SGE, GE Vernova, Hitachi, and Samsung C&T Target Europe With 4.2 GW BWRX-300 SMR Fleet

Saptakee S
-
0
SGE, GE Vernova, Hitachi, and Samsung C&T Target Europe With 4.2 GW BWRX-300 SMR Fleet

Europeโ€™s small modular reactor (SMR) market is nearing commercial deployment. Governments and energy firms seek reliable low-carbon power to boost renewable energy.

SGE, GE Vernova, Hitachi, and Samsung C&T signed a Memorandum of Understanding (MoU) to explore market opportunities for GE Vernova Hitachiโ€™s BWRX-300 SMR in Central and Eastern Europe and the UK.

The agreement was signed on September 22 in New York during the Atlantic Council Nuclear Energy Policy Summit, coinciding with the United Nations General Assembly. The U.S. Department of State recognizes this partnership as part of wider U.S., Japanese, and South Korean cooperation on SMR deployment.

The four companies will evaluate potential markets, develop deployment strategies, and pursue commercial opportunities. This partnership combines reactor technology, nuclear engineering, construction, and European project development.

Europe Nuclear Generation Capacity

Nuclear power already plays a significant role in Europeโ€™s electricity supply. France accounts for the largest share of nuclear capacity and generation.

  • The World Nuclear Association (WNA) reports 96 GWe of operating nuclear capacity across the European Union, with 98 reactors operating in 12 EU countries.
  • In 2025, nuclear plants generated about 650 TWh, making up 23.2% of EU electricity production, according to Eurostat and WNA. Renewables led at 47.2%.
nuclear capacity europe
Source: WNA

Beyond the EU, several European countries also operate nuclear reactors. The United Kingdom, Russia, Ukraine, Belarus and Switzerland add significant nuclear capacity and generation. Their 2025 generation totaled about 323 TWh, while their operating capacity was about 55 GWe.

The European Commission estimates that around โ‚ฌ241 billion will be needed for EU nuclear energy through 2050. This includes extending the life of existing reactors and building new large-scale facilities. Additional investment will be required for SMRs, advanced modular reactors, and fusion.

This creates a growing market for smaller nuclear units, which can be deployed in fleets rather than single large reactors.

The global SMR market is attracting more investment, although estimates vary widely. A July 2026 report from Heimdall Insights valued the market at $6.5 billion in 2025, predicting $10.7 billion by 2030. Global Market Insights predicts a $3.6 billion market in 2025, with growth to $15.6 billion by 2035.

Global smr

However, installed capacity is much smaller than these market estimates suggest. Mordor Intelligence estimates global SMR capacity at 312.5 MW in 2025, rising to 912.5 MW by 2030.

  • Now focusing on Europe, the EU launched its first dedicated SMR strategy in March 2026 and aims for the first SMRs to operate in the early 2030s. Its Nuclear Illustrative Programme predicts EU SMR capacity could reach between 17 GW and 53 GW by 2050.

SGE Builds a BWRX-300 Pipeline

SGE is a Warsaw-based European SMR developer founded in 2019. It is a co-investor in projects using the BWRX-300 SMR, developed by GE Vernova Hitachi Nuclear Energy. The company is now developing the BWRX-300 as a standardized reactor platform for European markets.

In Poland, Decisions in Principle have been issued for 26 BWRX-300 reactors. SGE is focusing on three sites for the first 14 units, with the first Polish unit expected to be operational by 2032.

SGE and GE Vernova Hitachi are also creating a Polish reference design for the reactor, aiming for a repeatable model for future projects.

The UK is another key target.

Rafaล‚ Kasprรณw, CEO of SGE, noted:

โ€œEurope is entering a new strategic era in which energy independence, security of supply and industrial resilience are becoming core elements of national and regional security.

This agreement brings together state-of-the-art American nuclear technology from GE Vernova Hitachi, the industrial and technological capabilities of Hitachi and Samsung, and SGEโ€™s European BWRX-300 development platform. Our objective is to establish a standardized, cross-border BWRX-300 fleet across the European Union and the United Kingdom, creating a new layer of secure, reliable and low-carbon generation capacity.

By combining American technology, Japanese and Korean industrial strength, and European development capabilities and supply chains, we are building the foundations of a long-term nuclear strategic program designed to strengthen Europeโ€™s energy security, strategic autonomy and industrial competitiveness.โ€

Shaping the UK SMR Fleet

In July, SGE announced plans for 14 BWRX-300 reactors across three UK sites, totaling about 4.2 GW of capacity. This fleet could supply around 11% of the UKโ€™s electricity demand.

SGEโ€™s proposal is now in the Preliminary Regulatory Assessment Deep Dive led by Great British Energy โ€“ Nuclear. The first site will host six reactors, with commercial operation aimed for 2034.

The UK is exploring several SMR options. In September, Reuters reported that EDF plans to develop 10 small nuclear plants in the EU by 2035 using its NUWARD technology, with projects in France, Italy, Poland, Belgium, and Finland.

This competition means technology developers must show more than reactor performance. Licensing, financing, construction timelines, supply chains, and the ability to replicate projects will all be critical.

The Key Advantages of BWRX-300ย 

The BWRX-300 is a 300 MW-class boiling water reactor from GE Vernova Hitachi Nuclear Energy. It features a simplified design based on established boiling water reactor technology, supporting standardized deployment.

Key characteristics include:

  • 300 MW-class output: A single unit provides a smaller block of firm electricity than traditional gigawatt-scale reactors.
  • Standardized design: Projects can use common engineering, manufacturing, and construction processes.
  • Modular construction: The design supports more factory-made components and repeatable construction.
  • Existing reactor experience: The BWRX-300 builds on decades of boiling water reactor operations.
  • Fleet deployment: Developers can add multiple units or deploy standardized units across locations.

Additionally, the BWRX-300 is gaining insights from a project in Canada.

Ontario Power Generation received a license in April 2025 to build one BWRX-300 at the Darlington New Nuclear Project. In March 2026, the Canadian Nuclear Safety Commission confirmed that the first regulatory hold point was cleared. OPG also applied for a 20-year operating license in March.

This Canadian project provides a reference as European developers navigate their own regulatory processes.

Four Companies, One European Fleet Strategy

The new partnership assigns distinct roles to each company.

GE Vernova Hitachi Nuclear Energy manages the BWRX-300 design and technology. Hitachi offers nuclear and industrial capabilities, while Samsung C&T provides engineering, procurement, and construction expertise. SGE leads European project development and market expansion.

This structure reflects a broader shift in the SMR industry. Developers are increasingly focusing on fleets rather than single reactors. Repeating designs could minimize engineering work, strengthen supply chains, and create economies of scale.

Jung Wook Kim, Executive Vice President and Head of Global Business Unit and Global Operation, Samsung C&T, expressed himself by saying:

“Samsung C&T is honored to open a new chapter in Europe’s SMR business together with GE Vernova, Hitachi and SGE. Building on Samsung C&T’s proven EPC capabilities, we will fully leverage the synergy created by this four-way partnership to strengthen Europe’s energy security and contribute to the realization of carbon neutrality.”

The SMR Race Is Heating Up

The BWRX-300 enters a European market with several competing reactor designs.

The European Commissionโ€™s SMR strategy supports fleet-based deployment, standardized industrial processes, stronger supply chains, and closer cooperation among regulators. It also aims for the first European SMRs to start deploying in the early 2030s.

For developers, the opportunity is vast, but execution remains a challenge.

The new MoU does not guarantee the construction of the proposed BWRX-300 fleet. Each project still needs regulatory approvals, financing, site development, and commercial agreements.

However, the partnership combines reactor technology, nuclear expertise, construction capability, and European project development at a time when the region is preparing for renewed nuclear investment.

If successful, BWRX-300 fleets could boost demand for reactors, engineering, construction, nuclear components, fuel services, and long-term operations in Europe.

Mombak Targets $150M for Amazon Reforestation as Salesforce Joins Carbon Removal Buyers

Jennifer L
-
0
Mombak Targets $150M for Amazon Reforestation as Salesforce Joins Carbon Removal Buyers

Brazilian carbon removal company Mombak has reached the first close of its second reforestation fund, targeting $150 million to finance restoration projects in the Amazon. At the same time, Mombak has signed a multi-year carbon removal purchase agreement with Salesforce, adding another major corporate buyer to its growing customer base.

The amount raised in the first close was not disclosed. The new fund also has access to a R$200 million credit line, worth about $38.9 million, from Brazilโ€™s Climate Fund, operated by state development bank BNDES.

Mombak has already attracted major buyers including Google, Microsoft and McLaren Racing. The new Salesforce agreement is significant. It brings in another big corporate buyer and comes as demand for better carbon removals grows.

The company is starting its second major funding cycle. It used its first $120 million fund to support restoration in the Brazilian Amazon.

Mombak Opens Its Second $150M Amazon Fund

Mombak’s Amazon Reforestation Fund II will invest in projects that restore degraded land in the Brazilian Amazon. The company did not disclose the size of the first close or the investors involved. Its target is to raise up to $150 million.

The fund also has access to a R$200 million BNDES credit line. The funding comes through Brazil’s Climate Fund, a government climate-finance program managed through BNDES’s lending operations. The fund supports projects that reduce greenhouse gas emissions and help Brazil adapt to climate change.

Mombak could access nearly $189 million in potential capital from the equity fundraising target and credit facility. However, they haven’t raised the full $150 million target yet, and the credit line is debt, not equity.

The new funding comes as Brazil tries to expand forest restoration and attract more private capital into nature-based climate projects.

BNDES announced in June that R$834 million in new Climate Fund projects will help restore over 65,600 hectares. This includes planting more than 108 million native trees and creating over 27,000 green jobs.

Mombak is therefore part of a much wider push to use public finance to bring more private money into Brazilian forest restoration. Gabriel Haddad Silva, CEO of Mombak, noted:

“The market spent years asking whether high-integrity reforestation could actually deliver. We answered that with our first deliveries ahead of schedule. Now, we are scaling our operations, with renewed support from investors, customers and BNDES.”

The First Fund Planted Nearly 15 Million Native Trees

Mombak’s first reforestation fund raised $120 million from investors including an AXA fund, CPP Investments and Bain Capital. The funding supported restoration projects across 15 Amazon farms, where Mombak has planted nearly 15 million native trees.

The company has also begun delivering actual carbon removal credits.

In August, Mombak announced its first issuance of more than 21,000 tonnes of CO2 removals from native, biodiverse reforestation projects in the Amazon. The credits were certified by Isometric using a Core Carbon Principles-approved protocol. They were delivered over two years early.

Early delivery is notable because delivery delays have been a major problem in the voluntary carbon market. It also gives Mombak a track record to show potential investors and buyers before it scales its second fund.

Mombak expects a much larger issuance of about 80,000 tonnes of reforestation carbon removal credits by the end of 2026. These figures are issued or expected credits, not the total amount of carbon that the company’s new fund could eventually generate.

Salesforce Expands Its Carbon Removal Buying

The Salesforce agreement adds another major technology company to Mombak’s buyer base. The company has buyers like Google, Microsoft, and McLaren Racing. Earlier deliveries also went to McKinsey & Company, Bain & Company, Climeworks, Commons, and Union Square Ventures.

The financial value and volume of the new Salesforce agreement were not disclosed.

Salesforce is already an active buyer of carbon removals. Its FY2026 Stakeholder Impact Report says the company contracted 41,000 tonnes of carbon dioxide removal across six different pathways during the year. It also maintained a commitment to compensate for 100% of its annual emissions with high-quality avoidance and removal credits.

Salesforce climate and nature
Source: Salesforce

Salesforce’s climate strategy also includes direct emissions cuts. The company saw a 66% drop in Scope 1 and 2 market-based emissions compared to FY2019. It also achieved a 67% reduction in Scope 3 market-based emissions intensity.

That distinction matters. Carbon removals are being used alongside emissions reductions, not as a substitute for them.

Nature-Based Removals Are Scaling Fastย 

Mombak’s expansion comes as corporate demand for carbon removals is growing, although the market remains concentrated.

CDR.fyi reported that durable carbon removal purchases excluding Microsoft and Frontier-linked buyers grew at a 151% compound annual rate from 2021 to 2025. Deliveries grew at a 131% annual rate over the same period.

Nature-based removals remain a much larger market than many engineered carbon removal technologies.

CDR.fyi‘s 2025 market survey found that about 11 million tonnes of nature-based removal credits were retired in 2024, compared with roughly 200,000 tonnes of durable engineered CDR. It also found that buyers expected nature-based removals to remain the larger category in the near term.

indexed-cdr-purchase-volume-growth-projections
Source: CDR.fyi

The broader carbon market is also attracting more investment. MSCI estimates that capital in the global carbon credit market hit $22 billion in 2025. This is up 72% from 2024 and over five times the level in 2021. The research points to growing use of long-term financing and offtake agreements to secure future carbon supply.

That model is especially important for reforestation. Projects need large amounts of capital before trees grow and begin generating verified removal credits.

BNDES Sees Demand Broadening Beyond Big Tech

Mombak’s new fund also comes as the buyer base for carbon removals could become more diverse. Technology companies have been major early buyers because of their growing emissions from data centers and AI infrastructure. But BNDES officials said that demand is also increasing from oil, mining, and steel companies.

Mombak’s CEO, Gabriel Silva, said better reforestation methods and higher productivity are lowering costs. This could make carbon removals appealing to more buyers. This could be important for Brazil.

The country has large areas of degraded land that could potentially support restoration, while its emerging carbon market is creating new ways to finance climate projects.

But voluntary reforestation credits remain different from credits issued under Article 6 of the Paris Agreement. Mombak’s current business is focused on voluntary carbon removal purchases. Its credits should not automatically be treated as internationally transferred mitigation outcomes.

Can Mombak Turn Fresh Capital Into Carbon Removals?

Mombak’s new fund combines three important parts of the carbon market: long-term investment, corporate offtake agreements and physical restoration.

The first fund showed that Mombak could attract institutional capital, plant millions of native trees and deliver its first credits earlier than planned. The second fund aims to take that model to a larger scale.

The challenge now is turning financial commitments into measurable and lasting carbon removals. Forest projects need strong land rights, long-term monitoring, credible carbon measurement and safeguards against reversal from fire, drought and other risks.

The market also needs more buyers. The Salesforce agreement helps on that front by adding another major corporate customer to the sector. Mombak’s wider buyer base suggests that demand is beginning to spread beyond a small group of technology companies.

For Brazil, the opportunity is larger still. BNDES is using public financing to help attract private capital into forest restoration, while companies such as Mombak are building commercial models around carbon removal.

The key test will be whether Mombak and other developers can turn that capital into verified, durable carbon removals at scale while delivering wider benefits for Brazil’s forests and communities.

ADM Enters the VCM With 800,000 Tons of Carbon Removal Credits Certified by Puro.earth

Saptakee S
-
0
ADM Enters the VCM With 800,000 Tons of Carbon Removal Credits Certified by Puro.earth

ADM is moving deeper into the carbon removal market, planning to sell carbon removal credits generated by its large-scale carbon capture operation at its corn processing complex in Columbus, Nebraska.

U.S. Solar in 2026: $12.2B Investment by Year-End, 75.3 GW Module Capacity and Rising Solar Prices

Saptakee S
-
0
U.S. Solar in 2026: $12.2B Investment by Year-End, 75.3 GW Module Capacity and Rising Solar Prices

The U.S. solar industry is entering a new phase. Solar installations continue to expand, but the market is also undergoing a major shift in where panels and components are manufactured.

After years of relying heavily on overseas supply chains, the U.S. has attracted billions of dollars into domestic solar factories. New manufacturing capacity is emerging across the country, while developers continue to build large amounts of solar power despite changing tax incentives, trade rules, and permitting challenges.

New research shows just how large that manufacturing push has become.

Cumulative U.S. solar photovoltaic manufacturing capital expenditure is expected to reach $12.2 billion by the end of 2026 since the Inflation Reduction Act (IRA) was introduced in 2022, according to analysis from Terawatt PV Research reported by pv magazine. That figure represents more than half of all U.S. solar manufacturing investment since 2001.

At the same time, the latest US Solar Market Insight Q3 2026 report from Wood Mackenzie and the Solar Energy Industries Association (SEIA) shows that the domestic solar market continues to operate at a substantial scale, with a large pipeline supporting demand for locally manufactured equipment.

U.S. Solar Manufacturing Investment Surges

The scale of recent investment stands out against the industry’s earlier history.

According to Terawatt PV Research, U.S. solar manufacturing capex exceeded $2.5 billion annually from 2023 onward. Spending reached a record $4.14 billion in 2024, with more than 60% coming from First Solar and Qcells.

solar investment US
Source: Terawatt PV Research, PV Magazine

First Solar’s spending included new manufacturing facilities in Alabama and Louisiana, while Qcells expanded its vertically integrated manufacturing operations in Georgia.

From Factory Investment to Actual Solar Production

The investment is also changing the structure of the domestic supply chain. The research firm tracks spending across buildings and infrastructure, new production equipment, and maintenance or upgrades.

  • Buildings and infrastructure accounted for roughly 60% of U.S. solar manufacturing capex between 2023 and 2026
  • It highlights how much capital has gone into establishing physical production facilities rather than simply upgrading existing lines.

This distinction is important because manufacturing announcements do not automatically translate into production.

A factory can have several gigawatts of announced capacity while still operating well below that level during its initial ramp-up. Terawatt’s analysis therefore looks at effective capacity, actual production, and capacity-conversion rates alongside capital spending.

The research found that conversion rates can range from just 15%-20% during early ramp-up to 70%-80% at some established manufacturing facilities.

U.S. Solar Manufacturing Buildout Tops 75 GW as Cell Capacity Surges

According to recent SEIA and Wood Mackenzie data, U.S. operational module manufacturing capacity reached 75.3 GW, with another 14.4 GW under construction. Domestic solar cell manufacturing is also expanding, with 10.6 GW of operational capacity and 19.1 GW under construction.

That upstream growth could gradually reduce one of the biggest weaknesses in the domestic solar supply chain: the gap between module assembly and production of cells and other components.

Texas Emerges as a Solar Manufacturing Hub

The new manufacturing investment is also creating regional clusters.

Texas has emerged as the leading U.S. state for solar module production in 2026, according to Terawatt PV Research. Companies including Canadian Solar, Sirius/Elin, Imperial Star, SEG Solar, T1 Energy, TOYO/Abalance, and Waaree Energies are contributing to the state’s growing manufacturing base.

The Southeast has become another important manufacturing region, particularly across Louisiana, Florida, the Carolinas, Georgia, and Alabama.

This geographic shift could become increasingly important for developers and suppliers as the U.S. solar industry places greater emphasis on domestic sourcing and supply-chain security.

The expansion also extends beyond modules.

Solar Demand Keeps the Factories Busy

Manufacturing investment would have less value without strong domestic demand.

  • The Wood Mackenzie and SEIA Q3 2026 outlook shows that the U.S. installed 11.4 GWdc of solar capacity in Q2 2026, a 45% increase from the same quarter in 2025 and a 43% increase from Q1.
  • Utility-scale projects accounted for nearly 10 GWdc, up 61% year over year.

Developers accelerated construction partly because of deadlines associated with federal clean-energy tax credits.

Wood Mackenzie estimates that more than 200 GWdc of utility-scale solar projects sit within the safe-harbored pipeline, providing significant near-term demand visibility.

The residential market presents a different picture. Wood Mackenzie expects U.S. residential solar installations to decline 23% in 2026 following the expiration of the federal residential 25D tax credit.

Utility-scale solar therefore remains an important source of demand as the industry moves through the policy transition.

EIA Data: U.S. Solar Capacity in 2026

EIA’s latest short term energy outlook revealed U.S. solar capacity to reach 181 GW and provide 8% of U.S. electricity generation in 2026

Its latest capacity data also shows how quickly new solar projects are being added. Developers plan to bring 43.4 GW of new utility-scale solar capacity online in 2026, a 60% increase from the 27.2 GW added in 2025, if all planned projects are completed.

  • Texas accounts for about 40% of the planned 2026 utility-scale solar additions.

The growth comes as U.S. electricity demand also rises. EIA expects electricity sales to reach 4,135 billion kWh in 2026, nearly 2% above 2025, with data centers and manufacturing contributing to higher commercial and industrial demand.

eia solar energy US

Can the Market Nearly Double by 2031?

Despite the policy and trade changes, Wood Mackenzie expects the broader U.S. solar market to maintain a substantial buildout.

  • The research firm forecasts annual U.S. solar installations to average around 44 GWdc through 2031, with cumulative solar capacity exceeding 545 GWdc by 2031.
  • The longer-term trajectory is even higher, projecting cumulative U.S. solar deployment to reach 769 GW by 2036.

However, the path will not be straightforward.

Permitting delays, interconnection constraints, changing trade policies, and the transition away from existing federal tax incentives could affect the pace of future installations. Wood Mackenzie estimates that permitting delays currently affect about 30% of the early-stage utility-scale pipeline.

Trade policy is also reshaping the economics of domestic manufacturing. New tariffs and minimum import prices are increasing pressure on the supply chain while potentially improving the economics of fully integrated U.S. production.

Solar Prices Face Pressure as U.S. Trade Rules Change

Woodmac predicts that U.S. solar prices could rise as new trade rules increase the cost of imported equipment. The Wood Mackenzie and SEIA Q3 2026 report says tariffs and minimum import prices are changing the cost of solar modules and key components.

  • The measures include a 15% tariff, along with minimum prices of $0.38/W for modules, $0.22/W for cells, $100/kg for wafers, and $21/kg for polysilicon.

Higher import costs could make some solar projects more expensive, while also making U.S.-made equipment more competitive. The report suggests these changes could support domestic manufacturing, but developers may still face higher equipment costs in the near term.

A New Phase for U.S. Solar Manufacturing

The $12.2 billion investment shows that U.S. solar manufacturing has moved beyond factory announcements. Capital is now going into buildings, equipment, and production capacity.

The next test is how quickly these factories can ramp up and compete as costs, technology, and trade rules change.

For investors, manufacturers, and developers, the focus is shifting from announced capacity to operating factories, actual output, and cost competitiveness. The U.S. solar manufacturing story is increasingly about production and capital already moving through the supply chain.

Paraguay and Taiwan Target 5 Million Carbon Credits in New Article 6 Deal

Jennifer L
-
0
Paraguay and Taiwan Target 5 Million Carbon Credits in New Article 6 Deal

Paraguay and Taiwan are negotiating an agreement that could create a minimum market of 5 million carbon credits for climate projects in Paraguay. The two countries are working on an international transfer agreement that they expect to complete this year, according to Paraguay’s Ministry of Environment and Sustainable Development (MADES) official, Victor Gonzalez. The first phase would target demand from Asian companies.

The 5 million-credit figure is a negotiated floor, not a confirmed purchase order. Projects would still need to be developed, approved, verified, and authorized before credits could be transferred.

The talks matter because Paraguay is developing its carbon market. At the same time, Asian companies seek more international carbon credits under Article 6 of the Paris Agreement.

Paraguay Builds Its Article 6 Carbon Market

The talks build on a Memorandum of Understanding signed in October 2025 between Paraguay and Taiwan to explore carbon market cooperation. The proposed Implementation Agreement would set rules for projects that cut emissions in Paraguay. It would also transfer the resulting mitigation outcomes to Taiwan.

Paraguay has also been building its domestic carbon market system. Law No. 7190/2023 established a legal framework for carbon markets and created the National Carbon Credit Registry. MADES is responsible for regulating and developing the sector.

The government is now working with the Global Green Growth Institute (GGGI) on a national carbon market strategy. In September 2026, MADES hosted a second national consultation on the strategy. About 80 representatives from government, finance, business, civil society, and international organizations attended.

The goal is to create clearer rules for projects, improve transparency, and build Paraguay’s ability to take part in international carbon markets.

Five Million Credits Would Create a Large Pipeline

The proposed 5 million credit floor would give the Paraguay-Taiwan partnership significant potential scale. However, these credits do not exist yet.

Projects must first be identified and developed. They need to measure their emissions reductions. Then, they must pass validation and verification. Finally, they should get the necessary government approvals.

Only authorized mitigation outcomes can be transferred under the Article 6 framework. This is important because Paraguay is still strengthening the systems needed to support a larger international carbon market.

MADES said its national strategy will focus on stricter rules, transparency, and systems for monitoring, reporting, and verification. Recent government work with Taiwanese officials has also focused on sharing knowledge about Paraguay’s carbon market rules and institutions.

The 5 million-ton floor should thus be viewed as a potential future supply target, rather than credits already available to buyers.

Taiwanโ€™s Carbon Fee Creates New Credit Demand

Taiwan has a clear reason to secure international carbon credits. The country introduced its carbon fee system in 2025. The standard carbon fee is NT$300 per tonne of CO2e. However, companies that meet approved emissions reduction targets can get lower rates of NT$50 or NT$100 per tonne.

The fee applies to large electricity and manufacturing facilities with annual emissions of at least 25,000 tonnes of CO2e.

Taiwan allows eligible companies to use approved international carbon credits. They can cover up to 5% of their chargeable emissions, following the country’s rules. This creates potential demand for credits generated in Paraguay.

However, not every carbon credit will qualify. Projects must meet Taiwan’s requirements as well as Paraguay’s rules for international transfers. That could favor projects with strong measurement systems, clear carbon ownership, and credible verification.

Article 6 Rules Prevent Double Counting

The proposed deal would operate through Article 6.2 of the Paris Agreement. It allows countries to transfer emissions reductions across borders. These transferred outcomes are known as Internationally Transferred Mitigation Outcomes, or ITMOs.

Carbon Credit generation article 6
Source: UNFCCC

A major safeguard is the corresponding adjustment. Suppose a project in Paraguay creates an authorized emissions reduction and transfers it to a Taiwanese company.

Paraguay must adjust its national emissions accounting so it does not also count that same reduction toward its own climate target. This prevents the same climate benefit from being counted twice.

That makes Article 6 transactions different from many voluntary carbon credit purchases. Voluntary credits do not automatically receive a corresponding adjustment or government authorization.

Paraguay already has experience with this system. It signed an Article 6 Implementation Agreement with Singapore in May 2025. This agreement sets up procedures for project approval, ITMO transfers, and necessary adjustments.

A Taiwan agreement would add another international route for Paraguayan projects.

Forestry and Land Projects Could Lead

Forestry is likely to be an important part of Paraguay’s future carbon market. The country has large areas suitable for forest conservation, restoration, and plantation projects. Taiwan has also expressed interest in working with Paraguayan companies on forestry-related carbon projects.

Paraguay’s reforestation sector has expanded quickly. IMF data show that reforested land reached about 339,866 hectares in 2024, up 66% from 2022. Paraguay’s forestry institute estimates that over 5 million hectares have a high or very high potential for plantation forestry.

Not all this land will become carbon projects. Still, the figures show the scale of Paraguay’s potential forestry investment market.

The country’s opportunities also extend beyond forests. Article 6 projects could cover renewable energy, agriculture, green transport, and other emissions-reduction activities.

That wider project base could help Paraguay meet future demand if Asian buyers seek large and diverse supplies of authorized credits.

Paraguay Taiwan carbon credits

The Deal Could Open a Bigger Asian Market

The proposed Paraguay-Taiwan agreement comes as Article 6 markets are expanding across Asia and Latin America.

Singapore has already signed Article 6 agreements with countries including Paraguay, Thailand, Vietnam, the Philippines, and Laos. Japan and other governments are also developing bilateral carbon market partnerships.

These agreements create links between countries with a demand for international carbon credits and countries with larger opportunities to reduce or remove emissions.

For Paraguay, that could turn forests, agricultural land, and renewable energy resources into sources of climate finance. For Taiwan, it could create another supply of international credits for companies facing domestic carbon costs.

Yet, the 5 million-credit floor is not the final measure of success. The real test is if Paraguay can create projects that follow Article 6 rules. They need to get government approval and show verified emissions reductions.

Paraguay is now building the market infrastructure to support that growth. The government is developing its national carbon market strategy, improving technical capacity, and working with international partners.

If the agreement is completed as planned, it could give Paraguayan project developers a clearer path to Asian buyers.

For Taiwan, it could provide a new source of international mitigation outcomes as its carbon fee system develops. For the wider carbon market, the talks show how Article 6 is moving from international rules toward real commercial demand.

The 5 million-credit target is therefore only the starting point. The bigger opportunity is building a reliable market for verified, authorized, and internationally transferable carbon reductions from Paraguay.

Climate Week NYC: Renewable Supply Gaps Grow as States Push Carbon Removal

Jennifer L
-
0
Climate Week NYC: Renewable Supply Gaps Grow as States Push Carbon Removal

Renewable energy and carbon removal have emerged as two important themes at Climate Week NYC 2026, as companies and policymakers look for ways to turn climate targets into real projects. The event, running from September 20 to 27, is highlighting a growing problem: renewable energy is expanding quickly, but in many markets companies still cannot find enough clean power to meet their targets.

At the same time, US states and local governments are exploring new ways to support carbon dioxide removal (CDR) as federal support becomes less certain.ย  The two issues are closely linked. Companies need more clean electricity as power demand rises, while CDR could help address emissions that remain after direct cuts.

Renewable Energy Is Growing, But Supply Is Still Tight

A new RE100 Annual Disclosure Report released ahead of Climate Week found that limited renewable supply and cost are the biggest barriers for companies trying to reach 100% renewable electricity. Lack of procurement options and regulatory barriers are the next biggest challenges.

The report covers 408 RE100 members, providing one of the largest datasets on corporate renewable energy procurement.

renewable energy RE claim recognition
Source: Climate Group

Globally, RE100 companies now source 59% of their electricity from renewable energy, up from 53% in the previous report. Importantly, 65% of that renewable electricity comes from facilities built within the past 15 years, showing that corporate buyers are helping support newer renewable capacity.

But progress varies widely by market. In South Korea, renewables account for only 12% of RE100 members’ electricity use, and just 5% of members have reached 100%. In Taiwan, renewables supply 6% of members’ electricity, while in Singapore the figure is also 6%, up only one percentage point from the previous year.

Japan improved from 36% to 40%, while South Africa jumped from 54% to 84% and Mexico from 38% to 52%. China and India each have 28% of RE100 members using 100% renewable electricity. This shows some companies are finding ways to overcome supply barriers, even in tough markets.

RE Regional purchasing type mix
Source: Climate Group

Renewables Hit a Record โ€” But the 2030 Gap Remains

Corporate demand is rising as the global renewable industry expands at record speed.

The International Renewable Energy Agency (IRENA) noted that the world added a record 692 gigawatts (GW) of renewable power in 2025. This raised the total installed renewable capacity to 5,149 GW.

Renewables made up 85.6% of all new power capacity added during the year. Solar accounted for about 510 GW of the 2025 increase, while wind added nearly 159 GW. Despite this growth, the pace is still below what is needed to meet the global goal of tripling renewable power capacity by 2030.

Antรณnio Guterres, United Nations Secretary-General, said:

โ€œRenewable energy records are being smashed year after year as the clean energy revolution accelerates. But we must go further and faster to clear the bottlenecks that delay the transition, drive investment to developing countries, and break our addiction to volatile fossil fuels once and for all.โ€

IRENA estimates that renewable capacity must reach about 11.2 terawatts (TW) by 2030. That requires average additions of around 1,122 GW every year through 2030 and annual growth of about 16.6%.

  • If the 2024 growth rate were maintained, the world would reach only about 10.3 TW, leaving a shortfall of roughly 0.9 TW.
IRENA renewable capacity 2030
Source: IRENA

The IEA also expects strong renewable growth but says current policies are not yet enough to fully deliver the global tripling target. Its main forecast puts renewable capacity at about 9,530 GW in 2030, while an accelerated policy scenario reaches more than 10,400 GW.

The gap is not simply about building more solar and wind farms. Grid connections, transmission, storage, permitting, and access to renewable power contracts are also becoming major constraints.

US States Step In as Carbon Removal Needs Grow

Carbon removal was another major issue during Climate Week. At a panel on September 21 at Columbia Law School’s Sabin Center for Climate Change Law, experts looked at how US states can back CDR since federal action is uncertain.

The panel, titled โ€œMind the Gap: How States Can Advance Carbon Dioxide Removal Despite Federal Backsliding,โ€ brought together experts from the Sabin Center, American University, Rocky Mountain Institute, and California Ocean Science Trust.

The discussion focused on how states can use policy and legal tools to help move CDR from research into larger commercial projects.

The need is significant. The 2026 State of Carbon Dioxide Removal report estimates current CDR at about 2.2 billion tonnes of CO2 per year. That amount needs to increase substantially in climate pathways consistent with the Paris Agreement.

The report projects a gap of 1.2 billion tonnes per year by 2035. It estimates 5.2 billion tonnes by 2050. This gap is between current country pledges and the CDR levels in high-ambition Paris-compatible scenarios.

The CDR gap is growing
Source: CMCC Institutes

That does not mean every tonne will need to come from engineered technologies. Nature-based CDR, such as afforestation and soil carbon, remains important, while direct air capture, mineralisation, biochar and ocean-based approaches are also developing.

States Are Already Testing Market Tools

Several states are already creating policies that could support CDR development.

  • California runs the Carbon Removal Innovation Support Program, which provides financial incentives for direct-air-capture projects. In 2026, the California Energy Commission opened a solicitation for pre-commercial DAC demonstrations and community engagement. California’s energy research and development programs invest over $200 million each year to create new energy technologies.
  • Washington State has taken a different approach through its Climate Commitment Act and Cap-and-Invest Program. State rules accept CDR in the carbon market. They let carbon management projects create offset credits. Washington requires that captured CO2 be stored in permanent sequestration pathways. This keeps it out of the atmosphere for a minimum of 1,000 years.
  • Massachusetts is building its policy base through research. The state-supported Carbon Dioxide Removal Study looks at costs, potential scale, long-term storage, environmental effects, and policy options for CDR. This includes both state and nearby federal waters.

These approaches show that state governments do not need to use one policy model. They can support CDR through grants, market rules, research, standards, and project development.

CDR Needs Demand as Well as Technology

Moving CDR from small projects to a large industry requires more than scientific progress. Developers need buyers willing to sign long-term contracts. Investors need confidence that projects will have future revenue. Governments need rules for monitoring, reporting, permanence, and community impacts.

This is a key issue for the CDR market because many projects are still expensive and operate at small scales.

The US federal government previously helped create demand through research funding and carbon removal programmes. But states are increasingly being discussed as another source of support.

The Carbon Dioxide Removal Leadership Act, reintroduced in Congress in July 2026, suggests a federal purchasing program. This program aims to boost demand significantly and reliably. Carbon180 says public procurement could help the industry raise capital, expand production, and lower costs.

State action could complement such federal efforts where they remain available.

Climate Week Puts Delivery Back at the Center of Climate Goals

The discussions at Climate Week point to a common challenge across renewable energy and carbon removal: technology alone does not create a market.

Renewable power is already expanding rapidly, with 692 GW added globally in 2025. Yet, companies in markets such as South Korea, Singapore, and Japan still report limited access to clean electricity.

CDR faces an even earlier-stage market. Current removals are in the billions of tonnes. However, the 2026 State of CDR report shows we will need much more capacity to align with Paris pathways.

For renewable energy, the priority is building generation alongside grids, storage, and procurement systems. For CDR, the priority is creating the finance, demand, and rules needed to move promising technologies into commercial use.

The Climate Week discussions show how states and companies can help fill those gaps. For the clean energy market, the message is that record renewable growth still needs faster deployment and better access to supply. For carbon removal, the message is similar: scientific progress needs policy and market systems that can turn small projects into a scalable industry.

Together, the two trends highlight a broader shift in climate finance. The next phase of the energy transition will depend not only on setting targets, but on building the infrastructure, markets and investment systems needed to deliver them.

U.S. EV Sales Fall 47% in 2026: Tesla, Toyota and GM Battle for a 53% Electric Future

Saptakee S
-
0
U.S. EV Sales Fall 47% in 2026: Tesla, Toyota and GM Battle for a 53% Electric Future

The U.S. electric vehicle (EV) market is going through a reality check.

New EV sales plunged 46.9% year over year in August 2026, according to Cox Automotive, even as the market showed some month-to-month improvement. Yet the latest outlook from the U.S. Energy Information Administration (EIA) paints a very different picture for the years ahead.

Under scenarios that include the EPA’s latest vehicle emissions standards, EIA projects battery-electric vehicles could reach about 53% of annual U.S. light-duty vehicle sales by 2032.

So, what is happening?

The answer is a market caught between a short-term slowdown and a potentially much bigger long-term transition.

EV Sales Are Down, But August Brought a Small Rebound

The latest numbers show just how sharply the U.S. EV market has changed.

Cox Automotive estimates that Americans bought 78,895 new EVs in August 2026. That was 2.5% higher than July, but still 46.9% below August 2025, when buyers were rushing to take advantage of the federal $7,500 EV tax credit before it expired. EVs represented 5.7% of total new-vehicle sales in August.

US EV SALES
Source: Cox Automotive

The second quarter tells a similar story.

U.S. EV sales reached 247,226 units in Q2 2026, according to Cox, up 14.7% from Q1 but down 20.5% from Q2 2025. The decline was smaller than the 27.3% year-over-year drop recorded in Q1, suggesting the market was beginning to stabilize after the post-incentive correction.

  • EIA’s own analysis shows battery-electric vehicles represented about 6% of new U.S. light-duty vehicle sales in Q2 2026, down from 7% a year earlier.

Interestingly, the broader electrification market is doing better than the pure EV numbers suggest.

Hybrids accounted for a record 16% of new light-duty sales in Q2 2026, while battery-electric and plug-in hybrid vehicles added another share. Combined, hybrids, EVs and plug-in hybrids represented 24% of new light-duty vehicle sales.

eia hybrod sales us ev

Tesla Still Leads, But Toyota Is Making Noise

Tesla remains the heavyweight in the U.S. EV market.

  • In August, Tesla (TSLA Stock) sold an estimated 40,816 EVs, giving it 51.7% of the U.S. EV market. But its sales declined 3.8% from July, while several competitors gained ground.
tesla tsla stock
Source: Tesla

Toyota was the standout.

The Japanese automaker sold 4,964 EVs in August, up 34.9% from July. Its updated bZ electric SUV was a major contributor. Chevrolet, Cadillac and Kia also posted month-to-month gains of 30.3%, 13.1% and 12%, respectively.

Toyota’s progress is particularly notable because it started from a much smaller EV base. Through the first eight months of 2026, Toyota had sold more than 22,500 bZ electric SUVs, compared with just 15,609 bZ4X units during all of 2025.

Meanwhile, Ford’s Mustang Mach-E sold 15,484 units through August, down 55% from the same period last year.

The competitive picture is therefore changing, even with Tesla still controlling more than half of the market.

EIA Sees a Much Bigger EV Market Ahead

This is where the latest EIA outlook gets interesting.

The Annual Energy Outlook 2026 does not present one fixed forecast. Instead, EIA models several possible futures based on technology costs, markets, and policy assumptions.

  • In cases where the EPA’s Model Year 2027โ€“2032 tailpipe emissions standards are incorporated, EIA projects electric vehicles could reach about 53% of U.S. light-duty vehicle sales by 2032.

But getting from more than half of annual sales to more than half of vehicles on the road takes much longer.

EIA estimates that EVs could represent roughly 40%โ€“46% of the U.S. light-duty vehicle fleet by 2050 in cases that include those standards.

Without the standards, the outcome is dramatically different. EVs would reach only about 20% of annual light-duty vehicle sales by 2050, while their share of vehicles on the road would be around 18%.

There is a simple reason for the difference.

Cars stay on the road for a long time. EIA estimates new vehicles remain in use for an average of 18โ€“28 years, depending on the vehicle type and how it is used.

That means even if EVs dominate new-car sales, gasoline vehicles will remain a major part of America’s fleet for decades.

EIA US battery vehicle sales

The Carbon Story Is Bigger Than EV Sales

The EV transition also matters because transportation remains one of America’s largest sources of energy-related carbon emissions.

  • EIA’s latest emissions data show that the U.S. transportation sector produced about 1.87 billion metric tons of COโ‚‚ in 2025. Transportation emissions were essentially flat, as lower gasoline-related emissions offset higher emissions from diesel and other fuels.

EV emission

EVs are already beginning to affect the energy system.

  • EIA estimates U.S. light-duty EVs consumed about 11.2 million megawatt-hours of electricity in the first five months of 2026, including 9.3 million MWh from battery-electric vehicles and 1.9 million MWh from plug-in hybrids.

The longer-term impact could be much larger.

EIA projects transportation energy use will fall from about 27 quadrillion British thermal units in 2025 to between 21 and 25 quads by 2050, even as Americans drive more. In scenarios incorporating the EPA standards, transportation energy consumption falls by 13%โ€“25%.

ev climate energy

That is an important climate-market story.

EVs don’t eliminate transportation emissions by themselves. Their climate benefit depends partly on the electricity used to charge them. But replacing gasoline-powered vehicles with increasingly efficient electric vehicles can reduce direct tailpipe emissions while shifting energy demand from petroleum toward electricity.

The EV Market Is Slowing. The Transition Isn’t Over

The U.S. EV market in 2026 looks very different from the boom years.

Sales are down sharply from last year’s incentive-driven highs. Tesla remains dominant, while Toyota, Chevrolet, Hyundai, Cadillac and other automakers are fighting for more market share. Hybrids are also capturing consumers who want better fuel economy without going fully electric.

But EIA’s 2050 outlook shows why today’s sales slump may not tell the whole story.

The bigger investment question is no longer simply how many EVs Americans buy this year.

It is how quickly electric vehicles, batteries, charging infrastructure and cleaner electricity can replace petroleum across the transportation system.

If EIA’s higher-adoption scenarios play out, 53% of new U.S. light-duty vehicles could be electric by 2032, while as much as 46% of the entire light-duty fleet could be electric by 2050.

For the EV and clean-energy industries, the road may be bumpier than expected. But the destination could still look dramatically different from today’s gasoline-heavy transportation system.

Meta (Stock) Signs 144-MW Texas Solar PPA With Apex as Data Center Power Demand Surges

Jennifer L
-
0
Meta (Stock) Signs 144-MW Texas Solar PPA With Apex as Data Center Power Demand Surges

Meta and Apex Clean Energy have signed a power purchase agreement (PPA) for a new 144-megawatt (MW) solar project in Gonzales County, Texas.

Called Starling Solar, the project is expected to begin commercial operations in 2027. Meta will receive the project’s environmental attributes, including its renewable energy certificates (RECs). Apex says Meta’s commitment will support new solar capacity that would not otherwise be built.

The deal is the seventh transaction between Meta and Apex, taking their combined clean energy portfolio to about 1.2 gigawatts (GW) across Texas, Virginia, Illinois, Kansas and Iowa.

The agreement comes as Texas prepares for major growth in electricity demand, driven by data centers, manufacturing and other large power users. Urvi Parekh, head of renewable energy at Meta, remarked:

“We appreciate Apexโ€™s partnership in helping us bring a total of one gigawatt of new renewable energy to the grid across Texas, Virginia, Illinois, Kansas, and Iowa. This new solar project will support our commitment to 100% renewable energy and will help bring jobs and investment to the local community.”

Starling Solar Adds New Texas Capacity

Starling Solar will be built in Gonzales County, southeast of San Antonio. Apex expects the project to begin operating in 2027, although the ERCOT interconnection queue lists an anticipated commercial operation date of January 2028. The schedule can change as the project moves through the grid-connection process.

The financial terms of the PPA have not been disclosed.

Apex estimates the project could generate about $27 million in tax revenue over its lifetime, including $15.6 million for local schools. It also expects more than $26.3 million in payments to landowners and between 400 and 450 construction jobs.

The deal arrives as Texas faces a sharp increase in electricity demand. ERCOT’s preliminary 2026 long-term forecast puts potential electricity demand at about 367,790 MW by 2032.

texas utility-scale solar
Source: Inside Climate News

For comparison, the state’s record peak demand was 85,508 MW in 2023. ERCOT says the forecast is preliminary and can change as large-load projects develop.

Data centers are a major driver. Meta is expanding its Texas data center footprint, including a planned 1-GW facility in El Paso. Meta expects to invest more than $10 billion in the project. That growth is creating more demand for new electricity generation. Solar is one of the fastest-growing power sources on the Texas grid.

Solar Is Set to Surpass Coal

The shift in Texas’s power mix is already visible. The U.S. Energy Information Administration expects utility-scale solar generation in ERCOT to reach about 78 billion kilowatt-hours in 2026, compared with 60 billion kWh from coal.

  • In 2027, EIA forecasts about 99 billion kWh from solar versus 66 billion kWh from coal.

Solar supplied about 12% of ERCOT electricity in 2025, up from 4% in 2021. Coal’s share fell from 19% to 13% over the same period. Natural gas remains the state’s largest power source.

coal solar electric power generation

Starling Solar, therefore, enters a market where renewable generation is expanding even as total electricity demand climbs.

Meta Keeps Building Its Clean Power Portfolio

The Starling agreement is part of Meta’s wider clean energy strategy. The tech giant says it has matched 100% of its electricity use with clean and renewable energy since 2020. Its projects have added more than 30 GW of new clean and renewable energy to electricity grids around the world.

The company aims to reach net-zero emissions across its value chain by 2030. It also targets a 42% reduction in Scope 1 and 2 emissions by 2031, compared with 2021, while keeping Scope 3 emissions at or below the 2021 level.

Meta 2024 carbon footprint
Source: Meta

Renewable energy PPAs are an important part of that strategy as Meta’s data center demand grows. Yet, one important distinction is that Starling Solar is not a carbon credit project.

Meta will receive the project’s environmental attributes, including RECs. Those certificates represent the environmental benefits of renewable electricity generation. A REC is different from a carbon credit.

A carbon credit generally represents one tonne of greenhouse gas emissions reduced, avoided or removed under a specific methodology.

The Starling project will instead support Meta’s clean electricity strategy by adding new solar generation to the Texas grid. The Facebook owner will not physically receive every megawatt-hour generated by the project. The solar electricity will flow into the grid, while Meta receives the contracted environmental attributes.

New Projects and Additionality Matter

Meta has increasingly focused on agreements that help bring new clean energy projects onto power grids. That approach is important because simply buying certificates from existing renewable plants does not necessarily add new generation.

Long-term PPAs can help developers secure financing by providing greater certainty about future revenue. That can make it easier to build new solar, wind, and storage projects.

Starling fits this model. Meta’s long-term commitment gives Apex a major corporate buyer while helping support new generation in Texas. The approach also shows how corporate climate demand is becoming closely linked to physical power markets.

Meta Already Has a Large Texas Pipeline

The new agreement builds on Meta’s existing relationship with Apex. In 2023, Meta signed a deal for the full output of the 195-MW Angelo Solar project in Texas. Apex said its portfolio with Meta had then exceeded 1 GW across several states.

Meta has also signed large agreements with other developers. In 2025, Meta agreed to purchase 100% of the output from ENGIE’s 600-MW Swenson Ranch Solar project in Texas. That deal brought the Meta-ENGIE partnership to more than 1.3 GW across four Texas projects.

The company’s strategy is therefore spread across multiple developers and projects rather than relying on one source of renewable electricity.

The Starling deal also highlights the role of corporate PPAs in financing new renewable power. Large solar projects require significant upfront capital. A long-term buyer can provide revenue visibility, making the project more attractive to banks and investors.

This is increasingly important in Texas, where electricity demand is rising quickly but grid connections and transmission remain challenges.

ERCOT has introduced a new Batch Zero process for large electricity users requiring at least 75 MW. The system groups major projects for grid studies so ERCOT can better assess their combined impact and needed transmission upgrades.

The changes show how quickly Texas’s electricity market is evolving.

Meta Stock Moves Sharply Higher

Meta Platforms (NASDAQ: META) shares rose sharply around the time of the Apex announcement, but the move was not tied specifically to the Starling Solar deal. On September 21, Meta stock jumped 11.4%, adding about $192 billion to the company’s market value.

Meta stock price

The rally was driven largely by investor enthusiasm surrounding Meta’s AI strategy and its Muse AI assistant, which became the most-downloaded free app on Apple’s App Store.

The Bigger Carbon Market Connection

Starling Solar is not a carbon credit project, but it still connects to the broader climate market. Data centers and AI are driving electricity demand higher, while companies such as Meta face growing pressure to reduce the emissions linked to that power use.

Texas shows both trends at once. Solar generation is expected to overtake coal in 2026, while ERCOT is preparing for much higher future demand.

For Meta, the 144-MW Starling Solar deal adds another source of clean electricity and renewable attributes. For Apex, it provides a major corporate buyer for a new solar project. And for Texas, it adds renewable capacity as the grid prepares for a much larger electricity market.

The wider trend is this: large technology companies are increasingly using long-term renewable energy contracts to help finance new power capacity as AI, data centers, and electrification drive electricity demand higher.

Could Geothermal Be the Next U.S. Power Breakout? DOE Pours $99M Into 21 Projects

Saptakee S
-
0
Could Geothermal Be the Next U.S. Power Breakout? DOE Pours $99M Into 21 Projects

The U.S. geothermal energy market could be entering a new phase as the Department of Energy (DOE) moves to unlock resources that conventional geothermal plants cannot easily reach.

On September 21, the DOE announced more than $99 million for 21 projects across the U.S. The funding will support field tests of enhanced geothermal systems (EGS) and exploration drilling designed to find and confirm new geothermal resources.

Kyle Haustveit, DOE Under Secretary of Energy, said:

โ€œThese projects will empower American innovators to unlock the tremendous geothermal resources beneath our feet. Under President Trumpโ€™s leadership, weโ€™re advancing next-generation geothermal technologies that can lower costs, strengthen American energy dominance, and turn more of our vast domestic geothermal resources into reliable and affordable power.โ€

U.S. Geothermal Is Still a Small Market

The Energy Department is supporting geothermal innovation to unlock more of the U.S.โ€™s domestic energy resources. Geothermal can.

Even though geothermal remains a relatively small part of the U.S. power mix, it can provide reliable, around-the-clock power. This further helps to meet rising electricity demand and strengthen energy security.

US power

The latest data from the U.S. Energy Information Administration (EIA) show how much room geothermal has to grow.

  • The U.S. had about 2.68 gigawatts (GW) of utility-scale geothermal capacity as of June 2026. Geothermal plants generated 7.78 billion kilowatt-hours during the first half of 2026, down about 1.1% from the same period in 2025.

In all of 2025, geothermal generated about 16 billion kilowatt-hours, roughly 0.4% of total U.S. utility-scale electricity generation.

California remains the largest geothermal power market, accounting for about 68.6% of U.S. geothermal generation in 2025. Nevada followed with 24.7%, while Utah, Hawaii, Oregon, Idaho, and New Mexico supplied the rest.

The numbers show both the strength and limitation of today’s geothermal industry. Existing projects are concentrated in areas with favorable underground heat, fluids, and natural permeability.

US geothermal

But next-generation geothermal aims to change that.

Five Projects Will Test Enhanced Geothermal Systems

EGS can expand geothermal power into new areas. First, developers drill deep into hot underground rock. Then, they create pathways that let water flow through the rock. As the water heats up, it returns to the surface and can generate electricity.

enhanced geothermal
Source: DOE infographic

The DOE selected five projects for field-scale EGS testing:

  1. Fervo Energy will drill, complete, and stimulate EGS wells in Elmore County, Idaho. The project will also deploy a high-temperature geophone system designed to operate at or above 200ยฐC and use seismic and geochemical data to study the engineered reservoir.
  2. Zanskar Geothermal and Minerals will test a horizontal injection well at the Lightning Dock geothermal field in New Mexico. The project aims to improve pressure support in an existing hydrothermal reservoir while also accessing heat from nearby impermeable rock.
  3. AlterG Resources will test EGS in Nevada using a deep horizontal well pair. The project will compare two hydraulic stimulation approaches, providing data on how different completion methods perform at commercially relevant depths.
  4. The University of Utah will develop and test an EGS doublet at the Dixie Valley West geothermal field in Nevada. The goal is to determine whether an engineered reservoir next to an existing geothermal system can deliver sustained circulation and useful thermal output.
  5. Quaise Energy will conduct an EGS demonstration near Newberry Volcano in Oregon. The site will target bottomhole temperatures of about 265ยฐC to 365ยฐC, pushing geothermal drilling into temperature ranges where conventional tools and materials face greater technical challenges.

Together, these projects could provide real-world data on drilling, reservoir stimulation, temperature, fluid flow, and long-term performance.

Why the Resource Potential Is Getting Attention: 2050 Forecast

The resource potential is much larger than today’s installed capacity suggests.

A 2025 U.S. Geological Survey assessment estimated that the Great Basin alone could contain about 135 GW of EGS electric-generation potential in the upper six kilometers of the Earth’s crust, assuming sufficient technological progress to commercialize these resources.

  • The DOE has separately estimated that the U.S. could reach at least 90 GW of geothermal electricity capacity by 2050 with major advances in EGS technology.

However, EIA said that geothermal will contribute to around 1% of total U.S. electricity generation in 2050, with an estimated
generating capacity of 7 GW to 9 GW.

EIA geothermal

That gap between today’s roughly 2.7 GW of capacity and the potential resource base explains why exploration and field testing matter.

The immediate goal is not simply to build more geothermal plants. It is to reduce the uncertainty around finding resources, drilling into them, creating productive reservoirs, and operating them reliably.

Not an Instant Power Shift, But a Long-Term Pushย 

The DOE says geothermal can provide firm and flexible electricity, making it a potential complement to variable sources such as wind and solar. And this characteristic could become increasingly valuable as U.S. electricity demand rises from data centers, manufacturing, electrification, and other large loads.

The new projects also create a growing pool of public subsurface data. The DOE plans to make information from the field tests and exploration work available through its Geothermal Data Repository.

For the geothermal industry, that could help turn individual drilling campaigns into a broader learning curve.

The $99 million program will not immediately transform the U.S. power market. But it targets some of geothermal’s biggest development hurdles: finding resources, drilling deeper, improving reservoir performance, and proving that next-generation systems can work outside traditional geothermal hotspots.

If those technical risks fall, the U.S. geothermal opportunity could extend well beyond the small group of states that dominate the market today.

Climeworks, Japan Airlines (JAL) Sign โ€˜Firstโ€™ CORSIA-Compliant Carbon Removal Deal

Jennifer L
-
0
Climeworks, Japan Airlines (JAL) Sign โ€˜Firstโ€™ CORSIA-Compliant Carbon Removal Deal

Japan Airlines (JAL) has signed a carbon removal deal with Climeworks Solutions that the companies describe as the worldโ€™s first designed to meet the requirements of the International Civil Aviation Organizationโ€™s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The deal is a new step for carbon removals in aviation. It combines several types of carbon removal with additional direct air capture (DAC) credits from Climeworks.

The companies, however, did not disclose the value or volume of credits covered by the deal. JAL and Climeworks said their research found no earlier purchase agreements of this type.

The deal comes as airlines face growing pressure to cut emissions. Airlines are working on aircraft efficiency, better operations, and sustainable aviation fuel (SAF). Carbon removals can help address emissions that remain after these measures.

JAL Targets CORSIA-Compliant Carbon Removals

Under the agreement, Climeworks Solutions will source a portfolio of carbon removal projects that are selected to meet ICAO requirements for CORSIA Eligible Emissions Units.

The portfolio will include methods such as soil carbon sequestration and biochar. JAL will also buy separate carbon removal credits from Climeworksโ€™ direct air capture operations. This matters because CORSIA has specific rules for which carbon credits airlines can use.

Not every carbon credit in the voluntary carbon market qualifies for CORSIA. ICAO reviews carbon credit programs against requirements covering environmental and social integrity.

Approved programs and eligible unit types can then supply emissions units for specific CORSIA compliance periods. That makes the JAL deal different from a standard corporate carbon removal purchase.

However, the companies’ wording matters. They describe the agreement as a purchase of carbon removal credits designed to meet CORSIA requirements. The announcement does not give a specific number of credits that have already been canceled against a CORSIA obligation.

Why CORSIA Could Reshape Aviationโ€™s Carbon Market

CORSIA is ICAOโ€™s global system for addressing COโ‚‚ emissions from international aviation. The system requires covered airlines to cancel eligible emissions units against their calculated offsetting requirements.

CORSIA began its pilot phase in 2021 and entered its first phase in 2024. Its second phase starts in 2027 and runs through 2035. For 2024โ€“2035, ICAO sets the sector-wide baseline for offsetting at 85% of 2019 emissions from international aviation covered by CORSIA.

CORSIA implementation overview ICAO

Airlines can reduce their CORSIA obligations through eligible fuels and other measures. They can meet remaining requirements by canceling CORSIA Eligible Emissions Units approved by ICAO. This creates potential demand for carbon credits that meet CORSIAโ€™s eligibility rules.

ICAO currently lists eight programs approved to supply eligible emissions units for the 2024โ€“2026 first phase. They include the American Carbon Registry, Architecture for REDD+ Transactions, Climate Action Reserve, Global Carbon Council, Gold Standard, Isometric, the Premium Thailand Voluntary Emission Reduction Program, and Verraโ€™s Verified Carbon Standard.

However, approval of a program does not mean every credit from that program can be used. Individual credits depend on several factors. These include the program, project activity, methodology, vintage, and other conditions.

Carbon Removals Enter Aviationโ€™s Compliance Pipeline

The JAL-Climeworks agreement also shows how the carbon market is changing. For years, most corporate demand for carbon removals came from the voluntary carbon market. Companies bought removals to address residual emissions or support longer-term climate goals. Regulatory systems are now creating another potential source of demand.

Climeworks launched its compliance-focused Solutions offering in July 2026. The service helps companies find carbon removal portfolios. These portfolios work with frameworks like CORSIA, Article 6.2 of the Paris Agreement, and the EUโ€™s Carbon Removal and Carbon Farming Certification Framework.

The JAL agreement is the first major deal publicly announced by Climeworks under this expanded strategy. For the carbon removal industry, the importance of the deal goes beyond the number of credits sold.

It shows how developers and buyers can build carbon removal portfolios around a specific compliance system. That could become more important as governments and international organizations set clearer rules for which carbon removals can be used in regulated markets.

JAL Pairs Removals With SAF and Efficiency for Net Zero

JAL is not using carbon removals as its only way to cut aviation emissions. The airline says aircraft efficiency, operational improvements, and SAF remain priorities.

Noriko Ogawa, Executive Officer and Chairperson, Japan Airlines, noted:

“As the first airline to secure CORSIA-compliant carbon removals, we are proud to lead the industry toward net-zero emissions. While reducing emissions through aircraft renewal, operational innovations and the use of SAF remains our top priority, high-integrity carbon removals are essential to address residual emissions. Through this pioneering partnership with Climeworks, we aim to accelerate the adoption of high-quality solutions across international aviation and contribute to a sustainable future for air travel.”

JAL has set a target of reducing its FY2030 aircraft COโ‚‚ emissions by 10% from FY2019 levels to 8.28 million metric tons. It also targets SAF equal to at least 10% of total fuel use by FY2030. JAL said SAF accounted for 1% of its fuel use in FY2025.

JAL Net Zero
Source: JAL

The airline has also used CORSIA-eligible credits.

JAL said in its latest sustainability disclosures that it met its FY2025 target of keeping net aircraft COโ‚‚ emissions below its FY2019 level. The airline used several measures, including more fuel-efficient aircraft, operational improvements, SAF, and carbon credits.

The new agreement, therefore, adds carbon removals to a broader decarbonization strategy. It does not replace direct efforts to reduce aviation emissions.

DAC Adds a Longer-Term Carbon Removal Betย 

The second part of the deal focuses on direct air capture. DAC uses machines to remove COโ‚‚ directly from the air. The captured COโ‚‚ can then be permanently stored, depending on the project and its storage method.

Climeworks operates the Mammoth DAC facility in Iceland. The company sees engineered carbon removal as a long-term way to deal with emissions that are difficult to eliminate.

JALโ€™s decision to buy Climeworks DAC credits alongside the broader CORSIA-focused portfolio gives the deal two different elements. The CORSIA-focused portfolio provides access to carbon removal methods designed around aviationโ€™s compliance system.

The DAC purchases support a commercially scaling engineered carbon removal technology. These approaches, therefore, represent different parts of the growing carbon removal market.

JAL Climeworks carbon removal

A New Carbon Removal Market Takes Off in Aviation

The JAL-Climeworks deal does not mean that all carbon removals can now be used for CORSIA. Yet, the agreement shows that airlines are starting to look beyond traditional carbon offsets. They are also seeking carbon removal portfolios designed for specific compliance systems.

JAL and Climeworks call this deal the worldโ€™s first CORSIA-compliant carbon removal purchase agreement. The announcement does not establish that the credits have already been canceled for a CORSIA obligation. Still, the deal provides an early example of how carbon removals could move from the voluntary market into aviationโ€™s regulated carbon market.

For carbon removal developers, the opportunity is to produce projects that meet increasingly detailed regulatory requirements. Airlines face the challenge of securing enough eligible units and the need to cut emissions. This can be done with more efficient aircraft, improved operations, and sustainable aviation fuel.

As CORSIA enters its second phase in 2027, these requirements could become an increasingly important source of demand for high-integrity carbon removal projects.

1...111213...310Page 12 of 310