SAF Takes Flight as FlyORO and Menzies Target Aviation’s Biggest Infrastructure Gap

Jennifer L
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SAF Takes Flight as FlyORO and Menzies Target Aviation’s Biggest Infrastructure Gap

FlyORO, a clean aviation tech company from Singapore, is partnering with Menzies Aviation, a leading global aviation services provider. This collaboration aims to achieve their shared goals. The two companies signed a Memorandum of Understanding (MoU) to explore using FlyORO’s modular sustainable aviation fuel (SAF) blending technology in Menzies’ global fuel network.

The agreement comes as governments tighten clean fuel rules and airlines race toward net-zero targets. While global SAF production is growing quickly, it still supplies only a small share of the fuel that the aviation sector needs.

Damian Mc Loughlin, Chief Commercial Officer, FlyORO, remarked:

“Scaling SAF is no longer just a production challenge; it is increasingly a supply chain and infrastructure one. This collaboration combines FlyORO’s TRL 9 blending technology with Menzies’ expertise, to open a more practical path for SAF to reach the airports and airlines that need it. We are proud to be working alongside Menzies to help address one of aviation’s most critical infrastructure gaps.”

SAF Supply Is Growing, But Delivery Is the Real Challenge

SAF has become one of the aviation industry’s most important tools for cutting emissions. 

The International Air Transport Association (IATA) says that SAF could provide around 65% of the emission cuts needed for aviation to hit net-zero carbon emissions by 2050. Unlike electric or hydrogen aircraft, SAF can be used in today’s aircraft with little or no modification.

SAF for net zero aviation
Source: IATA

Production is increasing, but supply remains limited.

The association estimates global SAF production reached about 2 million tonnes, or 2.5 billion liters, in 2025. That was nearly double the previous year. Even so, it represented less than 1% of global jet fuel demand, showing how much production still needs to grow.

  • IATA estimates aviation will need around 449 billion liters of SAF each year by 2050 to help reach net-zero emissions.

At the same time, airlines continue to face pressure to reduce emissions. The International Energy Agency (IEA) estimates that aviation makes up about 2.5% of global energy-related CO₂ emissions. Passenger demand could also keep rising over the coming decades, making cleaner fuels increasingly important.

FlyORO’s Alphalite: The Missing Link in Aviation’s Clean Fuel Future

Building more SAF plants is only part of the solution.

Fuel must also be blended, stored, certified, and delivered through airport fuel systems before it reaches aircraft. Many airports still lack infrastructure designed for large-scale SAF handling.

That is where FlyORO hopes to make a difference.

Its AlphaLite system allows SAF to be blended directly within existing fuel supply chains. The modular system doesn’t need big new blending facilities. It fits inside a standard 40-foot container. This allows it to work at refineries, fuel terminals, or airports.

FlyORO saf technology
Source: FlyORO

The technology is at Technology Readiness Level (TRL) 9. This means it has been tested and proven in real operating conditions. According to FlyORO, AlphaLite has already blended more than 500,000 liters of SAF during commercial operations.

This modular approach could help airports increase SAF availability while reducing upfront infrastructure costs and shortening deployment times.

FlyORO Proves Its System Works at a Real Airport⁠

FlyORO has successfully tested its fuel-mixing system AlphaLite at a real airport. In 2025, the company set up the system at Australia’s Toowoomba Wellcamp Airport alongside ⁠Boeing and Wagner Sustainable Fuels.

  • A World First: This project was the very first eco-friendly fuel blending station built right inside an airport.
  • Real-World Success: It proved that these compact, portable mixing systems work safely and effectively during normal, everyday airport operations.
  • Ready for Business: Because of this successful test, the AlphaLite system reached Technology Readiness Level 9 (TRL 9). This is an official rating showing the technology is completely finished, thoroughly tested, and ready for regular commercial use.

READ MORE: Singapore-Based FlyORO and Aether Fuels Team Up to Explore Smarter SAF Blending and Fuel Delivery Solutions

A Global Airport Network Meets New SAF Technology

FlyORO’s technology could reach a much larger market through Menzies Aviation.

Menzies is one of the world’s biggest aviation services companies. It operates at more than 347 airports across 65 countries. Each year, the company supports around 5.3 million flights. It also handles about 2.4 million tonnes of cargo. Additionally, the company employs roughly 65,000 people worldwide.

The company has also committed to achieving net-zero greenhouse gas emissions across Scope 1, 2, and relevant Scope 3 emissions by 2045. It is replacing diesel ground support equipment with electric options. It is also boosting the use of renewable electricity across its operations.

The new agreement allows the two companies to explore how FlyORO’s blending technology can help Menzies with SAF deployment at its airports worldwide.

The agreement does not guarantee immediate commercial deployment. But it connects a tech developer with a major fuel service provider at a time when airports seek practical ways to increase SAF use.

New Rules Are Driving Demand

Policy is becoming another major driver of SAF growth.

In Europe, the ReFuelEU Aviation regulation now requires fuel suppliers to blend at least 2% SAF in 2025. That requirement will increase to 6% by 2030, 20% by 2035, and 70% by 2050, with separate targets for synthetic e-fuels.

ReFuelEU saf requirement
Source: EU

Similar policies are emerging in other regions as governments seek to reduce aviation emissions while maintaining air travel growth.

As these mandates expand, airports will need reliable systems that can blend and deliver larger volumes of sustainable fuel. That creates new opportunities for technologies designed to strengthen fuel infrastructure rather than fuel production alone.

Investment Is Fueling the Global SAF Race

Investment in sustainable aviation fuel is rising around the world. According to the International Energy Agency (IEA), more than 300 SAF projects have been announced globally.

Announced SAF Facilities

Announced SAF facilities
Source: IATA; SAF technologies include Hydroprocessed Esters and Fatty Acids (HEFA), HEFA co‑processing, Gasification Fischer–Tropsch (GFT), Alcohol‑to‑Jet (AtJ), Power‑to‑Liquids (PtL), and other emerging technologies (other).

If all moves forward, production capacity could reach several million tonnes a year by the early 2030s. Governments in Europe, North America, Asia, and the Middle East are also offering grants, tax credits, and fuel mandates to speed up investment.

The market is expanding quickly. Industry analysts at SkyNRG estimate global SAF demand could exceed 17 million tonnes a year by 2030, driven mainly by new blending mandates. However, current production plans still fall short of that target. This gap highlights the need for both more fuel production and stronger airport infrastructure.

Many experts now believe that improving fuel logistics will become just as important as building new SAF plants.

Carbon Credits and SAF: A Dual Path to Lower Emissions

Carbon markets will continue to play an important role as airlines reduce emissions.

The aviation sector is part of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). This scheme was created by the International Civil Aviation Organization (ICAO).

The program asks airlines to offset extra international emissions by buying approved carbon credits. They also need to use cleaner fuels and more efficient aircraft.

SAF and carbon credits work together rather than compete. SAF reduces emissions at the source, while carbon credits help address emissions that cannot yet be eliminated. Many airlines could use both approaches as they work toward their net-zero commitments.

Depending on the feedstock and production pathway, certified SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared with conventional jet fuel, according to IATA and ICAO.

As SAF becomes more common, there is a need for reliable systems to measure, blend, and track fuel volumes. This is important for compliance and voluntary climate programs.

Building the Next Stage of Aviation Decarbonization

The aviation industry has made clear that SAF will play a central role in reaching net-zero emissions. The next challenge is delivering that fuel where it is needed.

The partnership between FlyORO and Menzies Aviation reflects this shift. Instead of focusing only on producing more SAF, it aims to improve the infrastructure that connects fuel suppliers with airports and airlines.

If successful, partnerships like this could help close one of the industry’s biggest infrastructure gaps and support faster growth of the global sustainable aviation fuel market.

U.S. Biochar Industry Triples to $157 Million as Carbon Removal Market Sparks Record Growth

Jennifer L
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0
U.S. Biochar Industry Triples to $157 Million as Carbon Removal Market Sparks Record Growth

The U.S. biochar industry is growing fast. A new report from the American Biochar Institute (ABI), formerly U.S. Biochar Institute (USBI), estimates the industry was worth about $157 million in 2025. That is nearly three times higher than in 2023.

The growth comes as more companies buy durable carbon removal credits to meet their climate goals. It also shows rising interest in biochar as both a carbon removal tool and a way to improve soil health.

Biochar Industry Enters a New Growth Phase

The latest State of the U.S. Biochar Industry Report shows strong growth across the sector.

The report says the industry’s value reached $157 million in 2025, up from about $52 million in 2023. Annual biochar production also increased to more than 97,000 metric tonnes. At the same time, installed production capacity rose to more than 400,000 metric tonnes per year.

US biochar industry economic value 2025
Source: ABI

Today, the United States has more than 130 biochar production facilities. These plants support jobs in farming, forestry, manufacturing, engineering, and project development. Even with this growth, the report says the industry has only begun to tap its full potential.

Commercial biochar producers are also expanding quickly. The report estimates that producer revenue rose from $18.2 million in 2023 to $58.8 million in 2025. Producers expect that figure to reach about $159 million by 2027, showing confidence that demand will continue to grow.

Biochar Producer Annual Revenue
Source: ABI

Much of the recent increase came from companies earning $10 million to $50 million a year, suggesting the industry is moving beyond small pilot projects toward larger commercial operations.

The report also shows that production could grow much faster over the next two years. U.S. biochar output is projected to increase from about 151,000 metric tonnes in 2025 to more than 819,000 metric tonnes by 2027 if announced projects move forward.

While the report notes these forecasts are ambitious, they show how quickly companies expect demand for biochar and carbon credits to grow.

US biochar production
Source: ABI

Carbon Credit Demand Is Fueling the Market

Carbon markets are becoming a major source of income for biochar producers. The report found that only 6% of U.S. biochar production came from companies that earned no revenue from biochar carbon removal credits.

The largest share of production (42%) came from producers earning 11% to 20% of their revenue from carbon credits. Another 25% came from producers earning 71% to 80%, while 12% came from companies generating 31% to 40% of revenue from carbon credits.

A further 6% came from producers earning more than 90% of their revenue from carbon credits. The findings show that carbon finance is becoming a key part of many producers’ business models, although most still rely on biochar sales and other income sources.

carbon credit revenue biochar producers
Source: ABI

Demand continues to rise.

According to CDR.fyi, biochar supplied more than 90% of all durable carbon removal credits delivered worldwide in 2025. It also remained the largest source of delivered durable carbon removal by volume.

Large companies are helping drive this market. Microsoft, Google, Stripe, Shopify, JPMorgan Chase, and the Frontier buyers coalition have all signed major biochar carbon removal agreements. These long-term contracts help developers build larger facilities and increase production.

A Small Industry With Big Potential

Biochar is also one of the most mature carbon removal technologies on the market. Unlike newer methods such as direct air capture, commercial biochar plants are already operating at scale.

The technology is modular, uses widely available biomass waste, and generally costs less to deploy. These advantages have helped biochar become the leading source of delivered durable carbon removal credits.

The report identifies four main drivers behind the industry’s growth:

  • rising demand for carbon credits,
  • better use of agricultural and forestry waste,
  • growing awareness of biochar’s soil benefits, and
  • stronger interest in climate solutions that deliver both environmental and economic value.

Although the industry has grown quickly, it remains small relative to its long-term opportunity.

The USBI report says the United States produces hundreds of millions of tonnes of agricultural and forestry waste each year. Much of this material could be used to produce biochar instead of being burned or left to decay.

As demand for durable carbon removal grows, biochar is becoming an important part of the climate economy. The next step is to expand production while keeping high standards for carbon accounting, sustainable feedstocks, and environmental performance.

The market is expected to keep growing. Boston Consulting Group (BCG) estimates the global carbon removal market could reach $100 billion to $135 billion a year by 2050 if countries stay on track for net-zero emissions.

Biochar Offers More Than Carbon Removal: Helping Agriculture and Climate

Biochar creates value beyond carbon credits.

It helps store carbon for long periods while improving soil quality. Studies by the U.S. Department of Agriculture (USDA) show biochar can improve soil structure, increase water retention, and reduce nutrient losses. These benefits can help farmers improve crop yields while using resources more efficiently.

Biochar production can also reduce waste. Crop residues, forestry waste, and other biomass that might otherwise decompose or be burned can instead be turned into a useful product. This creates new income opportunities for farmers, forest owners, and rural businesses.

Because of these benefits, many experts see biochar as one of the few climate solutions that supports both emissions reductions and agricultural productivity. The global industry has seen tremendous growth in 2025, as shown below.

biochar carbon credit market 2025

Scaling Up Remains the Biggest Challenge

Despite its huge potential, the industry still faces several hurdles.

Production capacity remains much smaller than future demand. Many projects also need more financing to build commercial-scale facilities.

Moreover, the industry must maintain high standards. Buyers want carbon credits backed by strong measurement, reporting, and verification. They also expect producers to use sustainable feedstocks and protect forests and biodiversity.

Meeting these standards will help build confidence as the market expands, and when quality will become even more important. Strong standards such as Verra’s VM0044 methodology help ensure biochar credits represent real and durable carbon removal.

A Strong Outlook for the Industry

The new ABI report shows that biochar is moving into the mainstream.

Industry value has nearly tripled in just two years. Production capacity continues to grow, and more companies are investing in new facilities. At the same time, demand for high-quality carbon credits remains strong as businesses work toward net-zero targets.

The International Energy Agency (IEA) says carbon removal will be needed alongside deep emissions cuts to reach global climate goals. Biochar is well placed to help meet that need because it delivers durable carbon storage while improving soil health and making use of waste biomass.

As investment grows and production expands, biochar is likely to play a much larger role in both the U.S. carbon market and the global carbon removal industry over the next decade.

Masdar Backs World’s First 24/7 Solar and Battery Project with $6.1 Billion Investment

Saptakee S
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0
Masdar Backs World’s First 24/7 Solar and Battery Project with $6.1 Billion Investment

The clean energy industry has reached another major milestone. Abu Dhabi Future Energy Company (Masdar) has secured financial close for the world’s first gigascale renewable energy project capable of delivering clean electricity around the clock. The landmark project combines one of the world’s largest solar power plants with a massive battery energy storage system, proving that renewable energy can provide reliable power 24 hours a day.

The project represents a total investment of US$6.1 billion, including a US$5.1 billion financing package backed by a group of 13 leading international and local banks. The deal highlights growing investor confidence in large-scale renewable energy projects that can supply continuous electricity while reducing dependence on fossil fuels.

A New Era for Round-the-Clock Clean Energy

Renewable energy has expanded rapidly over the past decade. However, one challenge has remained—solar panels only generate electricity when the sun shines. As countries increase their use of renewable energy, storing excess electricity has become essential to ensure a stable power supply.

Masdar’s new project addresses this challenge.

Developed in partnership with the Emirates Water and Electricity Company (EWEC), the project combines:

  • 5.2 gigawatts (GW) of solar photovoltaic (PV) capacity with a 19 gigawatt-hour (GWh) battery energy storage system (BESS).
  • Together, these facilities will provide 1 GW of uninterrupted clean electricity, day and night

This makes it the largest and most advanced integrated solar-plus-storage project built to date.

The project demonstrates that renewable energy is no longer limited to producing electricity only during sunny or windy periods. Instead, large battery systems can store surplus solar power during the day and release it when demand remains high after sunset.

As electricity demand continues to grow worldwide, this model could become increasingly important for future power systems.

Strong Financial Backing

The project’s financial close also marks an important achievement for renewable energy financing.

Masdar secured a US$5.1 billion financing package from a consortium of 13 banks, while contributing US$1 billion in equity, bringing the total project investment to US$6.1 billion.

The participating lenders include:

  • Abu Dhabi Commercial Bank
  • Abu Dhabi Islamic Bank
  • BNP Paribas
  • Bank of China
  • Crédit Agricole Corporate and Investment Bank
  • Dubai Islamic Bank
  • First Abu Dhabi Bank
  • HSBC
  • KfW IPEX-Bank
  • Natixis
  • Sumitomo Mitsui Banking Corporation
  • Standard Chartered Bank
  • Société Générale

The participation of both regional and global financial institutions reflects growing confidence that large renewable energy projects with integrated storage have become commercially viable.

Unlike earlier renewable developments that depended heavily on government support, this financing shows investors increasingly view next-generation clean energy infrastructure as a stable long-term investment.

Masdar’s Solar and BESS Project Sets a New Standard

Electricity demand is growing faster than ever. Artificial intelligence, cloud computing, hyperscale data centers, electric vehicles, advanced manufacturing, and digital infrastructure are all increasing power consumption across the world.

According to the IEA, electricity demand in the Middle East grew by 3.8% in 2025, slightly faster than the 3.7% increase recorded in 2024. The UAE contributed about 12% of the region’s total demand growth.

UAE middle east electricity demand
Source: IEA

At the same time, governments are working to reduce greenhouse gas emissions and replace fossil fuel generation with cleaner alternatives. This creates a major challenge: power grids need electricity every hour of every day—not just when renewable resources are available.

Bridging the Gap

And this Large-scale battery storage helps bridge that gap. By storing excess solar electricity during daylight hours and supplying it overnight, projects like Masdar’s can improve grid reliability while reducing carbon emissions.

The Abu Dhabi project is expected to serve as a model for future renewable developments seeking to provide baseload-style clean electricity.

Apart from this, Masdar has invested in several storage technologies over the years. One of its early projects was Spain’s Gemasolar concentrated solar power facility, which became the world’s first commercial renewable plant to use molten salt thermal storage.

In 2022, the company also acquired UK-based battery storage developer Arlington Energy, with plans to expand battery storage capacity across the United Kingdom.

The Abu Dhabi project builds on those earlier investments. It is expected to serve as a model for future renewable developments seeking to provide baseload-style clean electricity.

Aligning with UAE’s Clean Energy Target 

Masdar officially broke ground on the project in October 2025, with commercial operations expected to begin in 2027. Once completed, it will become a key part of the United Arab Emirates’ clean energy strategy, supporting both energy security and economic diversification.

The project also aligns with the UAE’s long-term efforts to increase renewable energy generation while reducing dependence on conventional fuels. Currently, the country’s total installed capacity is more than 7.4 GW at the end of 2025, and 7.5 GW are under construction.

uae renewable capacity
Source: dii-desertenergy.org

Renewable Energy Ambitions 

Currently, Masdar has expanded its renewable energy portfolio significantly over the past few years.

  • Its renewable generation capacity increased from 20 GW in 2022 to more than 51 GW in 2024, spanning projects across solar, onshore wind, offshore wind, battery storage, and hybrid renewable systems.

It further plans to nearly double that figure, targeting 100 GW of renewable energy capacity by 2030 through investments across established and emerging markets.

The company says this expansion reflects its commitment to providing affordable, reliable clean electricity while supporting global decarbonization efforts.

Masdar Is Cutting Millions of Tonnes of Carbon Emissions

Beyond generating electricity, Masdar’s renewable portfolio is delivering measurable climate benefits.

In 2024, the company’s operating renewable assets displaced approximately 15.5 million tonnes of carbon dioxide annually. This demonstrates the growing role that utility-scale renewable projects can play in reducing global greenhouse gas emissions.

MASDAR EMISSION
Source: Masdar

Masdar also reports its emissions using internationally recognized Greenhouse Gas (GHG) Protocol standards. The company tracks emissions under both the equity share and financial control reporting approaches to improve transparency.

Alongside emissions reporting, Masdar continues to focus on improving energy efficiency, conserving water resources, and reducing environmental impacts across its operations.

The company is also developing a broader sustainability strategy that includes its long-term pathway toward achieving net-zero emissions, supported by renewable energy use, greater operational efficiency, and carbon reduction initiatives.

A Blueprint for Future Renewable Projects

The successful financial close sends an important message to global investors and policymakers.

Large renewable energy projects that combine solar generation with advanced battery storage are no longer experimental concepts. They are becoming commercially bankable infrastructure capable of attracting billions of dollars in private financing.

As countries seek to meet growing electricity demand while reducing emissions, similar integrated renewable projects are likely to become more common.

For Masdar, the project reinforces its position as one of the world’s leading clean energy developers. For the broader renewable energy industry, it demonstrates that reliable, 24/7 clean electricity is moving from ambition to reality.

With operations expected to begin in 2027, the Abu Dhabi project could establish a new global benchmark for utility-scale renewable energy, showing how solar power and battery storage can work together to provide dependable, low-carbon electricity every hour of every day.

Canada’s Oil Sands Alliance Gets Green Light for Multi-Billion-Dollar CCS Project to Cut 16 Million Tonnes of CO₂

Saptakee S
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0
Canada’s Oil Sands Alliance Gets Green Light for Multi-Billion-Dollar CCS Project to Cut 16 Million Tonnes of CO₂

Canada is launching one of the world’s largest carbon capture and storage (CCS) projects. The federal government, Alberta’s government, and five oil producers, aka The Oil Sands Alliance, signed an agreement to cut oil sands emissions while supporting production and exports.

Announced on July 2, 2026, this agreement moves the Pathways Project closer to reality. It will capture carbon dioxide (CO₂) from oil sands facilities in northern Alberta, transporting it through a shared pipeline to a storage site near Cold Lake.

This deal links emissions cuts with plans for a new West Coast oil pipeline. Supporters view it as a chance for economic growth alongside climate action. However, environmental groups worry it might lead to increased fossil fuel production and emissions.

Unlock OSA’s Pathways Project

The Oil Sands Alliance—which includes Canadian Natural Resources, Cenovus Energy, ConocoPhillips Canada, Imperial Oil, and Suncor Energy—is developing the Pathways Project.

The plan involves building a network to transport and store carbon from several oil sands operations. Instead of letting CO₂ escape, it will flow through a pipeline to a geological storage site near Cold Lake.

Oil Sands Alliance Location

canada osa
Source: OSA

Originally, the project was expected to cost around C$16.5 billion. However, costs are now estimated between C$20 billion and C$30 billion due to rising construction expenses and an expanded project scope.

If all goes well, the carbon pipeline and storage system should start by January 1, 2032. The first phase aims for completion by January 1, 2035.

A New Target: Cutting 16 Million Tonnes of Emissions

The recent agreement sets a phased approach for greenhouse gas reductions. The first phase aims to capture and store 6 million tonnes of CO₂ per year through the Pathways CCS project by 2035.

Partners target an extra 5 million tonnes of reductions by 2040 and another 5 million tonnes by 2045. Future reductions may come from expanding the CCS network or adopting new technologies.

  • Overall, the plan aims for 16 million tonnes of net annual emissions cuts in Canada’s oil sands sector.

This replaces earlier proposals for larger cuts and aligns with the new Memorandum of Understanding (MOU).

  • According to Canada’s latest National Inventory Report, oil sands and thermal heavy oil operations emitted about 92 million tonnes of CO₂ equivalent (MtCO₂e) in 2024.
  • The initial capture phase would reduce emissions by roughly 6–7% of the sector’s total, while the full target represents about 17% of today’s emissions.

canada oil sands emissions

Government Support Extends Beyond Tax Credits

The agreement includes significant financial support from the federal and Alberta governments to make the project feasible.

Ottawa will extend its 50% investment tax credit for eligible carbon capture equipment and a 37.5% tax credit for transportation, storage, and utilization equipment until 2035, five years longer than planned.

The federal government also plans new tax incentives for enhanced oil recovery projects, offering a 25% credit for carbon capture equipment and 18.75% for transportation and storage used in those operations.

Alberta will extend its Carbon Capture Incentive Program through 2035 and provide additional financial support to increase oil production for future exports.

The province aims to speed up approvals with a 120-day regulatory timeline for qualifying projects and will form a working group to address regulatory barriers in oil sands investments.

Alberta Premier Danielle Smith said,

“The biggest nation-building projects in Canada’s history have succeeded through partnership. This agreement shows what can be achieved when governments and industry work together to grow our economy, strengthen our energy security and unlock new opportunities for people across Canada.”

Carbon Pricing Will Reward Progress

Oil and gas production accounts for roughly a quarter of Canada’s total greenhouse gas emissions, according to federal climate data. This makes Alberta central to national climate policy.

oil and gas production emissions

Additionally, a key part of the agreement is Alberta’s carbon pricing system, which encourages emissions reductions.

Under Alberta’s Technology Innovation and Emissions Reduction (TIER) program, industrial facilities face stricter emissions benchmarks each year. Companies that do not improve must buy emissions credits or pay into the provincial TIER Fund.

  • The new agreement notably offers incentives for companies meeting emissions reduction goals.
  • Members of the Oil Sands Alliance that reach their initial target of 6 million tonnes will see their TIER benchmark tightening rate drop from 2% to 1%.

Companies making progress toward future targets can keep this lower rate until 2045. However, those that fall short will face tougher benchmarks and higher compliance costs.

This structure rewards companies investing in emissions reduction technologies while pressuring those lagging.

carbon pricing

Linking Carbon Capture With Oil Production Growth

The Pathways agreement also aims to boost Canada’s oil production and export capacity via a proposed West Coast Oil Pipeline (WCOP).

The federal government, Alberta, and the Oil Sands Alliance see a link between the new pipeline and the Pathways Project. Increased oil production will supply the pipeline, while carbon capture aims to reduce emissions from expanded operations.

The agreement also seeks to diversify Canada’s export markets, improving access to customers beyond North America. In addition to production growth, governments commit to engaging with Indigenous communities to create economic opportunities in pipeline and emissions-reduction projects.

More significantly, it also encourages companies to prioritize Canadian suppliers, technologies, steel, aluminum, and construction materials when possible.

canada osa
Source: OSA

What Comes Next?

The July 2 Memorandum of Understanding is not the final legal agreement. It sets the stage for future binding agreements between the federal government, Alberta, and each member of the Oil Sands Alliance.

These agreements are expected to be signed by November 15, 2026.

A trilateral working group will oversee implementation, coordinate regulatory approvals, and advance the carbon capture project and related infrastructure.

If construction goes as planned, the Pathways Project could become one of the largest CCS networks globally, storing millions of tonnes of carbon each year while helping Canada boost its oil exports. Balancing climate goals with more fossil fuel production will be a key topic in Canada’s energy debate in the years ahead.

Saudi Aramco and Spiritus Join Forces to Cut Direct Air Capture Costs and Scale Carbon Removal

Jennifer L
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0
Saudi Aramco and Spiritus Join Forces to Cut Direct Air Capture Costs and Scale Carbon Removal

U.S. climate tech firm Spiritus has teamed up with Saudi Aramco on a new direct air capture (DAC) system. This system will remove carbon dioxide (CO₂) from the air at a lower cost.

If successful, the partnership could help solve one of the biggest challenges facing carbon removal today: scaling the technology while making it affordable. The announcement shows that big energy companies are increasingly interested in carbon removal. This comes as governments and businesses aim for net-zero emissions.

Direct Air Capture Moves Toward Commercial Scale

Spiritus and Aramco have signed an agreement to advance Spiritus’ DAC technology and explore how it can be deployed on a larger scale. The companies will test the technology in various operating conditions. They will also examine its potential for commercial use.

Spiritus has developed a new sorbent material that captures CO₂ directly from the atmosphere. Their DAC system, called the Carbon Orchard™, has a modular design that can ramp up deployment to megaton capacity.

The company stated:

“The companies that figure out how to make DAC cheap and modular will end up supplying decarbonization infrastructure to the hardest-to-abate sectors on the planet, not just carbon credits to sustainability teams. That’s the market we’re building toward, and partners like Aramco are how we get there faster.”

The company says its process requires less energy than many existing DAC systems, helping lower operating costs. Reducing costs is widely seen as the biggest hurdle for the industry.

These are the three main advantages of the company’s DAC system:

  • Lower energy use: The process uses over 50% less energy than many traditional DAC methods.
  • Lower cost potential: Target costs below US$100 per ton.
  • Scalable design: A modular system could scale quickly to megaton-level CO₂ removal.

Spiritus hasn’t shared a timeline for commercial deployment yet. However, this partnership allows them to tap into Aramco’s engineering skills, research abilities, and experience with big industrial projects.

Why the World Needs Direct Air Capture

DAC differs from traditional carbon capture. While traditional methods take emissions from factories or power plants before they reach the atmosphere, DAC pulls CO₂ directly from the air.

Scientists suggest this will be necessary to reach global climate goals. The Intergovernmental Panel on Climate Change (IPCC) says the planet needs to remove carbon dioxide with major cuts in emissions to keep global warming in check.

The challenge is scale.

direct air capture carbon planned net zero emissions IEA
Source: IEA

The International Energy Agency (IEA) reports that DAC plants around the world capture only about 0.01 million tonnes (Mt) of CO₂ each year. The agency says capacity needs to rise to over 80 Mt each year by 2030. Then, it should reach nearly 1 billion tonnes per year by 2050 to meet global net-zero goals.

That means today’s industry is still far from where it needs to be, as shown in the chart above.

Lower Costs Could Unlock a Bigger Market

High costs remain the biggest obstacle for direct air capture.

Most commercial DAC projects today cost between US$250 and US$600 per tonne of CO₂ removed, depending on the technology and project design. Those costs are too high for widespread adoption without government support or long-term purchase agreements.

Spiritus aims to change that. The company says its technology has the potential to reduce capture costs significantly by using lower-energy materials and a simpler regeneration process.

Although the technology still needs to prove itself at a commercial scale, lower costs could make DAC more attractive to companies seeking durable carbon removal.

Demand is already increasing. The IEA says that voluntary carbon markets are driving most direct air capture projects.

According to CDR.fyi, purchases of durable carbon removal reached another record in 2025 as companies expanded long-term buying commitments. Major buyers include Microsoft, Google, Stripe, Shopify, and the Frontier buyers coalition. They have committed billions of dollars to help scale new carbon removal technologies.

Their long-term deals have helped lower DAC carbon credit prices to around US$600 per tonne. Still, that is still about six times higher than the highest carbon prices in compliance markets. The IEA also says Article 6 of the Paris Agreement could create new opportunities for DAC credits once international accounting rules are finalized.

Aramco Sees Carbon Removal as a Crucial Part of Its Net-Zero Strategy

The Spiritus partnership also fits into Aramco’s broader climate strategy. The company has pledged to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly owned and operated assets by 2050.

To reach that goal, Aramco is investing in carbon capture and storage (CCS), hydrogen, renewable energy, methane reduction, and energy efficiency. The target does not include Scope 3 emissions, which come from customers using the company’s oil and gas products.

According to Aramco’s Sustainability report, the company’s greenhouse gas emissions increased in 2025, mainly because of higher natural gas production to meet rising domestic demand in Saudi Arabia.

The company reported 58.0 million tonnes of Scope 1 emissions and 14.0 million tonnes of market-based Scope 2 emissions in 2025. This brings its total operational emissions to 72.0 million tonnes of CO₂e, up 5.1% from 2024.

Aramco ghg emissions 2023 to 2025
Source: Aramco Sustainability Report

Despite the increase in emissions, the world’s largest energy firm maintains its target of achieving net-zero Scope 1 and Scope 2 emissions across wholly owned operated assets by 2050.

Other climate metrics reported for 2025 include:

  • Upstream carbon intensity: 10.0 kg CO₂e per barrel of oil equivalent (boe) (up from 9.7 kg CO₂e/boe in 2024).
  • Upstream methane intensity: 0.04%, unchanged from 2024 and still within the Oil and Gas Climate Initiative (OGCI) aspiration of “well below 0.20%.”

Aramco is also working with the Saudi government to expand carbon management technologies. Saudi Arabia’s Vision 2030 and Saudi Green Initiative aim to reduce emissions while diversifying the economy.

The country plans to capture and store up to 44 million tonnes of CO₂ each year by 2035. This will make it one of the largest carbon capture hubs in the world.

For Aramco, direct air capture could become another tool to help remove emissions that are difficult to eliminate.

Demand for Durable Carbon Removal Is Rising, but Cutting Costs Is Critical

Demand for durable carbon removal continues to rise.

According to CDR.fyi, companies purchased a record amount of durable carbon removal in 2025. Technology firms remain the biggest buyers, led by Microsoft, Google, Stripe, Shopify, and Frontier. Together, they have signed long-term agreements worth billions of dollars to help new carbon removal projects reach commercial scale.

As seen in the chart below, DAC (under DACCS) gets the biggest investment share from investors, per the CDR.fyi data.

Cumulative Investment in Durable CDR by CDR.fyi

The market is still small, but it is growing quickly. The Boston Consulting Group (BCG) says the carbon removal market could reach $100 billion to $135 billion by 2050. This is possible if countries stay on track for net-zero emissions.

Experts say lower-cost technologies will be essential to reach that scale. Without major cost reductions, direct air capture will remain too expensive for widespread use.

This is where partnerships like Spiritus and Aramco could make a difference. If Spiritus can prove its technology works at a lower cost, it could help make durable carbon removal available to more companies and industries.

The Next Test Is Scaling Carbon Removal

The partnership between Spiritus and Aramco reflects a broader shift in climate technology. The discussion is no longer about whether carbon removal is needed. The focus is now on how quickly it can scale and how much it will cost.

For now, emissions reductions remain the world’s top climate priority. But many experts agree that reducing emissions alone will not be enough to reach global net-zero goals. High-quality carbon removal will also be needed to address emissions from sectors that are difficult to decarbonize.

For Aramco, the partnership expands its portfolio of lower-carbon technologies. For the carbon market, it is another sign that durable carbon removal is moving closer to the mainstream as governments and businesses invest in the next generation of climate solutions.

Kenya Eyes 2027 Carbon Exchange to Become Africa’s Carbon Trading Hub

Jennifer L
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Kenya Eyes 2027 Carbon Exchange to Become Africa’s Carbon Trading Hub

Kenya is taking another step to grow its carbon market. The government plans to launch a national carbon exchange by 2027, creating a marketplace where verified carbon credits can be traded more efficiently.

The move comes as global demand for high-quality carbon credits continues to grow. It also supports Kenya’s goal of attracting more climate finance while helping businesses and communities reduce emissions. If successful, the exchange could strengthen Kenya’s position as one of Africa’s leading carbon market hubs.

Kenya Lays the Foundation for a National Carbon Exchange

Kenya already has one of Africa’s most active carbon markets. The new exchange aims to bring buyers, sellers, project developers, and investors together under one transparent platform.

The government claims the exchange will help with price discovery. It will boost market confidence and simplify trading verified carbon credits. The platform aims to draw more international investment. It will focus on projects that protect forests, restore ecosystems, expand renewable energy, and support local communities.

The exchange builds on Kenya’s Carbon Markets Regulations, which came into force in 2024. The rules set standards for carbon projects, benefit sharing, and government oversight. They also prepare Kenya to participate in international carbon trading under Article 6 of the Paris Agreement.

Kenya carbon market law
Source: National Council for Law Reporting (Kenya Law)

Many African countries are still building their carbon market rules. Kenya’s earlier policy work gives it a head start as demand for carbon credits grows.

Kenya Already Has Strong Climate Credentials

Kenya enters the market with an important advantage. Its electricity system is already one of the cleanest in Africa.

According to the International Energy Agency (IEA), more than 90% of Kenya’s electricity comes from renewable sources. Geothermal power provides the largest share, followed by hydropower, wind, and solar energy.

Kenya renewable energy generation

The country has installed over 950 megawatts (MW) of geothermal capacity. This makes it a top producer of geothermal electricity worldwide. This cleaner power mix helps reduce emissions while supporting economic growth.

Kenya has also set ambitious climate goals. The country plans to reduce greenhouse gas emissions by 32% by 2030. This goal is set in its updated Nationally Determined Contribution (NDC) compared to the business-as-usual scenario. The plan covers key sectors such as energy, transport, agriculture, forestry, and waste.

Kenya NCD 2030
Source: Climate Action Tracker

The government estimates it will need about US$62 billion between 2020 and 2030 to deliver its climate plan. Around 87% of that funding is expected to come from international support and private investment. Carbon markets could become an important source of that financing.

Carbon Credits Could Help Protect Kenya’s Natural Resources

Kenya has some of Africa’s most valuable natural carbon sinks. Its forests, mangroves, grasslands, and wildlife landscapes can store large amounts of carbon while supporting biodiversity and local livelihoods.

The country is already one of Africa’s largest carbon credit producers. Kenya has issued over 70 million verified carbon credits from more than 100 projects. This makes it a top supplier in Africa, according to Ecosystem Marketplace and AlliedOffsets.

  • Kenya accounts for roughly 15% of all carbon credits issued in Africa, second only to a handful of larger markets.

Kenya carbon credit market by the numbers

According to AlliedOffsets, Kenya could generate up to US$170 million by exporting 40 million tonnes of ITMOs under Article 6 at US$30 per tonne. This includes about US$160 million from corresponding adjustment fees, US$8 million in ITMO issuance fees—half of which goes to the Climate Change Fund—and US$2 million for domestic benefit-sharing.

Kenya’s Carbon Markets Regulations also require project developers to pay application fees of KES 150,000–300,000 (US$1,140–2,280), issuance fees of US$0.10–0.20 per tonne, and a US$4 corresponding adjustment fee for each authorized ITMO.

The African nation’s VCM could contribute about 202 million tonnes of CO₂ reductions during its NDC period. Around 75 MtCO₂e had already been issued as verified carbon credits by 2025, while another 141 MtCO₂e is expected by 2030.

Meanwhile, carbon projects could generate roughly 20 MtCO₂e in emissions reductions each year. The report says clear rules on credit quality and NDC accounting will be essential to maintain demand and support future compliance markets.

voluntary carbon credits in Kenya NCD
Source: AlliedOffsets

The carbon projects cover forest conservation, landscape restoration, clean cooking, renewable energy, regenerative agriculture, and community-based initiatives. Most are certified by well-known standards like Verra and the Gold Standard.

Major buyers of Kenya’s credits are big names like Microsoft, Netflix, Meta, Shell, and Air France. They, along with other companies, seek high-quality carbon credits to meet their climate goals.

The government sees carbon finance as a way to protect these natural resources while creating jobs and new income for local communities. A national carbon exchange could help Kenya capture more of the growing regional credit demand.

It would also help international buyers more easily find verified Kenyan carbon credits. A clearer and better marketplace would make this possible.

Africa’s Carbon Market Is Set for Rapid Growth

Kenya’s plans come as Africa’s carbon market gains momentum. The African Carbon Markets Initiative (ACMI) plans to create 300 million carbon credits yearly by 2030. By 2050, it aims for 1.5 billion credits each year.

The initiative estimates this could unlock more than US$6 billion in revenue by 2030 and over US$120 billion by 2050. It could also support 30 million jobs across the continent by mid-century.

ACMI ambition
Source: ACMI

Africa has a strong natural advantage. The continent holds vast forests, wetlands, grasslands, and mangroves that can store large amounts of carbon. Yet it currently supplies only a small share of the global carbon market. Many experts believe that could change as countries strengthen their carbon market rules and attract more investment.

Kenya hopes its planned exchange will help position the country at the center of this growth.

High-Integrity Credits Will Be Key

The opportunity is large, but so are the expectations.

In recent years, buyers have become more selective about the carbon credits they purchase. They want projects that deliver real and measurable emissions reductions while protecting biodiversity and supporting local communities.

Groups like the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Markets Integrity Initiative (VCMI) have released new guidance. This aims to enhance market quality and boost buyer confidence.

Kenya’s carbon market regulations include rules on project approval, monitoring, benefit sharing, and government oversight. These safeguards aim to boost transparency and ensure communities receive a fair share of project revenues.

Strong governance will be important if Kenya wants to attract long-term international buyers.

Carbon Finance Can Support Kenya’s Climate Goals

A carbon exchange is more than a new trading platform. It is part of Kenya’s broader plan to become a regional leader in climate finance.

The country continues to invest in renewable energy, forest restoration, climate-smart agriculture, and clean transport. It also aims to increase national tree cover to at least 30% by 2032. Carbon finance can help fund these efforts while creating jobs and supporting local communities.

Kenya already has strong renewable energy resources, clear carbon market rules, and a growing pipeline of high-quality projects. A national exchange could attract more investors, improve market transparency, and connect Kenyan credits with global buyers.

As demand for high-integrity carbon credits grows, countries with trusted policies and credible projects will be best placed to benefit. Kenya is positioning itself to become one of Africa’s leading carbon market hubs while advancing its climate and economic goals.

Iberdrola (BME: IBE) Reports 6.3% Growth in Electricity Distribution as Renewables Expand

Saptakee S
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Iberdrola (BME: IBE) Reports 6.3% Growth in Electricity Distribution as Renewables Expand

Europe’s shift toward clean energy has created several major utility companies focused on renewable power, but few have expanded as successfully as Iberdrola (BME: IBE). The Spanish energy giant has built one of the world’s largest renewable electricity portfolios while also investing heavily in modern power grids that support the growing demand for electrification.

Unlike many renewable developers that rely on a single technology, Iberdrola combines wind, solar, hydroelectric power, battery storage, electricity networks, and retail energy businesses across multiple countries. This diversified model has helped the company deliver stable earnings while continuing to invest billions of euros in clean energy.

Recent company data for the first half of 2026 shows Iberdrola continues to expand its renewable portfolio, increase electricity distribution, and reduce carbon emissions. These trends are attracting investors looking for long-term exposure to the global energy transition.

Iberdrola Continues Expanding its Renewable Business

Iberdrola remains one of the world’s largest renewable energy utilities. During the first six months of 2026, the company increased its total generation capacity by nearly 4% to 56,827 megawatts (MW), adding around 2,300 MW of new capacity.

Most of this growth came from renewable technologies.

  • Wind led the expansion, with more than 1,400 MW of new onshore and offshore wind capacity added over the past year. Offshore wind remained one of the company’s strongest-performing technologies, with production increasing 23% year over year.
  • Solar also grew rapidly, contributing another 1,000 MW. Battery storage recorded one of the fastest growth rates. Iberdrola more than doubled its battery capacity, increasing it by 117% after bringing new storage projects online in Spain and Australia.
  • Hydropower also played an important role. After generating more than 12,000 GWh from hydroelectric facilities, Iberdrola maintained reservoir storage above 8,200 GWh by the end of June, providing valuable flexibility for Spain’s electricity system.
IBERDROLA renewable
Source: Iberdrola

Electricity Spreading to Major Markets: Europe and Australia

Iberdrola generated 61,318 GWh of electricity during the first half of 2026, about 1% more than a year earlier. The company’s expansion has been spread across several major markets.

Continental Europe and Australia recorded the largest increase, with more than 1,000 MW of additional renewable capacity. New wind farms in Australia, Greece, and Portugal, together with solar projects in Germany and Italy, supported this growth.

This diversified international strategy reduces dependence on any single market while allowing Iberdrola to benefit from growing clean energy demand worldwide.

  • Electricity generation increased by 27.3% in the United Kingdom, and the generation portfolio expanded by approximately 400 MW.
  • It added 8% in the United States, and 11.5% across the company’s other international markets. In the United States, renewable capacity increased by almost 800 MW
  • Spain remained Iberdrola’s largest generation market, producing 32,732 GWh during the period. It added around 600 MW.
electricity production
Source: Iberdrola

Electricity Demand Keeps Rising

Growing electrification continues to benefit Iberdrola’s network business.

  • During the first half of 2026, the company distributed 136,648 gigawatt-hours (GWh) of electricity worldwide, representing a 6.3% increase compared with the same period last year.

Electricity demand increased across every region where Iberdrola operates.

The strongest growth came from the United Kingdom, where electricity distribution rose 32.6%. This increase reflected higher electricity demand and the successful integration of Electricity North West into Iberdrola’s operations.

The trend highlights a broader shift taking place across many economies. As electric vehicles, heat pumps, data centers, and industrial electrification expand, electricity demand is expected to continue rising over the coming decades.

For utilities like Iberdrola, this creates opportunities beyond renewable generation. Modern electricity grids are becoming increasingly valuable because they connect renewable energy projects with homes, businesses, and industries.

electrification

Billions of Euros Committed to Clean Energy

Iberdrola continues backing its long-term growth with significant investment.

The company plans to invest approximately €21 billion in its Renewables and Customers businesses through 2028 as part of a broader strategy to accelerate electrification.

Its investment priorities include:

  • Expanding renewable generation
  • Building smarter electricity grids
  • Increasing battery storage
  • Developing digital energy systems
  • Providing decarbonization solutions for customers

Rather than focusing only on renewable power plants, Iberdrola is investing across the entire electricity value chain.

Smart grids have become especially important because they allow electricity systems to manage distributed solar generation, electric vehicle charging, battery storage, and changing customer demand more efficiently.

This combination of regulated network assets and renewable generation gives Iberdrola a relatively balanced business model compared with many pure renewable developers.

Progress Toward Net-Zero Emissions

Reducing emissions remains a central part of Iberdrola’s strategy. It aims to reduce absolute emissions by 90% by 2039 before neutralizing the remaining emissions and achieving net-zero in 2040.

iberdrola net zero
Source: Iberdrola

Its climate targets have been validated by the Science Based Targets initiative (SBTi), confirming they align with climate science. According to company data, direct greenhouse gas emissions have fallen by more than 30% over the past five years.

  • Total emissions declined from 10.0 million tonnes of CO₂ equivalent (MtCO₂e) in 2023 to 8.4 MtCO₂e in 2024 and 7.9 MtCO₂e in 2025.
  • The company also reduced its emissions intensity to 60 kgCO₂/MWh in 2025, down from 65 kgCO₂/MWh in 2024 and 77 kgCO₂/MWh in 2023.

One reason for this improvement is Iberdrola’s increasingly clean electricity mix. The company reports that 85% of its total electricity production in 2025 came from emission-free sources.

Additionally, in Europe, Iberdrola’s carbon intensity has fallen to approximately 55 grams of CO₂ per kilowatt-hour, significantly below many traditional European utilities.

Iberdrola emissions
Source: Iberdrola

How has Iberdrola Stock Performed?

Iberdrola shares have delivered solid returns over the past year. Recent market data shows the stock has gained roughly 33% to 34% over the last 12 months, outperforming many traditional utility companies.

The company also posted a strong 41.9% gain during 2025, while shares have continued moving higher in 2026.

Strong operating performance, expanding renewable assets, and stable earnings from regulated electricity networks have supported investor confidence.

iberdrola

Because utilities generally generate predictable cash flows, many investors also view Iberdrola as a relatively defensive clean energy investment compared with more volatile renewable technology companies.

What do analysts think?

Wall Street and European analysts remain cautiously optimistic about Iberdrola. Most recent ratings fall into the Buy, Overweight, or Outperform categories, although many analysts also maintain Hold or Neutral recommendations.

This mixed outlook does not necessarily reflect concerns about the business itself. Instead, it suggests many analysts believe the company’s strong performance has already been reflected in its current share price.

With Iberdrola trading near the upper end of its 52-week range, future gains may depend on continued earnings growth, successful project delivery, supportive regulation, and rising electricity demand.

Is Iberdrola Well Positioned for the Energy Transition?

Iberdrola’s strategy extends well beyond building renewable power plants. The company is investing across generation, electricity networks, energy storage, digital technologies, and customer solutions—all areas expected to benefit from the global shift toward electrification.

This diversified approach provides multiple growth opportunities while helping reduce reliance on any single technology or market.

Like every utility, Iberdrola still faces risks. Changes in government regulation, interest rates, electricity prices, supply chain costs, and project execution could affect future performance.

However, its combination of regulated network assets, expanding renewable capacity, and long-term decarbonization strategy continues to make Iberdrola one of Europe’s strongest clean energy companies.

IBERDROLA
Source: Iberdrola

For investors seeking exposure to renewable infrastructure rather than higher-risk clean technology startups, Iberdrola remains one of the industry’s most established long-term renewable energy investments.

Gold Prices Dip Below $4,100, but ETF Inflows Keep the Bull Market Alive

Saptakee S
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Gold Prices Dip Below $4,100, but ETF Inflows Keep the Bull Market Alive

Gold continues to be a top asset in 2026. Even though prices have dropped from their highs earlier this year, gold trades at elevated levels. Investors are looking for protection against inflation, geopolitical issues, rising government debt, and slowing economic growth.

This gold market differs from past rallies. Today, several long-term trends support it. Central banks are buying gold at near-record levels. Investment demand is growing, mine supply is limited, and uncertainty in global monetary policy boosts gold’s status as a safe-haven asset.

Many analysts expect gold to stay above historical averages through 2026 and beyond, attracting both institutional and retail investors.

Gold Prices Ease After Record Rally

Gold started 2026 on a strong note, hitting a high of US$5,600 per ounce. Recently, prices have pulled back to around US$4,100 per ounce as of mid-July. This is still over 20% higher than last year and well above the decade’s average.

gold prices
Source: Trading Economics

The recent dip is largely due to strong U.S. economic data and expectations that the Federal Reserve may keep interest rates high longer. Higher rates usually strengthen the U.S. dollar and boost bond yields, making gold less attractive.

However, analysts believe this pullback is more of a consolidation than a long-term decline.

According to Reuters, renewed geopolitical tensions and ongoing global trade uncertainty often push investors back to gold during market volatility. Safe-haven buying helps limit the downside, even with rising Treasury yields.

Trading Economics shows that gold remains above its long-term trend. This indicates that structural demand outweighs temporary economic challenges.

Analysts Stay Positive Despite Short-Term Volatility

Leading financial institutions maintain positive views on gold, though their forecasts vary based on interest rate and growth expectations.

  • Research firm Metals Focus anticipates gold prices will average around US$4,920 per ounce in 2026. They cite ongoing central bank purchases, strong investment demand, and limited mine supply.
  • HSBC has lowered its short-term price forecasts, saying higher real interest rates and a stronger dollar might limit gains. Still, they expect prices to stay well above historical averages due to strong structural demand.  It expects gold to trade between $3,800 and $4,700 for the rest of 2026, ending the year at $4,750 before rising to $5,025 by the end of 2027.
  • On the contrary, JPMorgan thinks gold could reach US$6,000 per ounce in Q4 2026 if inflation stays high and central banks cut interest rates.

Most analysts agree that gold may see short-term volatility, but the long-term fundamentals are solid.

gold price forecast
Source: J.P. Morgan Commodities Research

2026 Gold Demand: ETF Inflows and Bars Reshape the Gold Market

Investor demand has improved in the past year.

Exchange-traded funds (ETFs) faced heavy outflows when interest rates rose. Now, they are attracting new inflows. Investors are getting ready for slower economic growth and possible monetary easing.

Demand for gold bars and coins is high. Many people want to diversify their portfolios.

  • The WGC noted that global gold demand exceeded 5,000 tonnes in 2025, including over-the-counter (OTC) activity—the highest ever recorded.

While high prices have reduced jewelry consumption in sensitive markets like India, strong investment buying has more than made up for it.

  • According to Metals Focus, total gold demand is expected to decline by 2.3% in 2026, as sharp drops in jewellery consumption and central bank purchases outweigh gains in other segments. However, stronger demand for physical gold bars and coins is projected to make physical investment the largest source of gold demand for the first time, overtaking jewellery.

gold demand

Central Banks Still Drive Global Demand

Central banks now play a major role in the gold market. The World Gold Council (WGC) says central banks are now big gold buyers. Governments are moving reserves from the U.S. dollar and boosting their physical gold holdings.

Global central bank purchases have topped 1,000 tonnes a year for three years. This shows a strong buying trend.

Countries in Asia, the Middle East, and emerging markets are adding gold to their reserves. This move aims to boost financial security during times of geopolitical uncertainty.

This steady buying has created a price floor not seen in previous cycles.

Supply Growth Remains Limited

Nonetheless, gold production does not increase quickly with rising prices. Developing a new gold mine often takes over a decade due to exploration, permitting, financing, and construction.

Furthermore, existing producers also face challenges. Ore grades are declining in many mature mining areas, and operating costs are high due to inflation. And new discoveries are harder to find.

  • However, Metals Focus estimates global gold supply will grow by only about 3% in 2026, with modest gains from mine production and recycled gold.
  • In 2025, total gold supply was 5,002.3 tonnes, as reported by WGC

Recycling tends to rise when prices go up, as more people sell old jewelry. However, recycled supply alone can’t meet long-term demand. This slow supply growth supports higher prices.

gold supply
Source: WGC

Factors That Could Move Gold in 2026

Several key factors could influence gold prices in the coming months.

  • The biggest is U.S. monetary policy. If the Federal Reserve signals plans to lower interest rates, bond yields may drop, weakening the dollar. This would create a better environment for gold.
  • Inflation is another crucial factor. Although pressures have eased, inflation is still above many central bank targets. Gold has historically done well during inflationary periods as investors see it as a safe store of value.
  • Geopolitical developments also affect the market. Conflicts in the Middle East and tensions between major economies have often triggered safe-haven buying this year.
  • Lastly, government debt levels are increasingly important. Rising fiscal deficits in major economies strengthen the case for hard assets like gold, especially for institutional investors.

What This Means for Gold Investors

Today’s gold market offers a different opportunity than past cycles.

Investors are now paying more attention to companies that can generate strong cash flow during the commodity cycle. Higher gold prices often boost mining margins because production costs increase more slowly than gold prices.

They look for miners with low operating costs, long-life reserves, strong balance sheets, and stable operations. Companies with these traits can better benefit from high gold prices and manage risks.

However, gold mining stocks can be more volatile than physical gold. Their performance is influenced by bullion prices, production growth, operating costs, and project execution. Quality and efficiency matter just as much as the gold price itself.

Central banks are buying gold, supply is limited, and economic uncertainty is high. This keeps the outlook strong for bullion and good gold producers. Short-term volatility may persist, but many analysts see solid drivers behind the current gold bull market.

NVIDIA (NVDA) Stock Pullback Comes as AI Giant Faces Its Biggest Sustainability Test Yet

Jennifer L
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NVIDIA (NVDA) Stock Pullback Comes as AI Giant Faces Its Biggest Sustainability Test Yet

NVIDIA has been one of Wall Street’s biggest winners during the artificial intelligence (AI) boom. Its chips power many of the world’s largest AI models, making the company a key supplier to Microsoft, Amazon, Google, Meta, and other tech giants.

Yet, in 2026, NVIDIA’s (NVDA) stock has fallen behind the broader market after years of explosive gains. Some investors see the pullback as a buying opportunity. Others are asking whether the company’s rapid growth can continue as AI demands more electricity, more data centers, and larger investments in clean energy.

NVIDIA Stock Slows After Years of Record Gains

NVIDIA became the world’s most valuable public company earlier this year as demand for AI chips continued to surge. Its market value briefly climbed above $4 trillion, making it the first company to reach that milestone.

Even so, the stock has struggled to match the broader market in recent months. According to The Motley Fool, investors have become more cautious after several years of exceptional gains. Expectations are now much higher, meaning the company must continue delivering strong revenue growth to justify its premium valuation.

Many analysts, however, remain optimistic. They point to NVIDIA’s dominant position in AI computing, where demand still exceeds supply in several parts of the market.

AI Investment Still Fuels NVIDIA’s Growth

The long-term outlook for AI infrastructure remains strong.

According to the International Data Corporation (IDC), global spending on AI could hit $632 billion by 2028, growing at a compound annual rate of about 29%. Most of that investment will focus on AI servers, cloud infrastructure, networking gear, and advanced chips.

NVIDIA sits at the center of this expansion.

Its latest Blackwell AI platform is now being deployed by major cloud providers worldwide. The company says every leading cloud service provider offers NVIDIA AI infrastructure, while thousands of companies are building AI applications using its hardware and software.

Demand also continues to grow beyond traditional cloud computing. Governments, manufacturers, healthcare firms, financial institutions, and research groups are all investing in AI systems that need advanced graphics processing units (GPUs).

These trends help explain why many investors still see NVIDIA as one of the biggest long-term beneficiaries of the AI revolution.

The AI Boom Comes With a Bigger Carbon Footprint

Rapid growth comes with a cost. Training and running AI models require enormous computing power. That means more data centers, more electricity, and more advanced chips.

AI energy cost per query
Source: UNU Report

According to the International Energy Agency (IEA), electricity demand from data centers is expected to more than double by 2030, driven largely by AI. The agency estimates that by the end of the decade, global data centers could use about 945 terawatt-hours (TWh) of electricity. That’s more than Japan’s annual power use.

Building these facilities also creates large emissions. Manufacturing semiconductors, servers, steel, cement, and cooling equipment requires significant amounts of energy and raw materials.

This has shifted more attention toward the environmental impact of AI. Investors are increasingly looking beyond revenue growth. They also want to know how companies will reduce emissions while expanding AI infrastructure.

Efficiency Becomes NVIDIA’s Competitive Edge

NVIDIA says improving energy efficiency is one of its biggest priorities.

nvidia accelerated computing
Source: NVIDIA Report

According to the company’s latest Sustainability Report, nine of the world’s ten most energy-efficient supercomputers on the Green500 list use NVIDIA technologies. The company also says its newest Blackwell platform delivers much higher AI performance while using less energy per computation than previous generations.

The company has also expanded its climate commitments. NVIDIA’s near-term emissions reduction targets have been validated by the Science Based Targets initiative (SBTi).

The tech giant aims to reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 50% by fiscal year 2030 from a fiscal 2023 baseline. It also plans to reduce Scope 3 emissions from the use of sold products by 75% per petaFLOP over the same period.

Those goals reflect a growing reality across the technology sector. The next stage of AI growth will not be judged only by faster chips or higher profits. It will also depend on how efficiently companies can power the AI economy while keeping emissions under control.

Where Does NVIDIA’s Biggest Carbon Footprint Lie?

Like many technology companies, most of NVIDIA’s emissions do not come from its offices.

According to its 2026 Sustainability Report, more than 99% of the company’s greenhouse gas emissions come from Scope 3 sources. These include emissions from suppliers, manufacturing partners, transportation, and the use of its products. NVIDIA designs its chips but relies on manufacturing partners such as TSMC to produce them.

NVIDIA GHG emissions 2026

To address this, the company is working more closely with suppliers. It encourages them to improve energy efficiency, use more renewable electricity, and report their emissions.

NVIDIA also says it is increasing the use of recycled materials in its products and packaging while improving product design to reduce waste. These efforts are becoming more important as demand for AI chips continues to grow.

Climate Goals Extend Across the AI Value Chain

NVIDIA has expanded its climate strategy in recent years.

The company aims to cut its Scope 1 and Scope 2 emissions by 50% by fiscal year 2030, using fiscal year 2023 as its baseline. It also plans to reduce Scope 3 emissions from the use of sold products by 75% per petaFLOP by 2030. These targets have been validated by the Science Based Targets initiative (SBTi).

NVIDIA has already achieved another important milestone. The company now sources 100% renewable electricity for its offices and data centers under its operational control. It is also investing in more energy-efficient buildings and improving water conservation across its global facilities.

While these actions reduce NVIDIA’s direct footprint, the larger challenge remains its global supply chain and the rapid expansion of AI infrastructure.

Investors Want Growth—and Climate Progress

NVIDIA’s recent stock pullback has not changed its long-term outlook.

NVIDIA NVDA stock price

Most analysts still expect AI spending to remain strong over the next several years. Major cloud companies continue to invest hundreds of billions of dollars in new AI infrastructure, keeping demand for NVIDIA’s GPUs high.

However, investors are also paying closer attention to sustainability. Large institutional investors increasingly consider climate risks alongside financial performance. They want to see whether companies can keep growing while lowering emissions, improving supply chain transparency, and meeting their climate targets.

For NVIDIA, that means future success will depend on more than selling faster chips. It will also depend on making AI infrastructure more efficient and less carbon-intensive.

The Next AI Race Is About Sustainable Growth

The next phase of the AI revolution will not be measured only by computing power. It will also depend on how efficiently companies use energy, reduce emissions, and build cleaner supply chains. Governments, customers, and investors are all placing greater emphasis on sustainable growth.

NVIDIA remains well-positioned to benefit from rising AI demand. Its technology powers much of today’s AI ecosystem, and analysts continue to see strong long-term growth potential despite recent stock weakness.

At the same time, the company faces a new challenge. As AI expands, so does its environmental footprint. Meeting its science-based climate targets while supplying the hardware behind the AI boom will be one of NVIDIA’s biggest tests over the next decade.

Indonesia Targets Aviation Decarbonization With Pertamina-Boeing SAF Partnership

Saptakee S
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Indonesia Targets Aviation Decarbonization With Pertamina-Boeing SAF Partnership

Indonesia is stepping up its sustainable aviation ambitions. State-owned energy company PT Pertamina (Persero) has signed a memorandum of understanding (MoU) with Boeing to explore the development of a sustainable aviation fuel (SAF) ecosystem in Indonesia.

The partnership aims to accelerate SAF production, strengthen the country’s clean aviation supply chain, and support Indonesia’s long-term net-zero emissions goals. It also comes as air travel across Southeast Asia is expected to grow rapidly over the next two decades, increasing demand for lower-carbon aviation fuels.

The agreement reflects Indonesia’s ambition to become a regional leader in sustainable aviation while reducing emissions from one of the world’s hardest-to-decarbonize sectors.

Pertamina and Boeing Join Forces on Indonesia’s SAF Ecosystem

Under the memorandum of understanding, Pertamina and Boeing will work together to evaluate opportunities across the entire sustainable aviation fuel value chain.

The collaboration will focus on:

  • Identifying sustainable feedstock sources
  • Assessing SAF production technologies
  • Supporting policy and regulatory development
  • Strengthening technical knowledge and workforce capabilities
  • Encouraging long-term investment in Indonesia’s SAF industry

Rather than focusing solely on fuel production, both companies aim to help build a complete SAF ecosystem that connects feedstock suppliers, refineries, airlines, policymakers, and technology providers.

According to Pertamina President Director Simon Aloysius Mantiri, the partnership represents a long-term investment in Indonesia’s clean energy future.

He said the country possesses abundant renewable feedstock resources, while Pertamina brings refining expertise and Boeing contributes decades of aviation knowledge. Together, the companies expect to accelerate the development of a competitive domestic SAF industry that supports both economic growth and aviation decarbonization.

Indonesia Has Strong Potential to Become a Regional SAF Hub

Indonesia is widely viewed as one of Southeast Asia’s most promising markets for sustainable aviation fuel.

  • According to the ASEAN 2050 SAF Outlook, Indonesia ranks among the top three ASEAN countries with the largest projected SAF production surplus.
  • By 2050, the country could produce an estimated 2.2 million barrels of SAF per day, highlighting its significant long-term production potential.

Several factors support this outlook:

  • Large agricultural and forestry resources
  • Significant volumes of used cooking oil (UCO)
  • Palm oil residues and other agricultural waste
  • Existing refining infrastructure
  • Growing domestic and regional aviation markets

These advantages position Indonesia to become both a major SAF producer and exporter as airlines seek cleaner fuels to meet future climate targets.

Boeing Sees Strong Aviation Growth in Southeast Asia

The partnership also reflects Boeing’s long-term outlook for aviation demand across Southeast Asia.

The aerospace manufacturer expects passenger traffic in the region to grow by approximately 7% annually over the next two decades. To meet this demand, airlines are projected to require 4,885 new commercial aircraft by 2044.

While aviation growth supports economic development, it also increases fuel consumption and carbon emissions.

According to Indra Duivenvoorde, Managing Director of Boeing Indonesia, Indonesia is well positioned to become a leader in sustainable aviation.

He said Boeing looks forward to collaborating with Pertamina on multiple initiatives, including feedstock identification, education, workforce development, and broader SAF ecosystem growth.

The company believes these efforts can help support Indonesia’s aviation industry while contributing to national economic development.

Sustainable Aviation Fuel and Aviation Emissions

The aviation industry currently accounts for roughly 2–3% of global energy-related carbon dioxide emissions, making it one of the most challenging sectors to decarbonize.

Unlike passenger vehicles, aircraft have limited near-term alternatives to liquid fuels, especially for long-haul flights. That makes Sustainable Aviation Fuel one of the aviation industry’s most important tools for reducing emissions.

SAF is produced from renewable and waste-based feedstocks instead of fossil crude oil. Common feedstocks include:

  • Used cooking oil
  • Animal fats
  • Agricultural residues
  • Municipal solid waste
  • Forestry waste
  • Industrial waste gases
  • Future feedstocks such as algae and captured carbon

Depending on the production pathway, SAF can significantly lower lifecycle greenhouse gas emissions compared with conventional jet fuel.

  • In its pure form, known as neat SAF, the fuel can reduce lifecycle carbon emissions by up to 80% compared with conventional aviation fuel.

Today’s certified SAF is blended with conventional jet fuel before use and is compatible with existing aircraft engines and airport infrastructure, allowing airlines to reduce emissions without modifying current fleets.

SAF Demand

Pertamina Is Expanding Its SAF Portfolio

Pertamina has already launched several initiatives to build Indonesia’s domestic SAF industry.

These include:

  • Producing and certifying Pertamina Sustainable Aviation Fuel
  • Conducting SAF implementation with Indonesian airline Pelita Air
  • Developing the Cilacap Biorefinery project
  • Producing both Sustainable Aviation Fuel and Hydrotreated Vegetable Oil (HVO)

The Cilacap project is expected to utilize used cooking oil (UCO) and other waste-based renewable feedstocks rather than relying solely on virgin vegetable oils.

Using waste materials can improve the environmental performance of SAF while supporting circular economy objectives.

The refinery is expected to become an important part of Indonesia’s strategy to develop domestic renewable fuels and reduce dependence on imported fossil fuels.

Building a Complete Aviation Decarbonization Strategy

The partnership between Pertamina and Boeing is about more than producing SAF. The two companies want to build a complete SAF ecosystem in Indonesia to support cleaner aviation over the long term.

They will work together to identify sustainable feedstocks, evaluate production technologies, support government policies, develop technical expertise, and attract investment. Expanding SAF production requires more than new refineries. It also depends on reliable feedstock supplies, supportive regulations, skilled workers, and strong demand from airlines.

This effort supports the aviation industry’s broader goal of reaching net-zero emissions. Along with SAF, the sector is improving fuel efficiency, developing more efficient aircraft, optimizing flight operations, and investing in new technologies such as hydrogen and electric aircraft for shorter routes.

  • According to the Air Transport Action Group (ATAG), SAF could deliver 53% to 65% of the emissions reductions needed for aviation to achieve net-zero emissions by 2050, making it the industry’s most important decarbonization solution.

As air travel continues to grow across Southeast Asia, expanding domestic SAF production will improve energy security, reduce reliance on imported fossil fuels, and help airlines meet future emissions targets.

SAF aviation emissions
Source: ATAG

Supporting Indonesia’s Net Zero Goals

The agreement aligns with Indonesia’s broader energy transition strategy and supports the country’s efforts to reach net-zero emissions by 2060.

It also supports the vision of President Prabowo Subianto, whose administration has identified cleaner energy development as a national priority.

For Pertamina, expanding renewable fuels complements the company’s wider transition strategy.

The state-owned energy company has committed to integrating environmental, social, and governance (ESG) principles across its operations while investing in cleaner fuels, renewable energy, and lower-carbon technologies.

The company views SAF as an important opportunity to reduce transportation emissions while creating new industries based on Indonesia’s abundant renewable resources.

indonesia emissions

Outlook

As airlines face growing pressure to reduce emissions, sustainable aviation fuel is expected to play a much larger role in global aviation over the coming decades.

Indonesia’s combination of abundant biomass resources, expanding refining capacity, and rapidly growing aviation market gives it a strong foundation for becoming one of Asia’s leading SAF producers.

Lastly, this collaboration could strengthen Indonesia’s position in the regional clean aviation market while helping airlines secure greater supplies of lower-carbon fuel as demand continues to rise.

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