Chanel has unveiled its first comprehensive climate transition plan, charting a clear path to net-zero emissions by 2040. Building on its earlier “Mission 1.5°” strategy, the plan aligns with global climate standards and follows the Science-Based Targets initiative (SBTi). This means Chanel must reduce at least 90% of its emissions and remove the remainder.
The move shows a bigger change in luxury brands. They face more pressure from investors, regulators, and customers to take real climate action. Many companies now publish detailed transition plans to show how they intend to meet their net-zero commitments.
For Chanel, climate considerations are no longer immaterial—they now inform core business decisions, from risk management to opportunity assessment.
Breaking Down Chanel’s 1M Tonnes Carbon Footprint
In its Climate Transition Plan, Chanel reported total emissions of about 1.12 million tonnes of CO₂e in 2024. Most of these emissions do not come from its own stores or offices. Instead, they come from its supply chain.
Scope 1 and 2 emissions: 2% of total (about 24,071 tonnes)
Scope 3 emissions: 98% of total (about 1.1 million tonnes)
Source: Chanel
This shows a key challenge. Like many fashion brands, Chanel’s biggest impact is upstream. That includes raw materials, manufacturing, and logistics. The largest source is purchased goods and services, which account for over 626,000 tonnes of CO₂e.
Other major sources include:
Capital goods: about 222,000 tonnes
Transport and distribution: over 114,000 tonnes
Business travel: over 53,000 tonnes
These figures highlight how complex the fashion supply chain is. It also shows why cutting emissions is harder than in other sectors.
Clear Targets: 2030 and 2040 Milestones
Source: Chanel
Chanel has set both near-term and long-term net-zero targets to tackle its carbon footprint. By 2030, the company aims to:
Cut Scope 1 and 2 emissions by 50%, and cut Scope 3 emissions by 42%.
By 2040, the goal is deeper:
Cut all emissions (Scope 1, 2, and 3) by 90%, and remove the remaining emissions through carbon removals.
Specific targets also cover land-based emissions associated with raw materials like leather and cashmere, with reductions of 30.3% by 2030 and 72% by 2040.
Importantly, Chanel does not rely on carbon offset credits to meet its targets. Instead, it focuses on real emissions cuts. This aligns with stricter global standards. Many frameworks now limit the use of offsets in net-zero plans.
Progress So Far: Renewable Energy and Supply Chain Improvements
The French luxury brand has already achieved measurable progress. Direct emissions have fallen 22% since 2021, driven primarily by the use of renewable energy. By 2024, 99% of the company’s electricity came from renewable sources, and the goal is to reach 100% by 2025.
Source: Chanel
Long-term power purchase agreements, including solar projects across Asia and Europe, have supported this transition.
Scope 3 emissions have also improved, declining 10% relative to 2021. Raw material emissions dropped 20% in 2024, thanks to changes in sourcing and the adoption of lower-impact inputs such as sustainable leather and cashmere.
How Chanel Plans to Cut Emissions and Reach Net Zero
The company’s strategy to tackle its emissions focuses on six main areas:
optimizing operations,
adopting lower-impact materials and packaging,
implementing sustainable design in construction and events,
shifting to low-emission logistics,
promoting electric mobility, and
engaging closely with suppliers.
Since Scope 3 emissions dominate the total footprint, supplier engagement is crucial.
Source: Chanel
Innovation also plays a key role. Chanel supports initiatives that reduce energy consumption in manufacturing, such as a project that lowered energy use by 27% at a supplier site. Circular design is another focus, with investments in repair services and durable products to extend product life.
Beyond Emissions: Climate Investment and Social Impact
Chanel’s climate plan extends beyond emissions reductions. The company invests in nature and climate projects, including the LEAF Coalition for forest protection, sustainable agriculture programs, and community-based climate initiatives.
In 2024, Chanel committed $125 million to Fondation Chanel, part of which funds women-led climate programs, tying environmental action to social impact. This approach embodies a “just transition,” ensuring that climate action also benefits workers and communities.
The Luxury Sector Shifts: Chanel Sets the Bar for Fashion
Chanel’s plan reflects a wider shift in the fashion and luxury sector. The industry faces growing pressure to act on climate. Fashion accounts for an estimated 2% to 8% of global emissions, based on various global studies.
Source: GreenMatch
Supply chains are complex and global, making change harder. At the same time, regulations are tightening. New rules in Europe and other regions require companies to disclose emissions and transition plans.
Many brands are now setting net-zero targets. But not all have detailed plans. Chanel’s transition plan stands out because it includes:
Full emissions data
Clear reduction targets
A roadmap for action
Still, challenges remain. Cutting Scope 3 emissions is difficult. It depends on suppliers, technology, and costs. There is also a risk of slow progress. New materials, clean energy, and circular systems take time to scale.
Looking Ahead: A Long Road to Net-Zero
Chanel’s transition plan represents a significant step in addressing over 1 million tonnes of emissions. Progress in operations and energy use is evident, but the supply chain remains the most difficult hurdle.
Achieving net-zero by 2040 will require transforming material sourcing, deep collaboration with suppliers, and investment in new technologies.
As consumer demand for low-carbon products grows and investors increasingly scrutinize climate risks, transition plans have become a business imperative. Chanel’s strategy highlights a key trend: climate action is no longer a peripheral responsibility—it is integral to growth, risk management, and long-term value creation.
Carbon credits are vital in the global fight against climate change. They let governments, businesses, and people offset their greenhouse gas (GHG) emissions by supporting projects that remove or reduce carbon from the air. Of the various carbon removal strategies, biochar is a promising solution. It sequesters carbon for decades or centuries while offering agricultural and environmental co-benefits.
Biochar is a carbon-rich material produced by heating organic biomass—such as crop residues, forestry waste, or other plant matter—under low-oxygen conditions. When applied to soil, biochar locks carbon in a stable form, helping to reduce atmospheric carbon dioxide (CO₂) levels. This stability, combined with its positive impact on soil fertility and water retention, makes biochar an attractive option for carbon credit programs.
This article offers a complete guide to biochar carbon credits. It explores the science of biochar, the production technologies, and its benefits for the environment and agriculture. It also explains how biochar qualifies for carbon credit certification and discusses the market dynamics that create investment opportunities.
Understanding biochar and its role in carbon markets helps everyone—farmers and corporations alike. This knowledge allows stakeholders to make smart choices for climate action and sustainable growth.
Key facts to note:
Biochar can store carbon for hundreds or even thousands of years. This depends on how it’s made and used.
Studies estimate that using biochar could remove up to 1.8 gigatons of CO₂ every year. This is possible if it is scaled globally in a sustainable way.
Biochar projects can now earn carbon credits. They qualify under standards like Verra’s VCS and the Gold Standard. This means they can make money from carbon removal.
What is Biochar?
Biochar is a carbon-rich material produced through the thermal decomposition of organic biomass under low-oxygen conditions, a process known as pyrolysis. Pyrolysis is different from regular burning. It stops carbon in biomass from turning into CO₂. Instead, it keeps carbon in a stable form that can stay in soils for hundreds of years and makes biochar a highly effective tool for long-term carbon sequestration.
Types of Biomass Used
The raw material, or feedstock, used to make biochar greatly affects its properties, stability, and ability to store carbon. Common biomass sources include:
Forestry residues: sawdust, wood chips, tree trimmings.
Organic waste streams: green waste, food waste, manure.
Specialty feedstocks: invasive plant species or certain algae.
The choice of feedstock affects carbon content, nutrient makeup, pH, and soil benefits. Wood-based biochar has high carbon stability. Manure-based biochar, on the other hand, is rich in nutrients like nitrogen and phosphorus. This makes it great for improving soil fertility.
Source: Shutterstock
Properties of Biochar
Biochar’s effectiveness depends on several key properties:
Carbon Content: Typically between 50–90%, with higher carbon content contributing to greater sequestration potential.
Stability: Resistant to decomposition, with some biochars remaining stable in soil for hundreds to thousands of years.
Porosity and Surface Area: A highly porous structure enhances water retention, nutrient storage, and microbial habitat in soil.
pH and Cation Exchange Capacity (CEC): Can improve soil fertility by retaining nutrients and moderating soil acidity.
Environmental and Agricultural Implications
By incorporating biochar into soils, multiple benefits occur simultaneously:
Carbon Sequestration: Each ton of biochar applied can lock ~1–3 tons of CO₂-equivalent, depending on feedstock and process efficiency.
Soil Improvement: Enhances water retention, nutrient availability, and microbial activity.
Waste Management: Turns organic waste into a useful product. This prevents it from decomposing and releasing methane, which is a strong greenhouse gas.
Global Potential
The IPCC report states that using biochar on a large scale with sustainable feedstocks could reduce emissions by up to 1.8 GtCO₂ each year. This would cover a large part of global emissions.
Moreover, biochar is versatile. It works well in both tropical and temperate farming, making it useful around the world.
From Biomass to Black Carbon: How It’s Made
Biochar comes from heating biomass in low or no oxygen, also called pyrolysis. Many production technologies have been created over the years. They differ in efficiency, carbon yield, energy co-products, and their fit for carbon credit projects. Knowing these technologies is key to evaluating biochar quality and its ability to store carbon.
Slow Pyrolysis
Slow pyrolysis is the most common method for biochar production. Biomass is heated slowly at moderate temperatures (400–600°C) over several hours. This method produces a high yield of biochar with stable carbon content, making it ideal for carbon sequestration and soil improvement. The slow process also generates some syngas and bio-oil, which can be captured and used for energy.
Fast Pyrolysis
Fast pyrolysis rapidly heats biomass to similar temperatures, but over seconds to minutes. This approach prioritizes the production of bio-oil, with biochar as a secondary output. Biochar yields are lower than those from slow pyrolysis.
However, this process also produces liquid fuels, which can boost overall economic viability. The carbon stability of fast pyrolysis biochar is usually lower. This can affect its use for carbon credit verification.
Gasification
Gasification partially oxidizes biomass at high temperatures (700–1,000°C) to produce syngas, with biochar as a co-product. The biochar yield is lower compared with pyrolysis, but it is often rich in fixed carbon and can be applied to soil or further processed.
Gasification is particularly suitable for integrated energy-biochar projects, combining carbon removal with renewable energy generation.
Hydrothermal Carbonization (HTC)
HTC uses wet biomass, such as agricultural residues or manure, converting it under moderate heat and high pressure into hydrochar, a type of biochar. This method avoids the energy-intensive drying step required in conventional pyrolysis. Hydrochar has moderate carbon stability and can be used in soils or as a feedstock for further carbonization.
Plasma Arc Carbonization
Plasma arc carbonization uses electric plasma to heat biomass to high temperatures. This process creates biochar that is very pure and stable. The carbon content is great for long-term sequestration. However, the process uses a lot of energy that can impact overall lifecycle emissions and project costs.
Torrefaction
Torrefaction is a mild form of pyrolysis carried out at lower temperatures (200–300°C). It partially carbonizes biomass, making it easier to grind and transport, while also improving its energy density. Torrefied biomass isn’t as stable as fully pyrolyzed biochar. However, it can be used as a precursor for more carbonization. It also works well as a soil amendment, with some potential for carbon storage.
Comparing Technologies
Each production technology has trade-offs in carbon yield, stability, energy co-products, and operational complexity:
Carbon stability: Slow pyrolysis and plasma arc produce the most stable biochar.
Biochar yield: Slow pyrolysis generally yields the highest quantity of biochar.
Energy co-products: Fast pyrolysis and gasification produce useful bio-oil or syngas.
Suitability for carbon credits: Methods yielding stable, long-lasting carbon are preferred for verified carbon removal projects.
Choosing the right technology depends on several factors: project goals, feedstock availability, energy needs, and how you plan to use biochar. This could be for soil improvement, energy production, or generating carbon credits. As biochar projects grow, the choice of technology will directly affect environmental impact and financial success.
How Biochar Captures Carbon: The Science of Permanence
Biochar’s primary climate benefit comes from its ability to sequester carbon in a stable form. It is different from many organic materials. While those materials break down and release CO₂ into the air, biochar traps carbon in a stable form. This structure can stay in the soil for decades or even centuries.
Carbon Sequestration Mechanism
During pyrolysis or other carbonization processes, biomass is heated in low-oxygen conditions. This transforms volatile compounds into gases or liquids, while the remaining solid material—biochar—contains a high proportion of fixed carbon. Once in the soil, this carbon resists microbial breakdown. This helps remove CO₂ from the air and stores it for a long time.
Longevity in Soil
The stability of biochar is one of its most important attributes for climate mitigation. Depending on feedstock, production method, and soil conditions, biochar can persist for hundreds to thousands of years. This long-term stability makes it a more reliable carbon storage option than other organic materials. Compost and crop residues decompose much faster.
Co-Benefits Enhancing Carbon Retention
Beyond direct sequestration, biochar improves soil structure, water retention, and nutrient availability. These benefits promote healthier plant growth, which in turn absorbs more CO₂ from the atmosphere. Biochar also cuts nitrous oxide and methane emissions from soils. This boosts its overall effect on reducing greenhouse gases.
Comparison with Other Carbon Removal Methods
Biochar is unique among carbon removal methods. It stores carbon permanently and also boosts soil productivity. It stands out because it removes carbon and helps agriculture.
Biochar also needs less land than afforestation or direct air capture. Its lower risk of reversal makes it more appealing for verified carbon credit projects. This is better than forests or soil carbon projects, which can be impacted by wildfires or changes in land use.
Implications for Carbon Credits
The permanence and verifiability of carbon storage in biochar make it highly suitable for carbon credit programs. Accurate measurement, reporting, and verification (MRV) of biochar carbon content are essential to ensure credits represent real climate benefits. As standards change, biochar’s stable carbon profile makes it a strong choice in voluntary and compliance carbon markets.
Benefits of Biochar: Soil, Water, and Waste Wins
Biochar offers a range of environmental, agricultural, and climate benefits, making it a versatile tool for sustainability and carbon mitigation efforts. Its ability to store carbon permanently is complemented by positive impacts on soil health and ecosystem services.
Environmental Benefits:
Carbon Sequestration: Biochar locks carbon in a stable form, helping reduce atmospheric CO₂ levels.
Reduced Emissions: By improving soil properties, biochar can lower nitrous oxide and methane emissions from agricultural soils.
Waste Valorization: It converts biomass waste into a useful product, reducing open burning or decomposition that would otherwise release greenhouse gases.
Agricultural Benefits:
Improved Soil Fertility: Biochar enhances nutrient retention in soils, reducing the need for synthetic fertilizers.
Water Retention: Its porous structure increases soil moisture-holding capacity, helping crops withstand drought conditions.
Crop Yield Enhancement: Healthier soils and better nutrient availability can lead to higher and more stable agricultural yields.
Climate Mitigation Impact:
Long-Term Carbon Storage: Biochar carbon remains stable in soils for decades to centuries, providing a reliable carbon removal solution.
Support for Carbon Markets: High-stability biochar can generate verified carbon credits, creating financial incentives for adoption.
Co-Benefits for Communities and Ecosystems:
Biochar production can create new job opportunities in rural areas.
It supports circular economy principles by converting agricultural and forestry residues into a high-value soil amendment.
The improved soil and ecosystem health contribute to biodiversity and resilience against climate impacts.
Waste to Asset: Ending Residue Burning
Biochar has a big but often-ignored benefit. It can turn farm waste into a useful carbon product that lasts a long time. Agriculture around the world creates over 5 billion tons of crop residues each year. A lot of this waste is burned or left to rot. This process releases significant amounts of CO₂, methane, and nitrous oxide.
In many areas, especially in Asia and Latin America, open-field burning of waste is a big cause of rural air pollution and seasonal haze.
Biochar production offers a controlled and beneficial alternative, as the company in the video shows. Pyrolysis changes residues like rice husks, corn stover, coconut shells, sugarcane bagasse, and forestry by-products into stable carbon.
The process prevents greenhouse gases from escaping and keeps carbon locked away for hundreds to thousands of years. This intervention cuts air pollution, lowers greenhouse gas emissions, and builds a carbon sink.
The importance of this waste-to-value pathway is twofold:
It provides farmers with a practical method for managing biomass without incurring disposal costs, and
It transforms a climate liability into a climate asset.
In this way, biochar acts as both a soil amendment and a key strategy to tackle agricultural waste and its environmental effects.
Biochar’s multifaceted benefits make it a compelling solution for farmers, investors, and policymakers alike. Its role goes beyond capturing carbon: it combines climate action with real benefits for farming and environmental management.
Biochar Carbon Credits: How Biochar Becomes a Tradable Removal Credit
A carbon credit represents a verified, quantifiable reduction or removal of greenhouse gas (GHG) emissions — typically 1 ton CO₂-equivalent (CO₂e) per credit. For biochar projects, carbon credits come from measuring the carbon stored in stable biochar. This carbon isn’t released and is verified under accepted protocols.
Biochar turns “biogenic” biomass like agricultural waste and wood chips into a stable, carbon-rich solid. This process counts as carbon removal, not just avoidance, if the feedstocks, production, and storage follow set standards.
To ensure credits represent real, permanent removals, biochar projects must follow recognized methodologies and go through a monitoring, reporting, and verification process. As of 2025:
The Integrity Council for the Voluntary Carbon Market (ICVCM) has officially approved three biochar methodologies under its Core Carbon Principles (CCP). These include Isometric Biochar Production and Storage and Verra’s VM0044 (Biochar Use in Soil & Non‑Soil Applications).
Under Isometric’s registry, over 30 projects are set to issue about 500,000 credits starting in 2026. In contrast, fewer than 10 projects are registered under Verra VM0044 by the end of 2025, with an expected output of around 249,000 credits each year.
More approved methods boost the credibility of biochar as a trustworthy carbon removal option.
MRV (Monitoring, Reporting, Verification): What Gets Measured
For biochar carbon credits to be valid, MRV processes typically include:
Documenting feedstock type (must be biogenic biomass) and origin — to verify the carbon source is renewable/biogenic.
Recording details of the conversion process (e.g., pyrolysis yield, reactor efficiency) and final biochar mass produced.
Tracking the fate of biochar — e.g., soil application, embedding in materials, or other stable storage — to ensure the carbon remains sequestered instead of being oxidized or burned.
Independent audits for certification registries to verify data before credits are issued.
Only after successful MRV can a carbon credit (1 tCO₂e removed) be issued, listed, traded, or retired.
Economics: Production Cost and Carbon Removal Potential
Peer‑reviewed research offers some concrete figures for biochar economics and sequestration potential:
One study estimated the production cost of biochar at about US$232.87 per ton of biochar.
That same study estimated that 1 ton of biochar production mitigates about 6.22 tons of CO₂ (i.e., CO₂e removed), implying a high leverage ratio of carbon removal vs material produced.
In their crop-production experiments, the authors found that applying biochar at 8 tons/hectare yielded the most favorable economic returns. At that rate, the benefit–cost ratio (BCR) was ~1.476, net present value (NPV) was positive, and internal rate of return (IRR) reached ~85.7%.
They also observed that at higher application rates (24–28 t/ha), returns became negative. This finding suggests optimal biochar application rates are key for both agronomic benefit and economic viability.
These data suggest that, under the right conditions (efficient production, proper application, stable feedstock), biochar projects can be both climate‑effective and economically competitive, especially if carbon credits are priced favorably.
The Biochar Carbon Credit Market Landscape
The market for biochar carbon removal credits (often called Biochar Carbon Removal or BCR credits) has grown rapidly in recent years. According to a 2025 market snapshot by CDR.fyi, over 3 million tCO₂e of biochar credits are contracted by mid-2025.
In just the first half of 2025 alone, 1.6 million tonnes were sold — more than half of the total contracted volume to date.
Deliveries and retirements have also accelerated: by mid‑2025, about 683,000 tonnes had been delivered and 330,000 tonnes retired.
This surge demonstrates strong growth momentum. According to a report cited by a market intelligence platform, the overall market value (i.e., the dollar value of transactions) for biochar credits rose dramatically, reflecting both volume growth and rising per‑credit prices.
According to a market‑outlook report, about 80% of global biochar credit volume is listed on a major biochar marketplace. This indicates concentration and market data transparency.
For 2024–2025, around 41% of carbon credits purchased by corporates came from “high‑quality” vetted biochar projects. This is in comparison with only 13% from lower-quality ones, showing increasing demand for certified, high‑integrity biochar credits.
Moreover, according to a 2023 industry report, the broader biochar industry (not only credits but all biochar-related production and activities) already had annual revenues exceeding US$ 600 million, with projections to nearly US$ 3.3 billion by 2025.
These figures illustrate that biochar is shifting from niche or experimental to a more mature, scaled market, at least in terms of demand and production capacity.
Price Trends, Credit Value & How Biochar Compares
As of 2025, the average price for biochar carbon removal credits is about US$ 177 per tonne CO₂e, per Sylvera data.
For “high‑quality” vetted biochar credits (i.e., credits from projects that pass stricter quality/integrity screening), the average price appears to be higher, around US$ 200 per tonne CO₂e, compared to ~US$ 153/t for credits that did not meet the highest vetting standards.
Notes: 2024 price is from market estimates, while 2023 and 2025 figures are from Sylvera
A recent market assessment in late 2025 indicates that, despite some slowdown in retirements (i.e., credits being permanently “used up”), prices have remained resilient. For example, U.S. biochar credits were assessed at roughly US$150/tCO₂e for 2025 delivery.
Biochar has typical “sequestration factors,” which show how much CO₂ is removed per tonne produced. This means the value of each tonne of biochar can be quite high. For example, one tonne of biochar can remove about 2.5 to 3.3 tonnes of CO₂. This depends on the feedstock and production method.
At current market prices, this could mean around US$450-700 in carbon credits. The exact value varies based on the price per tonne of CO₂e and the quality premium.
Biochar credits are priced between intermediate and premium levels for carbon removal. They cost more than many nature-based credits, like afforestation or land-use credits. However, they are cheaper than high-end options, such as some direct air capture (DAC) or bioenergy-with-carbon-capture and storage (BECCS) credits.
This “sweet spot” offers high permanence at a more moderate cost. It explains why demand grows, mainly among corporate buyers who seek credible long-term carbon removals.
Price: How Biochar Credits Compare to Other CDR Methods
Why biochar often commands a premium vs most nature-based credits?
Durability/permanence: Biochar converts biomass carbon into a stable form that resists decomposition for decades to centuries when applied to soil. Buyers value this durability relative to many nature-based credits, which face reversal risks (fires, land-use change). Supercritical notes demand for “durable, credible supply” is outpacing supply.
Measurability & additionality: Biochar MRV is becoming more robust and tech-enabled (geotagging, machine data), raising buyer confidence and willingness to pay a premium for verified removals.
Co-benefits: Soil health, nutrient retention, and waste valorization deliver tangible non-carbon benefits that some buyers value (and sometimes pay more for).
Why is biochar generally cheaper than many tech-based durable CDR pathways?
Lower capital intensity/near-term deployability: Pyrolysis and biochar production are proven today and can be deployed at smaller scales than capital-intensive DAC plants or BECCS facilities, lowering per-tonne price ceilings for many projects. Supercritical emphasizes biochar “works today” and has already delivered substantial tonnes.
Easily scalable: Biochar production can be scaled more easily than many tech-based carbon removal methods. It uses common biomass residues like crop stalks or forestry waste. Small farms can start projects that grow regionally or industrially. Modular systems and multiple feedstocks make scaling flexible, while co-products like bio-oil add value. This makes biochar a practical, low-energy carbon removal option for both farmers and businesses.
Co-product revenue: Biochar projects can stack revenue streams (physical biochar sales, heat/electricity), which can lower net credit cost per tCO₂e relative to DAC, which has fewer co-revenue streams.
At-a-glance, here is a comparison table showing global average price ranges for biochar and other CDR methods:
Biochar is often called a “hybrid” carbon removal solution because it blends nature-based and technological approaches. On one hand, it uses natural biomass—crop residues, forestry waste, or other organic materials—to store carbon in soil for decades or centuries.
On the other hand, its production involves controlled technological processes, like pyrolysis or gasification, which optimize carbon stability and can generate energy or bio-products as co-benefits.
This combination allows biochar to deliver reliable carbon sequestration while integrating with modern innovations, making it both a practical and versatile tool for climate mitigation.
Hemp biochar is gaining attention because hemp grows quickly and produces a large amount of biomass. This makes it a good feedstock for biochar.
The global industrial hemp market was valued at about US$11-12 billion in 2025. It continues to grow as more companies use hemp for textiles, building materials, food products, and other sustainable goods.
A recent market study shows that the hemp biochar segment is worth about US$210 million in 2025. It is expected to reach around US$475 million by 2032, growing at a rate of about 12% per year. This growth is supported by rising demand for natural soil enhancers, carbon removal solutions, and low-carbon materials.
Hemp biochar also helps cut waste because it uses leftover stalks and other plant parts. This lowers disposal costs for farmers while creating a useful product for soil health and long-term carbon storage.
Key Players, Procurement Patterns, and Market Dynamics
Corporate buyers are among the biggest demand drivers. According to a recent market data summary, a relatively small number of large purchasers account for a significant share of total biochar credit purchases, led by Microsoft and Google.This concentration of demand (and often long‑term offtake agreements) has helped stabilize pricing and accelerate project financing.
On the supply side, despite the volume of credits contracted and sold, some market observers note that a large portion of biochar producers still do not participate in voluntary carbon markets. They instead choose to sell biochar for soil, agriculture, energy, or other uses rather than pursue credit generation.
Moreover, liquidity in the biochar credit market seems relatively high. One report estimates that a majority of issued credits undergo primary transfer (i.e, sale or trade) quickly, with average transfer times now on the order of weeks rather than months.
However, this growth has also sparked increasing scrutiny of quality. According to analysis from 2024–2025, a non-trivial share of biochar credits comes from projects that failed vetting for high-quality standards. These credits sell for significantly lower prices at ~ US$153/tCO₂e vs ~ US$220 for quality‑vetted.
Returns vs. Risks: What Buyers Must Underwrite
Given the trend in price stability, rising demand, and growing corporate interest in durable carbon removal technologies, biochar-based credits present a compelling investment opportunity:
for project developers (those producing biochar),
for investors or funds backing biochar plants or operations, and
for corporate buyers aiming to secure a long‑term carbon removal supply.
The fact that biochar credits sit between low-cost nature‑based offsets and high-cost engineered technologies on the cost/permanence spectrum gives them a competitive advantage, especially as standards tighten and demand for high-integrity credits grows.
Key Risks and Challenges:
Supply bottlenecks: while demand surges, not all biochar producers are participating in credit markets. This limits the pool of available credits for high-integrity, verifiable carbon removal.
Credit quality variation: as shown by the price differences between “high‑quality” vs “lower‑vetting” credits, buyers and investors must carefully assess project standards, feedstock, production method, and verification rigor.
Market volatility and demand concentration: heavy reliance on a few large buyers could create market instability if corporate demand shifts or regulatory incentives change.
Non‑market pressures: environmental or supply‑chain constraints (e.g., sustainable biomass sourcing, land‑use competition, feedstock availability), which may limit scaling or raise costs.
The Friction Points: Feedstock, MRV, and Scale
While biochar offers significant environmental and economic benefits, the adoption of biochar for carbon removal and carbon credits faces technical, market, and environmental challenges. Understanding these limitations is essential for project developers, investors, and policymakers.
Technical Challenges
Feedstock Availability and Quality: Sustainable and consistent biomass supply is crucial. Competing demands for agricultural residues or forestry waste can limit availability, affecting scalability and project economics.
Production Technology Constraints: Different pyrolysis or carbonization methods yield varying amounts of biochar and carbon stability. Ensuring high-quality, verifiable biochar requires careful technology selection and process optimization.
Carbon Quantification: Accurately measuring the carbon content and permanence of biochar is complex. Soil conditions, environmental factors, and application methods can influence carbon retention, making monitoring and verification more challenging.
Market Challenges
Standardization and Certification Costs: The market still faces variability in methodologies, verification protocols, and registry standards. Certification and MRV costs can be a barrier, particularly for small-scale producers.
Credit Quality Variation: Not all biochar carbon credits are created equal. Buyers must navigate differences in permanence, verification rigor, and project transparency, which can affect market confidence and pricing.
Liquidity and Market Access: Although volumes are growing, access to buyers, marketplaces, and financing remains limited in some regions, slowing market participation.
Environmental Considerations
Sustainable Sourcing: Overharvesting biomass can lead to land degradation, deforestation, or competition with food production. Projects must ensure feedstock sustainability.
Lifecycle Emissions: Energy-intensive production methods or transportation can offset some carbon removal benefits if not carefully managed.
Application Risks: Incorrect application rates or practices can reduce soil benefits and carbon retention, diminishing environmental impact.
Balancing Potential and Risk
Despite these challenges, ongoing technological improvements, evolving standards, and growing corporate demand are helping to mitigate risks. Stakeholders are increasingly focused on combining high-integrity verification, sustainable feedstock management, and optimized production methods to unlock the full climate potential of biochar.
Proof It Works: Real Projects Moving Real Tonnes
Several biochar projects around the world demonstrate both environmental impact and carbon credit generation.
Cool Planet (USA): Cool Planet produces biochar from agricultural residues and applies it to crop fields. Their projects have sequestered thousands of tons of CO₂ annually while improving soil fertility. Verified carbon credits from these operations are listed on voluntary markets, attracting corporate buyers seeking high-quality removals.
Carbon Gold (UK): Carbon Gold combines biochar production with horticultural and agricultural applications. Their biochar has improved soil structure and water retention, while the associated carbon credits have been independently verified under the Verra standard.
Terra Preta (Australia): In Australia, Terra Preta projects convert unloved biomass waste, such as orchard prunings and agricultural residues, into biochar. Beyond storing carbon, these projects enhance soil productivity and reduce fertilizer use, providing dual benefits for farmers and the climate.
Impact summary: Across these examples, biochar projects:
Remove CO₂ permanently from the atmosphere.
Improve soil health and crop yields.
Generate verifiable carbon credits for voluntary and corporate markets.
These success stories highlight the feasibility of biochar as a scalable carbon removal solution that delivers measurable environmental and economic benefits.
How to Participate in Biochar Carbon Credits: Launch, Verify, Sell
Participating in biochar carbon credits can be approached by different stakeholders — farmers, project developers, investors, businesses — depending on resources, goals, and local context. Here is a general roadmap based on established methodologies and current market practices:
Key Preconditions and Initial Steps
Before entering the carbon credit pathway with biochar, a project must meet certain basic conditions:
Use eligible biomass feedstock: The raw material must be “biogenic” — e.g., agricultural residues, wood chips, forestry, or crop waste. Non‑eligible materials (e.g, plastics, tires, municipal solid waste) are generally excluded.
Adopt an approved methodology/standard: For biochar carbon credits, one widely accepted standard is Verra’s methodology VM0044 Biochar Utilization in Soil and Non‑Soil Applications (as of version 1.2, active since June 27, 2025).
Demonstrate additionality and project soundness: Under VM0044 v1.2, an investment analysis is required to show that the project wouldn’t have happened under a “business-as-usual” baseline.
Create a project plan including monitoring and application strategy: The project must plan not just for producing biochar, but for where and how biochar will be applied (e.g., soil, non-soil) — because carbon sequestration depends on stable storage.
Implementation → Biochar production & application — produce biochar via pyrolysis or another approved method, apply it to soil or approved non‑soil uses (as described in project plan).
Monitoring & Reporting — systematically document biomass inputs, biochar yield, biochar application location and amount, soil or land use data, and other required metrics.
Verification — the verifier reviews the monitoring report and issues a verification report; once approved, credits (e.g., Verified Carbon Units, VCUs) are issued.
Credit issuance and sale/trade/retirement — once issued, credits can be sold through voluntary carbon marketplaces or private agreements. Buyer entities (companies, investors) purchase these credits to offset emissions or hold as long-term assets.
For Farmers and Small‑scale Producers
If you are a farmer or smallholder, take note of these:
Aggregation may be an option: under approved biochar credit classes, small producers can aggregate biomass feedstock and biochar output under a single project developer, helping overcome high transaction/verification costs that otherwise deter small-scale efforts.
Combining biochar application with soil fertility benefits makes the approach more attractive — beyond just carbon credits, improved yields and soil health may help justify the investment in biochar production and verification.
Participation may require upfront investments (kiln/pyrolysis equipment, documentation, possible external verifiers) — so it’s important to assess economic feasibility before committing.
Ensure clear feedstock sourcing strategies, ideally using agricultural or forestry residues that would otherwise decompose or be burned — avoiding unsustainable biomass harvesting.
Use an approved methodology (e.g., VM0044) and design projects with robust MRV, permanence, and documentation — important especially now that the credit standards are under stricter scrutiny.
Factor in verification and transaction costs: third‑party audits can cost thousands of USD per cycle; small volumes may not justify these costs.
Consider blending revenue streams: biochar can yield soil‑improvement benefits or biochar sales for agriculture/industry — diversifying income beyond carbon credits.
Challenges to Watch Out For
Even with proper setup, as a market participant, you should be aware of:
The need for long‑term commitment and record‑keeping: carbon credits generally reflect long‑term carbon storage, requiring adherence over years.
Costs vs scale tradeoff: small-scale efforts may struggle to cover verification costs; aggregation or partnerships may be necessary.
Feedstock sustainability: using biomass that competes with food production, leads to deforestation, or causes land‑use conflicts, undermines the environmental integrity of the project.
Market uncertainty: credit prices and demand fluctuate; demand depends on corporate commitments to climate goals and regulatory developments.
Next Decade: From Niche to Gigaton?
The outlook for biochar is positive. It works as both a soil improver and a carbon removal solution. Growing interest from governments, companies, and investors suggests biochar will play a bigger role in climate action over the next decade.
The global biochar market is expected to grow fast. Recent estimates suggest it could reach US$1.5–2.5 billion by 2030, with strong annual growth. Other forecasts show continued expansion through the 2030s, driven by demand in agriculture, waste management, and carbon removal.
Farmers use biochar to improve soil health and crop yields. At the same time, companies are buying biochar carbon credits because they offer durable carbon removal. This is pushing biochar from a niche product into a more mainstream climate solution.
Some studies suggest biochar could remove large amounts of CO₂ by 2040, if production and supply chains scale. Growth is strongest in North America and the Asia–Pacific, where biomass is abundant.
Still, success depends on sustainable feedstocks, consistent quality, and strong verification systems.
In sum: the next 5–15 years may see biochar evolve from a niche soil amendment to a globally relevant carbon‑removal solution. This is particularly true if demand for durable, verifiable carbon credits continues to grow and supply-side constraints are addressed.
The Bottom Line: Durable Carbon With Co-Benefits
Biochar is a powerful solution that combines climate mitigation, sustainable agriculture, and waste management. It sequesters carbon permanently while improving soil health and crop yields. With global market growth and rising interest from farmers, businesses, and investors, biochar carbon credits offer a scalable, verifiable path for carbon removal.
Realizing its full potential requires sustainable feedstock, reliable production, and strong verification. Biochar not only removes carbon but also supports agricultural sustainability, rural livelihoods, and circular-economy principles.
The UK government recently released its Fusion Energy Strategy 2026, where it has laid out a bold plan to turn fusion into a commercial, clean power source while building a strong domestic industry.
The key vision is a £2.5 billion investment over five years. The goal is clear: make the UK the first country with a real pathway to commercial fusion energy. At the same time, the strategy connects clean power goals with economic growth, job creation, and long-term energy security.
A Clear Push Toward Energy Independence
The UK’s strategy comes at a time when global energy markets remain volatile. Fossil fuel dependence continues to create risks. As a result, the government sees fusion as a long-term solution for energy sovereignty.
Fusion offers several advantages. It is clean, abundant, and reliable. Unlike solar or wind, it can provide constant power. Because of this, it could play a major role in meeting future electricity demand, especially as industries and AI systems consume more energy.
The government believes that reducing reliance on fossil fuels is the only way to secure long-term stability. Fusion, therefore, is not just a research goal—it is a strategic priority.
Investing Across the Fusion Ecosystem
The £2.5 billion investment in fusion energy over five years (2025–2030) is spread across the following sectors:
Together, these investments aim to strengthen the entire value chain—from early research to final deployment.
At the same time, the UK is working closely with the private sector. More than 500 companies are already involved in the fusion space. This number is expected to grow as global competition increases.
The potential market is massive. Estimates suggest that fusion could become a £3 trillion to £12 trillion global industry. Therefore, countries are racing to secure leadership positions early.
Five-Year Fusion Trends: Total Funding Till 2025
Source: Fusion Industry Association Report 2025
STEP Program: Building the First Fusion Power Plant
A major part of the funding—£1.3 billion—will go to the Spherical Tokamak for Energy Production (STEP) program. This initiative aims to design and build the UK’s first prototype fusion power plant.
The plant will be located at a former coal site in Nottinghamshire. Construction is expected to begin in 2030, with completion targeted for 2040. The mission is ambitious: generate net energy from fusion and prove that the technology can work at a commercial scale.
Source: UK Fusion Strategy 2026
To deliver this, the UK has partnered with a consortium called ILIOS. This group, led by Kier and Nuvia, will handle construction, engineering, and supply chain management. Their role covers everything from design integration to infrastructure development.
Importantly, STEP is meant to act as a catalyst. By building this prototype, the UK hopes to stimulate a broader fusion ecosystem, including suppliers, engineers, and technology firms.
UK Fusion Energy
A key part of this shift is the creation of UK Fusion Energy, a subsidiary responsible for delivering the STEP program. This organization will act as a systems integrator. It will bring together multiple technologies and partners to build a complete fusion power plant.
In summary, the three main goals for UK Fusion Energy are:
Make future fusion power plants safer and more reliable
Build strong UK industries and supply chains
Bring lasting economic benefits and energy security to the UK
UKAEA Group: The Backbone of the UK’s Fusion Ambition
The backbone of the UK’s fusion strategy is the UK Atomic Energy Authority (UKAEA Group). It acts as the country’s main public body driving fusion research, innovation, and delivery.
The UKAEA operates the National Fusion Laboratory based in Culham, Oxfordshire. This facility leads advanced research in plasma science, robotics, materials, tritium systems, and high-performance computing. Over time, it has built a strong global reputation for technical excellence.
However, the UKAEA’s role is now expanding. Other than research, it is actively helping to turn scientific progress into commercial outcomes.
Turning Research into Real-World Innovation
Furthermore, the UKAEA is working closely with industry to transfer knowledge and scale up technologies. Many of its capabilities are already moving toward commercialization. These include:
Neutral beam systems are used for plasma heating
Robotics for remote maintenance in extreme environments
Advanced diagnostics and sensor technologies
Fusion fuel cycle systems and materials
This approach ensures that public research does not remain in the lab. Instead, it flows into real-world applications, supporting both fusion and other industries.
The UK’s strategy goes beyond technology. It focuses heavily on building a full industrial ecosystem.
The plan supports companies of all sizes—from startups to multinational firms. It also aims to develop strong supply chains within the country. By doing so, the UK wants to become a top destination for fusion investment.
Key areas of opportunity include:
High-temperature superconducting magnets
Advanced materials
Robotics and remote maintenance
Plasma systems and lasers
AI-driven control systems
These technologies are not limited to fusion. They also have applications in sectors like aerospace, automotive, healthcare, and telecommunications. As a result, fusion investment could drive innovation across multiple industries.
For example, UK-based companies are already exploring how fusion-related technologies can be used in power grids and advanced manufacturing. This creates near-term economic benefits, even before fusion becomes fully commercial.
AI Meets Fusion: A Game-Changing Combination
One of the most forward-looking parts of the strategy is its focus on artificial intelligence. The government sees AI as a key tool for unlocking fusion energy.
Fusion systems are highly complex. They involve extreme temperatures, fast reactions, and dynamic plasma behavior. Managing these systems requires advanced data analysis and real-time decision-making. This is where AI becomes critical.
Revealing an AI supercomputer: Sunrise
The UK plans to invest £45 million in a dedicated AI supercomputer called Sunrise. This system will support fusion research by accelerating simulations, improving designs, and optimizing operations.
In addition, the UKAEA’s Culham campus will become an AI Growth Zone. This hub will bring together scientists, engineers, and AI experts. The goal is to create a collaborative environment where innovation can thrive.
The government’s broader AI strategy supports this effort. It focuses on building strong data systems, expanding computing power, and encouraging multidisciplinary research. Fusion stands out as one of the priority sectors where AI can deliver rapid breakthroughs.
Interestingly, the relationship works both ways. While AI helps make fusion possible, fusion could eventually power energy-intensive AI data centers. This creates a strong link between future clean energy and digital growth.
DESNZ Sets Clear Rules for Fusion Development
Investors and developers need clear rules to plan fusion projects with confidence. This includes understanding safety, environmental, and planning approvals, as well as which UK organizations must be involved.
To provide clarity, DESNZ (Department for Energy Security and Net Zero) will release a roadmap for the UK fusion regulatory process by Summer 2026. This will guide developers on how to get approvals and engage with regulators early.
The plan also aims to help regulators understand fusion technologies better and support early collaboration, reducing risks in plant design. Fusion regulators are already working with industry and will continue reviewing processes as the sector grows.
In conclusion, with growth in fusion development around the world, collaboration and competition are both rising. The UK is becoming a global leader through the STEP program, international partnerships, and smart investment. And with public and private collaboration, the UKAEA Group is key to turning research into commercial fusion plants and boosting the UK’s role in the global market.
Chery Automobile is steering full speed ahead. The Chinese carmaker posted record revenues and profits for Q4 2025, backed by a stronger global presence and growing investments in new energy vehicles (NEVs) and smart technology. While the future looks bright, investors should keep an eye on the challenges of NEV profitability and the costs of rapid expansion.
Last year, Chery’s net income jumped 34.6% to 19.02 billion yuan ($2.77 billion). This surge came on the back of record global deliveries of 2.63 million vehicles, an 8% rise from 2024.
Revenue also climbed 11.3% to 300.29 billion yuan. Despite tough competition in China’s passenger car market, Chery managed to slightly lift its overall gross margin to 13.8% from 13.5% the year before.
Financial highlights for the year ended 31 December 2025
Data Source: Chery
NEVs Take the Spotlight
Passenger vehicles made up the major revenue at 272.4 billion yuan, or 90.7% of total sales. NEVs stole the spotlight, with sales soaring 66.4% to 98 billion yuan, now making up almost a third of passenger vehicle revenue.
Traditional internal combustion engine (ICE) vehicles fell 7.2% to 174.3 billion yuan, reflecting the ongoing industry shift toward electrification. The surge in NEV sales shows how the market is changing fast, and Chery is clearly keeping pace.
Chery Going Global Pays Off
Chery’s international strategy is paying off.
For the first time, overseas revenue outpaced domestic sales, jumping to 157.4 billion yuan from 100.9 billion yuan, while China’s sales dropped to 142.9 billion yuan.
This milestone highlights how Chery’s global expansion is more than a strategy—it’s a real driver of growth. It also shows the brand’s rising appeal outside China, particularly in markets that value affordable, high-tech, and energy-efficient vehicles.
A Rise in Gross Profit
Overall gross profit increased 14.1% to 41.4 billion yuan, but NEVs still lag behind ICE vehicles on margins, earning 8.8% compared to 15% for ICEs. As NEVs took up a larger share of the passenger vehicle mix, the core business margin slipped slightly to 12.8%.
The EV maker is investing heavily to meet rising global demand, pushing up capital expenditure, marketing, and R&D spending to build capacity and future models. Selling and distribution costs jumped 32.6% due to aggressive marketing campaigns, while research and development spending rose 23.8% as the company accelerated innovation for its next-generation vehicles.
Brand Performance Highlights
Among Chery’s brands, Luxeed and iCar saw the fastest growth. Luxeed sold 90,493 vehicles, up 56% year-on-year, while iCar delivered 96,989 units, a 47% increase.
Meanwhile, the premium Exeed brand fell 15% to 120,369 units, showing that not all segments are booming equally.
This show, Chery is clearly experimenting with a multi-brand approach, pushing emerging names forward while keeping an eye on premium offerings.
Chery is doubling down on technology to stay ahead. According to the CnEV report, the company planned to unveil its solid-state battery technology at its upcoming “Battery Night,” promising ranges over 1,200 kilometers—a potential game-changer in the EV market.
The solid-state battery module showcased in October 2025 signals Chery’s serious step toward longer-range, high-performance electric vehicles, which could help it compete with international EV leaders.
Chery’s Emissions and Energy Use
Chery is ambitious about cutting emissions and using energy more efficiently. In its 2024 ESG Report, the company tracks greenhouse gas emissions, energy consumption, and ways to make operations cleaner.
It reports both Scope 1 and Scope 2 emissions—direct emissions from the fuel it uses and indirect emissions from electricity.
Scope 1 emissions rose from 140,000 to 203,000 tonnes of CO₂e in 2024, and total emissions for Scopes 1 and 2 reached over 733,000 tonnes.
Emission intensity, which measures CO₂e per vehicle, rose slightly to 0.30 tCO₂e, reflecting changes in production and energy use.
Source: Chery
Chery’s energy strategy focuses on cleaner electricity and renewables, aligning with China’s targets for carbon peak by 2030 and carbon neutrality by 2060. About 30% of energy at China plants comes from green sources, and the company has installed 210 MW of solar panels across its facilities. It also improves energy efficiency in factories, cutting energy use and emissions.
Source: Chery
On the vehicle side, it assesses the full lifecycle carbon footprint of nearly all models, from production to end-of-life, helping the company target areas with the highest impact.
To further reduce emissions, Chery is investing in hybrids, NEVs, and supply chain efficiency. Low-carbon materials, energy-efficient manufacturing, and renewable adoption are part of a multi-year transition to greener operations. This approach shows that Chery is serious about sustainability while scaling up production globally.
Smart Mobility and AI
Chery’s guiding philosophy, “Technology Shapes the Future,” reflects a clear commitment to electrification and intelligent mobility. The company is building cross-industry alliances and pushing innovations in AI and smart vehicles.
Its AI governance framework aligns with international standards, covering intelligent cockpits, driver assistance, and quality prediction tools. This ensures that Chery’s vehicles are not only electric but also smart, safe, and ready for future mobility trends.
Innovation in Hybrids and Ethanol Fuel
Chery focuses on hybrid powertrains, next-gen battery tech, and expanding electric vehicle options. The Fulwin, EXLANTIX, and JETOUR Shan Hai series offer hybrid and plug-in options for city driving, long trips, and off-road adventures.
Its fifth-generation Super Hybrid System powers multiple series, offering high fuel efficiency and long-range capabilities, tested under extreme conditions. The tri-motor architecture and 3-speed intelligent electric hybrid DHT enable the JETOUR Shan Hai T2 AWD to accelerate from 0 to 100 km/h in 5.5 seconds while covering over 1,200 kilometers.
Last year, the company rolled out plug-in hybrids compatible with high-ratio E32 ethanol fuel, further cutting carbon emissions and boosting energy flexibility. These moves highlight how the company blends innovation with environmental responsibility.
Source: Chery
Looking Ahead
Chery’s 2025 performance shows a company in transition. Revenues and global sales are surging, NEVs are taking a larger share, and investment in technology and sustainability is accelerating.
However, challenges remain, including NEV profitability, execution risks, and cash flow management. But with strong finances, aggressive R&D, and a clear global strategy, Chery can become a major player in low-carbon, intelligent mobility.
AtkinsRéalis Group has announced a collaboration with NVIDIA to explore nuclear‑powered large‑scale “AI factories.” These facilities are meant to support next‑generation artificial intelligence computing using stable, low‑carbon energy. The work combines AtkinsRéalis’s engineering and nuclear expertise with NVIDIA’s digital and AI design tools.
The project aims to use AI tools like NVIDIA’s Omniverse libraries and accelerated computing systems. These tools help engineers design and test physical infrastructure in a digital, 3D environment before actual construction. AtkinsRéalis said this could speed up the deployment of highly efficient computing hubs powered by nuclear energy.
Ian L. Edwards, President and CEO, AtkinsRéalis stated:
“AtkinsRéalis brings deep engineering and delivery expertise across complex infrastructure and a 70-year legacy of excellence in the nuclear industry. This collaboration enables us to leverage these strengths in energy, infrastructure, and complex project delivery to complement NVIDIA’s leadership in accelerated computing to help power critical AI data centers.”
Why Nuclear Power Matters for AI
Nuclear energy is seen as a potential solution for very large energy needs. AI data centers and high‑performance computing facilities require constant, very high levels of electricity. Nuclear plants can run 24/7, unlike intermittent sources like solar or wind. This makes them attractive for energy‑intensive AI operations.
AI computing is driving huge increases in data center energy use. In 2024, global data centers consumed about 415 terawatt-hours (TWh) of electricity. That is enough to power all of Japan for a year.
This figure is forecast to grow to 800 TWh by 2026 and possibly beyond as AI workloads expand rapidly. Some analysts predict that AI will drive 165% increase in data center power demand by the same period.
The world’s leading research and consulting firms also view nuclear as key to meeting future electricity demand. For example, analysts at Goldman Sachs estimate that new nuclear capacity of 85 to 90 gigawatts (GW) may be needed by 2030 to supply power for data centers worldwide.
Nuclear power offers stable, continuous energy — a trait industry leaders call baseload power. This helps facilities operate reliable computing systems without interruptions. Nuclear plants also have very low operational emissions compared with fossil fuels.
AI Tools Designing the Next Power Plants
The AtkinsRéalis–NVIDIA deal highlights another trend: AI is not just a load on power systems. It is also a tool for designing and optimizing new power infrastructure.
NVIDIA’s Omniverse and AI analytics can simulate everything from heat flow to electrical load in highly complex systems. This allows engineers to design layouts and workflows with precision. It also helps in digital twin modeling: creating virtual replicas of physical systems to test performance before building.
These tools can support nuclear reactor design, safety planning, and integration with computing facilities. AI can also help optimize operations, lowering costs and improving reliability.
The partnership focuses on three key areas to support the development of nuclear-powered AI infrastructure:
Nuclear + AI integration: AtkinsRéalis will link its CANDU® reactors with AI data centers, while NVIDIA provides computing and digital twin tools.
Faster project delivery: AI, simulation, and Omniverse tools aim to speed up design and construction and improve safety.
Data center engineering: AtkinsRéalis will deliver power, cooling, and modular systems for efficient AI facility deployment.
Energy analysts believe that using digital tools with nuclear power can speed up new energy projects. This includes small modular reactors (SMRs), which are viewed as a key source of carbon-free energy for the future.
SMRs are typically smaller and more modular than traditional reactors. They may be built faster and at lower cost. Many technology companies and utilities are exploring SMRs for new power capacity to meet rising energy demand.
Data Center Boom Reshapes Global Energy Demand
AI’s rise has reshaped energy demand. As shown below, power needs for data centers could double or more by 2030 compared with 2024 levels. This growth comes from both AI training workloads and everyday data processing.
Data center energy demand is expected to grow faster than many other industrial sectors. Some forecasts suggest that electricity consumption by data centers could account for up to 12% of total U.S. power demand by 2028.
Globally, around 15% of data center energy comes from nuclear power. This number is growing as companies make long-term deals with nuclear providers. Renewables (wind and solar) also play a growing role, with their share expanding due to climate goals and cost declines.
Despite this growth, fossil fuels still supply a large share of data center power today — around 56% globally — leading to rising carbon emissions unless clean sources are scaled rapidly.
Many major tech companies have set ambitious targets for net‑zero emissions. These targets focus on three main goals:
Powering data centers with zero-carbon electricity.
Improving energy efficiency.
Adopting new technologies like nuclear energy or carbon capture.
Can Nuclear Keep Up with AI Growth?
Investments in nuclear energy are rising. In 2025, nuclear capacity is expected to grow by about 29 GW worldwide, with more than half of that expansion in China and India.
Some nations are doubling down on nuclear power to support digital growth and energy security. France, for example, gets over 70% of its electricity from nuclear and is pushing to power new AI facilities with low‑carbon energy.
SMRs are gaining attention because they can be located closer to industrial or urban centers. Full commercialization of SMR technology is expected around 2030, making it a key component for future data center energy strategies.
In the clean energy market overall, nuclear power’s share is expected to grow alongside wind and solar. The International Energy Agency says that nuclear, renewables, and other low-carbon sources must grow a lot. This growth is needed to meet increasing electricity demand and reduce emissions.
Cost, Regulation, and Public Trust
Despite these trends, challenges remain. Nuclear infrastructure is expensive and time‑intensive to build. Regulatory hurdles, licensing processes, and community acceptance can slow deployment. Public perception of nuclear safety also affects project timelines. Analysts say streamlined permitting and clear safety standards will be needed to scale nuclear for data center support.
Moreover, deploying nuclear‑powered AI factories requires long‑range planning. Construction can take years, and financing relies on government incentives and private investment. Nuclear projects often require large capital outlays upfront, which can slow adoption without policy support.
At the same time, data centers are rapidly evolving. Advanced cooling systems help reduce energy use. AI workload scheduling makes tasks more efficient. Energy-efficient hardware also cuts the sector’s footprint. These technologies can reduce overall energy demand, but they do not eliminate the need for stable, baseload power sources like nuclear.
The Convergence of Energy and Computing
The collaboration between AtkinsRéalis and NVIDIA points to a future where energy and computing strategies are tightly linked. As AI demand grows, the need for reliable, low‑carbon energy becomes more urgent. Nuclear energy offers a potential answer — one that can deliver power around the clock without emissions.
Big tech companies are already exploring nuclear solutions. For example, Meta has signed long‑term agreements to secure hundreds of megawatts of nuclear power for its data centers, and Google is building small modular reactors to power AI operations.
The integration of AI design tools with nuclear engineering can speed up planning, improve safety, and reduce cost risk. This is important if large‑scale AI infrastructure is to be built in a way that supports sustainability goals.
As the energy and tech sectors converge, nuclear‑powered AI factories may represent a new evolution in how computing hubs are powered and designed. If successful, this trend could reshape data center energy strategies and help meet the growing power demand of the AI era with low‑carbon solutions.
Google has signed a major deal to buy carbon removal credits from an affiliate of AMP Robotics. The agreement targets the removal of 200,000 metric tons of carbon dioxide equivalent (CO₂e) by 2030. It is one of Google’s largest carbon removal purchases to date.
The project uses artificial intelligence (AI) to sort municipal solid waste. Organic waste is separated before it reaches landfills. Instead of decomposing and releasing methane, the waste is turned into biochar. Biochar is a stable material that can store carbon for hundreds of years.
The deal shows how large companies are moving beyond simple offsets. They are now funding durable carbon removal solutions that can scale over time.
AI + Biochar: Turning Trash into Carbon Storage
The project’s approach tackles two problems at once. It reduces methane emissions in the short term. It also removes carbon dioxide for the long term. Methane is a powerful greenhouse gas. In the United States, landfilled waste is the third-largest source of human-caused methane emissions, according to the U.S. Environmental Protection Agency.
Reilly O’Hara, Program Manager, Carbon Removal at Google, remarked:
“Beyond the carbon removal itself, we are excited to explore the dual-action impact of AMP’s approach on methane – a superpollutant 80x more potent than CO2. By diverting organic matter before it decomposes and utilizing biochar in landfill soil covers to neutralize existing gases, this partnership could serve as a blueprint for eliminating emissions at the source, leveraging existing industry, and creating a scalable model for the circular economy.”
The AMP system uses AI to identify and sort materials from mixed waste streams. The company says its platform has already identified more than 200 billion items and processed 2.9 million tons of recyclables globally.
In this project, the system will process up to 540,000 tons of waste per year in Virginia. At least 50% of this waste will be diverted from landfills. Each ton of waste diverted can reduce or remove more than 0.7 tons of CO₂e. That adds up to over 378,000 tons of CO₂ avoided or removed each year. This is equal to taking about 88,000 cars off the road annually.
The project is backed by a 20-year contract with a regional waste authority serving 1.2 million people. Over time, AMP aims to convert 5 million tons of organic waste into biochar over 20 years.
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Biochar also has added uses. It can be used in landfills to reduce odors and control pollution. It may also be used in construction and cement. This creates new value streams while storing carbon.
The deal reflects a wider shift in the carbon market. Companies are now focusing on carbon dioxide removal (CDR) instead of traditional offsets. Carbon removal captures CO₂ from the atmosphere and stores it for long periods.
The market is still small but growing fast. A coalition backed by major companies, including Google, has committed to spending $1 billion on carbon removal credits by 2030.
Recent deals show rising demand:
Google agreed to buy 100,000 tons of carbon removal credits from an agricultural biochar project in India.
It also signed a deal for 50,000 tons of removal credits using underground waste storage technology.
Prices for high-quality removal credits remain high. Some deals have reached around $362 per ton, reflecting early-stage technology and limited supply.
At the same time, developers are working to scale production and lower costs. Biochar is seen as one of the more practical options today because it uses existing waste streams and proven processes.
Methane Matters: Quick Wins for the Climate
One reason this deal matters is its focus on methane. Methane causes much faster warming than CO₂ in the short term. Reducing methane can deliver quick climate benefits.
Waste is a major methane source. When organic waste breaks down in landfills, it releases methane gas. By diverting this waste early, AMP’s system prevents methane from forming at all.
This makes waste-based carbon removal different from many other methods. It combines emissions avoidance and carbon removal in one process.
This dual benefit is attracting attention from companies and policymakers. Many climate strategies now include methane reduction as a priority. Technologies that can do both removal and avoidance may scale faster than single-purpose solutions.
Beyond market impact, the deal highlights how Google is managing its rising emissions.
How This Fits Google’s Climate Strategy
The deal is part of Google’s wider plan to reduce its climate impact. The company has set a goal to reach net-zero emissions across its operations and value chain by 2030. It also aims to run on 24/7 carbon-free energy by 2030, meaning every hour of electricity use is matched with clean energy.
Source: Google
However, Google’s emissions have risen in recent years. In its 2024 environmental report, the company noted around 11.5 million tonnes of ambition-based CO₂e emissions. This marks an 11% rise from 2023 and is about 51% higher than in 2019. The increase shows ongoing growth in energy use, mainly from AI-powered data centers and expanded infrastructure.
Source: Google
Because of this, Google is using carbon removal to address emissions it cannot fully eliminate. The company has said it will rely on high-quality carbon removal credits instead of traditional offsets. These credits must remove carbon from the atmosphere and store it for long periods.
The tech giant is also a founding member of Frontier, a coalition of companies committed to spending $1 billion on carbon removal by 2030. The group helps fund early-stage technologies and scale supply.
This strategy reflects a broader shift among tech companies. As energy use grows, especially from AI and cloud computing, firms are investing more in carbon removal to meet climate targets.
Carbon Removal Demand Surges, But Supply Falls Short
The Google–AMP deal shows how fast the carbon removal market is growing. But the market is still far from the scale needed to meet climate goals. Today, global emissions remain high at about 38 gigatonnes of CO₂ in 2024, according to the International Energy Agency.
To balance these emissions, demand for carbon removal is rising quickly. Estimates show the market could reach 40 to 200 million tonnes of CO₂ removal per year by 2030, and as much as 80 to 900 million tonnes by 2040. This could create a $10 billion to $40 billion market by 2030, growing to as much as $135 billion by 2040.
Source: BCG analysis
At the same time, supply is still limited. Current announced projects may only deliver around 33 million tonnes by 2030, far below expected demand. This gap is one reason large buyers like Google are signing long-term deals early. These agreements help scale new technologies and secure future supply.
Long-term, carbon removal will play a major role in climate strategy. Some projections show that removal capacity must reach around 1.7 gigatonnes per year by 2050 to meet global climate targets. Carbon capture alone could deliver about 12% of total emissions reductions between 2030 and 2050, especially in heavy industries like cement and steel.
Source: DNV Report
Investment is also rising fast. In the past five years, the number of carbon removal startups has grown fivefold, and venture funding has increased sevenfold. This shows strong interest from both private investors and large companies.
Closing the Carbon Gap
Still, challenges remain. Costs are high, and standards are still evolving. Some forecasts suggest the market could reach up to $100 billion per year by the early 2030s, but only if policy support and financing improve.
In this context, the Google–AMP deal reflects a clear shift. Companies are moving early to secure high-quality carbon removal. They are also helping build the market from the ground up. Waste-based solutions like biochar may scale faster because they use existing systems and deliver both methane reduction and carbon storage.
Overall, carbon removal is moving from a niche idea to a core part of climate strategy. But the gap between current supply and future demand remains large. Closing that gap will require strong investment, clear rules, and continued innovation across the sector.
Thorium is making a strong comeback in the global energy conversation. For decades, it remained on the sidelines while uranium dominated nuclear power. Now, the shift toward net-zero emissions is changing that story. Countries need reliable, low-carbon energy that works around the clock. As a result, advanced nuclear technologies are gaining attention again—and thorium is leading that discussion.
At the same time, rapid innovation in reactor technologies is making thorium more practical. Designs such as molten salt reactors and small modular reactors are unlocking its potential. This combination of policy support, technological progress, and climate urgency is pushing thorium from theory toward reality.
Thorium vs Uranium: A New Nuclear Equation
Thorium is a naturally occurring radioactive metal found in the Earth’s crust, but it works differently from uranium. It is not directly fissile, which means it cannot sustain a nuclear reaction on its own. Instead, thorium-232 absorbs neutrons inside a reactor and transforms into uranium-233. This new material then drives the nuclear reaction.
This process may sound complex, but it delivers clear benefits. Thorium reactors or thorium-based fuel systems are more stable under high temperatures. They also reduce the risk of catastrophic failure, such as meltdowns. In addition, they generate far less long-lived radioactive waste compared to conventional uranium reactors
Another factor is safety. Many thorium reactors use passive safety systems that rely on natural processes, which lowers the risk of accidents. Uranium reactors, especially older ones, depend more on active cooling and human control.
Geopolitics also plays a role. Uranium supply is concentrated in a few regions, creating risks. Thorium is more widely available, which improves energy security and reduces dependence on specific countries.
However, uranium still has a clear advantage today. Its infrastructure is already in place, and it has long powered nuclear energy. Often called “yellow gold,” it is well understood and widely used with a mature supply chain. Thorium still needs new reactor designs, fuel systems, and regulatory support, so it is more likely to complement uranium in the near term.
For many years, thorium remained underutilized because conventional reactors were not designed for it. Today, that is changing. New reactor technologies are making thorium more viable.
Molten Salt Reactors (MSRs): Use liquid fuel for better heat transfer and low pressure, improving safety, efficiency, and thorium utilization.
Advanced Heavy Water Reactors (AHWRs): Support mixed fuel use, enabling gradual thorium adoption; central to India’s nuclear strategy.
Small Modular Reactors (SMRs): Compact and flexible systems that are easier to deploy; increasingly designed to support thorium fuel cycles.
Liquid Fluoride Thorium Reactors (LFTRs): A type of MSR offering high efficiency and built-in safety, making them a leading thorium energy solution.
Global Thorium Reserves Highlight Long-Term Potential
Thorium’s abundance is one of its strongest advantages. According to geological assessments, these reserves could theoretically generate electricity for several centuries if fully utilized in advanced reactor systems. That makes thorium not just an alternative fuel, but a long-term energy solution.
Even when compared to rare earth elements, which total around 120 million tons globally, thorium remains highly competitive in terms of its energy potential, despite differences in extraction economics.
USGS data shows that the geographic spread of thorium further strengthens its appeal.
Major reserves are located in India, Brazil, Australia, and the United States. India leads with approximately 850,000 tons, followed by Brazil with 630,000 tons. Australia and the United States each hold around 600,000 tons.
In addition, countries within the Commonwealth of Independent States collectively hold about 1.5 million metric tons of thorium. This includes nations such as Kazakhstan, Uzbekistan, and Azerbaijan. This wide distribution supports global energy security by reducing reliance on a limited number of suppliers.
Regional Highlights
Asia-Pacific leads with over 55% of global share in 2025, supported by strong government backing, active research programs, and growing use of rare earth materials.
Countries like India and China are driving this growth. Rising energy demand and long-term policies are accelerating investment in thorium technologies. They are not just researching but actively preparing for deployment.
Meanwhile, North America is the fastest-growing region. Increased funding and private sector involvement are boosting innovation, especially in next-generation reactors that can use thorium fuel.
Together, this regional momentum is driving global competition and pushing the race for leadership in thorium energy.
Thorium Market Size and Demand Drivers
Market research reports indicate that the global thorium reactor market is projected to grow from $4.56 billion in 2025 to $8.97 billion by 2032, with CGAR 10.1%. This growth reflects increasing demand for clean, reliable, and low-carbon energy.
At the same time, other broader market estimates suggest the thorium sector could reach $13 billion by 2033, growing at a more moderate 4% rate. These figures include not just fuel, but also materials, reactor development, and associated technologies.
Several factors drive this growth. Governments are increasing investments in clean energy technologies. Research institutions are advancing reactor designs. At the same time, the need for energy security and reduced carbon emissions is becoming more urgent.
These converging trends are positioning thorium as a strategic energy resource. While large-scale commercialization is still ahead, the direction of growth is clear.
Competitive Landscape: A Market Defined by Innovation
The thorium market is still in its early stages, and this is reflected in its competitive landscape. Unlike mature energy sectors, it is not dominated by large-scale commercial players. Instead, it is shaped by collaboration, research, and pilot projects.
Copenhagen Atomics’ Strategic Partnership with Rare Earths Norway
As the industry evolves, partnerships are becoming increasingly important. One notable example is Copenhagen Atomics, which has signed a Letter of Intent with Rare Earths Norway. This agreement aims to secure access to thorium from the Fensfeltet deposit in Norway.
This partnership highlights a key shift in how thorium is viewed. It is now being recognized as a valuable energy resource. By integrating thorium into supply chains, companies are laying the groundwork for future commercialization.
Copenhagen Atomics is also developing modular molten salt reactors designed for mass production. This approach requires not only technological innovation but also a reliable supply of materials. Partnerships like this are critical for building that ecosystem.
Thorium molten salt reactor, with the focus on low electricity price and fast installation
Source: Copenhagen Atomics
India’s Thorium Strategy Sets a Global Benchmark
India stands out as one of the most advanced players in the thorium space. Its nuclear program is built around a three-stage strategy designed to fully utilize its domestic thorium reserves.
The country’s Department of Atomic Energy and Atomic Energy Commission are leading this effort. Research institutions are developing advanced reactor designs, including the Advanced Heavy Water Reactor and molten salt systems.
One of the key milestones is the Prototype Fast Breeder Reactor at Kalpakkam, which is expected to play a crucial role in producing uranium-233 from thorium. This will enable a closed fuel cycle, improving efficiency and sustainability.
Private sector involvement is also growing. Clean Core Thorium Energy is supplying advanced fuel for testing in existing reactors. At the same time, companies like NTPC and Larsen & Toubro are supporting large-scale deployment and infrastructure development.
India’s long-term vision is ambitious. With its vast thorium reserves, the country aims to secure an energy supply for up to 200 years. This strategy not only strengthens energy security but also positions India as a global leader in thorium technology.
Thor Energy: Leading in Fuel Development
Companies like Thor Energy are leading the way in fuel development. Their work on thorium-plutonium mixed oxide fuel and ongoing irradiation testing provides valuable real-world data. Similarly,
Other players are taking different approaches:
Ultra Safe Nuclear Corporation is integrating thorium fuel cycles into its Micro Modular Reactor design. This approach focuses on creating a fully integrated energy system.
NRG in the Netherlands is conducting critical experiments that provide data on reactor performance and fuel behavior.
National laboratories also play a key role. Organizations such as Atomic Energy of Canada Limited provide the expertise and facilities needed to support research and development. Their contributions are essential for advancing the technology.
Overall, the market is best described as a technology race. Companies are not competing on volume yet. Instead, they are competing to prove that their solutions work at scale.
A Strong Fit for the Net-Zero Transition
The global push for carbon neutrality is a major driver behind thorium’s rise. More than 130 countries have set or are considering net-zero targets. Achieving these goals requires a mix of energy solutions.
As we may already know, renewables like solar and wind are essential, but they are not always reliable. Their output depends on weather conditions, which creates gaps in the electricity supply. These gaps must be filled by stable, low-carbon sources.
Thorium-based nuclear power offers exactly that. It provides consistent baseload electricity without producing greenhouse gas emissions during operation. At the same time, it addresses key concerns associated with traditional nuclear energy, such as safety and waste.
This alignment with climate goals is driving interest in thorium. Governments are exploring it as part of broader energy strategies. Investors are also paying attention, recognizing its long-term potential. Simply put, this phase can be seen as a technology race. The goal is to prove that thorium systems can operate safely, efficiently, and economically at scale. Success in this area will determine the pace of market growth.
The conflict in the Middle East is raising doubts about major carbon capture projects in the Gulf region. Carbon capture, utilization, and storage, known as CCUS, is a technology that prevents carbon dioxide (CO₂) from entering the atmosphere. It captures CO₂ from industrial sources and stores it underground or uses it in industrial processes. CCUS is seen as crucial for cutting hard‑to‑abate emissions from oil, gas, cement, and steel.
Gulf Ambitions Hit the Pause Button
Before the conflict, Gulf plans aimed for about 20 million tonnes per year (Mtpa) of CCUS capacity by 2030. This would have positioned the region as a key global hub. But Rystad Energy says this is now unlikely. The pipeline may shrink closer to the lower case of around 12 Mtpa by 2035 due to delays and repriced risk.
Source: Rystad Energy
The Gulf’s CCUS buildout has strong logical drivers. The region has abundant oil and gas operations, and projects often connect to those facilities. However, when the upstream energy system is disrupted, CCUS plans can be delayed, pushed back, or re‑evaluated. This change affects investors’ view of CCUS as a near‑term investment in the region.
Rising Costs and Risk Reprice Carbon Capture
One major risk from prolonged conflict is rising energy costs. If energy prices jump — which often happens during regional conflict — the cost to capture and transport CO₂ also rises.
Rystad’s analysis shows that a 50 % rise in energy prices could increase capture and transport costs by about 30 %. That could push the cost of capturing a tonne of CO₂ well above the price range expected by 2030 in the European Union’s emissions trading system.
The analysis suggests an increase from $95 per tonne to $124 per tonne using a ‘middle impact’ case, where energy prices rise about 50%.
Source: Rystad Energy
Higher costs come from more expensive power, higher equipment prices, and slower supply chains. All these pressures hit CCUS projects hard because they are already more costly than conventional infrastructure.
Energy‑intensive capture systems need cheap, reliable supplies of power and materials. Rising inflation and disrupted supply chains could reduce availability and slow project build‑outs.
Longer project timelines may also raise the cost of capital. Investors typically demand higher returns when projects take longer or face greater uncertainty. In some cases, projects may only move forward if they are supported by governments or strategic partners, especially when the cost per tonne of CO₂ captured rises above key benchmarks.
While the Gulf faces near‑term risks, the global CCUS market has continued to grow. A large number of projects are being developed worldwide.
As of 2025, ~628 CCUS projects are tracked globally across all stages, with potential capture capacity exceeding 416 Mtpa if completed. Operational capacity reached 64 Mtpa from 77 facilities. The breakdown by number of facilities and total capture capacity is as follows:
Source: Global CCS Institute
The market is growing because many governments and companies have adopted emission‑reduction mandates. About 63 % of industries say these mandates accelerate CCUS deployment.
Nearly 55 % of new CCUS projects are integrated with other low‑carbon technologies like hydrogen or renewable energy.
Source: Global CCS Institute
North America leads global capacity, accounting for about 46 % of total CCUS project capacity. Europe holds around 26 %, Asia‑Pacific about 21 %, and the Middle East & Africa roughly 7 % of the total project pipeline.
The oil and gas sector remains the largest user of CCUS, making up about 53 % of the global captured CO₂. Industrial decarbonization in sectors like cement and steel now represents around 25 % of the planned capacity worldwide.
Source: IEA estimations
Market research also shows that the CCS market size was estimated at about USD 3.9 billion in 2025, growing at a compound annual growth rate (CAGR) of 7 % to reach USD 6.7 billion by 2033. This growth reflects rising investments in decarbonization technologies across industrial and power sectors.
Long-Term Outlook: The Gigaton Challenge
CCUS projects are growing, but still fall far short of what climate models recommend. A recent Rystad Energy forecast suggests that global CCUS capacity could expand to more than 550 million tonnes per year by 2030. That’s more than a tenfold increase over today’s roughly 45 million tonnes per year of captured CO₂.
However, this projected expansion is still far below what many climate scenarios require. Limiting global warming to under 2 °C often needs CCUS to capture nearly 8 gigatonnes of CO₂ each year by 2050 in many energy transition models. That means growth must accelerate sharply after 2030 to meet climate goals.
The IDTechEx forecast shows a strong long‑term outlook for CCUS. It estimates global capture capacity will hit around 0.7 gigatonnes per year by 2036. This indicates rapid growth, with a CAGR over 20% from 2026 to 2036. This would place CCUS as a major technology in global decarbonization, if investment and deployment scale up quickly.
What This Means for the Gulf and the World
For the Gulf region, rising geopolitical risk is changing how CCUS projects are evaluated. Many planned build‑outs linked to oil and gas value chains may be slowed or repriced as risk premiums rise.
Some analysts now expect that Gulf CCUS capacity may align with a more cautious trajectory through the mid‑2030s rather than a rapid 2030 build‑out. Moreover, the 8 Mtpa shortfall equals 1.5% of the projected 550 Mtpa global capacity, placing intense pressure on North America and Europe to accelerate.
Rising costs from energy price shocks further complicate the equation. With Middle East & Africa capacity shrinking from 7% to ~4% of the total pipeline, US 45Q projects and EU ETS industrial clusters must find enough replacement capacity.
Still, global drivers for CCUS remain strong. Governments and companies worldwide continue to plan and build projects. New technologies and integrations with hydrogen, renewable energy, and industrial clusters could help spread costs and scale the technology.
As many countries expand their net‑zero plans, CCUS will play a key role in managing emissions that are difficult to eliminate through electrification or fuel switching alone.
In this evolving landscape, the CCUS market is poised for significant long‑term growth, but near‑term geopolitical disruptions and cost pressures will require careful planning, strong policy support, and sustained investment. Strategic partnerships and global cooperation will be key to ensuring that CCUS can meet both economic and climate goals.
Disseminated on behalf of Alaska Energy Metals Corporation.
Nickel prices remained flat today (May 25, 2026), with global benchmarks holding at $18,859.97 per ton and Chinese markets at ¥127,951 per ton. This 0.00% change reflects a market tug-of-war. While tight Indonesian mining quotas and dropping LME inventories provide a strong price floor, an elevated global visible surplus and weak Chinese stainless steel demand cap upward momentum. These structural supply constraints are perfectly balanced by sluggish consumption, resulting in stagnant sideways trading.
As the global energy transition accelerates, access to critical minerals is becoming just as important as innovation itself. Among these materials, nickel plays a central role. It powers electric vehicle batteries, supports energy storage systems, and remains essential for industrial applications such as stainless steel. Yet, while demand continues to climb, supply risks are growing—largely due to Indonesia’s tightening control over global nickel production.
In this shifting landscape, Alaska Energy Metals Corporation (AEMC) is advancing its Nikolai Nickel Project in interior Alaska. The project is emerging as a potential domestic anchor for U.S. nickel supply at a time when geopolitical, environmental, and market pressures are reshaping the global nickel industry.
Indonesia’s Nickel Dominance—and Its Strategic Pullback
Indonesia currently dominates global nickel supply, accounting for nearly half of the world’s mined output. Over the past decade, the country expanded production rapidly, flooding the market and pushing prices lower. However, that era appears to be ending.
In January, Indonesia’s Ministry of Energy and Mineral Resources announced a sharp reduction in nickel ore production quotas. For 2026, the government set quotas at 250–260 million tonnes, down significantly from the 379 million tonnes approved for 2025. This shift represents one of the most aggressive supply controls the nickel market has seen in years.
At the same time, Indonesia changed the validity of its mining work plans (RKABs) from three years to one. As a result, the government now holds direct annual control over production levels, allowing it to adjust supply more tightly in response to prices, environmental pressures, and domestic processing capacity.
The policy pivot aims to preserve long-term reserves, stabilize prices, and push miners toward value-added processing such as nickel matte production for EV batteries. However, it also introduces uncertainty for global buyers that rely heavily on Indonesian supply.
Short-Term Surplus, Long-Term Risk
On the surface, the nickel market still appears well supplied. Analysts forecast a 261,000-tonne surplus in 2026, with global supply estimated at 3.78 million tonnes compared to demand of 3.52 million tonnes. Inventories remain elevated due to previous years of overproduction.
Yet this balance may prove fragile. Actual production in 2025 already fell short of approved quotas due to underutilized capacity and rising costs. If prices weaken further, high-cost operations could shut down, tightening supply faster than expected.
Meanwhile, demand continues to grow. The IEA projects that the use of nickel in EV batteries, renewables, and stainless steel will push nickel demand above 5.5 Mt by 2035. As Indonesia tightens output and China dominates downstream processing, Western economies face rising exposure to supply disruptions and geopolitical leverage.
Against this backdrop, the Nikolai Nickel Project represents a rare opportunity for the United States.
Located in interior Alaska, Nikolai hosts the Eureka deposit, now recognized as the largest nickel resource in the U.S. Beyond nickel, the deposit also contains copper, cobalt, chromium, platinum, and palladium—metals that play key roles in clean energy, defense systems, and advanced manufacturing.
In March, AEMC released an updated 2025 Mineral Resource Estimate, which significantly upgraded the project’s scale and quality. The update increased both tonnage and metal content compared to the 2024 estimate.
Measured and Indicated Resources now include 61 billion pounds of nickel and 1.77 billion pounds of copper, representing a 46% increase. Inferred resources rose even more sharply, climbing over 120% to 9.38 billion pounds of nickel and 2.43 billion pounds of copper.
Importantly, the deposit remains open in three directions, suggesting additional expansion potential as exploration continues.
Here are the tables that show Nikolai’s 2025 mineral resource estimates:
Source: AEMCSource: AEMC
Geology That Supports Long-Term Development
Nikolai’s geological characteristics further strengthen its strategic appeal.
The Eureka deposit features highly consistent and continuous mineralization, reducing geological risk. A higher-grade core sits near the surface, which may lower mining costs during early production phases. In addition, a low strip ratio supports efficient material movement and long-term mine planning.
Equally important, Nikolai is dominated by sulfide mineralization, rather than lateritic ore. This distinction matters. Lateritic nickel, common in Indonesia, requires energy-intensive processing and often carries a higher carbon footprint. Sulfide deposits typically allow for more straightforward processing routes with lower emissions.
Source: AEMC
Cleaner Processing and On-Site Refining Potential
To build on this advantage, AEMC is actively exploring cleaner processing pathways.
Metallurgical testing is underway at SGS Laboratories in Lakefield, Ontario, where the company has conducted extensive work using magnetic separation and flotation techniques. A processing flow sheet has already been established, and a locked-cycle test is scheduled in the near term.
The current plan aims to produce:
A bulk nickel–copper–cobalt concentrate
A separate iron–chromium concentrate
Further testing will determine whether copper can be separated into its own concentrate to improve overall economics. The miner planned to publish metallurgical results in November 2025.
In parallel, the company signed a memorandum of understanding with RecycLiCo U.S. Mineral Recovery. This partnership will test hydrometallurgical refining methods that could be applied directly to Nikolai concentrates. If successful, this approach may allow semi-refined or refined nickel, copper, and cobalt to be produced on site in Alaska. Such a development would reduce reliance on foreign smelters, cut transportation emissions, and strengthen domestic battery supply chains.
Alongside, AEMC has also signed an MOU with Lucid Group, Inc (NASDAQ: LCID), maker of the world’s most advanced electric vehicles.
AEMC President & CEO Gregory Beischer commented on this development,
“By developing resilient automotive supply chains, we establish commercially viable mining operations that also help strengthen the American Defense Industrial Base. Sourcing minerals domestically enables better regulatory oversight, higher environmental standards, metal source traceability, and responsible sourcing. This approach mitigates harmful environmental and human rights risks often associated with foreign mining operations and provides an opportunity to improve the livelihoods of American communities.”
Strategic Importance for U.S. Supply Chains
The United States currently relies entirely on imported nickel, making it vulnerable to supply shocks, trade restrictions, and price volatility. In this context, Nikolai represents more than an economic opportunity—it carries strategic value.
A domestic nickel source could support:
EV battery manufacturing
Grid-scale energy storage
Defense and aerospace applications
Long-term clean energy deployment
As electrification expands and renewable energy integration accelerates, reliable access to nickel will become increasingly critical. Domestic production could help ensure that clean energy growth does not come at the cost of supply insecurity.
Permitting, Planning, and Federal Support
Nikolai’s inclusion on the U.S. FAST-41 Transparency Dashboard highlights its national significance. The program aims to improve coordination and transparency for major infrastructure and resource projects, potentially streamlining future permitting processes.
Meanwhile, AEMC continues to pursue U.S. government funding, noting recent federal support awarded to other critical minerals projects in Alaska. Public funding or strategic investment could help de-risk early development stages and accelerate timelines.
The company is also conducting an internal Options Study to assess potential mine development pathways and high-level economics. While results will not be published, the work will inform a formal Preliminary Economic Assessment planned for 2026.
Investment Takeaway
As Indonesia tightens supply and demand continues to grow, the nickel market is entering a new phase—one defined less by oversupply and more by security, jurisdiction, and processing control.
In this environment, Alaska Energy Metals’ Nikolai Project stands out as a long-duration strategic asset. Its scale, location, resource growth, and alignment with U.S. supply chain priorities position it well for long-term relevance.
For investors seeking exposure to nickel beyond Indonesia and China, Nikolai offers a differentiated opportunity—one that combines commodity upside with geopolitical and strategic optionality.
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CAUTIONARY STATEMENT AND FORWARD-LOOKING INFORMATION
Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate,” “expect,” “estimate,” “forecast,” “plan,” and similar expressions suggesting future outcomes or events. Forward-looking information is based on current expectations of management; however, it is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated.
These factors include, without limitation, statements relating to the Company’s exploration and development plans, the potential of its mineral projects, financing activities, regulatory approvals, market conditions, and future objectives. Forward-looking information involves numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking information. These risks and uncertainties include, among other things, market volatility, the state of financial markets for the Company’s securities, fluctuations in commodity prices, operational challenges, and changes in business plans.
Forward-looking information is based on several key expectations and assumptions, including, without limitation, that the Company will continue with its stated business objectives and will be able to raise additional capital as required. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.
There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information. Additional information about risks and uncertainties is contained in the Company’s management’s discussion and analysis and annual information form for the year ended December 31, 2025, copies of which are available on SEDAR+ at www.sedarplus.ca.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances except as may be required by applicable law.
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Disseminated on behalf of Surge Battery Metals Inc.
Lithium trading at $27.01.
Electric vehicles (EVs) are central to the global shift away from fossil fuels. EV sales continue to rise each year. Analysts estimate that global lithium demand may grow to over 2.8 million tonnes of lithium carbonate equivalent (LCE) by 2030 as EVs and grid storage expand.
Battery energy storage systems (BESS) are another major source of demand. Shipments of stationary storage batteries are forecast to grow around 50% in 2025, driven by renewable energy and grid needs.
Growth in both EVs and energy storage is pushing demand for lithium and other battery minerals higher. Many forecasts suggest lithium demand could more than triple by 2030 versus today’s levels.
Source: Surge Battery Metals
These trends are visible in price movements. Lithium prices have risen sharply in recent years. They might hit high levels if demand keeps exceeding supply growth.
Despite some volatility in the market, long-term demand remains robust because EVs and BESS use large amounts of lithium per unit. Cell chemistries like lithium-iron-phosphate (LFP) are expanding, further increasing lithium use across applications.
Tight Supply, Rising Risk: The Global Lithium Bottleneck
Global lithium supply is strained by rapid growth in demand. Supply forecasts have shifted from a modest surplus in 2024 to potential deficits as early as the mid-2020s.
BESS is a key factor. It could account for 30–36% of total lithium demand by 2030, according to major banking forecasts.
At the same time, much of the world’s lithium refining and battery production capacity remains concentrated outside the U.S., especially in China. This concentration raises supply chain risks for North American manufacturers and automakers.
Domestic supply development has not kept pace with demand. Historically, the U.S. produced only a small fraction of the total lithium supply, even though it sits on large known lithium resources.
These factors have pushed companies and governments to speed up new projects and improve local production skills.
Federal Strategy: Building a Domestic Supply Chain
The U.S. government has passed several policies to strengthen the EV supply chain and domestic critical minerals base. Key federal actions include incentives, regulations, and strategic planning. These efforts involve several agencies, like the Department of Energy (DOE) and the Department of Defense (DoD).
Programs like the Inflation Reduction Act (IRA) provide tax incentives for EV manufacturing and battery production. These incentives emphasize sourcing from the U.S. and allied countries to reduce reliance on foreign supply chains. The DOE also funds energy storage research, materials processing, and efforts to scale domestic industrial capacity.
TheFY26 National Defense Authorization Act (NDAA) includes provisions that support critical materials production and supply chain resilience in the defense sector. It broadens the Defense Industrial Base Fund’s authority. Now, it includes support for domestic production and modernization projects, including batteries and related infrastructure.
The law sets rules on buying certain key minerals and advanced batteries from non-allied foreign sources. Over a phased timeline, DoD must avoid sourcing these materials from “foreign entities of concern,” such as those linked to China and other designated countries. They must expedite the qualification of compliant domestic and allied suppliers.
The NDAA also requires the Department of Defense to assess weaknesses in key material supply chains. It promotes programs for stockpiling, recycling, and reuse to reduce reliance on imports. These federal actions support U.S. projects that provide lithium, nickel, and other battery materials. They boost confidence for investors and the industry in the domestic supply chain.
Inside the Battery Metals Economy
Lithium’s role in the EV supply chain is clear: it is a core input for lithium-ion batteries. Long-term demand forecasts for lithium reflect this central position. Some market forecasts project global lithium demand to rise to 3–4 million tonnes LCE by 2030, depending on EV market growth assumptions.
Price forecasts vary but generally reflect tightening supply. Some analysts estimate lithium prices could continue to rise if supply fails to match demand growth. Lithium carbonate spot prices recently jumped to $24,086, a 191%+ increase from July 2025.
Nickel and cobalt remain important for certain battery chemistries, even as some EV makers move toward low-cobalt or cobalt-free chemistries. All these metals are part of the broader battery metals ecosystem that underpins the EV supply chain.
Beyond EVs, electric grid storage, industrial batteries, and portable electronics all contribute to long-term demand. Even conservative estimates show sustained growth in battery-grade materials over the coming decade.
Nevada’s Lithium Anchor: NILI and Its Role in the U.S. Supply Chain
Surge Battery Metals (TSX-V: NILI; OTCQX: NILIF; FRA: DJ5) stands out as a lithium exploration and development company focused on the Nevada North Lithium Project (NNLP).
NNLP hosts one of the highest-grade lithium clay resources in the United States. Its inferred resource of approximately 11.2 million tonnes of LCE at an average grade above 3,000 ppm positions it well above many domestic peers.
This high quality makes the resource attractive for future development. A Preliminary Economic Assessment (PEA) indicates strong economics. It shows a net present value of about US$9.2 billion and an internal rate of return of over 22%. This reflects the project’s strong potential.
The project’s operating cost metrics are also competitive, with estimated costs significantly lower than those of many North American rivals.
NNLP’s shallow geology and proximity to infrastructure help keep capital and processing costs down. The project sits near power lines, highways, and existing mining hubs in Nevada.
Recent drilling programs continue to show promising results. In 2025, the focus was on infill drilling and core sampling. These efforts aim to upgrade resources and prepare for prefeasibility work. Results show thick lithium clay layers, which boost confidence in the project’s size and consistency.
More recently, Surge reported additional strong drill results from Nevada North. The company announced a 31-meter intercept grading 4,196 ppm lithium from surface in a 640-meter step-out hole to the southeast. This step-out extends mineralization about 640 meters beyond the current resource footprint, confirming the strong continuity of high-grade lithium.
The intercept grade is well above the project’s current average resource grade of about 3,000 ppm lithium. Near-surface mineralization also reduces stripping requirements and supports efficient future development. These results strengthen the project’s scale and reinforce its role as a growing domestic lithium source.
Source: Surge Battery Metals
Surge has also secured strategic partnerships. A joint venture with Evolution Mining will speed up exploration and development. This partnership will increase land holdings by over 21,000 acres of promising land.
The company has been recognized for performance in the market, including being named a Top 50 performer on the TSX Venture Exchange in 2024.
Surge Battery Metals plans to improve metallurgical testing for lithium chemicals with over 99% purity. This will help supply battery makers and energy storage companies with high-quality products.
Its management team brings both industry and policy experience, including executives with track records in lithium development and the energy sectors.
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The New Energy Reality: Demand, Security, and Strategic Supply
Surge Battery Metals’ project aligns well with broader U.S. efforts to strengthen domestic supply chains for critical battery metals. With rising demand for lithium, NNLP provides a high-quality, near-surface resource. This could greatly benefit the EV and energy storage battery markets.
Domestic projects, such as NNLP, reduce reliance on imports. They can also gain from federal incentives that promote U.S.-based production and processing. This strategic fit makes the project more relevant to policymakers, investors, and supply chain planners.
For policymakers, projects such as NNLP help diversify sources of critical minerals and build resilience against global market disruptions. For investors, strong project economics and top-quality resources offer a way to create value as market demand increases.
The U.S. EV supply chain race centers on securing reliable sources of battery metals. Lithium remains at the heart of this transition, driven by both EV and energy storage demand. Strong long-term demand forecasts and tighter supply show the need for new domestic sources.
The federal strategy backs this shift with policy incentives, funding, and programs. These focus on resilient, locally sourced materials. This environment favors projects that are high quality, well-positioned, and strategically relevant.
Surge Battery Metals and its Nevada North Lithium Project represent one such opportunity within the U.S. critical minerals strategy. NILI has solid resources, low costs, and important partnerships. This enables the company to strengthen the U.S. supply chain for lithium and other battery metals. This alignment shows how market forces and policy priorities shape the future of EVs, energy storage, and clean energy infrastructure.
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CAUTIONARY STATEMENT AND FORWARD-LOOKING INFORMATION
Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate,” “expect,” “estimate,” “forecast,” “plan,” and similar expressions suggesting future outcomes or events. Forward-looking information is based on current expectations of management; however, it is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated.
These factors include, without limitation, statements relating to the Company’s exploration and development plans, the potential of its mineral projects, financing activities, regulatory approvals, market conditions, and future objectives. Forward-looking information involves numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking information. These risks and uncertainties include, among other things, market volatility, the state of financial markets for the Company’s securities, fluctuations in commodity prices, operational challenges, and changes in business plans.
Forward-looking information is based on several key expectations and assumptions, including, without limitation, that the Company will continue with its stated business objectives and will be able to raise additional capital as required. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.
There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information. Additional information about risks and uncertainties is contained in the Company’s management’s discussion and analysis and annual information form for the year ended December 31, 2025, copies of which are available on SEDAR+ at www.sedarplus.ca.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances except as may be required by applicable law.
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