Energy’s Biggest Consumer and Greatest Savior: The Two Faces of AI in Energy

Saptakee S
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Energy’s Biggest Consumer and Greatest Savior: The Two Faces of AI in Energy

Artificial intelligence is transforming the world, and its impact on energy is growing faster than anticipated. Over the past few years, tech companies have invested huge amounts of money into new data centres to train and run advanced AI models. These facilities are now significant energy consumers, and their rapid expansion is prompting governments and utilities to reassess grid planning, supply choices, and long-term energy strategies.

IEA’s 2025 World Energy Outlook has pointed out that AI’s influence on energy is not just about higher demand. AI is also becoming a powerful tool for boosting efficiency, cutting waste, and speeding up clean energy innovation. The next decade will show how well countries balance these two sides of the AI-energy equation.

Let’s dive deeper into this.

AI’s Rising Footprint: Data Centres Double Their Electricity Use by 2030

The world is building data centres at record speed. In 2025 alone, global investment in data centres is expected to hit USD 580 billion—surpassing the USD 540 billion going into oil supply that same year. This simple comparison shows how digital the global economy has become.

AI-optimised servers use far more power than traditional equipment. According to recent analysis, electricity use from these servers could increase fivefold by 2030, driven by soaring demand for AI applications.

  • As a result, total data centre electricity consumption is set to double by the end of the decade.

Even with such rapid growth, data centres will still make up less than 10% of global electricity demand growth between 2024 and 2030. Other areas—such as industry, electric vehicles, and cooling—will drive more absolute growth. Still, the speed of data centre expansion creates pressure on regional grids, especially in the United States, where AI and cloud computing are scaling the fastest.

iea AI
Source: IEA

The Power Side Story: Where Will All This Electricity Come From?

As data centres multiply, the energy system must adapt. Most facilities rely on grid electricity, so their carbon footprint depends on the mix of power available where they operate.

Renewables lead the growth.

Between now and 2035, renewable energy will supply around 45% of the new electricity demand from data centres in many outlook scenarios. Wind and solar continue to dominate additions because they are cheap, scalable, and widely supported by policy.

Natural gas also plays a big role

In regions like the United States and the Middle East, natural gas remains a key backup to meet rising AI-driven loads. Gas-fired generation for data centres could grow by 220–285 TWh by 2035. But a surge in orders for new gas turbines is stretching supply chains, making equipment more expensive and slower to deliver.

Nuclear power is back in the conversation.

Tech companies are showing new interest in nuclear energy to power high-demand AI clusters. Several firms and utilities have announced deals to extend the life of existing reactors. The world also saw the first power-purchase agreement between a data centre and an SMR (small modular reactor)—a sign that nuclear could become a steady baseload option for AI operations.

A Geographic Tilt: The U.S., China, and Europe Dominate AI-Driven Power Demand

Data centres are not spread evenly across the world. The United States, China, and Europe make up 82% of global capacity, and they will host over 85% of new builds in the coming years.

But their impact on electricity demand differs sharply:

  • United States: Data centres account for nearly half of the country’s electricity demand growth through 2030. This is the highest share globally.
  • China and the European Union: Data centres contribute 6–10% of demand growth. Their energy systems are larger and more diverse, so AI plays a smaller role in shaping overall consumption trends.

A closer look at the project pipeline reveals even more pressure points:

  • More than half of the upcoming data centres sit within or near cities with over 1 million people, where grids are already stressed.
  • 55% of new data centres exceed 200 MW—each one consuming as much energy as 200,000 households once operational.
  • Nearly two-thirds of new construction is happening in existing high-density clusters, increasing the risk of local grid congestion.
AI demand US
Source: IEA

Beyond Demand: AI Could Cut Global Energy Use by Boosting Efficiency

AI’s story in energy is not only about higher consumption. It also offers major efficiency gains across sectors.

When deployed widely, AI systems can optimise manufacturing, improve logistics, manage transportation flows, detect energy waste, and improve industrial process controls. Analysts suggest that broad adoption of AI-enabled solutions could deliver 3–10% efficiency gains across transport and industry by 2035.

This would translate into 13.5 exajoules of energy savings—slightly more than the entire energy consumption of Indonesia today. Such savings would support national efficiency targets and help reduce emissions at a time when every region is under pressure to accelerate climate action.

However, several challenges stand in the way:

  • Many industries lack high-quality datasets needed for advanced AI optimisation.
  • Digital infrastructure is uneven, especially in developing countries.
  • Concerns around privacy, regulation, and cybersecurity slow deployment.
  • Some AI-driven improvements may create rebound effects, such as more automated car use, reducing public transport ridership.
ai Energy savings
Source: IEA

AI is reshaping the energy system by driving rapid growth in electricity demand while also offering powerful tools to improve efficiency and accelerate clean-tech innovation. Data centres are expanding faster than many grids can handle, pushing regions to invest in renewables, natural gas, and nuclear power.

Yet AI’s real value lies in its ability to cut waste and make energy systems smarter—if supported by strong data, robust digital infrastructure, and sound regulation. AI is not a magic solution, but with thoughtful planning and investment, it can become a major force in building a cleaner, more resilient global energy future.

Canada’s Carbon Pricing Reset in 2026: Will Industry Step Up or Stall Climate Progress?

Jennifer L
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Canada’s Carbon Pricing Reset in 2026: Will Industry Step Up or Stall Climate Progress?

Canada is at a key moment in its fight against climate change. Carbon pricing has been the central tool used to cut emissions, but recent policy changes and differences across provinces have created uncertainty.

This article examines how Canada’s carbon pricing system works now. It covers expert concerns and what the key federal review in 2026 might mean for both industry and the country’s journey toward a lower-carbon future.

How Canada Prices Pollution

Canada uses carbon pricing to encourage companies and people to cut greenhouse gas (GHG) emissions. Under that system, there are two main parts.

For ordinary people and small businesses, there used to be a “fuel charge” or carbon tax on fossil fuels. For large industrial emitters, there is a program called the Output-Based Pricing System (OBPS).

Under the OBPS, factories or facilities that produce a lot of emissions get a limit based on how much they produce. If they emit more than their limit, they must pay; if they emit less, they earn credits that they can sell or use later.

This approach aims to reduce carbon pollution while trying to protect industries that compete globally. The goal is to cancel out the risk that companies might move to other countries with weaker climate rules.

From Gas Pumps to Smokestacks: A Major Policy Shift

In 2025, the federal government made important changes. It removed the “consumer-facing” carbon tax — the fuel charge — effective April 1, 2025. This means people pay no extra carbon tax when buying gasoline or heating fuel.

Canada carbon price per tonne yearly
Source: RBN Energy LLC website

Instead, the focus shifted more clearly onto industrial carbon pricing. The government said it would review the carbon pricing “benchmark” in 2026. This review could change how industrial carbon pricing operates.

A recent analysis by ClearBlue Markets shows that Canada’s carbon pricing for industry is now fragmented. Fragmentation has caused uncertainty. This is a problem for companies that need stable cost signals before they invest in cleaner technology.

The ClearBlue report stated:

“The federal benchmark review will therefore trigger extensive engagement between the federal government and the provinces, aimed at aligning key benchmark elements such as coverage, pricing stringency, and competitiveness protections. Negotiations are likely to be complex and politically charged, particularly with provinces like Alberta and Saskatchewan, which have already taken strong positions. These types of unilateral decisions reflect ongoing tensions and highlight the difficulty of achieving a truly aligned national approach.”

Carbon pricing today: A patchwork across Canada

Because Canada is large and its provinces have different rules, carbon pricing for industry is not the same everywhere. ClearBlue Markets shows that credit prices—what companies pay or earn—vary a lot by province or system.

Here are specific examples:

In Alberta, the Environmental Monitoring, Evaluation and Reporting Agency has seen a big drop in credits under its Technology Innovation and Emissions Reduction Program (TIER). Despite a compliance price of CAD 95 per tonne, market credits trade at around CAD 18 per tonne. This shows a credit surplus and weak demand.

In British Columbia (B.C.), the new B.C. Output-Based Pricing System (B.C. OBPS) began to be applied recently. Credits are trading at about CAD 65 per tonne, a discount compared with the regulatory level of CAD 80.

In Ontario, the Emissions Performance Standards (EPS) system governs industrial emissions. Because the program does not allow offset credits, supply is tighter — units (EPUs) recently traded at around CAD 72 per tonne.

In areas where the federal OBPS still applies, like some territories and small provinces, cheap carbon offset credits from Alberta’s TIER have lowered prices. Now, they can be as low as about CAD 37.50 per tonne.

Canada carbon prices per jurisdiction
Data source: ClearBlue Markets

The true cost of carbon emissions differs greatly by industry and province. The federal government aims to raise the carbon price to CAD 170 per tonne by 2030 for direct pricing systems.

The 2026 Showdown: Can Canada Fix Its Carbon Market?

The upcoming review of the federal benchmark is seen as a turning point. It could lead to stronger, more aligned carbon pricing across all provinces. As ClearBlue Markets notes, the review may address issues such as:

  • Align different provincial systems under a common design. This way, credits and compliance will act more alike.
  • Improving transparency in reporting credit inventories, trades, and emission reductions.
  • Possibly introducing a “floor price” — a minimum cost for carbon credits — to avoid extreme price drops like those seen in some programs.
  • Setting a long-term carbon price path past 2030 helps industries plan investments more clearly. This is especially important for clean technologies.

All of these could make carbon pricing more predictable and effective. If the review doesn’t meet expectations, patchwork and uncertainty may persist. This could weaken the carbon price signal and confuse investment in clean technology.

This patchwork of provincial and federal carbon pricing programs has created a corresponding patchwork of compliance offset markets. The image below shows how these offset markets are distributed across Canada.

Canada Offset Credit Issuances
Source: ClearBlue Markets

Global Pressure Is Rising: Europe Could Hit Canada with Carbon Tariffs

One major external risk comes from the global trade environment. Starting in 2026, the European Union’s Carbon Border Adjustment Mechanism (CBAM) will impact imports based on their carbon emissions.

For Canadian exporters, this raises a key question:

  • Will EU authorities accept the compliance credits or offsets generated under Canada’s various carbon pricing systems as evidence of “carbon price paid”?

If not, Canadian exports might face extra tariffs. This could double the carbon cost or hurt competitiveness.

This makes it even more important for Canada to standardize and strengthen its carbon pricing framework before 2026. This is to ensure that its pricing and credits are recognized internationally. Otherwise, Canadian industries like steel, aluminum, and cement might find it hard to compete. This is especially true in markets with strict climate-related import rules.

Strengths and Challenges of Canada’s Carbon Pricing

Carbon pricing works to link environmental costs with economic decision-making. For large emitters, it encourages improved efficiency. Carbon pricing revenue, especially from the OBPS, can fund clean energy projects. It also supports carbon capture and investments in low-carbon infrastructure.

A recent evaluation by the government highlights that industrial carbon pricing helps reduce emissions with minimal impact on households.

But there are major challenges too. The system varies by province, so many industries might have low carbon costs. This means there is little motivation for real change.

A 2022 report from the Office of the Auditor General of Canada (OAG) found that weak rules in provincial large-emitter programs lower the impact of carbon pricing. Also, the unclear use of carbon revenues and the long-term price outlook have made some firms hesitant to invest in cleaner technologies.

The Stakes: Canada’s Climate Credibility and Industrial Future

The 2026 benchmark review could reshape Canada’s carbon pricing for decades. Key signs to watch are:

  • Whether the government sets a new, clear carbon price path beyond 2030 — possibly up to 2050, that would give firms confidence to invest in long-term clean solutions.
  • Whether provincial carbon pricing systems become more harmonized. This means similar rules, credit prices, and transparency everywhere.
  • Introducing a price floor or other methods can help prevent deeply discounted carbon credits. This ensures a strong carbon price signal.
  • Will Canadian industrial credits and compliance be set up to gain recognition under global systems like CBAM? This could help keep Canadian exports competitive.

Canada’s carbon pricing, especially for industry, is at a crossroads. The removal of the consumer carbon tax in 2025 reflects a shift toward focusing on industrial emissions. Meanwhile, the upcoming 2026 benchmark review offers a chance to make this system stronger, fairer, and more predictable.

However, much depends on political and regulatory will. Without clear pricing, rules, and long-term certainty, the carbon price might be too weak. This puts Canada’s climate goals and global competitiveness at risk. But if the government and provinces act quickly, carbon pricing can help Canada shift to a low-carbon economy while also keeping industries competitive.

Wildfire Carbon Emissions Climb 60% While Overstory Secures $43M to Shield Utilities with Smart AI

Saptakee S
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0
Wildfire Carbon Emissions Climb 60% While Overstory Secures $43M to Shield Utilities with Smart AI

Wildfires and forest fires are a major source of carbon emissions. When vegetation and organic matter burn, they release large amounts of carbon dioxide (CO2), methane (CH4), and black carbon into the atmosphere. These gases trap heat and accelerate climate change. The intensity of a fire, the type of vegetation, and how long it burns determine how much carbon is released.

Wildfire Emissions Complicate Climate Mitigation Efforts

A study showed that since 2001, global carbon emissions from forest fires have risen by about 60%, especially in the boreal forests of North America and Eurasia. Hotter and drier conditions have made fires more severe, increasing carbon combustion by nearly 50% per unit area burned. Beyond emissions, wildfires reduce the ability of forests to absorb CO2, weakening one of the planet’s natural carbon sinks.

global wildfire emissions

Black carbon, a byproduct of wildfire smoke, worsens global warming. It absorbs sunlight, accelerates ice and snow melting, and intensifies heatwaves. Recent large fires in Australia and Siberia show how black carbon can impact both local and global climates. Rising wildfire frequency creates a dangerous cycle: hotter climates trigger more fires, which release more greenhouse gases and pollutants.

The effects of wildfires go beyond climate. They degrade soil, destroy forest resources, and harm human health through smoke and air pollution. They also impose heavy economic costs, including firefighting, recovery, and lost productivity. With these challenges, accurate carbon accounting and climate mitigation become harder, as wildfires release carbon that forests had previously stored.

north america wildfire emissions

AI Enters the Firefight: How Technology Helps Protect Forests and Communities

Artificial intelligence (AI) has emerged as a powerful tool in wildfire management. Modern AI systems can predict fire risk, behavior, and spread more accurately than traditional methods. This gives fire crews and emergency managers an edge in making fast, effective decisions to protect people, property, and forests.

An article by the Western Chief Fire Association (WCFA) has explained how Wildfire modeling helps predict fire behavior. These models consider weather, terrain, vegetation, and other data to estimate fire size, intensity, spread rate, and spotting distance. Organizations like fire services, insurance companies, utility companies, and emergency planners all use wildfire modeling to prepare for and respond to fires.

AI enhances these models by analyzing vast amounts of data quickly and spotting errors that traditional models might miss. It can also use historical patterns when new data is missing. For example, the Behave Fire Modeling System relies on mathematical calculations and data on weather, fuel, and topography to forecast fire behavior accurately.

A 2024 study by USC researchers combined generative AI with satellite data to predict wildfire spread. The AI analyzed real-time satellite images to forecast a fire’s path, intensity, and growth rate. The study highlighted how weather, terrain, and vegetation influence fire patterns. Such advancements show AI’s potential to save lives and reduce environmental damage.

Overstory: Using AI to Prevent Fires Before They Start

Overstory, a company specializing in vegetation intelligence, recently raised $43 million to expand its AI wildfire prevention tools. Utilities often face wildfires caused by trees near power lines, and vegetation management is one of their largest operational costs. Overstory uses high-resolution satellite imagery and AI to pinpoint risks tree by tree, helping utilities prevent outages and fires while keeping power safe and reliable.

Fiona Spruill, CEO, Overstory, said:

“Utilities are on the front lines of keeping communities safe, and they’re eager to use the best data available. When we talk about how satellites and remote sensing can identify dying trees and wildfire risk, they lean in. We’re grateful to our forward-thinking investors for supporting this next chapter – expanding our intelligence product to address storms and wildfires to help utilities build a more resilient and reliable grid.”

The company serves six of the ten largest utilities in the Americas. Its team includes experts in machine learning, data science, arboriculture, and wildfire management. Under new COO Tamara Mendelsohn, the company plans to scale its operations and expand globally.

Pinpointing Risk with Precision

Overstory’s AI tools go beyond generic fire risk maps. The company’s Wildfire Intelligence product now includes a proprietary Fuel Detection Model that identifies areas with the highest risk fuels—the vegetation most likely to ignite a fire if sparked.

overstory
Source: Overstory

Most catastrophic wildfires start when vegetation meets power lines. Overstory helps utilities focus on the 10-meter zone around assets, where a spark is most likely to spread into a wildfire. By combining tree risk with fuel risk across thousands of miles of power lines, utilities can plan mitigation work efficiently and reduce the chances of fire ignition.

The Fuel Detection Model works at an extremely high resolution—10,000 times higher than publicly available maps. It identifies fuels directly in the right-of-way and updates routinely to reflect vegetation growth. This ensures that mitigation strategies are based on current conditions, not outdated data. The system is grounded in established fire science and validated by experts.

AI Helps Utilities Reduce Wildfire Liabilities

Utilities face massive liabilities when their equipment causes wildfires. In the U.S. and Europe, companies increasingly partner with AI startups to manage wildfire risks. By analyzing satellite imagery and real-time data, AI can detect dying trees, weak branches, and other potential ignition points near power lines.

This data-driven approach allows utilities to prioritize maintenance and vegetation management. Compared to burying power lines, which can cost over $3 million per mile, AI-based risk mitigation is far more cost-effective. Utilities can act faster, prevent fires, and reduce both financial and environmental risks.

The Bigger Picture: AI and Climate Resilience

AI’s role in wildfire management is part of a broader effort to tackle climate change. By predicting fire behavior, identifying high-risk areas, and helping utilities mitigate potential sparks, AI reduces the frequency and severity of wildfires. This, in turn, helps limit carbon emissions, protects communities, and preserves forest carbon storage.

As climate change makes fires more frequent and intense, AI provides tools to respond effectively and proactively. It allows decision-makers to act before fires ignite, preventing a cycle of destruction and emissions. Emerging AI technologies, combined with satellite data and advanced modeling, are transforming wildfire management from reactive firefighting to proactive prevention.

Companies like Overstory are protecting both lives and the environment. In a world where wildfires are becoming a growing threat, AI offers a smarter, more precise, and cost-effective way to manage risks, protect communities, and build climate resilience.

Walmart (WMT) Expands EV Charging and Boosts Renewable Energy in Its Net-Zero Playbook

Saptakee S
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0
Walmart (WMT) Expands EV Charging and Boosts Renewable Energy in Its Net-Zero Playbook

Walmart (NYSE: WMT) is stepping up its clean energy and emissions game across the United States. Shoppers want to save money and live more sustainable lives, and Walmart sees a big role for itself in that shift. With a store or club within 10 miles of nearly 90% of Americans, the retailer believes it is perfectly placed to support the country’s move to cleaner transportation.

From expanding EV charging access to using more renewable power and electrifying its delivery fleet, Walmart is building a lower-carbon future that also brings long-term savings and stronger resilience.

Charging Up America: Walmart’s Big EV Push

Walmart wants to make owning an electric car easier for millions of people. The company plans to build its own fast-charging network across thousands of Walmart and Sam’s Club locations by 2030. This will add to the nearly 1,300 chargers already running at more than 280 stores today.

The goal is simple: remove the fear of not finding a safe and reliable place to charge. Walmart’s well-lit parking lots offer an easy place to plug in while customers shop, grab groceries, or pick up essentials. And in true Walmart style, the company aims to offer low-cost charging to help families save on transportation—the second-largest expense for most households.

ev walmart clean energy
Source: Walmart

Greener Deliveries and Next-Gen Fleet

Transportation is one of Walmart’s toughest emissions issues. In 2024, the company’s fleet made up 24.9% of Scope 1 emissions and 14.4% of total operational emissions. As Walmart brings more logistics in-house and grows its business, fleet emissions may rise in the short term.

Yet Walmart is preparing for a cleaner future. It’s partnering with GM, Ford, and Canoo to electrify delivery vehicles. Many Walmart+ deliveries already use electric vans.

  • They are also testing heavy-duty battery trucks, hydrogen fuel cell vehicles, and renewable diesel.
  • Walmart is rolling out liquid hydrogen-powered forklifts and recently opened Latin America’s first industrial-scale renewable hydrogen plant in Chile.
  • Electric yard trucks are already delivering major gains—cutting emissions by more than 75% per hour compared to diesel models.

These tests matter. They help shape the future of Walmart’s fleet, especially as long-haul truck solutions may not mature until the 2030s.

As more drivers go electric, the re network will add much-needed charging options nationwide. Even rural areas, which often lack EV infrastructure, will benefit. Walmart sees this as a smart business move and a natural extension of its mission to help customers live better and more sustainably.

Smart Stores with Clean Energy

Walmart’s clean energy plan centers on four ideas: access, cost, resilience, and emissions cuts. Because its stores rely more than ever on electricity and digital systems, stable power is essential. So Walmart is investing in new technology to identify power risks, upgrade monitoring tools, and strengthen connections to the grid.

Real-time energy monitoring across thousands of facilities helps Walmart track usage and operate more efficiently. These insights will matter even more as automation grows across the company’s operations.

Walmart is also adding more on-site power. Solar panels, wind systems, and battery storage help stores stay open during outages and lower long-term energy bills. Between 2024 and 2030, it aims to support up to 10 gigawatts of new clean energy capacity.

The company is already making progress. In 2024, renewable energy met 48.5% of Walmart’s global electricity needs. This brings the retailer close to its goal of 50% renewable power by 2025 and puts it on track for 100% by 2035. By the end of 2024, its U.S. operations had 166 MW of onsite solar across 325 facilities and 10 MW of energy storage at 44 locations.

clean energy walmart
Source: Walmart

Achieving Net-Zero Emissions

Walmart is working toward zero emissions across its global operations (Scope 1 and 2) by 2040. These emissions come from transport fuels, refrigeration, heating, and electricity use.

The company has reduced its emissions intensity by 47.4% since 2015, but annual emissions can still vary. In 2024, Walmart’s Scope 1 and 2 emissions rose by 1.1%. Growth in U.S. transportation and lower renewable energy output in Mexico and Central America—due to extreme heat and drought—played a big role.

Still, global operational emissions remain 18.1% lower than the 2015 baseline. But progress won’t always be smooth. Policies, infrastructure limits, equipment shortages, and slow advances in low-carbon trucking technology create challenges. Walmart has noted that meeting its 2025 and 2030 targets may take more time.

Even so, Walmart keeps improving. New buildings and remodels use efficient lighting, HVAC systems, and refrigeration. The company is replacing older equipment with high-efficiency models and testing refrigeration and HVAC systems with lower global warming impact. These upgrades support both sustainability and cost savings.

walmart emissions WMT stock
Source: Walmart

Walmart (WMT) Q3 FY2025 Highlights

Walmart Inc. posted Q3 FY2025 revenue of $179.5 billion, up 5.8% from last year and beating estimates by 1.1%. Same-store sales rose 4.5%, fueled by strong e-commerce and retail growth, with adjusted EPS at $0.62—above expectations. The company raised its full-year sales outlook amid steady demand and efficiency gains.​

Additionally, WMT stock hit near-record highs but with a “Moderate Buy” rating from analysts, targeting 6-9% upside. Growth drivers include e-commerce, consumer resilience, and clean energy bets like EV fleets and chargers.

The goals are bold: zero operational emissions by 2040 and 100% renewable power by 2035. Yet Walmart’s scale, resources, and willingness to innovate give it a powerful role in America’s clean energy transition. And ultimately, these steps help customers live better, save more, and make sustainable choices that fit their everyday lives.

Canada and Alberta Strike Major Pipeline Deal Under New Law, Minister Guilbeault Resigns

Jennifer L
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Canada and Alberta Strike Major Pipeline Deal Under New Law, Minister Guilbeault Resigns

On November 27, 2025, Canada’s federal government and Alberta signed a formal agreement to develop a new oil pipeline. The project would export Alberta’s bitumen to Asian markets. It includes carbon capture projects, power-grid expansion, and faster regulatory approvals under the Building Canada Act.

If approved, this pipeline might be the first project to get a “national interest” designation under the new law. This would speed up the review process. It will run with the planned expansion of the Trans Mountain pipeline (TMX). This could boost West Coast export capacity to 2.5 million barrels per day (bpd) of diluted bitumen.

The agreement seeks to create jobs, attract private investment, and speed up major infrastructure projects that would reduce emissions. Yet, it raises concerns about environmental protections, Indigenous rights, and Canada’s climate commitments.

The Building Canada Act and Bill C-5

Bill C-5 became law in June 2025. It created the Building Canada Act, a framework designed to make it easier and faster to build major infrastructure. Projects labeled as “of national interest” — like pipelines, ports, railways, and power lines — can go through a quicker approval process.

The Act intends to reduce regulatory delays and encourage private investment. It also aims to respect environmental standards and Indigenous rights. Critics worry that protections might be weak. Supporters, however, believe the law is essential. It can help Canada build infrastructure, boost exports, and create jobs.

The Key Proposals in the Canada–Alberta Agreement

The Memorandum of Understanding (MOU) outlines several initiatives:

  • Pipeline construction: A private pipeline could transport 300,000 to 1 million bpd of diluted bitumen from Alberta’s oilsands. It would use a new right-of-way to reach a deepwater port near Vancouver. Private developers, likely Pathways Alliance affiliates, would lead the project. It would run parallel to TMX, which has a capacity of 890,000 bpd after 2024.
  • Carbon capture: The Pathways Alliance targets 22 million tonnes of CO₂ per year, equivalent to roughly 5% of Canada’s 2024 emissions. The $15 billion cost would be shared between federal and private investors.
  • Electricity grid expansion: Investments may include nuclear and renewable energy projects.
  • Regulatory review: Approvals are capped at two years after the application.
  • Indigenous participation: 16 First Nations have signed MOU support letters. The agreement offers up to 20% equity ownership and a $1 billion benefits fund.

Economic and Job Projections

The pipeline project could bring significant economic benefits. Estimates include:

  • Up to 10,000 construction jobs and 2,000 permanent operations positions.
  • $20–50 billion in private investment over ten years.
  • $10–15 billion annual boost to Alberta’s GDP from exports to Asia, including China and Japan.
  • Reduced reliance on U.S. markets amid 2025 tariffs.

The project could boost energy growth in Alberta. It may also raise public revenue, attract private investment, and support related sectors.

Environmental and Climate Considerations: The Case of CCUS

The MOU focuses on practical steps: enhancing industrial carbon pricing and driving significant private investment in clean technologies. Canada already uses carbon pricing and emissions regulations. Industrial emitters face carbon taxes or output-based pricing. 

The new Alberta agreement puts a hold on earlier oil and gas intensity caps. These caps aimed for a 35–38% emissions reduction by 2030. These are replaced with output-based pricing at $170 per tonne of CO₂ by 2030.

Also, central to this effort is Pathways Plus, set to become the world’s largest carbon capture, utilization, and storage (CCUS) project. Carbon capture is intended to offset the higher emissions from increased production. Success depends on the CCUS project performing as promised.

Canada’s CCUS ambition has clear numbers: the country aims to have roughly 15 Mt CO₂‑per‑year of capture capacity installed by 2030. Under certain regulatory and investment assumptions, the energy sector could raise CO₂ capture to as much as 88 Mt per year by 2025 and 271 Mt per year by 2030.

Current capacity stands at ~2-3 Mt/year (e.g., from Alberta projects like Quest and Shell Polaris), with ambitions to triple or quintuple to 15-27 Mt by 2030 via ~34 new projects.

carbon capture (CCUS) in Canada
Source: The International CCS Knowledge Centre

Meanwhile, Canada’s geological storage potential remains massive. About 389 gigatonnes of CO₂ are estimated to be safely storable in deep geological formations.

Stakeholder Reactions: Indigenous Rights and Community Involvement

Indigenous consultation and community involvement are also critical to minimizing social impacts. Historically, TMX faced delays and cost overruns, reaching $34 billion by 2024 despite approval in 2016. Northern Gateway was rejected in 2016 due to tanker risks.

Recent changes to the 2025 Oil Tanker Moratorium Act now permit up to 300 tanker trips each year in B.C. waters. This adds important regulatory context for the proposed route.

Thus, the agreement has received mixed responses: support, criticisms, and political concerns. 

The Alberta Chamber of Commerce supports the deal. They highlight benefits like economic growth, job creation, and investment certainty. Doug Griffiths, President and CEO of the Edmonton Chamber, said: 

“When we open new markets, build major projects and create the right conditions for investment, we make Alberta the greatest place in the country to live, work and build a future.” 

However, environmental groups like the Sierra Club and Indigenous organizations such as the Assembly of First Nations highlight gaps in UNDRIP compliance. They raise concerns about free, prior, and informed consent.

The B.C. NDP opposes the project. They believe it lacks proper consent. They are also worried about tanker traffic harming coastal communities. Eby in B.C., noted in a Politico report that: 

“We need to make sure that this project doesn’t become an energy vampire with all of the variables that have yet to be fulfilled — no proponent, no route, no money, no First Nation support.”

Industry groups and labor organizations see the project as a way to improve infrastructure and draw in investment. But critics say the agreement weakens federal climate policy. It lifts emissions caps and relaxes clean electricity rules.

Former Environment Minister Steven Guilbeault resigned in protest. He called the deal a step back from long-standing climate commitments.

Canada climate goals and emissions projection
Source: Government of Canada

Several factors will shape the deal’s outcome:

  • Whether a private developer, likely a Pathways Alliance affiliate, finances and builds the pipeline.
  • Progress in Indigenous consultation, co-ownership agreements, and community benefit delivery.
  • Decisions by environmental regulators and B.C. authorities on tanker traffic.
  • The success of the CCUS project in capturing 22 million tonnes of CO₂ per year.
  • Alignment with Canada’s net-zero by 2050 target and other climate goals.

This agreement may serve as a test case for balancing resource development with environmental protection and Indigenous rights.

Implications for Canada’s Future

The Canada–Alberta deal reflects a complex balancing act. Supporters say it offers clear rules for private investment. It also speeds up approvals and helps modernize the energy sector while chasing climate goals. Critics fear it might weaken environmental rules and hurt UNDRIP commitments. It could also boost Canada’s reliance on fossil fuel exports.

Whether the project becomes a model for “clean growth” or a setback for climate action will depend on implementation. Key factors include the performance of carbon capture, emissions tracking, Indigenous participation, and private investment aligned with social and environmental standards. Economic benefits, environmental risks, and political challenges will continue to shape Canada’s energy and climate policy in the years ahead.

India–Canada Near $2.8 Billion Uranium Deal, Cameco to Supply Nuclear Fuel

Saptakee S
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0
India–Canada Near $2.8 Billion Uranium Deal, Cameco to Supply Nuclear Fuel

India and Canada are close to finalizing a $2.8 billion uranium supply deal. This agreement could reshape their energy partnership for the next decade. The 10-year deal would let Canadian producer Cameco supply fuel for India’s growing nuclear fleet. This partnership, paused in 2020, now returns at a larger scale, reflecting stronger political ties and rising nuclear energy demand.

This deal goes beyond trade. It connects India’s need for clean power with Canada’s rise as a global supplier. It also comes at a time when Cameco is gaining strategic strength and influence, making this timing ideal for both countries.

A New Phase in India–Canada Nuclear Cooperation

Recent reports from The Globe and Mail show that both nations are nearing the end of negotiations. This new supply deal would replace the earlier $350 million, five-year agreement from 2015, but it’s nearly ten times the value and twice the duration.

India seeks long-term uranium security as it expands nuclear generation and aims to achieve 100 GW of nuclear energy capacity by 2047. This target is critical for cutting carbon emissions and meeting the country’s future energy needs. Notably, as of January 30, 2025, India’s installed nuclear capacity stands at 8,180 MW.

India nuclear capacity
Source: Department of Atomic Energy, India

A stable decade-long supply from Canada would help India run its reactors smoothly and support its plans to increase nuclear capacity through 2040 and beyond.

For Canada, the deal strengthens its position as a trusted supplier. This is crucial as many countries aim to move away from Russian nuclear fuel. It also deepens ties with one of the world’s fastest-growing economies.

G20 Summit Signals a Reset in Relations

Momentum for the uranium deal grew when Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney on November 23, 2025, during the G20 Summit in Johannesburg. Their meeting marked a significant step in rebuilding relations.

Both leaders praised the Australia-Canada-India Technology and Innovation (ACITI) Partnership. This partnership aims to boost cooperation in nuclear energy, critical technologies, supply-chain resilience, and artificial intelligence. They noted progress since their earlier meeting in June and the launch of a roadmap for renewed engagement in October.

As per reports, the leaders reaffirmed their civil-nuclear ties and discussed ongoing talks about a long-term uranium supply arrangement—an obvious nod to the Cameco deal. They also agreed to restart talks on a Comprehensive Economic Partnership Agreement (CEPA), with a goal to double bilateral trade to $50 billion by 2030.

Cameco Stock Surges with The Potential Uranium Agreement

The timing of this potential agreement aligns with Cameco’s steady rise in strength. In its November 5 third-quarter results, Cameco reported $172 million in earnings before taxes and $220 million in adjusted EBITDA in its uranium segment. Although sales volumes dipped slightly, the company maintained strong performance and a stable outlook for 2025.

More significantly, market confidence in Cameco remains strong. In November, its shares traded around $87.35 on the NYSE, rising nearly 4.8% in one day. The stock fluctuated between $82.45 and $87.67, reflecting growing investor optimism.

Analysts attribute this rise to tightening global uranium supply, new reactor commitments, and excitement around the potential India–Canada uranium agreement. Investors view Cameco as a key player in the nuclear energy revival.

Meeting 2025 Uranium Targets

Cameco updated its production expectations as well. Output from the McArthur River/Key Lake site is now estimated at 14–15 million pounds of U₃O₈ on a 100% basis, down from earlier plans. However, excellent performance at Cigar Lake, expected to produce 19 million pounds, should help balance part of the shortfall. Overall, the company expects its share of uranium output to reach up to 20 million pounds in 2025.

Cameco also narrowed its sales guidance to 32–34 million pounds and reduced market purchases to 1 million pounds, showing confidence in its operational flexibility.

uranium cameco
Source: Cameco

Expanding Its Influence Through U.S. Partnership

The company’s outlook also strengthened with a new partnership involving the U.S. Government and Brookfield. This initiative aims to speed up the deployment of Westinghouse nuclear reactors in the U.S. The expected investment for this program is at least $80 billion.

This collaboration supports Cameco’s fuel-cycle strategy and boosts demand for its reactor technologies, uranium products, and long-term services. As the U.S. moves toward major nuclear energy expansion, Cameco stands to benefit from this growth.

Why the India–Canada Uranium Deal Matters

The new $2.8 billion uranium deal impacts energy security and geopolitics. For India, it ensures the fuel to operate and grow its nuclear fleet. This supports economic growth and lowers emissions.

  • Canada holds the third-largest uranium reserves globally and ranks as the second-largest uranium exporter in the world.

Roughly 15 percent of the uranium mined in Canada fuels domestic CANDU reactors. The remaining supply is exported, generating about $1 billion annually. Major destinations include the United States, Europe, and Asia.

Thus, for Canada, it strengthens its position as a trusted, non-Russian uranium supplier and creates new chances in Asia.

For Cameco, this deal would provide steady revenue and strengthen its position as a dependable uranium producer. It aligns with rising nuclear demand driven by climate goals, reliability needs, and geopolitical shifts.

canada uranium
Source: Govt of Canada

A Defining Moment for Nuclear-Energy Partnerships

The agreement isn’t final yet, but diplomatic signals, market reactions, and industry discussions suggest a shift in India–Canada relations. Once confirmed, it would mark a major milestone for nuclear cooperation and a new decade of collaboration.

If completed, the India–Canada uranium deal will be a strategic victory for both nations. It will provide India with reliable fuel for its nuclear ambitions. It will strengthen Canada’s role in global energy markets. And it will reinforce Cameco’s leadership as nuclear power plays a key role in clean-energy plans.

This potential pact is more than a commercial deal. It reflects a broader strategic alignment during a global nuclear revival and may become one of the most significant long-term energy partnerships of the decade.

Frontier Backs Climate Startup Reverion for 96,000 Tons of Biogas-Based Carbon Removal

Saptakee S
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Frontier Backs Climate Startup Reverion for 96,000 Tons of Biogas-Based Carbon Removal

Climate startup Reverion, a German company specializing in biogas-based carbon removal, has secured several major offtake agreements through Frontier, the advanced carbon removal buyer coalition. The deals mark a significant milestone for the company as it works to commercialize its solid oxide fuel cell (SOFC) technology, which captures and permanently stores CO₂ while producing clean electricity.

Under the new commitments, Frontier buyers—including Google, McKinsey, H&M Group, Autodesk, Workday, and others—will pay $41 million for 96,000 tons of permanent CO₂ removal between 2027 and 2030.

Frontier’s carbon removal portfolio 

frontier carbon removal
Source: Frontier

These agreements strengthen the growing belief that biogas-based carbon removal can be both scalable and economically attractive when combined with high-efficiency energy production.

How Reverion’s Fuel Cell System Turns Biogas into Permanent Carbon Removal

Reverion, a 2022 spin-off from the Technical University of Munich, has created a system that generates clean electricity and captures carbon from biogas at the same time. Farmers produce biogas by placing manure, crop leftovers, and food waste into anaerobic digesters. These digesters create a gas mix that contains methane and CO₂.

  • The company’s solid oxide fuel cell (SOFC) converts the methane in this gas directly into electricity with very high efficiency.
  • During this reaction, the carbon in the gas separates into a pure CO₂ stream.
  • The system then liquefies this CO₂ and sends it for permanent geological storage.

Traditional biogas systems burn the gas in engines, lose energy, and release most of the carbon back into the air. Some even leak methane, which traps far more heat than CO₂. Reverion avoids these problems by capturing carbon from both methane and CO₂ in the biogas. As a result, the system increases the amount of carbon removed and cuts emissions at the source.

By pairing efficient power generation with full carbon capture, Reverion turns everyday biogas into a dependable pathway for long-term carbon removal.

Reverion CARBON REMOVAL Biogas
Source: Frontier

Energy, Hydrogen, and New Revenue Streams for Farmers

The press release highlighted that, today, more than 120,000 biogas plants operate worldwide, but many still use old engines with low efficiency. And Reverion’s SOFC gives farmers a major upgrade. It reaches about 74% fuel-to-electricity efficiency—one of the highest levels in the industry. This lets farmers produce more electricity from the same biogas, lower their energy bills, and earn extra money by selling clean power.

The system also adds flexibility. When electricity prices drop, often during times of strong wind and solar output, the fuel cell can run in reverse to make green hydrogen. Farmers can sell this hydrogen or use it on their own farms, creating another income source.

By delivering clean energy, flexible operation, and permanent carbon removal, Reverion offers a strong alternative to combustion engines and renewable natural gas upgrading systems.

Frontier Unlocks: Why BiCRS Matters in Carbon Removal Portfolios

Biomass Carbon Removal and Storage (BiCRS) is emerging as a strong contender for long-duration carbon removal. It includes several pathways such as BECCS, bio-oil sequestration, biomass injection, and now biogas-based fuel cell systems.

Frontier explains how BiCRS stands out for the following reasons:

  • Lower costs: Plants capture CO₂ naturally and at no cost. Many BiCRS systems also use existing waste streams, which reduces input costs.
  • Clear verification: Technologies like BECCS and biomass injection are easier to measure and verify compared with more experimental removal pathways.
  • Near-term scalability: Bio-oil and biomass injection can grow quickly, helping meet the rising demand for carbon removal supply.
Frontier
Source: Frontier

However, BiCRS is not without challenges. The biggest concern is sustainable biomass sourcing. Poor practices—such as removing too much crop residue, clear-cutting forests, or heavy fertilizer use—can harm biodiversity, damage soils, or increase emissions. Because of these risks, carbon removal purchasers must follow strict sustainability guidelines when sourcing biomass.

There is also a durability question for some BiCRS methods. Some biomass burial or sinking approaches could decompose over time, reversing the stored carbon. Frontier funds several R&D projects to evaluate long-term durability.

Finally, the BiCRS market is expected to be highly fragmented. Feedstock types differ by region, and the best removal pathway varies based on geography, transportation options, and local policy. Most BiCRS facilities also operate at a modest scale, meaning the market will rely on many distributed projects rather than a handful of giants.

Even so, BiCRS delivers several co-benefits. These include on-site clean energy production, lower fossil fuel use, reduced methane emissions, nutrient recycling for croplands, and destruction of harmful pollutants like PFAS.

BiCRS Dominates CDR Market

As per the CDR.fyi report, biomass-based carbon removal is leading the carbon removal market. In 2025, BiCRS projects delivered 97% of durable carbon dioxide removals, showing their major impact. BECCS, a key BiCRS pathway, is set to grow at a 19.3% CAGR from 2024 to 2030.

  • In the US alone, BiCRS could remove over 800 million tonnes of CO2 per year at costs below $100 per ton, with potential to exceed 1 billion tonnes with expanded biomass use.

The carbon removal market reached $3.9 billion in Q2 2025, with biomass projects accounting for 99% of transactions. Growth is fueled by rising demand for sustainable energy, expanding investment, and supportive policies.

bircs
Source: CDR.FYI

Why Reverion’s Model Stands Out

Reverion’s approach offers compelling advantages that support its rapid market adoption:

  • Large potential impact: With over 120,000 biogas sites worldwide, the theoretical removal potential from biogas could exceed 2 gigatons per year by 2040, according to IEA projections. Reverion could capture a meaningful share of this, especially alongside other BiCRS technologies.
  • Full-stream carbon capture: Most systems capture only the CO₂ portion of biogas. Reverion captures carbon from both CO₂ and methane, effectively doubling the removal impact.
  • World-class electrical efficiency: Its 74% efficiency ranks among the highest globally, increasing economic returns for operators.
  • Low methane leakage: Because methane is converted on-site, the system avoids pipeline leaks often associated with renewable natural gas.
  • Strong market demand: Reverion already holds 60 pre-orders and 120 letters of intent, signaling strong momentum.
Reverion biogas
Source: Reverion

As the world accelerates efforts to scale permanent carbon removal, technologies like Reverion’s offer a promising path—combining high-efficiency clean energy production with durable, verifiable carbon storage at biogas sites around the world.

EU Mobilizes €15.5 Billion to Boost Africa’s Clean Energy Boom

Jennifer L
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EU Mobilizes €15.5 Billion to Boost Africa’s Clean Energy Boom

The European Union has announced it will mobilize €15.5 billion to support Africa’s clean energy transition. The region gathers funds from various sources. This includes EU institutions, member states, African partners, development banks, and private investors.

The funding package, announced by President von der Leyen, aims to increase renewable power, improve electricity access, and strengthen energy systems across the continent.

This initiative forms part of the Global Gateway Africa–Europe Investment Package. The goal is to promote sustainable growth, reduce carbon emissions, and enhance living standards. It supports large-scale energy projects, off-grid solutions, and technical assistance for infrastructure and regulatory reforms.

President von der Leyen stated:

“Today, the world has stepped up for Africa. With €15.5 billion, we are turbocharging Africa’s clean energy transition. Millions more people could gain access to electricity, real, life-changing power for families, for businesses, for entire communities. This investment is a surge of opportunity: thriving markets, new jobs, and reliable, clean energy that meets the needs of partners across the globe. President Ramaphosa and I both look forward to a clean-energy future for the continent. A future led by Africa, with strong support from its friend and partner, Europe.”

What Composes the €15.5 Billion Campaign?

The campaign, coordinated with Global Citizen and supported by the International Energy Agency, aims to boost public and private investment in Africa’s clean energy transition. It seeks to expand electricity access, support sustainable economic growth, and promote low-carbon industrialization.

The €15.5 billion package is made up of several components:

  • More than €15.1 billion comes from European public sources, including over €10 billion pledged by President von der Leyen on behalf of Team Europe.

  • Additional pledges are expected from other governments and development banks.

  • Private investment is expected to be the main source of funding. It will use public money to lower risk and draw in commercial investors.

The package will fund both large and small projects. For example, the Côte d’Ivoire’s transmission line upgrades aim to expand electricity distribution across urban and peri-urban areas. Moreover, Madagascar’s mini-grid systems will help off-grid households and small businesses. These flagship projects show that the campaign is focused on tangible outcomes.

Africa’s Energy Gap: The Urgent Need

Africa faces a major electricity gap. Analyses by international agencies and research groups show the following key statistics:

  • 600 million people in Africa currently lack access to electricity.
  • Around 900 million people still rely on traditional biomass, such as firewood or charcoal, for cooking.
  • Installed renewable power capacity is about 120 gigawatts (GW). This makes up less than 20% of total electricity generation.

The continent’s demand for electricity is growing rapidly. Urbanization, population growth, and industrial expansion are driving energy needs higher. By 2050, Africa’s population is expected to exceed 2.5 billion, increasing electricity demand significantly.

Catalyzing 27 GW of Renewable Power by 2030

Meeting Africa’s energy and climate goals by 2030 will require hundreds of billions of dollars annually in investment. Estimates say the continent needs about $120–150 billion each year. This money is essential for achieving universal electricity access and boosting renewable energy generation.

The €15.5 billion mobilization covers roughly 10–12% of the annual investment gap, showing its catalytic rather than complete role. The package seeks to unlock more public and private funding. It also aims to encourage policy reforms and provide technical support.

Long-term scenarios envision adding around 300 GW of renewable capacity by 2030. The €15.5 billion initiative will not deliver all of this, but will contribute nearly 27 GW of additional renewable power and support for millions of households.

Power generation capacity additions in Africa in the Sustainable Africa Scenario, 2011-2030
Source: IEA

What are the Expected Outcomes?

The mobilization is projected to deliver measurable results, including:

  • Renewable capacity: Nearly 27 GW of new solar, wind, and hydro generation.
  • Electricity access: Around 17.5 million households will gain new or improved electricity services.
  • Job creation: Thousands of construction and operational jobs will be created through project implementation.

Country-level examples highlight these tangible impacts:

  • Cameroon: €59.1 million is allocated to rural electrification for 687 communities — reaching more than 2.5 million people.
  • Madagascar: €33.2 million will support the rollout of mini‑grids to bring electricity to rural and off‑grid areas.
  • Mozambique: €13 million is directed toward enabling a low-emission energy transition and encouraging private‑sector participation in renewables.
  • Somalia: €45.5 million goes toward increasing access to affordable renewable energy, promoting climate‑resilient agri‑food systems, and advancing circular‑economy practices.

These investments are designed to improve both the electricity supply and the reliability of grids. They will help local communities, schools, hospitals, and businesses access modern energy.

Tapping Africa’s Untapped Solar & Wind Potential

Africa has vast untapped renewable energy potential, especially solar. Estimates suggest that the continent could generate over 10,000 GW of solar power if fully developed. Wind, hydro, and geothermal resources further increase the potential.

Africa annual solar capacity
Source: Ember

Despite this, Africa’s per capita emissions remain low: only around 1 ton of CO₂ per person, compared with a global average of about 4.8 tons. This highlights the need for investment in clean energy to support growth without raising emissions significantly.

Urbanization and population growth add urgency. By 2030, Africa’s urban population could reach 1.5 billion, creating higher electricity demand in cities. Clean energy projects can meet this demand while reducing reliance on expensive diesel and fossil fuels.

Governance, Technical Support, and Smart Planning

The EU programme works closely with African institutions to ensure the effective use of funds. The African Union and the African Development Bank play roles in project selection, co-financing, and oversight.

Technical assistance is a key part of the package. Their support includes:

  • Grid planning and expansion studies
  • Regulatory reforms to encourage private-sector investment
  • Training programs for engineers and technicians
  • Tools for monitoring and evaluating energy projects.

This approach ensures that projects are not only built but also managed sustainably over time. About 10–15% of the total mobilization can go to technical assistance and capacity building. This shows how important governance and expertise are.

Risk, Regulation, and Resilience

Mobilizing the €15.5 billion is an important step, but it does not guarantee success on its own. Several risks could affect the implementation of clean energy projects. Regulatory uncertainty in some countries can slow investment.

Also, infrastructure gaps may hinder the integration of new renewable energy into current grids. Political instability and local conflicts pose additional threats, potentially delaying or disrupting construction.

Technical challenges are also present. Solar and wind power rely on the weather. They need storage systems and smart grids for a steady electricity supply.

The EU tackles these risks using blended finance, guarantees, and strong teamwork with African partners. Public support lowers upfront financial risk. This encourages private investors to join in and helps projects succeed.

A Sustainable and Inclusive Energy Future for Africa

The €15.5 billion mobilization is a significant step for Africa’s clean energy future. While it covers only a fraction of the total investment needed, it acts as a catalyst. It encourages additional public and private investment, strengthens local institutions, and supports technical capacity.

If projects are delivered on time, millions of people will gain electricity for the first time. Jobs will be created, economies strengthened, and emissions reduced. Africa could build a modern energy system that is both sustainable and resilient.

These combined efforts show that partnerships between Europe and Africa can unlock large-scale transformation. The focus is on tangible, measurable results, not promises alone, to benefit people, economies, and the planet.

Ferrari and Shell Sign Renewable Energy Deal, Powering Ferrari’s Carbon Neutrality by 2030 Goal

Jennifer L
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0
Ferrari and Shell Sign Renewable Energy Deal, Powering Ferrari’s Carbon Neutrality by 2030 Goal

Ferrari has signed a ten-year agreement with Shell to purchase renewable electricity. The deal will provide 650 gigawatt-hours (GWh) of clean power through 2034. This is enough to cover nearly half of the energy needs at Ferrari’s main production plant in Maranello, Italy.

The plant uses around 130 GWh of electricity each year. The remaining electricity will be supplied through additional renewable energy and certificates.

The agreement is part of Ferrari’s plan to reduce carbon emissions and shift toward cleaner energy in its operations. Davide Abate, Chief Industrial Officer at Ferrari, remarked:

“This agreement represents a further step forward in our journey towards decarbonizing the Maranello plant. The collaboration with Shell Energy Italia to supply renewable energy represents a concrete contribution to our goal of reducing Scope 1 and 2 emissions by at least 90% in absolute terms by 2030.”

For Shell, the deal demonstrates its growing role in supplying green power to large industrial customers. The oil giant is also increasing the scale of its renewable power generation. The electricity for Ferrari will come from a dedicated solar plant located in Italy, which improves supply reliability.

Gianluca Formenti, CEO of Shell Energy Italia, noted:

“In line with our strategy of producing more energy with fewer emissions, this agreement is a tangible example of our commitment to providing energy solutions to support our customers and partners in achieving their decarbonization goals.”

What are the Key Features of the Deal?

The PPA, or power purchase agreement, will deliver renewable electricity for ten years. Shell will provide most of the energy directly from a dedicated plant. The remainder will come from renewable energy certificates (RECs). These certificates allow Ferrari to claim that its energy consumption is backed by clean power, even if the electricity does not flow directly from the plant.

This combination ensures that Ferrari’s operations in Italy rely heavily on renewable sources. By securing long-term renewable energy, the luxury carmaker reduces its exposure to volatile energy prices.

The PPA includes fixed-pricing elements. This helps Ferrari avoid sudden jumps in energy costs. It also strengthens its ability to meet climate targets for carbon emissions.

The deal covers:

  • 650 GWh of electricity from renewable sources over 10 years.
  • Nearly 50% of Ferrari’s energy needs at Maranello.
  • Additional RECs and green power to cover the remaining electricity use.

Ferrari’s Carbon Reduction Goals and Renewable Energy Strategy 

Ferrari has committed to reducing Scope 1 and Scope 2 emissions by 90% by 2030. Scope 1 emissions come from Ferrari’s direct activities. This includes heating, production equipment, and company vehicles. Scope 2 emissions come from purchased electricity. Below are the ways the company uses to achieve its 2030 carbon neutrality goal.

Ferrari CARBON NEUTRALITY BY 2030
Source: Ferrari

The automaker reported several thousand metric tons of CO₂-equivalent emissions from operations in recent years. Progress has already begun as energy systems switch to cleaner power.

Switching to renewable electricity helps Ferrari cut Scope 2 emissions. The company has also invested in efficiency measures to reduce energy use across its facilities.

Moreover, it aims to streamline operations. They want to keep producing high-performance cars while using less energy overall. The company says some efficiency projects can reduce factory electricity use by 10–15% over time.

In recent years, Ferrari has been working on its energy mix. In 2024, it shut down a gas-fired trigeneration plant at Maranello. This plant had generated electricity, heat, and cooling from natural gas. By closing it, Ferrari reduced fossil fuel use and emissions.

However, the chart below shows that while Scope 1 and Scope 2 emissions show a gradual reduction, the total emissions show a steady increase. This is mostly due to growth in the company’s value chain activities.

Ferrari Carbon Footprint 2021-2024

Scope 3 emissions—mainly from the supply chain, purchased goods, and product use—are the dominant source, over 90%, and consistently drive the company’s total footprint.

Fueling Renewable Energy Expansion 

The Italian luxury sports carmaker is expanding its use of solar energy. It plans to increase photovoltaic (PV) capacity to around 10 megawatts peak (MWp) by 2030. Solar panels are installed on factory rooftops and other company-owned spaces. These panels already cover part of the factory’s daytime electricity consumption.

The company also partnered with Enel X to create a Renewable Energy Community (REC). This community lets nearby businesses, residents, and public institutions use clean power from Ferrari’s solar installations. It helps spread the benefits of renewable energy beyond Ferrari itself. The community has dozens of participants and supports local energy independence.

Ferrari has invested in energy-efficient transformers and storage systems. These upgrades improve the efficiency of electricity use and reduce energy waste. Combined with the new PPA, Ferrari’s approach is designed to achieve both emissions reduction and cost stability.

Offsetting the Unavoidable: Ferrari’s Carbon Credit Strategy

Ferrari tackles residual greenhouse gas (GHG) emissions. They support certified carbon avoidance projects by buying carbon avoidance credits. By using this method with direct emission cuts, the company reached carbon neutrality for Scope 1 and Scope 2 emissions in 2021, 2022, and 2023 across all its operations.

In 2024, Ferrari cancelled 77,691 metric tons of CO₂-equivalent carbon credits. These credits came from the Sustainability Community Project in Canada. They were certified by the Verified Carbon Standard (VCS) – Verra. This project combines over 800 carbon-reduction micro-projects from SMEs, municipalities, and NGOs. It includes more than 1,000 buildings in Quebec.

Ferrari carbon credits used
Source: Ferrari

The goal is to reach up to 10,000 customer facilities in a sustainable community. The GHG reductions come from activities such as improved energy efficiency, waste diversion, and fuel switching.

Also, Ferrari partners with ClimateSeed. This ensures that the projects follow strict environmental, social, and financial standards. The company hasn’t developed its own GHG removal or storage projects yet. However, it adjusts its carbon credit purchases each year. This helps offset unavoidable emissions and meet its carbon neutrality goals.

Industry Implications: Luxury Cars Join the Clean Energy Race

This deal reflects a growing trend among manufacturers in Europe. Companies are signing long-term renewable energy deals. This helps them cut emissions and stabilize energy costs.

For automakers, energy use is becoming an important part of environmental responsibility. Reducing emissions is not just about electric or hybrid cars. It also depends on how factories are powered.

Other car manufacturers are also pursuing renewable energy. BMW, Mercedes-Benz, and Porsche have all made deals to source clean power for major facilities. Ferrari’s agreement shows that luxury car makers are now also integrating renewable energy into their main operations.

Driving Forward: A Sustainable Shift for Ferrari

Ferrari’s renewable energy agreement with Shell is expected to have a lasting impact on its operations. It ensures a stable supply of clean energy and supports broader climate goals. It also ensures alignment between how Ferrari builds cars and the electric models it plans to sell in the future.

The partnership also strengthens Shell’s position in providing renewable solutions to industrial clients. It shows that legacy energy companies can play a role in helping others transition to cleaner power.

As Italy and other European countries aim to increase renewable energy use, long-term agreements like this one may become more common. Companies can benefit from cost predictability, emission reductions, and support for their sustainability goals.

Microsoft (MSFT) Signs Solar Deal with Zelestra to Power Data Centers in Spain, Supporting Community Projects

Jennifer L
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Microsoft (MSFT) Signs Solar Deal with Zelestra to Power Data Centers in Spain, Supporting Community Projects

Microsoft (MSFT) has signed a long-term Power Purchase Agreement (PPA) with Zelestra for 95.7 MWAC of solar power. The energy will come from two new solar farms in Aragón, Spain — Escatrón II and Fuendetodos II, both under construction. This clean energy will help power Microsoft’s data centers and operations in the region. It also supports Microsoft’s wider climate goals.

A Solar Deal That Shines Beyond Power

Beyond simply buying solar power, Microsoft is tying this deal to benefits for the local community. The non-profit ECODES will run a “Community Fund” financed by this PPA. ECODES plans to use this fund to support sustainability projects in Aragón. They will invest in local infrastructure, social inclusion, and environmental education.

Zelestra calls its strategy “3 Es”: Education, Energy, and Environment. Microsoft sees this as part of its “Datacenter Community Pledge,” which aims to ensure its operations help local areas as well as reduce its carbon footprint.

Why Microsoft’s 95.7 MW Bet Matters

This solar agreement matters for several reasons:

  1. Reliable clean energy: The 95.7 MW solar supply gives Microsoft a stable source of renewable power.
  2. Social benefits: ECODES will channel money into projects that help local people and ecosystems.
  3. Long-term local commitment: Zelestra intends to stay in Aragón and work with communities for years.

This structure shows how a big company can use a clean energy deal not just for itself, but for shared community value.

Spain’s Solar Boom and Zelestra’s Expanding Footprint

Solar power in Spain is booming. In the last few years, the country has added thousands of megawatts of solar capacity. According to Informa’s DBK report, solar energy grew by 6,000 MW in just one year, reaching 32,350 MW by 2024.

Red Eléctrica (the Spanish grid operator) data shows that by early 2025, solar PV installed capacity passed 32,000 MW, making solar the largest source of power capacity in Spain.

This growth reflects a major shift in Spain’s energy mix. In 2024, solar PV generated a record 44,520 GWh of electricity, about 17% of the country’s total electricity output.

At the same time, renewables now make up around 66% of Spain’s total power generation capacity. These numbers show how central solar power has become to Spain’s energy transition.

The outlook is even more ambitious. According to GlobalData, Spain’s solar capacity could reach 152.8 GW by 2035, driven by strong policy support and growing investor confidence. To fuel this, many new projects are already in the permitting stage.

Spain renewable power market 2035

In 2025 alone, more than 5 GW of solar projects were submitted for environmental approval. Castilla‑La Mancha is a major one of those major regions, and it stands out in Zelestra’s portfolio.

Zelestra is a major player in this growth. In 2025, it secured €146.6 million to build six solar plants in Castilla‑La Mancha, totaling 237 MWdc. These projects will create jobs, generate around 467 GWh of clean energy per year, and avoid over 84,000 tons of CO₂ emissions annually.

Zelestra is also expanding its corporate partnerships, providing renewable electricity for companies like Microsoft and Graphic Packaging International. Its portfolio in Spain exceeds 6 GW, showing its strong commitment to the country’s clean energy transition and its role as a key developer of large-scale solar projects.

Inside Microsoft’s Push Toward Carbon Negativity

Microsoft has set strong climate goals. In 2020, it announced its plans to be carbon negative by 2030. That means by then, it wants to remove more carbon from the atmosphere than it emits.

To reach this, the tech giant is doing several things:

  • It has contracted 34 GW of new renewable energy across 24 countries.
  • It aims to match 100% of its electricity use with zero‑carbon power by 2025.
  • It invests in carbon removal. In fiscal year 2024, Microsoft signed contracts for nearly 22 million metric tons of carbon removal.
  • It uses a $1 billion Climate Innovation Fund to support new technologies.

Progress and Challenges in Emissions

Microsoft has made real progress, but it also faces big challenges. Its Scope 1 and Scope 2 emissions (those from its own operations and electricity use) dropped 29.9% compared to 2020.

Microsoft carbon emissions
Source: Microsoft

But its total emissions (including its supply chain, or “Scope 3”) rose by 23–26% since 2020. This increase comes mainly from its rapid growth in data centers and cloud services.

Because it makes a lot of servers, chips, and hardware, Microsoft’s construction and supply chain also generate emissions. To cut those, it is working with its suppliers. By 2030, Microsoft plans to require high-volume suppliers to use 100% carbon‑free electricity.

Microsoft’s clean energy capacity has grown steadily since 2013, starting with wind projects in the U.S. By 2022, capacity reached 900 MW with wind and solar projects in Europe and the U.S.

Microsoft Clean Energy Contracts (Capacity, MW)
Notes: Clean energy deals include solar and wind projects

In 2024, Microsoft signed the largest corporate clean energy deal for 10.5 GW with Brookfield Renewable, delivering by 2030. This reflects Microsoft’s goal to power all operations with 100% renewable energy by 2030, underscoring its leadership in global sustainability efforts.​

Carbon Removal and Long-Term Risks

Microsoft is not just cutting emissions, it is also removing carbon. It invests in two big types of removal:

  • Nature-based removal: Microsoft has a deal with Chestnut Carbon to buy over 7 million tons of forest-based carbon credits.
  • Advanced removal: Microsoft supports projects like bioenergy with carbon capture and storage (BECCS). It recently backed a project in Louisiana that could capture 6.75 million tons of CO₂ over 15 years. 

Still, some experts warn that Microsoft’s climate strategy lacks targets beyond 2030. That could challenge its long-term impact.

SEE MORE on Microsoft: 

How the Solar Deal Fits into Microsoft’s Strategy?

The 95.7 MW deal in Spain ties directly into Microsoft’s overall carbon-negative goal. Here’s how it fits:

  • It adds zero-carbon electricity to Microsoft’s grid mix.
  • It supports Microsoft’s plan to match all its power use with clean energy.
  • The deal’s community fund reinforces Microsoft’s aim to pair climate action with social value.
  • It strengthens Microsoft’s global clean energy portfolio.

This helps Microsoft reduce its operational emissions (Scope 1 & 2) and supports its broader mission to remove carbon.

What’s Next for Microsoft, Zelestra, and Local Communities?

If all goes well, the two solar farms in Aragón will come online and deliver power to Microsoft for many years. The ECODES fund should start giving out grants to local groups, helping build greener projects in the community.

The tech giant must also keep pushing its carbon removal work and supplier engagement. It needs to make sure its long-term investments bring real, measurable climate impact.

Zelestra, for its part, will prove whether it can deliver reliable solar and meaningful social impact. If the model works, more companies may use similar “clean energy + community” contracts.

The agreement is more than just about cutting emissions — it’s also about helping local communities. At the same time, Microsoft’s push to be carbon negative by 2030 is ambitious and complex. It involves clean power, carbon removal, and changes in its entire supply chain.

This Spanish solar deal adds a new piece to Microsoft’s climate puzzle. It strengthens its clean energy supply and shows how corporate climate goals can benefit more than just the bottom line.

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