Shell and Microsoft Are The Biggest Carbon Credit Buyers in 2024: What Projects Do They Support?

Jennifer L
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0
Shell and Microsoft Are The Biggest Carbon Credit Buyers in 2024: What Projects Do They Support?

In the race to offset their carbon footprints, two giant companies—Shell and Microsoft—stand out as the largest carbon credit buyers in 2024, according to the Allied Offsets report. Their massive retirements reflect differing strategies and priorities, however, signaling distinct approaches to tackling carbon emissions through carbon markets. 

Shell, the world’s largest fossil fuel company, and Microsoft, a technology leader, have been pivotal players in the voluntary carbon market (VCM). However, their activities reveal stark contrasts in how they approach sustainability goals and what projects they support.

Meanwhile, the broader carbon credit market in 2024 showed a growing emphasis on removals and diversification of project types.

Shell: The Emission Offset Leader

Shell retained a massive 14.5 million carbon credits in 2024, taking the top spot for the second consecutive year. This commitment is a significant part of Shell’s strategy to offset its extensive emissions. 

Unlike Microsoft, which has heavily invested in carbon removal technologies, Shell’s purchases mainly target projects focused on emissions avoidance.

A large portion of Shell’s credits—9.4 million—came from forestry and land-use initiatives. These projects, focusing on protecting and managing forests to prevent the release of stored carbon, are cost-effective but also face scrutiny over integrity concerns. Interestingly, the energy giant announced plans in November last year to sell part of its nature-based carbon projects.

The company also retired 2.4 million renewable energy credits, a cheaper and more widely accepted option in the market.

top carbon credit buyers in 2024
Chart from Allied Offsets Report

Moreover, the price difference between Shell’s credits and Microsoft’s illustrates their contrasting strategies. While Shell paid an average of $4.15 per credit, it remains focused on more affordable projects, including renewable energy and forestry. 

Despite criticisms over the quality of some of its projects, Shell continues to be a significant player, aligning its credit purchases with its ongoing goal of achieving net-zero emissions by 2050. To achieve that, the oil major aims to reduce emissions from its operations by 50% by 2030, using 2016 baselines. 

Shell 2050 net zero goal
Image from Shell report

Microsoft: A Carbon Removal Champion

In contrast, Microsoft has pursued a more aggressive approach toward carbon removal, setting itself apart with a robust commitment to investing in innovative carbon capture technologies. The company retired 5.5 million credits in 2024, a distant second to Shell. However, the type of credits the tech giant bought tells a different story.

A key focus for Microsoft has been on bioenergy with carbon capture and storage (BECCS). It is an expensive and emerging technology that is capable of delivering carbon-negative results. BECCS works by capturing the carbon dioxide released during the burning of biomass and storing it underground. 

Nearly 80% of Microsoft’s 2024 carbon credits came from BECCS projects, with the largest purchase of 3.3 million credits coming from Sweden’s Stockholm Exergi. While this technology is still in its infancy, it plays a critical role in global pathways to achieving net-zero emissions.

Microsoft’s strategy, however, is not without its challenges. BECCS credits are costly, with average prices of $389 per credit—substantially higher than the costs associated with Shell’s projects.

  • In 2024, Microsoft’s average credit price was $189, a significant investment considering its aim to neutralize emissions across its operations. 

Despite the high costs, Microsoft’s commitment to carbon removal reflects its leadership in the tech industry’s broader sustainability agenda. The major tech company aims to be carbon-negative by 2030. 

Microsoft 2030 carbon negative target
Image from Microsoft

Microsoft’s strategy to focus on carbon removals seems to be on the right track. The broader carbon market trend reveals the growing interest in carbon removal credits. 

Carbon Market Dynamics: Increasing Focus on Quality and Carbon Removal Credits

The VCM in 2024 has shown signs of shifting, with a significant uptick in carbon removal credits, per the report. However, overall retirement activity in the VCM plateaued, with 2024 marking the third consecutive year of minimal growth. 

voluntary carbon credit retirement 2024
Chart from Allied Offsets report

The decrease in market growth is not necessarily a negative development, as more buyers have shifted toward high-quality, impactful projects.

While Shell and Microsoft represent the extremes in carbon credit purchasing, other buyers are increasingly exploring removals and non-traditional carbon offset projects. Removals, such as those associated with BECCS, saw a larger share of the market, though they still constitute a small portion overall. 

This shift reflects a broader trend toward supporting innovative carbon removal solutions, which can deliver long-term, lasting environmental benefits. Another report by the MSCI also reveals the same trend—demand for carbon removal credits is rising. 

The market’s composition is also diversifying. Projects related to renewable energy and forestry still dominate. However, their share in total credit retirements has decreased from 80% in 2020 to 70% in 2024. 

At the same time, new entrants into the market are pushing for more varied solutions, including technologies for direct air capture and carbon removal, which add complexity to an already challenging marketplace.

Challenges for Credit Buyers and the Market

One of the major challenges for buyers is the oversupply of carbon credits in the market, which continues to grow. In 2024, the number of issued but not retired credits increased again, contributing to a potential glut in available credits. 

This dynamic is particularly evident in the market for older Clean Development Mechanism (CDM) credits, which have increasingly been criticized for their lack of additionality and impact.

oversupply of credits in 2024
Chart from Allied Offsets report

Despite these challenges, the number of active buyers in the VCM continues to grow. In 2024, more than 6,500 companies participated in the market, a slight increase compared to previous years. 

The vast majority of carbon credit buyers continue to come from the financial and energy sectors, with Microsoft representing a key player in the tech space. Even though more companies are entering the market, the rate of growth has slowed. This suggests that carbon credits are becoming a more established component of sustainability strategies.

As we move into 2025, the divergent strategies of Shell and Microsoft may serve as a model for others seeking to engage with the VCM. Shell’s focus on affordability and scale contrasts with Microsoft’s commitment to cutting-edge carbon removal technologies. 

Yet, both companies are working towards a common goal—neutralizing their emissions and supporting global climate efforts.

As the market continues to evolve, these two companies are likely to remain at the forefront of shaping how businesses approach their carbon footprint and the critical role carbon credits play in the global fight against climate change.

From Trump’s Pursual to Mining Boom: Top 3 Greenland Stocks to Watch in 2025

Saptakee S
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0
From Trump’s Pursual to Mining Boom: Top 3 Greenland Stocks to Watch in 2025

Greenland, the world’s largest island, is attracting serious global attention. It lies between the Arctic and Atlantic Oceans which makes it strategically important. In 2019, President Donald Trump made waves by suggesting that the U.S. purchase Greenland. Although his proposal was rejected by both Greenlandic and Danish leaders, it highlighted the growing international interest in the icy island.

However, history seems to be repeating itself, as Trump has once again expressed a strong interest in purchasing Greenland during his second tenure.

Why Trump Wants to Buy Greenland?

The idea of the U.S. buying Greenland stemmed from its advantageous location in the Arctic. As climate change melts ice, new shipping routes are opening, making Greenland an even more valuable asset.

Beyond its geographical importance, the island is rich in untapped resources such as rare earth metals, oil, gas, and minerals—critical for industries like technology and defense. With its vast mineral wealth, military significance, and new opportunities brought by climate change, Greenland is rapidly becoming an exciting and attractive place for investment, particularly in the mining sector.

Additionally, securing access to Greenland’s resources could reduce U.S. reliance on imports from countries like China.

Top 3 Greenland Stocks to Watch in 2025

Though Trump’s plan didn’t move forward, it highlighted Greenland’s growing geopolitical importance and opened doors for investments, especially in its mining industry. In this article, we’ll highlight three companies to watch in Greenland’s booming mining industry as 2025 unfolds.

1. Amaroq Minerals: Sustainable Growth in Gold Exploration

Amaroq Minerals, founded in 2017, provides sustainable mineral solutions to meet global energy demands. Specializing in gold exploration, the company is actively exploring Greenland’s vast mineral resources. It holds an impressive license portfolio covering 6,072.5 km² in South Greenland.

As of January 2025, Amaroq’s market capitalization stands at around CAD 827 million. This reflects a remarkable growth of over 200% in the past year. The company’s recent accomplishments include discovering high-grade gold at its Eagle’s Nest Exploration Project and starting production at the Nalunaq Mine, one of Greenland’s oldest and richest gold deposits.

Moving on, Amaroq aims to minimize its environmental impact. The company focuses on responsible resource management and conserving biodiversity. By committing to sustainable mining practices, it plays a significant role in the global energy transition.

Amaroq Minerals
Source: Seeking Alpha

2. Critical Metals: Capitalizing on Rare Earth Elements

Critical Metals Corp is a pioneer in the mining of rare earth elements and critical minerals. The company focuses on recycling industrial by-products, including lithium batteries, to extract valuable metals for the energy transition. This approach supports the European lithium battery supply chain and promotes a circular economy.

One of Critical Metals’ most significant projects is the Tanbreez Rare Earth Mine in Southern Greenland. The mine holds some of the world’s highest-grade rare earth elements, including gallium, a metal used in the electronics and renewable energy industries. Critical Metals has been making strides in advancing sustainable mining processes, including partnerships to improve the recovery of these critical materials.

As of January 2025, Critical Metals has seen a tremendous surge in its market cap, reaching approximately $670.63 million—a staggering increase of over 550% from the previous year. The company’s growth shows investor trust in its ability to provide key metals for Europe’s electrification and energy storage needs.

Critical Metals Corp
Source: Yahoo Finance

3. Greenland Resources: Exploring Molybdenum

Greenland Resources Inc. is advancing the Malmbjerg Molybdenum Project in eastern Greenland. This world-class deposit of molybdenum, with copper nearby, is vital for several industries, including steel manufacturing and defense. As of January 2025, its market capitalization is approximately CAD 90.15 million, a 43.92% increase over the past year.

The company has made significant progress in obtaining the necessary environmental and social approvals for its project. The company is also working closely with partners like Rasmussen Global to secure funding from supranational organizations such as NATO’s Innovation Fund.

Molybdenum is critical for military defense and technology, and Greenland Resources’ Malmbjerg Project could supply up to 25% of the EU’s molybdenum needs for decades. Talking about sustainability, the company is using wind and solar power to supply energy to the mine.

Greenland Resources
Source: Yahoo Finance

Other Players in Greenland’s Mining Landscape

While these three companies are the top players, others are also exploring opportunities in Greenland’s mining sector. Brunswick Exploration Inc., for example, is an early-stage venture focused on lithium and other metals critical for renewable energy. The company recently applied for additional licenses in Greenland following promising discoveries of spodumene, a key lithium-bearing mineral.

Another notable company, Bluejay Mining plc, is advancing its Dundas Ilmenite Project in Greenland. It’s a crucial project for titanium, which is used in various industrial applications. Although recent updates have been limited, Bluejay’s continued efforts show Greenland’s vast mining potential.

So “Greenland is NOT for Sale…”

Credible news and media have reported on Greenland’s Prime Minister, Múte B. Egede’s recent opinion about Greenlanders having no desire to become part of the U.S. Reuters reported that he said in a written comment.

“Greenland is ours. We are not for sale and will never be for sale. We must not lose our long struggle for freedom.”

As said before, Greenlandic and Danish leaders rejected the idea of Greenland becoming a U.S. territory, but the discussion highlighted the island’s rising geopolitical importance amid global power shifts and climate changes.

Despite Trump’s past comments about potentially using force or economic pressure to acquire Greenland, Egede expressed willingness to strengthen cooperation with Washington. He acknowledged why Trump might find the island appealing, given its strategic Arctic location.

Egede further reaffirmed Greenland’s stance at a press conference with Danish Prime Minister Mette Frederiksen in Copenhagen, noting,

“Greenland is for the Greenlandic people. We do not want to be Danish, we do not want to be American. We want to be Greenlandic.”

If we see the brighter side, Greenland’s importance is only growing. The island is becoming an even more attractive destination for mining companies looking to secure valuable resources. With companies like Amaroq Minerals, Critical Metals, and Greenland Resources leading the charge, 2025 is set to be a transformative year for Greenland’s mining sector.

$6 Billion Tax Credits to Power America’s Clean Energy Future

Jennifer L
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0
$6 Billion Tax Credits to Power America’s Clean Energy Future

The United States is advancing its clean energy ambitions with the allocation of $6 billion in tax credits under the Inflation Reduction Act’s §48C Qualifying Advanced Energy Project Tax Credit (48C program). Administered by the Department of the Treasury and IRS, the funding will support over 140 projects across more than 30 states. 

The focus: boosting clean energy manufacturing, recycling critical materials, and decarbonizing industrial processes. This move underscores the Biden administration’s commitment to building a low-carbon energy future while fostering economic growth in energy-dependent communities.

What is the 48C Program?

The 48C program was initially introduced in 2009 to encourage investments in clean energy infrastructure. Expanded under the Inflation Reduction Act (IRA), it now includes $10 billion in tax credits, with at least 40% reserved for energy communities—regions with economies historically tied to fossil fuels. These communities, often home to closed coal mines or retired power plants, are crucial for the nation’s equitable energy transition.

Since its inception, the program has successfully incentivized over 250 projects. It has unlocked over $44 billion in private investments and created an estimated 30,000 construction jobs.

The second round of tax credits focuses on three core areas:

Clean Energy Manufacturing and Recycling ($3.8 billion)

This allocation supports projects to bolster the domestic production of renewable energy components. Beneficiaries include facilities manufacturing hydrogen electrolyzers, solar photovoltaic systems, wind turbine parts, and EV battery components. These investments help localize clean energy supply chains, reducing dependence on imports and reinforcing energy security. 

Critical Materials Processing and Recycling ($1.5 billion)

Critical materials like lithium, copper, and rare earth elements are essential for clean energy technologies. This funding supports refining and recycling these materials, addressing both supply chain vulnerabilities and environmental concerns.
For example, projects refining lithium for EV batteries or recycling spent lithium-ion batteries contribute to sustainable resource management.

Industrial Decarbonization ($700 million)

The industrial sector, responsible for nearly a quarter of U.S. greenhouse gas emissions, is a major focus of decarbonization efforts. This funding supports initiatives like installing heat pumps, electric boilers, and other advanced technologies that reduce carbon emissions.
Projects in this category aim to eliminate around 2.8 million metric tons of emissions annually, equivalent to taking over 600,000 cars off the road.

IRA expanded 48C scope and intended impact
Image from the Office of Manufacturing and Energy Supply Chains

Key Impacts of the 48C Program

  • Strengthening Domestic Supply Chains

The 48C program plays a critical role in addressing vulnerabilities in the U.S. clean energy supply chain. For instance, 80% of global solar panel components are produced in Asia, primarily China. The program incentivizes domestic production to reduce reliance on imports, fostering energy independence and strengthening national security. 

Since its inception, the program has been associated with over $2 billion in domestic investments in advanced manufacturing projects, according to Department of Energy estimates.

  • Supporting Energy Communities

Energy communities, often dependent on fossil fuel industries, face economic hardships as the nation transitions to cleaner energy. The 48C program reserves at least 40% of its $10 billion allocation for these regions, ensuring they reap the benefits of renewable energy growth. 

This targeted support has led to infrastructure projects and job creation in historically underserved areas. For example, in 2023, regions like Appalachia and the Gulf Coast witnessed clean energy investments estimated at $1 billion, significantly boosting local economies.

  • Reducing Carbon Emissions

By supporting decarbonization in heavy industries like steel, cement, and chemicals, the program significantly lowers greenhouse gas emissions. According to EPA estimates, initiatives funded under the 48C program have the potential to reduce carbon dioxide emissions by over 30 million metric tons annually—the equivalent of removing 6.5 million cars from the road each year.

This blend of economic, social, and environmental benefits underlines the 48C program’s pivotal role in steering the U.S. toward a sustainable and equitable energy future.

Ashley Zumwalt-Forbes, Deputy Director for Batteries and Critical Materials at the U.S. Department of Energy (DOE), remarked on the announcement, stating that:

“Particularly noteworthy is the allocation of $1.5 billion towards critical materials recycling, processing, and refining projects – a sector that has outsized importance in our nation’s economic security. “

Critical Minerals: Driving the Clean Energy Future

Critical minerals are at the heart of the global energy transition, powering technologies like EVs and renewable energy systems. The International Energy Agency (IEA) reports that demand for these materials surged in 2023, with lithium demand jumping by 30% and nickel, cobalt, and rare earths increasing by 8-15%.

  • By 2040, the combined market value of critical minerals could exceed $770 billion in the IEA’s Net Zero Scenario.

critical minerals market value by 2040 per IEA report

The United States and its allies are working to reduce dependence on foreign sources, especially China’s dominance over 60-70% of global lithium and cobalt supplies. Measures like the U.S. Defense Production Act aim to strengthen domestic production. 

Canada has committed CA$3.8 billion to critical mineral initiatives, though experts emphasize the need to fast-track permitting and expand production.

Moreover, despite slower growth compared to 2022, critical mineral investments increased by 10% in 2023, per the IEA data. Lithium specialists led the surge, with investments rising 60%, even amid weak prices. Exploration spending grew by 15%, driven by Canada and Australia.

critical mineral investments in 2023 per IEA

Venture capital spending also climbed 30%, with notable growth in battery recycling offsetting reduced funding for mining and refining start-ups. China’s investment in overseas mines hit a record $10 billion in the first half of 2023. The funding focuses on battery metals like lithium, nickel, and cobalt, underscoring its strategic interest in securing critical resources.

From Credits to Clean Energy Transformation 

Overall, the clean energy sector requires rapid scaling to meet demand, particularly as the U.S. aims to transition to renewable energy sources. By leveraging the $6 billion allocation from the 48C program, America can position itself as a global leader in clean energy innovation. 

By prioritizing domestic production, addressing supply chain vulnerabilities, and supporting energy communities, the 48C program is reducing emissions while laying the groundwork for a sustainable and low-carbon energy future.

AI and Clean Tech: A Revolution in Renewable Realms

Saptakee S
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0
AI and Clean Tech: A Revolution in Renewable Realms

A reality without AI is beyond comprehension! AI is a powerful tool that transforms resource-intensive industries, products, and services by offering data-based suggestions and making smart decisions. As clean tech continues to evolve, the integration of artificial intelligence (AI) will be crucial to driving further advancements.

However, the mix of clean technology and AI brings both exciting opportunities and challenges for shaping a sustainable future.

S&P Global Commodity Insights has revealed a recent study that showcases the immense potential of AI and ML in clean tech. We have discovered some insightful advancements in clean tech, with AI playing a pivotal role.

AI and Microchips: Driving the Clean Tech Revolution

AI and microchips are transforming renewable energy. AI makes processes faster and more efficient, boosting clean energy innovation. Microchips, crucial for AI and data centers, are key to this progress.

In clean energy, these chips enable smarter trading, improve forecasts for wind and solar power, and enhance safety and efficiency.

Machine learning has been used in clean tech for years to monitor wind farms and detect faults. However, applying AI in energy trading was slower. Now, advances in generative AI are changing that. They optimize power markets and improve renewable energy management.

Furthermore, top companies are heavily investing in clean technology, using AI to transform the sector. For instance, Google, Microsoft, and Meta are applying AI in clean energy projects to enhance efficiency and sustainability.

Battery makers like CATL and Tesla are also on board. They use AI to boost battery performance, improve energy storage, and streamline operations. Meanwhile, NVIDIA, the leading chipmaker, is focused on creating advanced AI chips for clean tech.

Together, these companies are revolutionizing technology. They are making renewable energy systems smarter, more efficient, and ready for a sustainable future.

clean tech AI
S&P Global

AI-Driven Grid Solutions for Clean Energy

Grid Enhancing Technologies (GETs) play a vital role in optimizing power transmission. These systems help improve the integration of clean energy while reducing the need for costly infrastructure expansions. GETs use a mix of hardware, like sensors and data analytics software to make grids more efficient and adaptable.

So why are they important?

  • GETs reduce grid congestion by preventing bottlenecks in energy flow.
  • They help manage peak loads by handling sudden spikes in energy demand.
  • GETs improve planning by enhancing the accuracy of day-ahead energy forecasts.
  • They reroute power effectively during outages or maintenance to ensure energy delivery.

How AI Boosts GETs

AI, especially ML is transforming how GETs operate. AI analyzes data in a fraction of time and improves the performance of grid-enhancing technologies.

Real-Time Data

ML uses real-time weather data to adjust transmission line thermal ratings. This improves grid efficiency and capacity to handle more renewable energy without adding new infrastructure. AI also processes different kinds of grid data, like impedance and voltage angles, at high speed. This optimizes power flow, reduces congestion, and boosts efficiency.

Customer Energy Consumption

AI plays a crucial role in understanding customer energy consumption. It accurately predicts energy needs and leverages advanced tools like generative adversarial networks (GANs) to generate synthetic data. These capabilities enhance forecasting accuracy, energy management, and grid reliability.

Supervisory Control and Data Acquisition (SCADA)

Systems like Supervisory Control and Data Acquisition (SCADA) also benefit. AI makes SCADA more accurate and responsive, providing real-time grid performance data that helps operators make better decisions.

As renewable energy grows, smarter grid solutions are essential. In short, GETs, powered by AI, tackle challenges like congestion, peak loads, and clean energy integration.

AI clean tech grid
S&P Global

Supporting Smarter Grid Investments

The rise of renewable energy requires stronger grid infrastructure. AI helps identify weak points in the grid and suggests where investments are most needed. This prevents curtailments and ensures a smoother transition to clean energy systems.

By supporting grid flexibility, AI makes infrastructure investments smarter and more effective. It predicts challenges and optimizes resource allocation, ensuring the grid is ready for the growing share of renewables.

Efficient Wind and Solar Energy Management with AI

Wind energy depends on weather- which is an unpredictable force of nature. So the energy output is also inconsistent. AI solves this problem with weather analyzing tools and historical data for accurate energy forecasts. These forecasts help operators plan better and reduce energy waste.

AI also enhances wind farm operations through predictive maintenance. Sensors collect real-time data to identify potential issues early.

  • For example, AI detects yaw system misalignments that reduce turbine output or gearbox problems from unusual vibrations.
  • It eliminates the need for manual pitch inspections by spotting blade alignment issues automatically.

With AI-driven insights, wind farms run efficiently which further minimizes downtime and maximizes energy production. Here’s a snapshot of it.

wind farm AI clean tech
S&P Global

Solar energy relies on consistent performance, but challenges like shading, dust, and equipment issues can reduce output. Traditional systems often miss early warning signs, as inverters have limited processing capabilities.

AI-based monitoring offers a better solution. By analyzing vast amounts of data quickly, it detects small performance issues that inverters might overlook. This enables real-time adjustments and faster maintenance.

Subsequently, distributed solar systems connecting to low- or medium-voltage grids also benefit from AI. It optimizes energy flow and establishes a uniform distribution of solar power across decentralized networks. By tackling these challenges, AI helps solar systems deliver reliable, clean energy while reducing operational delays.

AI’s Role in Battery Management Systems

Measuring the state of charge (SOC) in lithium-iron-phosphate (LFP) battery cells is challenging. These problems and inaccuracies are mostly associated with traditional battery management systems (BMS), that majorly impact battery performance.

But AI provides a better solution to this problem. It uses data analytics and machine learning to spot safety, health, and performance issues. This leads to more accurate SOC predictions. As a result, less downtime is needed for BMS recalibration, thereby maximizing efficiency and revenue.

The process, however, is complex. For instance, AI-based SOC estimation employs the Single Extended Kalman Filter algorithm. This algorithm estimates SOC by calculating the battery’s open-circuit voltage. Machine learning then fine-tunes the Kalman filter for improved accuracy.

BESS Ai clean tech
S&P Global

Data Complexities in Clean Tech AI

AI offers powerful solutions for clean technology but comes with challenges. Training AI algorithms requires vast amounts of data, which demands advanced data management systems. Therefore, clean tech industries must collect, store, and analyze massive data sets while protecting sensitive information through robust privacy measures.

Similarly, ethical concerns also need much attention. AI systems must prioritize fairness, transparency, and accountability. Clear guidelines are crucial to avoid biases, respect privacy, and ensure clean tech benefits reach all communities equally.

Thus, from this report, we can comprehend how AI is transforming clean energy with smarter tools that improve forecasting, maintenance, and efficiency. As innovations continue to emerge, we can expect AI to crawl more rapidly in clean tech which is driving the future of renewable energy.

Solar Energy Developer Secures $415 Million to Power the World’s Largest Direct Air Capture Plant

Jennifer L
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0
Solar Energy Developer Secures $415 Million to Power the World’s Largest Direct Air Capture Plant

Renewable energy is revolutionizing how businesses address increasing carbon emissions, with solar power leading the charge. As global demand for clean energy rises, innovative technologies like Direct Air Capture (DAC) are emerging as critical tools in tackling carbon emissions. 

DAC systems promise a sustainable path toward achieving net-zero emissions, particularly when paired with solar energy. This is what the $415 million funding secured by Origis Energy tackles through its solar project.

Revolutionizing Clean Energy: The Role of Solar in Direct Air Capture

The Swift Air Solar project in Ector County, Texas, developed by Origis Energy, shows the potential of solar energy to fuel innovative solutions. The project represents a significant step in integrating clean energy into decarbonization efforts. It offers the following achievements:

Swift Air Solar in numbers

The $415 million project, funded by Natixis Corporate & Investment Banking (CIB) and Advantage Capital, will supply zero-emission solar power to the STRATOS DAC facility in the Permian Basin. 

STRATOS, developed by Occidental and its subsidiary 1PointFive, is the world’s first large-scale DAC plant. Expected to capture up to 500,000 tonnes of CO₂ annually, the facility is set to begin operations in mid-2025. 

STRATOS will store CO₂ in saline formations, generating carbon removal credits for businesses. 1PointFive has applied for an Underground Injection Control Class VI permit for geologic sequestration, ensuring operations are monitored and verified under an EPA-approved program. This milestone aligns with global goals for sustainable carbon removal and decarbonization.

Construction of Swift Air Solar is already underway, with commercial operations expected to begin by mid-2025. The project will generate clean energy for DAC operations, aligning with Origis Energy’s mission to provide scalable decarbonization solutions. The company’s CEO, Vikas Anand, highlighted this, remarking:

“This is an exciting project, helping to power the world’s first large-scale direct air capture plant. A big thank you to Natixis CIB and Advantage Capital for their partnership.”

The financing for Swift Air Solar includes $290 million in construction and term debt financing and $125 million in tax equity funding. This collaboration highlights the importance of capital, technology, and teamwork in driving renewable energy advancements.

The Synergy Between Solar Power and DAC

Direct Air Capture technology is designed to remove CO₂ directly from the atmosphere, providing a negative-emission solution for climate goals. However, DAC systems are energy-intensive, and their environmental benefits depend on being powered by renewable energy sources like solar.

The STRATOS facility demonstrates this synergy. By integrating DAC with solar power from Swift Air Solar, the plant will minimize its carbon footprint while maximizing its emission reduction potential.

Additionally, DAC systems are increasingly flexible, allowing them to adapt to the intermittent nature of solar energy. Flexible DAC units can adjust their operations to match solar power output, ensuring efficient energy use and continuous carbon capture.

The Economics of Solar-Powered DAC

Solar power and DAC coupling are both environmentally advantageous and economically promising. Recent research shows that deploying DAC systems with solar power can effectively reduce costs associated with renewable energy curtailment while achieving significant CO₂ capture.

For instance, studies suggest that deploying modular DAC units powered by solar curtailment can achieve the lowest operational costs. These systems can dynamically adjust their processes based on energy availability, making them compatible with fluctuating solar power outputs.

Carbon pricing further enhances the economic viability of solar-powered DAC systems. As carbon prices rise and the costs of DAC components decrease, these systems could provide substantial returns, paving the way for large-scale deployment.

By 2030, PV- or solar-powered flexible DAC systems could meet 15% of global emission reduction goals and help achieve net-zero emissions ahead of 2040. Beyond carbon trading, converting captured carbon into valuable products offers economic benefits, helping offset DAC costs.

solar power and DAC coupling
Source: Liu, Y. et al. 2025. Addressing solar power curtailment by integrating flexible direct air capture.

Driving Change Through Collaboration and Innovation

The success of the Swift Air Solar project underscores the importance of strategic partnerships in advancing renewable energy. Natixis CIB’s role as the green loan coordinator and Advantage Capital’s investment demonstrates the critical role of financial institutions in fostering innovation.

Nasir Khan, Managing Director at Natixis CIB, emphasized their mission to provide solutions for the energy transition, noting that:

“This financing reinforces our commitment to renewable energy solutions that drive the global energy transition”.

Similarly, Advantage Capital highlighted the transformative impact of their collaboration. The company’s Managing Director Rom Bitting said that this investment aligns with their mission to promote economic growth and environmental impact.

Innovations in the solar industry never stop. Another company that’s pushing America’s renewable energy growth is SolarBank Corporation.

SolarBank: Driving America’s Energy Storage and Solar Energy Growth

SolarBank is a leading solar energy developer, advancing sustainability across North America. Since 2017, it has developed over 250 MW of solar projects in New York and Maryland, focusing on commercial, industrial, and community solar solutions.

Now, SolarBank is part of IESO’s first Long-Term Request for Proposals (E-LT1 RFP and LT1 RFP), targeting 4,000 MW of new dispatchable electricity capacity. The company has also expanded into the electric vehicle charging market, offering innovative solutions to business and residential customers.

With expertise in energy storage, EV charging, and solar energy, SolarBank remains a trusted partner for ESG-driven businesses pursuing Net-Zero goals. Its track record reflects a strong commitment to renewable innovation and growth.

Looking Ahead: Solar Energy and DAC’s Potential

As the global energy landscape evolves, solar power and DAC will play increasingly important roles. Solar’s scalability and cost-effectiveness make it a cornerstone of renewable energy, while DAC provides a viable solution for achieving net-zero emissions. The combination of these technologies offers a pathway to addressing the challenges of climate change.

The Swift Air Solar project exemplifies the transformative power of renewable energy and technology. By coupling solar power with Direct Air Capture, this initiative shows how clean energy can drive innovative solutions to fight climate change. 

Nickel Forecast 2025: Can $66 Billion Investment Solve the Supply Gap?

Saptakee S
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0
Nickel Forecast 2025: Can $66 Billion Investment Solve the Supply Gap?

The nickel market experienced downward price pressure in 2024, but 2025 is expected to add more complexities. As demand for critical minerals intensifies and global processing capacity expands, major players in the nickel supply chain will face challenges in predicting prices.

Let’s explore what market research forecasts about the nickel this year.

Asia Powers Nickel Growth as Surplus Shrinks

The International Nickel Study Group (INSG) updated its nickel market forecast explaining that the surplus will narrow to 135kt in 2025, with production increasing to 3.649 Mt and demand growing to 3.514Mt.

Narrowing down to Asia, nickel production is set to rise to 3.002Mt in 2025 where Indonesia and China will be the major contributors to growth.

  • Indonesia: Production will rise from 1.600Mt in 2024 to 1.700Mt in 2025.
  • China: Output is expected to grow from 1.035Mt in 2024 to 1.085Mt in 2025.

These increases highlight Asia’s dominance in global nickel production, with Indonesia and China continuing to strengthen their positions as key players.

nickel supply

However, 2025 presents an interesting twist! Recently, Bloomberg reported that Indonesia is considering cutting its nickel mine quotas by nearly 40% in 2025. According to Macquarie Group Ltd, the Indonesian government’s proposed restrictions on nickel mining could reduce global supply by more than a third, potentially driving up nickel prices.

These cuts are expected to lower production from 272 million tons in 2024 to just 150 million tons in 2025. Already, Indonesia’s mining limitations have caused supply strains, leading to record nickel ore imports from the Philippines, the world’s second-largest producer, in 2024.

Rising Demand and Nickel Deficits in 2025

Nickel is essential for battery production, especially in high-energy-density batteries used in electric vehicles (EVs). Yet, the market faces a growing imbalance. A recent Benchmark analysis explained the key trends and risks shaping the future of energy transition materials, focusing on nickel.

It highlights,

  • By 2034, nickel is expected to face a deficit of 839,000 tonnes—nearly 7X larger than today’s surplus. This shows the urgent need to tackle supply shortages.

The report further explains that approximately $514 billion in investment is required (with $220 billion allocated to upstream projects) to meet global battery demand by 2030.

Of this, nickel alone needs $66 billion—the highest of all critical materials. Without these investments, sustaining the rapidly expanding EV market could become significantly challenging

nickel investment
Benchmark

Challenges in the Nickel Market

Benchmark further explained how the nickel market is grappling with slow project development. While gigafactories and processing plants can start operating within five years, mines often take 5 to 25 years to develop. This mismatch creates a “supply-demand disconnect” that threatens the EV supply chain.

Western nations are also trying to reduce reliance on China, which dominates refining and manufacturing due to lower costs and lenient environmental rules. Shifting production to Western countries, however, increases costs and requires stricter environmental compliance.

Furthermore, the nickel market had its own share of woes in recent years due to oversupply and weak demand. Nasdaq revealed, a brief price surge in early 2024 but it fell sharply by year-end. As 2025 rolled in, nickel traded between $15,000 and $15,200 per metric ton which analysts say to be the lowest since 2020.

Closing the Supply-Demand Gap

Nickel’s role in the energy transition demands immediate investment in mining. Without sufficient raw materials, even the most advanced gigafactories won’t meet EV production goals. Addressing this resource clinch is crucial to stabilizing the supply chain.

Looking ahead, managing price risks, and ensuring steady nickel supplies will remain critical. Stakeholders must navigate these challenges while seizing opportunities in the evolving market for energy transition materials.

Amid the shifting nickel market, Alaska Energy Metals Corporation (AEMC) is leading efforts to boost U.S. nickel independence. Its flagship Nikolai project in Alaska contains valuable resources of nickel, copper, cobalt, and platinum group metals, all crucial for renewable energy and electric vehicles.

UK and Saudi Arabia Forge Critical Minerals Partnership

In the latest developments, Mining.com revealed that Britain will partner with Saudi Arabia to secure critical minerals like copper, lithium, and nickel which are all essential for EVs, AI systems, and clean energy technologies. The agreement aims to strengthen supply chains, attract investment, and create opportunities for British businesses.

Saudi Arabia, valuing its untapped mineral reserves at $2.5 trillion, seeks to position itself as a global hub for mineral trade. For the UK, this partnership supports its industrial strategy focused on economic growth, job creation, and national security.

The deal coincides with ongoing UK-Gulf Cooperation Council (GCC) free trade agreement negotiations. British Industry Minister Sarah Jones will lead a trade mission to the Future Minerals Forum in Riyadh, showcasing UK companies like Cornish Lithium and Beowulf Mining. Jones emphasized the importance of securing mineral supplies to advance AI, clean energy, and technological innovation in a competitive and uncertain global landscape.

As demand for nickel continues to rise, securing the necessary $66 billion in investments will be crucial for meeting the challenges ahead in 2025. However, the market’s future will depend on addressing supply gaps and adapting to shifting global dynamics.

Lithium Market in 2025 and Beyond: Supply Deficit Looms with $116B Requirement

Jennifer L
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Lithium Market in 2025 and Beyond: Supply Deficit Looms with $116B Requirement

The lithium market is at the center of the energy transition, driven by the soaring demand for electric vehicles (EVs). However, the journey to meet this demand is fraught with challenges. This article explores the future of lithium supply, demand, and price trends, highlighting critical investment needs and market dynamics.

The Great Raw Material Disconnect: Why Lithium Supply Trails EV Demand

Forecasts indicate a looming lithium deficit that could significantly impact the EV market. Per Benchmark, the lithium market could face a shortfall of 572,000 tonnes by 2034—7x larger than current surpluses. 

  • While over one million tonnes of mined lithium are expected in 2024, this output must grow to 2.7 million tonnes by 2030 to meet rising demand, particularly from the EV sector.

The disparity between raw material supply and demand—termed the “great raw material disconnect”—is worsened by the lengthy timeline for developing lithium mines. Mines can take 5 to 25 years to become operational, while midstream and downstream facilities require less than five years. This misalignment presents a significant bottleneck for the battery industry.

Investment Needs

Benchmark analysis reveals a staggering $514 billion investment required by 2030 to meet battery demand. Of this, $220 billion will be for upstream projects while $51 billion must be invested in lithium production. 

However, Western countries face higher costs and stricter environmental regulations compared to China, making investment a more complex challenge. Governments aiming to derisk supply chains from Chinese dominance may further inflate the required investment figure.

In another analysis, Benchmark estimated that the industry must secure $116 billion in investments by 2030 to meet EV targets. This “high case” scenario reflects growing EV adoption driven by government decarbonization policies and automaker commitments.

investment needed for high case lithium demand scenario
Chart from Benchmark

However, even with all planned lithium projects coming online, a 1.8-million-tonne shortfall remains. This speaks of the need for new mines, refineries, and expanded production. Automakers, aware of lithium’s critical role, are proactively investing upstream to secure supply.

General Motors and Tesla are making significant moves, with GM investing $650 million in Lithium Americas for its Nevada mine and Tesla building a $1 billion lithium refinery in Texas. Other players like BYD and CATL are establishing lithium facilities and joint ventures to boost production.

Automaker targets are ambitious: Tesla plans 20 million EVs annually by 2030, while General Motors and Mercedes-Benz aim for fully electric lineups by 2035 and 2030, respectively.

However, without accelerated lithium investments, these goals risk falling short, highlighting lithium as a bottleneck in the EV revolution.

Lithium Prices in Flux: Short-Term and Long-Term Outlook

Lithium prices have been subject to volatility, influenced by market dynamics and global supply-demand imbalances. Forecasting long-term prices is particularly challenging due to the lack of futures markets, with most trading occurring in spot markets.

Short-Term Price Trends

The Australian Government’s Office of the Chief Economist predicts a brief recovery for lithium hydroxide prices before a decline by 2026. 

lithium price forecast up to 2030
Image from the Green Energy Investor

In 2025, the annual average price for lithium carbonate is expected to drop to approximately $10,542 per metric ton, down from $12,374 in 2024, per S&P Global Commodity Insight. Meanwhile, surpluses are projected to narrow, with a 33,000-tonne surplus in 2025 compared to 84,000 tonnes in 2024. 

Medium- to Long-Term Price Outlook

In the medium term, analysts foresee lithium prices recovering to the marginal cost of production, estimated at $15,000–$20,000 per metric ton. Sustained structural deficits are expected to emerge, driving prices toward this range and potentially higher. 

By the fourth quarter of 2024, some experts anticipate prices reaching the low $20s per kilogram. While prices may not revisit the highs of $40,000–$50,000 per tonne, a stable pricing environment is anticipated.

Market Adjustments and Structural Deficits

To balance the market, producers are implementing measures such as supply cuts, project delays, and stockpiling. Companies like Albemarle are reducing supply to address the current oversupply, while high-cost operations, such as Arcadium Lithium’s Mt. Cattlin project in Australia, are being placed into care and maintenance. 

As prices stabilize and demand continues to grow, these structural deficits will likely drive further investment and price recovery. Moreover, strong demand will likely push the lithium prices higher in 2025 and beyond.

global lithium carbonate equivalent demand 2017-2027

Navigating Risks and Opportunities in the Lithium Boom

The lithium market is exposed to risks, including volatile energy prices and geopolitical tensions. The reliance on lengthy mine development timelines poses a critical challenge, potentially delaying the supply chain’s ability to meet rising EV demand.

However, the market also offers substantial opportunities. Decarbonization efforts and the global shift to renewable energy sources are creating efficiencies and new markets for low-emissions products. Stable lithium prices and sustained investment could unlock significant growth potential for companies operating in the sector.

The lithium market is at a crossroads. On one hand, rising EV demand and decarbonization goals are driving unprecedented growth opportunities. On the other, supply chain challenges and volatile prices present significant hurdles. Addressing the “great raw material disconnect” through timely investment and strategic planning will be critical to meeting future demand.

Governments and other stakeholders must act decisively to bridge the gap between supply and demand, ensuring the lithium market can support the global energy transition.

What’s Behind the $53 Trillion Energy Investment Needed for Net Zero?

Jennifer L
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What’s Behind the $53 Trillion Energy Investment Needed for Net Zero?

The talks around climate change and energy transition bring both optimism and concern in 2025. On the positive side, the push for a net-zero carbon future creates significant opportunities for investment.

On the flip side, the physical impacts of rising global temperatures and climate change pose increasing financial risks. S&P Global focuses on measuring these risks and opportunities, suggesting a $53 trillion energy investment requirement.

Meanwhile, other analysis like that from McKinsey also explores the investment opportunities needed to transition to a green economy, indicating a $9.2 trillion annual funding for it. Let’s unlock what’s behind these numbers and why addressing them is essential to achieving net zero.

Net Zero Investments: A $53 Trillion Opportunity Awaits

Investing in low-carbon energy aims to reduce greenhouse gas (GHG) emissions and curb the long-term effects of climate change. According to S&P Global Commodity Insights, achieving net-zero emissions by 2050 could open up $53 trillion in global energy investment opportunities. This includes investments in clean energy technologies, power generation, and transmission infrastructure.

Global CO2 emissions under SSPs and S&P Global Commodity Insights scenarios

In contrast, if companies stick to a business-as-usual scenario with moderate emission cuts (SSP2-4.5 trajectory), investments in these areas will total about $37 trillion by 2050. 

  • SSP2-4.5 (Medium Emissions): A moderate approach where emissions stabilize and warming reaches 2.7°C by 2100.

The $53 trillion estimate is likely conservative, as it excludes spending on electric vehicles, charging networks, energy-efficient buildings, and other non-energy sectors.

The fossil fuel industry, however, faces a sharp decline in investment opportunities. Spending on oil, gas, coal, and thermal power will drop from $800 billion in 2024 to less than $600 billion by 2050 under the base case. In a net-zero scenario, this figure falls even further, to below $200 billion.

  • Net-Zero Scenario: A backcast model where fossil fuel use nearly disappears, and clean energy dominates. This scenario limits warming to 1.5°C by 2100.

Most of the investment in clean energy will occur in non-OECD Asia-Pacific regions (excluding Australia, Japan, New Zealand, and South Korea). These areas will require $25 trillion by 2050 under a net-zero scenario, compared to $17 trillion under the base case. North America and Europe could also be key regions for clean energy investment.

  • Base Case: A probable future where global emissions drop by 25% by 2050, but fossil fuels remain significant. This scenario aligns with the SSP2-4.5 pathway and projects 2.4°C warming by 2100.

RELATED: Constellation and Calpine’s $16.4B Deal Boosts U.S. Clean Energy Transition

Investing Big: Why Net Zero Needs $9.2 Trillion Annually

In a separate analysis by McKinsey, achieving net-zero emissions by 2050 requires $9.2 trillion annually on physical assets (capital expenditures or capex)—$3.5 trillion more than current spending. This increase equals half of global corporate profits and a quarter of 2020’s total tax revenue. 

net zero emissions 2050 McKinsey

  • The $3.5 trillion annual spending for energy and land-use systems represents a 60% rise from current levels. By 2050, that amount will total around $275 trillion.

The figure includes a shift from fossil fuels to renewable energy sources and a move towards zero-emission vehicles. 

With expected economic growth and current transition policies, the additional spending may drop to $1 trillion annually. However, the next decade is crucial, with spending front-loaded and impacts varying across regions and industries.

The low-carbon transition requires immediate and substantial upfront investments, with capital spending peaking around 2026-2030 at about 9% of global GDP before declining, per McKinsey analysis. Early action is crucial to mitigate long-term risks and costs associated with delayed efforts.

The Financial Toll of Climate Risks

While clean energy investments offer financial opportunities, the physical impacts of climate change also come with significant costs. S&P Global Sustainable1 estimates that the world’s largest companies (in the S&P Global 1200 index) could face $25 trillion in cumulative costs by 2050. This figure includes:

  • $4.5 trillion in lost revenue from business interruptions.
  • $3.8 trillion in higher operating costs.
  • $16.5 trillion in property damages and extra capital expenses.

These costs are tied to climate hazards like extreme heat, water stress, droughts, and flooding. Extreme heat alone accounts for 58% of the projected costs, while water stress and drought contribute 21% and 11%, respectively.

Sector-Specific Impacts

Utilities, energy, financial services, and communication companies will bear the largest financial burdens due to climate risks. These sectors are particularly vulnerable to extreme heat, water shortages, and droughts.

It’s worth noting that these costs are based on companies in the S&P Global 1200 index, which includes about 1,200 large firms from regions like North America, Europe, Asia, and Latin America. Together, these companies own nearly 3.5 million physical assets.

  • The estimated $25 trillion in costs by 2050 represents 74% of total revenue and 31% of the total market value of these companies in 2024.

The Long-Term Benefits of Achieving Net-Zero Goals

Investing in low-carbon technologies and renewable energy can significantly reduce the physical impacts of climate change. For example, while achieving net-zero emissions by 2050 won’t drastically lower climate costs for S&P Global 1200 companies by mid-century, it could save them $15 trillion in cumulative costs by 2099 compared to a business-as-usual scenario.

Expanding these savings to the global economy shows an even greater benefit. Reducing emissions and transitioning to renewable energy can help avoid the worst climate impacts and minimize future costs.

Furthermore, the World Economic Forum noted that the investment goals, though represent a significant increase, are not impossible to achieve. According to WEF, McKinsey’s estimate of $9.2 trillion in annual capex highlights the challenge.

According to the IEA, the global economy invests $1.4 trillion annually in clean energy and related infrastructure. With existing policies, this figure could rise by $2.5 trillion, leaving an annual investment gap of $5.3 trillion.

WEF filling the green investment gap
Image from World Economic Forum

Redirecting $3.7 trillion from brown infrastructure—such as high-emission oil, gas, cement, and steel industries—to green energy projects could substantially close this gap. The remaining $1.6 trillion needed would represent just 2% of global GDP annually.

While ambitious, this transition is achievable with strategic shifts in financial priorities, paving the way for a sustainable and low-carbon global economy. By acting swiftly, the world can reduce future climate risks and unlock the vast potential of a net-zero energy future.

Constellation and Calpine’s $16.4B Deal Boosts U.S. Clean Energy Transition

Saptakee S
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Constellation and Calpine’s $16.4B Deal Boosts U.S. Clean Energy Transition

Constellation, the biggest clean energy provider in America announced to acquisition of Calpine Corp. The deal, worth $16.4 billion, involves cash and stock. This strategic merger will combine Constellation’s leadership in emissions-free electricity with Calpine’s extensive portfolio of low-emission natural gas, renewable energy, and its massive geothermal operations.

This is how they plan to create America’s largest clean energy provider in the U.S., serving 2.5 million customers nationwide. Furthermore, Constellation will offer innovative energy solutions to reduce costs and support America’s sustainability goals.

Constellation’s Big Bet on Calpine: Earnings Boost and Expansion

The press release revealed that Constellation will buy Calpine with 50 million shares, $4.5 billion in cash, and by taking on $12.7 billion of its debt. The total cost, after considering Calpine’s cash flow and tax benefits, is $26.6 billion. This makes the deal worth 7.9 times its 2026 earnings.

Additionally, Constellation’s shareholders will benefit significantly. They expect earnings per share to rise over 20% in 2026, adding at least $2 in future years. The acquisition will also bring in over $2 billion in cash each year, allowing strong reinvestment. Constellation aims for double-digit growth for the rest of the decade.

The deal should be finalized within a year, pending certain conditions and approvals. This includes the Hart-Scott-Rodino Act waiting period and clearance from various regulatory bodies. Major Calpine shareholders, like ECP, CPP Investments, and Access Industries, back the deal. They’ve agreed to hold their shares for 18 months.

After the deal, Constellation will stay in Baltimore and keep a strong presence in Houston, where Calpine is based.

Joe Dominguez, president and CEO of Constellation remarked,

“This acquisition will help us better serve our customers across America, from families to businesses and utilities. By combining Constellation’s unmatched expertise in zero-emission nuclear energy with Calpine’s industry-leading, best-in-class, low-carbon natural gas and geothermal generation fleets, we will be able to offer the broadest array of energy products and services available in the industry. Both companies have been at the forefront of America’s transition to cleaner, more reliable and secure energy, and those shared values will guide us as we pursue investments in new and existing clean technologies to meet rising demand. What makes this combination even more special is it brings together two world-class teams, with the most talented women and men in the industry, who share a noble passion for safety, sustainability, operational excellence and helping America’s families, businesses and communities thrive and grow. We look forward to welcoming the Calpine team upon closing of this transaction.”

Constellation’s Role in U.S. Carbon-Free Energy

Constellation is a key partner in the U.S. Department of Energy (DOE) and New York State Energy Research and Development Authority (NYSERDA) grants. Under this, the company focuses on clean energy technologies like direct air capture of CO2, long-duration energy storage, and clean hydrogen production.

Its diverse portfolio includes America’s largest nuclear fleet and other renewable resources like hydroelectric, wind, solar, natural gas, and oil. Some promising services include:

  • Supplies 10% of America’s clean and carbon-free energy and nearly 90% of its annual output is carbon-free.
  • Offers sustainable gas and carbon offset solutions, such as renewable natural gas (RNG) and carbon credits, to help retail gas customers meet their decarbonization goals.

Notably, Constellation Energy Solutions (CES) designs energy-efficient and renewable projects for commercial clients, including government and healthcare sectors. As per its sustainability report, in 2023, CES helped avoid more than 227,000 metric tons of CO2.

Constellation Source: Constellation

Calpine’s Decarbonization Strategy

Calpine plays a crucial role in providing clean, affordable, and reliable energy, generating 27,000 megawatts of electricity—enough to power 27 million homes. It also helps customers responsibly manage their energy use and guides them toward a low-carbon future.

Additionally, the company advocates a broad approach to tackling climate change, integrating renewable sources like solar and wind while ensuring reliable backup power to prevent blackouts and rising energy costs. Most crucial is its massive geothermal plant that ensures grid stability during peak usage

Calpine’s decarbonization strategy also focuses on:

  • Expanding operations at The Geysers- the largest geothermal complex in the world
  • Advancing battery storage and natural gas fleet
  • Exploring more prospects for carbon capture technologies

CALPINESource: Calpine

Building the Cleanest and Most Reliable Energy Portfolio in the U.S.

The combined energy portfolio will have nearly 60 gigawatts of zero- and low-emission power capacity. Jointly they plan to expand into Texas and other key states like California, New York, and Pennsylvania.

Constellation will further solidify its position by expanding its renewable energy portfolio. This includes acquiring Calpine’s Geysers facility in Northern California. Additionally, it will also advance its nuclear projects, invest in renewables, and increase nuclear output. One significant milestone is to restart the Crane Clean Energy Center in Pennsylvania.

All these prospects would subsequently increase cash flow and drive innovation and growth in clean energy across the U.S.

Combining Energy Excellence with Community Care

The merger brings together teams with a strong culture of safety, operational excellence, and customer service. Both companies are recognized for delivering reliable, cost-effective energy solutions.

Calpine’s natural gas plants will ensure grid reliability as customers shift to cleaner energy. Both companies have invested in carbon sequestration technology to support this purpose.

Apart from clean energy goals, both companies have plans to boost community development by creating jobs, paying taxes, and fostering growth. It will donate over $21.1 million each year and run volunteer programs in underserved areas.

Andrew Novotny, president and CEO of Calpine said,

“This is an incredible opportunity to bring together top tier generation fleets, leading retail customer businesses and the best people in our industry to help drive a stronger American economy for a cleaner, healthier and more sustainable future. Together, we will be better positioned to bring accelerated investment in everything from zero-emission nuclear to battery storage that will power our economy in a way that puts people and our environment first. It’s a win for every American family and business in our newly combined footprint that wants clean and reliable energy. ECP’s commitment to these goals over the last seven years was critical to the progress we have made as a company and to laying a foundation for future growth.” 

Post-merger, Novotny will join Constellation, ensuring continuity and leadership for the combined business.

In conclusion, the partnership between Constellation and Calpine is set to strengthen the U.S.’s climate goals and support the objectives of the Paris Agreement. By combining resources and expertise, the two companies will create a powerful force in clean energy for a decarbonized future.

Verra Updates on 4.5 Million Over-Issued Carbon Credits from Rejected Rice Projects in China

Jennifer L
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Verra Updates on 4.5 Million Over-Issued Carbon Credits from Rejected Rice Projects in China

Verra announced an update on the ongoing compensation process for carbon credits linked to the 37 rice cultivation projects in China that were rejected in August 2024. The news sheds light on the progress made toward compensating over-issued Verified Carbon Units (VCUs). It also details the remaining steps needed to rectify the situation.

Inside Verra’s Actions to Rectify Carbon Credit Discrepancies

In August 2024, Verra, a leading organization in the voluntary carbon market (VCM), decided to reject 37 rice cultivation projects in China. The rejection followed a thorough review that raised concerns about how these projects were being managed. 

Verra found that the projects did not follow proper methods, and there were problems with the audits done by validation and verification bodies (VVBs). These issues led to more carbon credits being issued than were actually earned by the projects.

Of the 37 rejected projects, 25 were found to have over-issued VCUs, which are critical units in the carbon offsetting market. These credits are used by companies and organizations to offset their carbon emissions.

Any discrepancies in the issuance of these credits undermine the integrity of the entire carbon market. In other words, when too many credits are issued, it makes the carbon offset market less trustworthy.

As a result, Verra took swift action, imposing sanctions on the companies involved and VVBs to ensure accountability and maintain the credibility of its registry.

Verra UNFCCC CDM rice cultivation methodology
Image from Verra

4.56 Million Credits at Stake: Compensation for Issued VCUs

As of January 2025, Verra confirmed that compensation has been made for the first set of over-issued VCUs. A total of 480,000 VCUs from 5 of the affected projects have been compensated by two of the project proponents: 

  • Vitol (China) Energy Co. Ltd. and 
  • Timing Carbon Asset Management Co. Ltd. 

These companies have worked directly with Verra to ensure that the over-issued VCUs were fully compensated for. This is an important step in fixing the issue and making sure the carbon credits are correct.

However, there are still 4,080,000 VCUs that have not yet been compensated. These credits are linked to two main groups of projects managed by: 

  • Search CO2 (Shanghai) Environmental Science & Technology Co. Ltd., and 
  • Hefei Luyu Agriculture Technology Co. Ltd.

Sanctions and Next Steps

Verra has taken a firm stance against the non-complying parties. Search CO2, which is responsible for 10 rejected projects and 2,220,000 outstanding VCUs, has had its registry account suspended. 

If the company does not compensate for the over-issued VCUs, Verra will permanently close its account. This shows Verra’s commitment to holding companies accountable and ensuring the integrity of the carbon credit market.

The remaining 1,860,000 VCU credits are linked to projects managed by Hefei Luyu Agriculture Technology Co. Ltd. 

Hefei had an agreement with Shell Energy (China) Limited to manage these projects, but in September 2024, they ended their agreement. This left the projects without an active account holder on Verra’s registry.

As a result, Verra moved these projects to an administrative account and is now requiring Hefei to resolve the issue before they can open a new account or register new projects.

Integrity First: How Verra Is Shaping the Future of Carbon Markets

Verra’s actions in response to the rejected rice cultivation projects are a direct reflection of its commitment to maintaining the integrity, transparency, and quality of the VCM. According to Justin Wheler, Verra’s Chief Program Management Officer, 

“This was the first time Verra imposed such sanctions, demonstrating Verra’s commitment to greater integrity, transparency, and quality in the voluntary carbon market. Verra took decisive action at every level at which concerns were identified. Verra is committed to continual improvement of its standards programs, particularly as we address issues arising from inappropriate marketplace conduct.”

In addition to its work with the project proponents, Verra is also finalizing its review of the responses received from the four VVBs that were involved in the rice cultivation projects.

The largest carbon registry issued non-conformity reports to these VVBs. Depending on the findings of the review, further sanctions may be imposed. These could include suspending the VVBs’ ability to validate or verify projects in the future, which would have significant implications for their operations in the carbon market.

The outcome of this review will be crucial in determining the long-term credibility of the VVBs involved. It will send a strong message about the importance of ensuring quality audits and transparency in issuing carbon credits.

Verra’s handling of rejected rice projects in China shows its commitment to carbon market integrity. How the carbon standard manages this situation will have a big impact on the future of the carbon credit market, especially as more and more companies turn to carbon credits to help meet their decarbonization targets.

By addressing discrepancies, ensuring carbon credit accuracy, and holding VVBs accountable, Verra aims to build trust. Its focus on transparency and quality will shape carbon credit standards, supporting global climate goals and the transition to a low-carbon future.

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