 billion. These projects expand five existing plants and rely entirely on domestic technologies.

Investment in nuclear engineering and construction reached a record 146.9 billion yuan last year. By the end of 2024, China had 57 reactors in operation with nearly 60 gigawatts of installed capacity.

China is forecast to become the world’s largest nuclear power market by 2030, overtaking both the U.S. and France. Nuclear power currently supplies about 5% of China’s electricity, and this share is expected to double to 10% by 2040.

Notably, China’s Linglong One small modular reactor is scheduled to begin commercial operations in the first half of 2026. This would make it the world’s first commercial onshore SMR, further strengthening China’s leadership.

China nuclear
Source: WNA

Nuclear Finds New Purpose in an AI-Driven World

Globally, about half of all reactors under construction are located in China. At the same time, technology giants such as Microsoft, Google, Amazon, and Meta are signing nuclear power agreements or investing directly in reactor development. Goldman Sachs estimates that data center electricity demand could rise by 160% by 2030.

Despite lingering risks, the combination of climate goals, grid constraints, and surging AI demand is reshaping the role of nuclear energy. While large reactors remain slow to build, nuclear energy is increasingly seen as one of the few scalable, low-carbon options capable of delivering reliable power around the clock.

Sources of global electricity generation for data centres, Base Case, 2020-2035

IEA data center nuclear
Source: IEA

As a result, 2026 may mark the beginning of a new chapter for the nuclear industry—one driven not just by decarbonization, but by the growing need for dependable energy in a data-hungry global economy.

Joby Aviation’s 2027 Vision: Four Electric Air Taxis per Month and Stronger Emission Cuts Amid Advanced Air Mobility Boom

Saptakee S
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Joby Aviation’s 2027 Vision: Four Electric Air Taxis per Month and Stronger Emission Cuts Amid Advanced Air Mobility Boom

Joby Aviation is moving into a new phase of growth and confidence. The company, which is developing electric air taxis for commercial passenger travel, announced major investments to double its manufacturing capacity in the United States. By 2027, Joby plans to build four aircraft per month, showing how serious it is about leading the future of advanced air mobility.

This expansion aligns with rising global support for electric vertical takeoff and landing (eVTOL) aircraft. With strong demand, government backing, growing partnerships, and accelerating certification progress, Joby is positioning itself at the front of a rapidly emerging industry.

Joby’s New Strategy: Building More Aircraft, Faster

Joby’s production growth plan is based on real industry momentum. The company already operates manufacturing facilities in California and Ohio, both of which will support the production ramp-up.

Recently, Joby revealed that it has over $1 billion in potential aircraft and service sales, highlighting confidence from customers and governments. At the same time, support from U.S. authorities has strengthened. The country’s eVTOL Integration Pilot Program, announced in September, aims to speed up the launch of air taxi services.

A Presidential Executive Order has directed the Department of Transportation and the Federal Aviation Administration (FAA) to allow mature eVTOL aircraft to begin operations in select cities as early as next year, even before full certification is completed.

According to Joby founder and CEO JoeBen Bevirt, this moment marks the beginning of a “new golden age of aviation.” He believes Joby will soon be one of the few companies in the world capable of building aircraft at high volumes while maintaining quality and safety.

Given the maturity of its air taxi program and the level of market demand, Joby says now is the right time to invest in equipment, facilities, and skilled workers. The company is already purchasing new capital equipment and expanding operations to support non-stop, round-the-clock manufacturing in California.

In July, Joby completed an expanded factory in Marina, California. In October, it began producing propeller blades in Ohio, ahead of bigger manufacturing activities planned in the state. These milestones show that Joby is not just announcing plans—it is actively executing them.

Toyota Partnership Strengthens Manufacturing Power

A key pillar of Joby’s growth strategy is its long-term collaboration with Toyota Motor Corporation. In May 2025, Joby closed the first $250 million tranche of a strategic investment from Toyota. Both companies are now finalizing a strategic manufacturing alliance designed to support Joby’s production ramp-up.

Toyota brings decades of expertise in high-volume, precision manufacturing, something that could be a game-changer as aviation transitions toward electric mobility. Joby has credited Toyota’s knowledge and guidance as essential to scaling up safely and efficiently.

Together, the companies share a vision: making electric air taxis a reliable, trusted part of future transportation.

Certification Progress and Flight Readiness

Joby is also moving steadily toward FAA certification. The company recently began power-on testing of the first FAA-conforming aircraft built for Type Inspection Authorization (TIA). This is the final and most critical stage of FAA Type Certification, during which FAA test pilots will fly Joby’s aircraft themselves. Four additional FAA-conforming aircraft required for TIA are already under production.

Meanwhile, Joby ended 2025 on a strong note with its final international flight demonstration of the year at Japan’s Fuji Speedway. Conducted in partnership with Toyota, the campaign included 14 piloted flights and marked Joby’s fourth major global demonstration of the year.

This capped a year filled with progress. In 2025 alone, Joby completed more than 850 flights across its fleet, logging over 50,000 miles, a 2.6× increase from the previous year. This expanding flight activity is essential for collecting real-world performance data, validating design decisions, and proving reliability.

Proving Real-World Operations Around the Globe

Joby’s aircraft flew in three major markets in 2025—the United States, the United Arab Emirates, and Japan. Highlights included:

  • 41 flights at the World Expo 2025 in Osaka
  • 21 flights in the UAE during environmental and operational testing
  • Active participation in the Dubai Airshow, where Joby was the only eVTOL aircraft to perform a full week of flights

Joby also completed point-to-point flights between public airports, including routes between Marina and Monterey and Marina and Salinas in California. In the UAE, Joby completed the first piloted point-to-point air taxi flight from Margham to Al Maktoum International Airport.

The company also advanced future technologies. It successfully flew a turbine-electric demonstrator aircraft, only three months after first revealing the concept, proving how fast it can innovate. Meanwhile, Joby’s Superpilot™ autonomous flight technology logged over 7,000 miles during a major U.S. defense exercise.

Overall, Joby’s aircraft covered more than 9,000 miles in 2025, supporting over 4,900 test objectives. This data is now feeding directly into final FAA certification activities and helping finalize operating and maintenance manuals.

Cleaner Growth in the Skies: Joby Expands While Cutting Emissions

Joby sees urban air mobility as a strong complement to existing transportation, offering faster, quieter, and cleaner travel. Its fully electric air taxi reduces emissions per passenger, and in 2024, the company also demonstrated hydrogen-electric flight, showing potential for longer-range operations.

joby aviation
Source: JOBY

Despite a 29% rise in energy use due to manufacturing growth, Joby cut emissions by 44% in 2024 by relying on renewable electricity.

  • Renewable electricity use increased 19% from 2023
  • 84% of facility power came from renewables, including 3% from on-site solar
  • Employees used 268,355 kWh for EV charging, replacing about 7,182 gallons of gasoline

Thus, the company continues to scale while lowering its environmental footprint.

JOBY AVIATION EMISSIONS
Source: JOBY

AAM: A Growing Market With Huge Potential

Joby’s expansion is happening within a booming global Advanced Air Mobility (AAM) market. Industry forecasts suggest:

  • Analysts say global AAM revenue could reach $1.76 billion by the end of 2025, with some estimates much higher. By 2035, the market could soar to $90.3 billion, growing at more than 20% CAGR
  • Urban Air Mobility (UAM), a key segment, could jump from $6.59 billion in 2025 to $126 billion by 2035

Infrastructure development, including vertiports and air traffic systems, will help unlock this growth.

URBAN AIR MOBILITY AAM
Source: Future Market Insights

At the same time, Joby’s own market outlook is strong. The Joby eVTOL aircraft market was valued at $1.4 billion in 2024 and is projected to reach $13.8 billion by 2033, growing at a robust 28.7% CAGR. As cities face congestion and pollution challenges, clean electric air taxis are emerging as a real solution for passenger travel, logistics, and emergency response.

Significantly, JOBY stock (NYSE: JOBY) trades at $13.85, up 4.92% or $0.65 today amid positive momentum from manufacturing expansions and certification progress.

JOBY stock
Source: Yahoo Finance

If Joby succeeds, daily mobility could change forever. Short, fast, zero-emission air taxi flights may soon become as normal as booking a ride-share today. And with global governments and major companies backing the vision, the world appears ready for this new era of aviation.

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Google Signs Solar Deals with TotalEnergies and Shizen Energy in Malaysia to Power Data Centers with Clean Energy

Jennifer L
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Google Signs Solar Deals with TotalEnergies and Shizen Energy in Malaysia to Power Data Centers with Clean Energy

Google has strengthened its clean energy strategy in Malaysia through two major long-term agreements. The company has signed a solar power pact with a Japanese renewables firm, Shizen Energy, and a separate 21-year clean energy deal with TotalEnergies. Together, these agreements support Google’s growing data center operations while reducing emissions linked to electricity use.

The deal with Shizen Energy involves a 30-megawatt solar farm in Gurun, Kedah. The project will begin generating power in 2027. Meanwhile, Google’s deal with TotalEnergies includes more solar projects in Peninsular Malaysia. These projects have a total capacity of up to 300 megawatts. Some of these projects will include battery storage to improve supply reliability.

These agreements reflect rising corporate demand for clean power in Malaysia. They also align with the country’s push to expand renewable energy capacity under national transition plans.

Inside Google’s 30MW Solar Project in Kedah

The Shizen Energy project has a planned capacity of about 30 megawatts. It reached financial close in November 2025, allowing construction to move forward. Commercial operations are scheduled for 2027.

Kenji Kawado, CEO, Shizen International Inc., said:

“The successful expansion of our collaboration with Google from Japan to Malaysia underscores the trusted relationship we have built and validates Shizen Energy’s capability to deliver large-scale, complex renewable energy solutions across borders.”

The project is being developed by SM01 Sdn Bhd. The consortium includes Shizen Malaysia with a 49% stake, Solarvest Asset Management with 33%, and HSS Engineering with 18%. Financing is being provided by a Malaysian bank acting as the sole lender.

Under the agreement, Google will receive renewable energy attributes linked to the solar plant’s output. This allows Google to match a portion of its electricity consumption with locally generated clean power. This approach is especially relevant for data centers, which require constant and high levels of electricity.

Expanding Clean Energy Across Google’s Malaysian Data Centers

The Shizen Energy project is part of a wider clean energy strategy by Google in Malaysia. In a separate agreement, Google has signed a 21-year power purchase arrangement with TotalEnergies. This deal supports the long-term energy needs of Google’s Malaysian data centers.

Giorgio Fortunato, Head of Clean Energy & Power, Asia Pacific at Google, stated:

“We’re thrilled to build on our collaboration with TotalEnergies in Malaysia. This agreement is a key part of our strategy to make meaningful investments that benefit the economies where we operate. By enabling this new clean capacity, we are supporting local growth of the electricity system hosting our infrastructure.”

Under the TotalEnergies agreement, new solar projects will be developed across multiple sites in Peninsular Malaysia. The total capacity is expected to reach up to 300 megawatts. Battery energy storage systems will be added to part of this capacity to help balance supply and demand.

This longer-term deal provides stability for both parties. For Google, it has secured a reliable supply of clean electricity for over two decades. For developers, it ensures predictable revenue that supports large-scale investment in renewable infrastructure.

The Shizen and TotalEnergies agreements highlight how global tech firms are mixing smaller projects with large-scale developments. This strategy helps them meet the growing demand for power.

Malaysia’s Solar Growth and Policy Support

Malaysia Power Capacity in 2024 (MW)
Source: 2024 National data

Malaysia continues to expand its renewable energy capacity. As of 2024, renewable sources accounted for about 23.6% of total installed power capacity. Hydropower and solar energy made up the bulk of this share.

Solar photovoltaic capacity reached about 4.3 gigawatts by the end of 2024. This represented an increase of around 1.27 gigawatts in just one year. Growth has been driven by utility-scale projects, rooftop installations, and corporate demand.

Under the National Energy Transition Roadmap, Malaysia aims to raise renewable capacity to 40% by 2040 and 70% by 2050. Solar energy could be a key contributor due to its scalability and declining costs.

Malaysia Projected power system installed capacity mix 2050
Source: Ministry of Economy

Long-term projections estimate that total renewable capacity could reach around 30 gigawatts by 2035. To reach this goal, the country needs ongoing private investment, improved grids, and steady policy support.

Beyond Malaysia, Google has expanded clean energy procurement globally as part of its net-zero strategy. The company aims to achieve net zero emissions across its operations and value chain by 2030. A key pillar of this goal is operating on carbon-free energy on a 24/7 basis, meaning every hour of electricity use is matched with clean power.

Google clean energy emission reductions

By 2024, Google had signed deals for over 11 gigawatts of renewable energy. This includes solar, wind, and energy storage projects around the globe. These efforts aim to offset yearly electricity use. They also work to reduce real-time emissions from data centers, offices, and cloud infrastructure as demand grows.

Corporate Power Drives Malaysia’s Solar Expansion

Malaysia’s solar market is expanding rapidly. Installed solar capacity could grow from about 3.75 gigawatts in 2025 to around 16.5 gigawatts by 2030. This represents one of the fastest growth rates in Southeast Asia.

Utility-scale solar accounts for roughly half of installed capacity. The rest comes from commercial, industrial, and residential systems. Falling technology costs have improved the competitiveness of solar power.

In 2023, large-scale solar generation in Peninsular Malaysia was estimated to be more than 50% cheaper than new fossil fuel-based power. This cost-benefit has led developers and corporate buyers to seek long-term solar contracts.

Corporate power purchase agreements play a central role in this trend. Deals like those signed by Google provide long-term price certainty and reduce exposure to fuel price volatility. They also help ensure that new renewable capacity is there to meet growing demand.

How Corporate PPAs Enable Renewable Growth

Malaysia’s Corporate Green Power Programme enables companies to purchase renewable electricity directly from generators through the national grid. This framework allows businesses to align energy use with clean power, even while fossil fuels still dominate the grid.

In 2025, coal accounted for about 45% of Malaysia’s electricity generation, while natural gas made up around 32%. Solar power contributed only about 2%. This gap highlights the scale of opportunity for renewable expansion.

Corporate PPAs help close this gap by supporting new projects that might not move forward without long-term buyers. They also help spread financial risk and encourage innovation in storage and grid management.

The inclusion of battery systems in some of Google’s solar projects reflects a growing focus on reliability, not just capacity.

From an environmental standpoint, expanding solar capacity reduces emissions by displacing coal- and gas-fired power. Over time, this supports Malaysia’s climate commitments and reduces exposure to fuel price swings.

Corporate agreements ensure that renewable growth keeps pace with rising electricity demand from digital services and data infrastructure.

Google’s solar agreements with Shizen Energy and TotalEnergies highlight a broader shift in Malaysia’s energy market. Clean electricity is becoming a core requirement for global companies, not just a sustainability add-on.

Corporate demand for clean power is rising, and so similar agreements will likely shape the country’s energy transition even more. Public policy, private investment, and long-term contracts will all be critical in determining how fast Malaysia can move toward a lower-emissions power system.

Global AI Chip Race Heats Up: China’s $70B Plan and South Korea’s $518B AI Strategy

Jennifer L
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0
Global AI Chip Race Heats Up: China’s $70B Plan and South Korea’s $518B AI Strategy

The global race for advanced computer chips is heating up. Countries are competing to lead in semiconductors, which are the core of computers, smartphones, and artificial intelligence (AI) systems.

Recently, China proposed a $70 billion plan to support its chip industry. At the same time, South Korea unveiled a $518 billion strategy to expand its semiconductor sector and challenge global leaders like the U.S. and Taiwan. Both plans show how governments are investing heavily to secure technology and economic power in the AI era.

China Plans a Big Chip Industry Support Package

China is considering a major incentive package for its chip industry. The package could be worth up to $70 billion. This would make it one of the largest government efforts to support semiconductor production in the world.

Chinese officials are still discussing the details. The exact amount and the final plan have not been finalized. The proposal would include subsidies, financial support, and other incentives for companies that design and make chips.

The goal of this plan is to strengthen China’s domestic chip manufacturing. China wants to rely less on foreign technology, especially in advanced chip design and production. Officials see semiconductors as key technology for future growth, national security, and AI development.

This proposed spending builds on earlier government efforts to support semiconductor firms. China operates the China Integrated Circuit Industry Investment Fund, or “Big Fund III,” a $47.5 billion equity investment vehicle. This fund has invested tens of billions in local chipmakers.

The possible plan joins a broader global trend. Countries are using public money to support chip production and AI‑related technology. This is happening amid rising global competition between China, the United States, and other advanced economies.

The announcement comes as U.S. policy on chip exports changes. On December 8, President Donald Trump approved the sale of Nvidia’s H200 chips to China. The deal includes a revenue-sharing plan, with 25 % of sales going to the U.S. government.

What China’s Incentive Package Could Do

If China moves forward with the $70 billion package, it would signal a major step in its industrial strategy. The incentives could help Chinese companies:

  • Expand domestic chip production capacity.
  • Invest in equipment and manufacturing facilities.
  • Attract investment in chip design and research.

Officials hope the incentives will reduce China’s reliance on imported chips and advanced tools that are controlled by other countries. This includes sophisticated systems for manufacturing cutting‑edge chips. President Xi Jinping aims for 70% self-sufficiency by 2025.

However, Chinese technology is still behind some global leaders in certain areas, even if the country has invested over $150 billion since 2014. For example, producing the most advanced logic chips remains a challenge domestically. China has relied on imports or foreign partnerships to access some high‑end tools and designs.

South Korea’s Ambitious Long‑Term Chip Strategy

Around the same time, South Korea unveiled a very large plan to strengthen its semiconductor sector. Seoul announced a proposal to invest about 700 trillion won, which is roughly $518 billion, in its chip industry.

The South Korean plan focuses on chips for AI and other advanced technologies. It aims to expand beyond memory chips, where the country is already strong, into areas like logic chips and AI processors.

South Korea’s semiconductor plan includes targeted R&D and sub-investments to drive innovation. It has allocated:

  • 126.8 billion won for AI-specialized semiconductor development by 2030,
  • 260.1 billion won for compound semiconductors by 2031,
  • 360.6 billion won for advanced packaging technologies by 2031, and
  • 216 billion won for next-gen memory technologies by 2032.

These focused investments aim to strengthen South Korea’s capabilities in cutting-edge chip technologies and support the country’s push into AI and system semiconductors.

The government also wants to strengthen cooperation between chip designers and manufacturers. It aims to create more companies that design chips (fabless firms) as well as expand production capacity.

South Korea’s plan is part of a long‑term vision through 2047. Officials say this effort is meant to position the country as a global leader in the AI era.

South Korea’s Strategic Focus on AI and the Supply Chain

South Korea’s chip strategy highlights the importance of artificial intelligence and advanced semiconductor technologies. Its plan aims to:

  • Expand technological capabilities in AI‑related chips.
  • Strengthen the full supply chain for semiconductors.
  • Build industrial clusters that combine production, research, and infrastructure.

The Korean government sees this as both an economic and strategic priority. Officials say that better chips and AI could boost the nation’s global competitiveness in the coming decades.

total investment in AI chip by country

Why Chips Are the Heart of the AI Era

Advanced chips are essential for many technologies. They power smartphones, computers, data centers, vehicles, and most importantly, artificial intelligence systems. Many governments now see semiconductor leadership as vital for economic and national security.

China and South Korea are acting as the global chip race intensifies. Other major players include the United States, Taiwan, Japan, and the European Union. Each has its own strategies to promote chip design, advanced manufacturing, and supply chain security.

The United States passed the CHIPS and Science Act. This law gives subsidies and tax incentives to chip companies in the U.S. It authorizes roughly $52.7 billion for semiconductor manufacturing, research, and workforce support. It also has an additional $24 billion in tax credits to encourage domestic chip production.

This funding supports advanced semiconductor facilities and R&D, including AI-relevant technologies. It also aims to boost domestic production and cut reliance on foreign suppliers.

Taiwan leads in advanced chip manufacturing. It excels in logic chips and advanced process nodes. South Korea is strong in memory chips, which are also critical for many high‑performance computing applications. China is still catching up in production technology. However, it is pushing for faster progress with state support.

Chips, Energy Use, and Emissions

chip carbon emission sources semiconductor environmental footprint

Making advanced chips uses a lot of energy. Factories run large machines and maintain clean air, which consumes huge electricity. A single semiconductor plant can use as much energy as a small town and about 10 million gallons of ultra‑pure water daily.

Globally, the semiconductor industry accounted for roughly 0.5 % of electricity use in 2022, with 70 % of emissions coming from energy consumption. In East Asia, AI chip production caused emissions to jump sharply.

  • Taiwan’s emissions grew from 41,200 to 185,700 tonnes of CO₂ in one year, while South Korea’s rose from 58,000 to 135,900 tonnes.

Most emissions come from electricity (Scope 2) and gases used in production, which can trap heat more strongly than CO₂.

semiconductor emissions by scope
Source: Yin, Y., & Yang, Y. (2025). Sustainable Transition of the Global Semiconductor Industry: Challenges, Strategies, and Future Directions. Sustainability, 17(7), 3160. https://doi.org/10.3390/su17073160

Chipmakers are acting to reduce energy use. Some report up to 44 % lower peak power use, and many aim for 20–30 % energy cuts or 100 % renewable electricity by 2040. Balancing growth with climate goals is now a key challenge for the global chip industry.

The Global Semiconductor Race is On

Both China and South Korea are responding to global pressures and opportunities. Advanced chips are key to technologies like AI, quantum computing, autonomous vehicles, and smart devices.

Many countries are investing heavily in semiconductor research and manufacturing. This includes public funding, tax incentives, and partnerships with private companies. Governments also work to protect intellectual property, secure supply chains, and attract skilled workers.

Some initiatives encourage international cooperation. For example, alliances and trade agreements seek to strengthen supply chains and reduce risks from political or economic tension.

The global chip race is intensifying as China and South Korea roll out massive investment plans. With $70 billion and $518 billion in incentives, respectively, both nations aim to secure leadership in AI and advanced semiconductors. Their strategies highlight the growing importance of chips for technology, economic power, and national security, while setting the stage for a highly competitive and innovation-driven global market.

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