Biomass Gets a Boost: What the CREST Act Means for Carbon Removal

Aiden Green
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Biomass Gets a Boost: What the CREST Act Means for Carbon Removal

A new proposal in the U.S. Senate, called the CREST Act, could change how the country handles carbon emissions. It introduces a tax credit specifically aimed at biomass carbon removal and storage (BiCRS).

Backed by bipartisan support, the legislation supports the expansion of sustainable biomass projects that help pull carbon dioxide out of the air and store it safely. The bill hopes to boost much-needed investment in carbon removal just as demand grows sharply to address climate change.

How Will the CREST Act Support Carbon Removal?

The Carbon Removal Enhancement and Storage Tax (CREST) Act offers financial support for projects that remove and store carbon using biomass. This includes materials like wood, crop waste, and other organic matter. These materials naturally absorb carbon during growth, which can then be captured and stored through advanced processing methods like pyrolysis or gasification.

The main goal of the tax credit is to make these efforts more affordable and attractive to investors. Too often, biomass carbon removal projects struggle with financial uncertainty. Without strong incentives, many projects find it difficult to grow or even launch. The CREST Act aims to change this.

These tax credits would work much like similar credits for solar or wind power, helping companies offset costs and take on larger, long-term projects. This move could unlock more innovation and drive better carbon capture technology.

Why Biomass Could Be a Game-Changer for Carbon Removal

Biomass carbon removal uses organic materials—like trees or crops—to draw CO₂ from the air. Captured carbon can be stored underground or changed into products like biochar. Biochar is a solid carbon form that boosts soil health and traps carbon for hundreds of years.

This approach does more than lower emissions. It also helps rural communities. Many of these projects use forest or farm waste, creating jobs and boosting local economies. According to a USDA assessment, biomass can play a key role in sustainable agriculture and carbon management.

Still, scaling up biomass carbon removal faces challenges. It requires advanced infrastructure and clear policies to show that captured carbon will stay stored. The CREST Act would help by offering the financial support needed to build that infrastructure and refine these methods.

From CO₂ Cuts to Healthier Forests: CREST’s Broader Impact

Improving biomass carbon removal could reduce emissions while also benefiting the environment in other ways. Here’s how:

  • Lower Greenhouse Gases. Biomass captures carbon from the atmosphere, which can then be stored long-term. This reduces the amount of CO₂ contributing to climate change.

  • Healthier Forests and Farmland. Waste from agriculture and forestry is reused, helping prevent wildfires and supporting soil health.

  • Rural Development. More projects mean more jobs and steady income for farming and forestry communities.

  • Stable Carbon Storage. Technologies like biochar or carbon injection into geological formations keep carbon out of the atmosphere for long periods.

The success of these systems depends on strong rules. Experts warn that it’s important to track and verify every ton of carbon captured. With clear standards, this industry can provide real environmental value and win public trust.

Analysts See Growth in Biomass-Based Removal

Market analysts see strong growth potential for carbon removal, especially following this type of legislation. The global carbon market was worth $272 billion in 2020, and it keeps growing as countries adopt climate goals.

However, biomass has often been left behind due to a lack of support. Many government programs have favored industrial carbon capture, not biomass.

The CREST Act fills this gap. By targeting biomass carbon pathways with specialized tax credits, it offers the predictability investors want. Cutting dependence on unstable carbon credit prices helps attract private capital to sustainable biomass projects.

biomass carbon removal pathways WRI
Source: World Resource Institute

Industry leaders say this tax credit could drive innovation in methods like:

  • Pyrolysis – converting plant material into carbon-rich biochar

  • Combustion – managing heat energy for carbon storage

  • Gasification – turning biomass into gas-based fuel and capturing carbon

These tools could help develop a larger, more flexible carbon management system. With stronger funding, companies can improve accuracy, model carbon removal better, and ensure permanence in storage.

What the Numbers Say: Biomass Carbon Removal Is Surging

The carbon dioxide removal (CDR) market is growing fast. This shows that companies and governments are more committed to climate goals.

By 2025, the global carbon dioxide removal market could be about $842 million. It could grow at around 14% to nearly $2.85 billion by 2034. This growth comes from more people knowing about and using natural and tech carbon removal methods, like biomass-based approaches.

Biomass carbon removal is gaining traction. This includes methods like pyrolysis to make biochar, gasification, and combustion with carbon capture.

Biochar projects made up 86% of carbon removal purchases by volume in 2024. This shows how dominant the sector is in the CDR market. BiCRS refers to biomass carbon removal & storage, which includes BECCS and BCR.

top 10 durable cdr suppliers

The market for durable carbon removal credits is growing fast. These credits ensure long-term carbon storage. Forecasts say this market could hit $14 billion by 2035, at a growth rate of 38% from 2025 to 2035.

  • In the first quarter of 2025, about 780,000 carbon removal credits were contracted. This is a 122% increase from the same time in 2024.

dominant carbon removal methods Q1 2025 Allied Offsets
Source: Allied Offsets

The rising demand shows that companies want reliable, verified carbon credits to reach their net-zero goals.

The carbon removal market, which includes Direct Air Capture (DAC), Bioenergy with Carbon Capture and Storage (BECCS), and enhanced weathering, is valued at about $2 billion. It could grow to $40 billion by 2030 and may even surpass $250 billion by 2035.

BCG carbon removal credit demand projection 2030-2040

Biomass carbon removal is key in this ecosystem. It offers scalable, nature-based solutions. Plus, it brings extra benefits like rural economic growth and reduced wildfire risks.

The World Resources Institute says biomass carbon removal and storage (BiCRS) could make up around 20% of total biomass use in the U.S. by 2050. This is if biomass is used wisely for both carbon removal and other purposes. This shows strong growth potential for biomass pathways. Policies like the CREST Act support this.

Biomass Tax Credit Could Reshape Global Carbon Trading

A stable, well-supported industry around biomass carbon removal could shift the balance in carbon markets. It would encourage more entrants into the market, giving buyers more reliable and verified carbon credits. That means companies trying to meet climate goals could support cleaner methods and reduce their overall footprint with confidence.

If passed, the CREST Act could unlock large-scale funding for sustainable biomass projects across the country. This would not only help meet climate goals but also offer reliable income to farmers and foresters willing to participate.

The tax credit shows how good policy and advanced technology can tackle big climate problems. Whether it gains final approval depends on political negotiations, but momentum is strong thanks to bipartisan support.

Passing this bill would be a big step for U.S. carbon policy. It brings a mix of environmental responsibility, economic opportunity, and technical innovation into play.

Bitcoin Meets Sunshine: SolarBank Blends Clean Energy with Digital Assets

Saptakee S
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Bitcoin Meets Sunshine: SolarBank Blends Clean Energy with Digital Assets

Disseminated on behalf of SolarBank Corporation

In a bold move, shaking up renewable energy, a NASDAQ-listed solar company has redefined clean energy profits. SolarBank Corporation (NASDAQ: SUUN) has launched a model that converts net cash from solar projects directly into Bitcoin. By doing this, they are generating renewable electricity and turning sunlight into digital gold.

Let’s deep dive into their strategy.

SolarBank Bets on a New Financial Play

SolarBank’s initiative focuses on its 3.79 MW Geddes Solar Project in New York. This project transforms a former landfill into a clean energy site. Instead of reinvesting or distributing cash, the company will put all net cash from this project into Bitcoin.

Notably, they already operate over 100 MW of solar capacity, partner with Honeywell and the Royal Bank of Canada, and manage a project pipeline exceeding 1 GW. Despite their strong position in solar, they’ve chosen a surprising but calculated financial strategy.

By combining solar power and digital assets, it’s leading two major global trends.

Solar Growth Has Reached Breakneck Speed

To understand SolarBank’s decision, we must look at the momentum behind solar energy.

  • According to Ember’s Global Electricity 2025 report, solar power generated over 2,000 TWh of electricity in 2024 for the first time, marking a 474 TWh (or 29%) increase compared to the previous year.

solar energy

Installed solar capacity hit 585 GW that same year—more than double the 2022 figure. This shows a clear trend: solar is scaling faster than expected.

Furthermore, solar paired with battery storage now beats fossil fuels in cost and reliability. The economics have shifted, making solar the better choice in most regions.

This global acceleration includes nearly 99 countries that have doubled their solar electricity output in the last five years. Solar is now a key driver of energy independence and affordability.

Solar Snapshot of the U.S.

Solar energy is growing quickly across the United States. According to the Solar Energy Industries Association (SEIA), the U.S. solar market grew by 51% in 2023, and similar strong growth is expected in 2025. By 2034, the High Case scenario shows a 17% increase in solar deployment.

SOLAR U.S.

The Ember report further highlighted that in 2024, China added a staggering 277 GW of solar capacity, surpassing the entire U.S. solar fleet. India saw impressive growth too, doubling its previous year’s gains by adding 24 GWac of solar capacity.

Meanwhile, Brazil ramped up its solar generation by 45%, overtaking Germany to become the world’s fifth-largest solar market.

Countries investing in solar gain long-term energy resilience, while those relying on fossil fuels face volatility and geopolitical risks.

Why Did SolarBank Choose Bitcoin?

Moving on, SolarBank’s strategy raises a key question: why Bitcoin?

The answer lies in today’s economic pressures. Inflation erodes cash value, while real yields on bonds often fall below zero. Companies must find better places to store capital.

Bitcoin offers an alternative. As a decentralized, borderless, and finite digital asset, it acts as a hedge against currency debasement and provides uncorrelated returns. Several public companies hold Bitcoin as a long-term treasury asset.

Now, SolarBank joins that list but with a twist.

Critics often attack Bitcoin for its energy use. SolarBank turns that criticism into a competitive advantage. Instead of mining Bitcoin, they use clean solar profits to buy the asset, claiming they “offset crypto’s emissions with sunshine.”

This changes the game. Typically, solar electricity sells for pennies per kilowatt-hour. But when SolarBank uses its profits to buy Bitcoin, it turns low-margin energy into a high-upside asset. Essentially, it performs energy-to-value arbitrage that could boost returns over time.

Dr. Richard Lu, President & CEO of SolarBank, commented,

“As the adoption of Bitcoin continues to grow, SolarBank believes that establishing a Bitcoin treasury strategy taps into a growing sector that is seeing increasing adoption. In a world of ever-increasing energy demand and treasury complexity, SolarBank delivers renewable energy solutions and recurring revenues, now combined with all of the benefits of holding Bitcoin.”

How SolarBank Plans to Execute the Strategy

The company indeed has a clear plan.

First, the Geddes Project serves as a pilot. The company will buy Bitcoin only with net cash flow after covering all operating expenses and debt repayments. This protects the balance sheet and ensures sustainability.

Second, they have an application with Coinbase Prime for secure custody. This platform ensures safe asset storage and regulatory compliance.

If the pilot yields favorable results, SolarBank plans to expand the model to other projects. In short, the company is experimenting with discipline, not speculation.

Tapping into Two Exponential Trends

SolarBank’s move offers a unique investment opportunity. Investors can access two high-growth themes—solar expansion and Bitcoin adoption—through a single equity.

While risks exist, they are clearly defined. Bitcoin’s price volatility could affect quarterly earnings. Regulatory frameworks for clean energy and crypto may change. Solar development also carries operational risks. Finally, the actual timing and value of Bitcoin purchases, under the allocation strategy, will be determined by management in its discretion based on the net cash produced by the Geddes.

Still, the upside looks promising. If solar continues to grow and Bitcoin strengthens as digital gold, SolarBank could lead a new asset management model in energy.

At the same time, global tech companies are making major solar investments to power AI and data centers. The top four corporate solar owners in the U.S. are Meta, Amazon, Google, and Apple. Amazon alone holds a 13 GW solar development pipeline, surpassing many traditional utility companies.

The integration of digital infrastructure and renewable energy is underway. The company’s strategy pushes that frontier further.

solar
Source: Katusa Research

What This Means for the Energy Market

The company explains that, until recently, clean energy producers depended on stable, long-term power purchase agreements. But now, many are shifting toward innovative revenue models to unlock more value from every kilowatt-hour.

By converting solar profits into Bitcoin, SolarBank embraces the fact that finance and energy are converging. The modern economy runs on electricity and algorithms. Those who grasp this intersection will lead the next wave of growth.

Moreover, this move aligns with a larger market trend. The future of energy doesn’t end with generation—it continues through integration. Energy now intersects with digital assets, AI, real-time markets, and decentralized networks.

As SolarBank moves forward, it could inspire others in clean energy to explore new models. Whether Bitcoin remains in corporate treasuries or not, the push to experiment fuels innovation.

To sum up, the company said,

“We’re creating clean energy that offsets crypto’s carbon footprint.”

This shows that they believe clean energy profits can do more than repay loans or sit idle in cash. They can help companies build digital asset reserves, diversify treasury strategies, and join the transformation of global finance.

If this model gains traction, it could reshape how we value clean energy companies. Thus, they won’t just sell electricity. They’ll actively shape a new era where power and capital work together to create long-term value. With this bold pivot, SolarBank is betting it can lead that future.

There are several risks associated with the development of the projects detailed in this report. The development of any project is subject to the continued availability of third-party financing arrangements for the project owners and the risks associated with the construction of a solar power project. There is no certainty the projects disclosed in this report will be completed on schedule or that they will operate in accordance with their design capacity. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power, which could result in future projects no longer being economic.

Please refer to “Forward-Looking Statements” in the press release entitled “Bitcoin Purchases to be made by SolarBank Using Net Cash from Geddes Solar Power Project” for additional discussion of the assumptions and risk factors associated with the statements in this report. Please also refer to SolarBank’s filings on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov for additional information on the matters disclosed in this report.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: None.

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

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Top 4 Hydrogen Startups of 2025 Powering the Net Zero Future

Saptakee S
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Top 4 Hydrogen Startups of 2025 Powering the Net Zero Future

In 2024, hydrogen emerged as a climate-friendly alternative to fuel as well as electricity. Promising projects sparked to life on both the production and consumption fronts. Despite Trump’s pro-oil stance, analysts are optimistic about hydrogen’s future in this new year- 2025.

According to BNEF, clean H2 supply is projected to increase 30X and could reach 16.4 million metric tons annually by 2030. This surge is mostly attributed to supportive policies and a flourishing project pipeline.

As we step into 2025, several crucial moments await the low-carbon, clean hydrogen sector. This year, a wave of innovative startups is pushing the boundaries of hydrogen production, storage, and application, capable of transforming the clean energy landscape.

Here are the top 4 hydrogen startups of 2025 that are leading this revolution:

1. Hydrogenious LOHC Technologies (Germany): Revolutionizing Hydrogen Transport

Germany-based Hydrogenious LOHC Technologies is addressing one of the toughest challenges in the hydrogen value chain—safe and efficient storage and transport.

Founded in 2013, the company’s Liquid Organic Hydrogen Carrier (LOHC) system uses benzyl toluene, a reusable heat transfer oil, to chemically bind hydrogen. This approach enables hydrogen to be stored and transported just like traditional fuels using existing infrastructure—cutting down both cost and risk.

Hydrogen System Targets 40% Emissions Cut

Hydrogenious, Bosch, and partners are installing a hydrogen power system at Hermann Josef Hospital in Erkelenz, Germany. Funded by Germany’s Education and Research Ministry, the Multi-SOFC (Solid Oxide Fuel Cells) project combines LOHC and SOFC technologies to deliver clean heat and power.

The project aims to reduce HJK’s carbon emissions by up to 40%. Initially, Bosch’s SOFC units run on natural gas while still achieving up to 60% electrical efficiency. Even in this early phase, the system cuts emissions by roughly 150 metric tons annually.

By 2026, Hydrogenious will integrate its LOHC technology, enabling the system to run primarily on hydrogen. Waste heat from the SOFC will power a dehydrogenation unit that releases hydrogen from the LOHC on-site, boosting overall system efficiency and lowering the hospital’s carbon footprint even further.

Thus, the Multi-SOFC project aims to deliver a reliable, low-emission energy solution. It shows how hydrogen can cleanly and affordably power large facilities. Once complete, it will serve as a global model for decarbonizing critical infrastructure.

Hydrogenious LOHC Technologies
Source: Hydrogenious LOHC Technologies

Why The Company Stands Out?

  • Backed by Big Names: Secured investments from JERA Americas, Temasek, Chevron, and Royal Vopak.
  • Industrial Projects: Operating a large-scale hydrogenation facility at Chempark Dormagen and contributing to the ‘Green Hydrogen @ Blue Danube’ initiative.
  • Global Expansion: Through a joint venture with Vopak, Hydrogenious is laying the groundwork for a global hydrogen supply chain.
  • Commercial Success: Deployed the first full LOHC-based hydrogen mobility chain, including pilot refueling stations in Germany.

With additional funding of €17 million raised in early 2025, the company is now accelerating its next phase of project deployment. Hydrogenious LOHC isn’t just innovating—it’s commercializing at scale.

MUST READ: Hydrogen in 2025: The Journey through Progress, Pitfalls, and Policy Shifts 

2. HiiROC (U.K.): Clean Hydrogen without CO₂

UK-based HiiROC is tackling the cost and emissions problem of hydrogen head-on with its Thermal Plasma Electrolysis (TPE) technology. Instead of relying on electricity-heavy electrolysis or carbon-intensive steam methane reforming, HiiROC produces zero-emission hydrogen by breaking down hydrocarbons into hydrogen and solid carbon black, a useful by-product.

What Makes It Game-Changing?

  • Ultra-Efficient: Uses 80% less power than water electrolysis.
  • Emission-Free: Produces no CO₂—a major leap in clean hydrogen production.
  • Modular Design: Can scale from small on-site generators to industrial-sized plants.
  • By-Product Value: Generates carbon black, widely used in tyres, plastics, and inks, offering dual revenue streams.
hydrogen HiiROC
Source: HiiROC

Zero-emission Carbon Black

HiiROC’s clean tech not only produces hydrogen but also generates solid, zero-emission carbon black as a by-product. It replaces traditional oil furnace methods that emit heavy pollution by creating a stable, pure form of carbon black with no emissions.

Thus, it offers a cleaner alternative for industries that rely on carbon black, including tyres, rubbers, plastics, inks, and toners.

HiiROC HYDROGEN
Source: HiiROC

Unlocking New Potential Uses

HiiROC is also exploring innovative ways to put this clean carbon to work. Potential future applications include:

  • Environmental filters
  • Soil enhancers
  • Animal feed additives
  • High-performance and construction materials

In short, what was once a polluting material now has the potential to support decarbonization across multiple sectors.

Moving on, the company has raised over $35 million from major investors like Centrica and Kia Motors, reflecting strong market confidence. It’s partnering with Associated British Ports to build a production facility at Saltend Chemicals Park, set to produce 10 tonnes of hydrogen per day.

The company’s recognition under the UK’s Low Carbon Hydrogen Standard further boosts its regulatory credibility. With scalable tech, strategic projects, and government support, HiiROC is targeting to decarbonize hard-to-abate sectors while keeping costs low.

3. Electric Hydrogen (U.S.): Scaling Clean Hydrogen for Heavy Industry

Founded in 2020, Electric Hydrogen, headquartered in Massachusetts, is on a mission to make green hydrogen cost-effective at an industrial scale. It focuses on building next-gen electrolyzer systems to decarbonize hard-to-electrify sectors such as:

  • Steel and metals production
  • Chemicals and ammonia
  • Cement manufacturing
  • Sustainable aviation fuels (SAF) and e-methanol

In 2023, Electric Hydrogen raised $380 million in a funding round led by heavyweights including BP, Microsoft, and United Airlines. The raise pushed the company’s valuation past $1 billion, making it the first electrolyzer startup to reach unicorn status.

What Makes It Unique?

Electric Hydrogen’s standout innovation is its HYPRPlant—a fully integrated, modular electrolyzer platform designed for speed, scale, and cost savings.

  • Built around high-output PEM stacks
  • Pre-engineered for rapid site assembly
  • Cuts total installed costs by up to 60%
  • Backed by a 1.2 GW/year gigafactory in Massachusetts

This approach simplifies deployment, reduces risk, and accelerates timelines compared to traditional electrolysis systems.

Electric Hydrogen
Source:: Electric Hydrogen

Powering Cleaner Industries

Their 100MW plant uses advanced PEM technology and a smart “plant-as-a-product” design. This setup lowers costs by using fewer materials, saving space, and reducing installation time.

Their special electrolyzers produce much more hydrogen from the same stack size, making it easier to scale up and support big industrial projects.

Achieved Net Zero Emissions in 2023

In 2023, Electric Hydrogen’s Scope 1 and 2 emissions totaled around 600 metric tons of CO₂-equivalent, while Scope 3 emissions from their supply chain reached 17,725 metric tons.

Electric Hydrogen emissions
Source: Electric Hydrogen

However, the company offset all Scope 1 emissions by purchasing certified carbon credits from Sterling Planet and covered Scope 2 emissions with renewable energy certificates (RECs) from Terrapass.

  • This resulted in net-zero Scope 1 and 2 emissions in 2023.
Electric Hydrogen energy
Source: Electric Hydrogen

Most of their energy use came from electricity for manufacturing and R&D, along with natural gas for heating. A small amount of diesel was used to run a generator at the 1 MW protoplant in San Carlos, CA. It plans to use electricity to power larger test facilities in San Jose, CA, and Devens, MA.

4. Hystar (Norway): High-Efficiency Answer to Green Hydrogen Scaling

Founded in 2020 and based just outside Oslo, Hystar is a rising star in the clean hydrogen space. The company is reengineering how electrolyzers work—leveraging proprietary proton exchange membrane (PEM) technology to make green hydrogen production both cheaper and more scalable.

What Sets It Apart?

What sets Hystar apart is its ultra-thin membrane design—90% thinner than standard PEM systems. This breakthrough allows its systems to run at much higher current densities, which means:

  • Lower energy consumption
  • More hydrogen output per unit of power
  • Reduced use of critical raw materials

The result is a serious step-change in how economically green hydrogen can be produced at an industrial scale.

Smart Design, Scalable Tech

Hystar’s electrolysers are fully containerized and modular, making them easy to deploy. Its flagship Vega 1000 system delivers 5 MW of clean hydrogen production, designed for sectors like:

  • Heavy industry
  • Clean transport
  • Renewable energy storage
  • Industrial decarbonization

Better yet, the technology is built with automation and mass manufacturing in mind, future-proofing it for global scale.

Sustainable Production: From Megawatts to Gigawatts

Currently operating at 100 MW annual capacity, Hystar is scaling rapidly. Through Project Sagitta, the company is launching a gigawatt-scale, automated production facility in Høvik.

  • Starting with 1.5 GW/year by 2027
  • Expanding to 4.5 GW/year by 2031
  • Expected to produce 6 million tonnes of green hydrogen over 10 years
  • Avoiding over 11 million tonnes of CO₂ emissions

This bold scale-up reflects Hystar’s long-term vision: to help shift the market away from fossil-based “grey” hydrogen toward truly sustainable, zero-emission fuel.

The company secured $36 million in funding, drawing interest from strategic investors committed to decarbonization. Most notably, it has partnered with Nippon Steel Trading to accelerate the adoption of its tech across global markets.

With cutting-edge PEM innovation, a scalable business model, and the infrastructure to back it, Hystar is building more than electrolyzers—it’s building the backbone of the future hydrogen economy.

Clean Energy Beats Fossil Fuel in Historic $3.3T Global Energy Investment in 2025, IEA Report

Jennifer L
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Clean Energy Beats Fossil Fuel in Historic $3.3T Global Energy Investment in 2025, IEA Report

In 2025, global energy investment is projected to reach a record $3.3 trillion, with clean energy beating fossil fuels, according to the International Energy Agency (IEA). This growth happens even with geopolitical tensions and economic uncertainty. It shows that the world is still focused on energy security and moving to cleaner energy sources. 

This article explores the main trends, drivers, and challenges shaping energy investment this year, with the main findings from the IEA’s World Energy Investment 2025 report. It provides a clear picture of where global energy capital is flowing and what challenges lie ahead.

Clean Energy Surges Past Fossil Fuels in Investment Race

In 2025, an expected $3.3 trillion will be invested in global energy generation. Of this, around $2.2 trillion will support renewables, nuclear power, electricity grids, storage, low-emission fuels, energy efficiency, and electrification. This is double the amount set for oil, natural gas, and coal, which will receive around $1.1 trillion. 

energy investment 2025 IEA report
Source: IEA report

Clean energy investment surged after the COVID-19 pandemic. This growth continues thanks to technology, economic factors, and policy support, not only climate policies.

Solar Power Leads the Way

Investment in low-emission power has nearly doubled in five years. Solar photovoltaic (PV) technology is driving this growth. By 2025, global spending on solar energy, including utility-scale and rooftop systems, is set to hit $450 billion. This will make it the largest energy investment category.

Solar panels, especially those imported from China, are becoming more affordable and are driving energy investment in many developing countries. For example, Pakistan imported 19 gigawatts (GW) of solar capacity in 2024, about half its total grid-connected capacity.

Growth in Batteries and Nuclear Energy

Spending on batteries for power sector storage will hit $66 billion by 2025. This will help integrate renewable energy sources into electricity grids. Nuclear investment is also rising, with spending on new plants and refurbishments expected to exceed $70 billion this year. Interest in new nuclear technologies, such as small modular reactors (SMRs), is growing, especially in the United States and the Middle East.

l annual investment in the power sector

Global Giants Drive the Clean Energy Boom

About 70% of the recent increase in clean energy investment comes from countries that import fossil fuels, led by China, Europe, and India. China is investing heavily in reducing its reliance on imported oil and gas and becoming a leader in clean energy technologies.

A separate report by energy think tank Ember also shows the same trend – China takes the lead in clean energy investment in early 2025.

clean electricity or energy generation China vs 2025

Meanwhile, Europe sped up its investment in renewables and energy efficiency. This change came after Russian gas supplies were disrupted due to the Ukraine invasion. The United States has boosted investment. This is partly to compete with China in the supply chains for new clean technologies.

regional energy investment growth

Emissions reduction is a big reason to invest, but it’s not always the main one for mature and cost-competitive clean technologies. Investors are also influenced by concerns about energy security and the desire to lead in new industries.

Uncertainty in the global economy and trade is making some investors hold off on new project approvals. However, spending on current projects is still strong, especially in the field of rising artificial intelligence (AI) dominance. 

AI + Energy: The Data Center Effect

The fast rise of AI and data centers is driving up electricity demand. This trend is also boosting investment in power generation. Annual investment in data centers has risen by 67% over the past two years, and from 2025 to 2030, an additional $4.2 trillion is expected globally. 

By 2030, data centers might use 950 terawatt-hours of electricity, doubling their current amount. This could lead to over $170 billion in investments for new generation capacity. Renewables will meet most of this demand, as shown below. 

power generation investment for data centers 2025-2030
Source: IEA report

However, interest is rising in next-generation solutions like small modular nuclear reactors. SMRs provide stable power and fit the constant energy needs of data centers. 

Technology companies are also exploring geothermal energy partnerships, supported by rising venture capital. Tech giants and energy developers are teaming up for new nuclear and geothermal projects. However, challenges like cost uncertainties and regulatory hurdles for SMRs still exist.

Gridlock Ahead: Infrastructure Struggles to Keep Pace

Investment in the electricity sector is set to reach $1.5 trillion in 2025, about 50% higher than the total spent on bringing oil, natural gas, and coal to market. Spending on electricity grids is around $400 billion each year. But this isn’t enough to match the fast rise in power demand and the growth of renewables.

Delays in permitting, supply chain bottlenecks for components like transformers and cables, and the weak financial health of utilities, especially in developing countries, are slowing progress.

Coal and Gas Remain Significant

Despite the focus on clean energy, coal and gas continue to play a major role in some regions. In 2024, China greenlit nearly 100 GW of new coal-fired power plants. India added another 15 GW. This raised global approvals to their highest since 2015.

In contrast, advanced economies did not order any new coal-fired power plants last year.

Notably, investment in new gas-fired power is rising. The United States and the Middle East make up nearly half of the new project approvals.

Fossil Fuel Investment Trends: Oil and Gas Investment Declines

Oil prices and demand are set to drop, leading to a 6% decrease in investment in upstream oil projects in 2025. This will be the first annual decline since the COVID-19 pandemic in 2020 and the largest since 2016.

Upstream oil and gas investment is expected to drop by around 4%. This brings the total to just under $570 billion. Of this amount, 40% will go toward maintaining production at current fields. Investment in oil refineries is also set to reach its lowest level in a decade.

investment in oil and gas
Source: IEA report

Spending on new LNG facilities is rising despite some delays and cost overruns. Projects in the United States, Qatar, and Canada are getting ready to start. From 2026 to 2028, the world may experience huge yearly jumps in LNG capacity, with the United States set to nearly double its export capacity.

Meanwhile, investment in coal supply is expected to increase by 4% in 2025, continuing a trend of steady growth over the past five years. This reflects ongoing demand in parts of Asia, even as advanced economies move away from coal.

The Outlook for 2025 and Beyond

The global energy investment scene is changing fast, as reported by the IEA. Clean energy technologies are drawing more money and interest. Fossil fuels are still important in some areas. However, the trend is shifting.

More investment is going into renewables, electrification, and energy efficiency. This transition is being shaped by technology advances, economic factors, and the need for energy security, as well as by climate policies.

To meet rising electricity demand and ensure energy security, investment in grids and storage should accelerate. As such, continued support for innovation and infrastructure will be crucial for a successful energy transition in the years ahead.

Google and Chevron Back TAE Technologies as It Nears Fusion Power Breakthrough

Saptakee S
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0
Google and Chevron Back TAE Technologies as It Nears Fusion Power Breakthrough

Fusion energy just took a major step closer to reality. TAE Technologies, a pioneer in commercial fusion power, has raised over $150 million in its latest funding round, surpassing expectations. Major names like Chevron, Google, and NEA contributed to the raise, joining both new and returning investors who see serious promise in TAE’s unique fusion approach.

The company announced that this fresh funding pushes the company’s total equity raised to more than $1.3 billion since it began operations in 1998.

  • TAE’s momentum sends a strong message: clean fusion energy is no longer just a futuristic idea. It’s shaping up to be a real-world solution.

TAE Technologies’ Fusion Breakthrough

Earlier this year, TAE achieved a breakthrough that stunned the fusion world. It created stable plasma at temperatures exceeding 70 million degrees Celsius using a simplified experimental setup. That’s even hotter than the core of the sun.

Reaching such temperatures is a critical part of making fusion viable for commercial energy production. TAE named this successful setup “Norm,” and the achievement brought the company one giant step closer to building reactors that can generate net energy.

Fusion Energy: The Holy Grail of Clean Energy

Fusion is often called the holy grail of clean energy! It’s the same process that powers the sun and stars. In fusion, light elements combine under extreme heat and pressure, releasing massive amounts of energy.

Unlike conventional nuclear power, fusion doesn’t involve chain reactions or radioactive waste that sticks around for thousands of years. The process is inherently safe. If anything goes wrong, the reaction simply stops.

Michl Binderbauer, CEO of TAE Technologies, said:

“Fusion has the potential to transform the energy landscape, providing near-limitless clean power at a time when the world’s energy needs are growing exponentially due to the growth of AI and data centers. TAE’s technology uses the soundest physics to deliver superior performance in a compact machine, with attractive economics and best-in-class maintainability. We are leading the charge to develop revolutionary fusion technology for full-scale commercial deployment.”

What Makes TAE’s Fusion Approach Different

TAE isn’t chasing the same fusion model as everyone else. While many companies rely on deuterium-tritium fuel, which creates radioactive waste, TAE is betting on a cleaner path.

TAE fusion
Source: TAE

Here’s what makes their method unique:

Hydrogen-Boron Fusion (p-B11)

TAE uses hydrogen and boron—also known as proton-boron-11 or p-B11—as fusion fuel. This combination produces three helium atoms and zero radioactive waste. It’s abundant, safe to handle, and doesn’t require the costly cleanup associated with traditional nuclear power.

Field-Reversed Configuration (FRC)

TAE developed a proprietary fusion design called the advanced beam-driven Field-Reversed Configuration (FRC). It uses neutral particle beams to heat and stabilize plasma inside a magnetic field. Unlike tokamaks or lasers, FRC is linear, compact, and modular—perfect for mass production.

This approach allows for easier construction, lower costs, and more flexibility when scaling fusion power around the world.

Built for the Real World

TAE’s fusion reactors can fit with existing energy infrastructure. They work like today’s power plants but without emissions or meltdown risk. Heat from the fusion reaction is used to make steam, spin a turbine, and generate electricity.

The design also allows for modular deployment, so units can be added as needed. This makes it ideal for various geographies and grid setups.

Google’s AI Collaboration Helped Push Fusion Technology Forward

Google has played a central role in TAE’s progress. The tech giant has been working closely with the fusion company since 2014, applying artificial intelligence and machine learning to fine-tune plasma behavior. Google engineers even worked on-site with TAE teams, helping to co-develop key technologies like the Optometrist Algorithm—a tool that dramatically improves the quality and stability of plasma.

This close integration between fusion science and advanced computing has given TAE a unique edge in an industry that often struggles with complexity.

Binderbauer expressed further,

“We’re delighted to continue our relationship with Google, who have not only provided funding to TAE but collaborated closely in research and development over many years. With this latest fundraise, we look forward to accelerating our efforts to deliver commercial fusion power.”

TAE Fusion Tech Ready to Power Today’s Grid

TAE’s fusion system can connect directly with today’s power grid. Like traditional plants, it uses heat to spin turbines, but instead of burning fossil fuels, it fuses atoms to create clean energy.

The heat from fusion warms the reactor walls. Pipes transfer that heat to a steam generator, which spins a turbine and produces electricity, just like existing infrastructure, but without the emissions.

TAE has steadily advanced its technology, building five powerful demo units and partnering with top scientists. In early 2025, it unveiled a simpler, faster plasma control method, bringing commercial fusion closer than ever.

Copernicus Reactor Aims for Net Energy Breakthrough

With the Norm breakthrough achieved, TAE is now focused on its next big goal—building a fusion machine that creates more energy than it uses. The new device, called Copernicus, is already under construction. If it proves net energy gain, it will be a major step forward for clean energy and one of the most important milestones in fusion history.

Da Vinci Prototype to Supply Clean Power to the Grid

TAE is also working on its first full-scale fusion power plant, called Da Vinci. This prototype will plug directly into the grid and provide clean, reliable electricity with zero carbon emissions.

If everything stays on track, Da Vinci could start running in the early 2030s, bringing fusion power to the real world.

Fusion’s Moment Is Finally Coming

For decades, fusion energy felt like a dream just out of reach. But now, the story is changing. Thanks to breakthroughs like TAE’s, fusion is moving from lab tests to real-world applications. It’s no longer “someday.” It’s “soon.”

Fusion energy isn’t just another clean energy option. It’s something much bigger. It’s safe, limitless, and doesn’t create any harmful waste. If successful, it could completely reshape how the world powers itself—cutting emissions, reducing reliance on fossil fuels, and giving countries a stable, homegrown energy source.

Industries where fusion energy will be useful

FUSION
Source: Global Fusion Industry Report

TAE Technologies is leading the charge. With science, innovation, and a clear plan for the future, the company is turning fusion from fantasy into fact.

Trump’s 50% Tariff Hike: Boost or Blow to U.S. Steel and Aluminum?

Saptakee S
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Trump’s 50% Tariff Hike: Boost or Blow to U.S. Steel and Aluminum?

President Donald Trump took a bold step to protect American industry by signing a proclamation that doubled tariffs on steel and aluminum imports, from 25% to 50%. The new rate took effect on June 4, 2025.

While Trump aims to curb unfair trade practices, the key question is: Will higher tariffs truly strengthen U.S. manufacturing or simply raise costs for consumers and businesses?

Why Trump Raised Tariffs Again?

Trump made his message clear: the U.S. will no longer accept unjust competition that hurts national security and local manufacturing. The EO highlights that he used Section 232 of the Trade Expansion Act of 1962, a law that lets the president limit imports if they threaten national security.

His team says the U.S. market is being flooded with cheap steel and aluminum from other countries, often helped by foreign subsidies and unfair pricing. This, they argue, puts American metal industries at risk.

This isn’t Trump’s first move. Back in 2018, during his first term, he put a 25% tariff on steel and a 10% tariff on aluminum to protect U.S. jobs and factories.

But now, with U.S. production slowing again—steel output down to 75.3% in 2023 and aluminum at just 55%—he says it’s time for tougher steps.

Trump said at a rally at a U.S. Steel plant

“At 25%, they can get over the fence. At 50%, they can no longer get over the fence.”

Tariffs Take the Test

Trump’s team strongly believes tariffs are getting results—and they’ve got studies to back it up. A 2024 study on Trump’s first-term tariffs said they boosted the economy and brought key industries back to the U.S.

Some key observations highlighted in the EO were:

  • In 2023, the U.S. International Trade Commission found that the tariffs cut imports from China and led to more U.S. production, with little effect on prices.
  • The Economic Policy Institute said Trump’s first tariffs didn’t cause inflation and only briefly affected prices.
  • The Atlantic Council noted that tariffs push U.S. consumers to buy American-made goods.
  • Former Treasury Secretary Janet Yellen said in 2024 that higher tariffs won’t lead to noticeable price hikes.

Furthermore, another study from last year found a global 10% tariff could grow the U.S. economy by $728 billion, add 2.8 million jobs, and boost household incomes by 5.7%.

Eased Tariffs for UK, Tough Penalties for Violators

While most imports will face the 50% tariff, the United Kingdom gets a temporary carve-out. Steel and aluminum imports from the UK will remain at 25% until at least July 9, 2025, pending developments in the U.S.-UK Economic Prosperity Deal.

Also, the tariff applies only to the steel and aluminum content of imported products. Other materials will be taxed under standard rates.

In addition, the administration is introducing stricter enforcement. In this regard, importers will need to report steel and aluminum content more transparently now or risk fines or losing their import rights altogether.

The Industry Reaction: Praise and Concern

Some U.S. manufacturers and industry groups welcomed the higher tariffs, viewing them as a necessary shield against unfair global competition.

The American Primary Aluminum Association praised the move, saying stronger enforcement would help revive the domestic sector.

  • Domestic production of aluminum is just one-third of its needs. According to Statista, the United States imported about 4.8 million metric tons of aluminum for consumption in 2024.

Imports of aluminum for consumption in the United States from 2010 to 2024 (in 1,000 metric tons)

US aluminum

The steel industry, which saw a wave of investment after Trump’s first tariffs, also backed the decision. Over $10 billion was invested in new U.S. mills between 2016 and 2020, and the industry credited Trump’s policy for that resurgence.

But not everyone’s cheering.

A BBC report says Canadian producers, who supply a significant share of U.S. metal imports, warned the tariffs would “devastate” their industries. Meanwhile, U.S. businesses that rely on imported metals expressed frustration.

Rick Huether, CEO of Independent Can Co., said the chaos from sudden tariff hikes is already forcing firms to raise prices and delay investments.

He also added, “There’s a lot of chaos. I fear my customers will switch to plastic or paper packaging because of the uncertainty.”

Impact on Consumers and U.S. Supply Chains

Moving on, AP News has analyzed that the ripple effects of these tariffs go far beyond the metal industry. The report highlighted the potential impact of Trump’s tariffs on consumers and the U.S. supply chains in the following way:

  • Autos: Imported steel and aluminum could raise car and repair costs.
  • Electronics: Metal parts may push up gadget prices.
  • Canned goods: Aluminum cans could make groceries more expensive.
  • Construction: Higher metal costs may raise housing and project prices.
  • Logistics: Pricier trucks may increase shipping and shelf prices.

So, while the goal is to boost American production, the short-term cost could land on everyday consumers.

“So, Are Those Hiked Trump Tariffs Strategic or Tactical?”

Some still question Trump’s long-term strategy. Is this a serious industrial policy—or just a negotiating ploy?

Many firms hoped the move would be temporary. But Trump’s speech at the steel plant made one thing clear: he intends this to be permanent, unless countries agree to stricter trade terms.

  • The U.S. is the second-largest importer of steel globally, after the EU. Its main suppliers include Canada, Brazil, Mexico, and South Korea. With the new 50% tariff, trade dynamics are likely to shift dramatically.
us steel
Chart taken from United States Steel Imports Report

The Biden administration has not yet responded. But reactions from global partners will follow soon. Retaliatory tariffs are not off the table, and other nations may look to strike back.

For now, Trump’s second round of tariffs shows a strong push to bring manufacturing back to the U.S.—even if it leads to higher costs and trade disputes.

Raising tariffs to 50% is a bold move to support American industry. While metal producers in the U.S. support it, the decision could disrupt global trade and raise prices for American buyers. Whether this move brings long-term benefits or new problems will depend on how it’s enforced, how other countries respond, and what other policies are put in place.

DuPont Achieves 100% Renewable Electricity in EU: A Big Net Zero Milestone

Aiden Green
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DuPont Achieves 100% Renewable Electricity in EU: A Big Net Zero Milestone

DuPont has hit a major sustainability milestone by reaching 100% renewable electricity across all of its operations in the European Union, which helps in its goal to reach net-zero emissions by 2050. It also shows increasing energy in corporate environmental leadership. 

DuPont met its target using solar power installations and renewable energy certificates (RECs). This shows its commitment to clean energy and sets a strong example for the industrial sector.

From Solar to Certificates: How DuPont Powered the Switch

To reach 100% renewable electricity across its EU operations, DuPont took a two-part approach. First, it added solar panels at several facilities, allowing it to generate clean energy on-site. Second, it purchased renewable energy certificates to account for the remaining electricity demand.

The RECs show that DuPont’s power came from renewable sources. This is true even if the electricity for their plants came from the general grid.

DuPont now uses renewable electricity to power all 13 of its European facilities. This includes manufacturing, research, and business operations. 

What Does This Mean for the Company’s Carbon Footprint?

Moving to 100% renewable electricity across its EU sites significantly cuts DuPont’s carbon footprint. Most of these emissions fall under Scope 2, which includes emissions from purchased electricity. By decarbonizing this area of its operations, DuPont has slashed a major part of its greenhouse gas output in Europe.

The company is working toward reducing Scope 1 and 2 emissions by 50% by 2030 compared to 2019 levels. As of now, it has already reduced those emissions by 58%—surpassing its short-term goal. The switch to clean energy plays a big role in that progress.

DuPont scope 1 and 2 emissions
Source: DuPont Sustainability Report

Beyond its own footprint, DuPont’s continued purchasing of RECs also supports the broader market for clean energy projects. These funds help finance new solar and wind farms, expanding access to renewable energy across the EU.

Alexa Dembek, Chief Technology and Sustainability Officer at DuPont, emphasized the importance of this achievement in reaching their climate goals, saying:

“Converting our EU manufacturing sites to 100% renewable electricity is a significant step in our journey to further reduce our emissions, lower the carbon footprint of our products and put us on a clear path toward decarbonization in our operations by 2050.”

Tracking the Net-Zero Path: DuPont’s Emissions Journey

DuPont aims for net-zero carbon emissions by 2050. This goal matches the Science Based Targets initiative (SBTi) and the Paris Agreement, which seeks to keep global warming below 1.5°C.

Their plan includes cutting greenhouse gas emissions throughout their value chain, covering direct operations and supply chains.

Since setting its initial climate targets in 2019, DuPont has made significant progress. Cutting its Scope 1 and 2 emissions by 58% from 2019, beating its 2030 goal of a 50% reduction. These reductions come from better energy efficiency, using renewable electricity, and investing in clean tech.

Scope 3 emissions, which cover indirect emissions from purchased goods and services, have dropped by 39% since 2020. This shows DuPont’s strong commitment to tackling emissions beyond its direct operations.

DuPont total GHG emissions
Source: DuPont Sustainability Report

DuPont reached a big milestone in the European Union. Now, all 13 manufacturing sites use 100% renewable power. This achievement is a key part of their progress, helps reduce their carbon footprint, and supports the clean energy market.

The company remains committed to sourcing 60% of its global electricity from renewable sources by 2030 and reaching net-zero carbon emissions by 2050. Here are the other initiatives the company is taking as part of its climate action:

  • Energy Efficiency and Clean Technology: DuPont invests in energy efficiency improvements and clean technology innovations across its operations to reduce emissions and lower the carbon footprint of its products.

  • Sustainability Strategy Integration: Sustainability is embedded in DuPont’s innovation pipeline, manufacturing, supply chains, and community engagement, supporting long-term environmental and social outcomes.

  • Water Stewardship: DuPont also focuses on water risk management and stewardship at high-consumption and high-risk sites, improving access to clean water through technologies and partnerships.

These efforts show DuPont’s leadership in corporate sustainability, balancing environmental responsibility with business growth and innovation.

The Bigger Picture: Renewable Energy on the Rise

DuPont’s move matches a major trend in the European renewable energy market. The region wants to get 45% of its total energy from renewables by 2030. This goal pushes both the public and private sectors to make clean energy a priority.

The International Energy Agency also expects that global demand for solar energy could triple by 2030. This is partly because the cost of solar power has dropped by 89% since 2009, making it more affordable and scalable for companies like DuPont.

solar capacity by 2030

In 2025, global investment in clean energy is expected to reach $2.2 trillion, contributing to a record $3.3 trillion total energy investment worldwide. As demand rises, the renewable energy certificates market will grow too. This means companies that choose green energy can see better returns.

Will Others Catch Up?

DuPont’s success may put pressure on other industrial players to act. As environmental rules get stricter and people want green products more, many companies are realizing the benefits of investing in clean energy. Over time, the rising demand for corporate responsibility may make renewable electricity a must-have instead of just an option.

Still, each company will face its hurdles in switching to renewables. Large companies can act quickly because they have the resources. Others might catch up as battery storage, clean energy, and renewable tech get cheaper.

Corporate Energy 2.0: What’s Next in the Clean Transition

The road ahead suggests deeper investment in renewable technologies. As the global climate crisis worsens, companies will rethink how they power their operations. DuPont’s achievement signals a shift—it isn’t just about compliance anymore. Clean energy is becoming a standard part of smart, responsible business strategies.

Companies leading the way in energy transitions could set the pace for entire industries. With solar power cheaper than ever and the renewable energy market expanding, there is more incentive for businesses to act. DuPont’s success could encourage other firms to build clean energy strategies tailored to their needs and regions.

DuPont’s switch to 100% renewable electricity shows how business and net-zero goals can align. It also reflects what’s happening across the corporate world: environmental performance matters more than ever. 

The combination of RECs, on-site solar power, and long-term climate thinking makes DuPont a standout example of sustainability in action. As climate goals become stricter and clean energy expands, this strategy creates a scenario where environmental responsibility helps, not hinders, strong business performance.

Element Resources to Build America’s Largest $1.85B Green Hydrogen Plant in California

Aiden Green
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Element Resources to Build America’s Largest $1.85B Green Hydrogen Plant in California

Element Resources has received approval to build the Lancaster Clean Energy Center, a $1.85 billion green hydrogen plant in California. Once finished, this facility will be North America’s biggest green hydrogen plant. It can produce 22,000 tons of green hydrogen every year.

The project aims to meet the rising demand for clean energy. It will also help the United States shift from fossil fuels to sustainable energy sources.

Sun-Powered and Self-Sufficient: A Hydrogen First

The Lancaster Clean Energy Center stands out for its commitment to sustainability and innovation. The facility will run on 100% solar energy, using over 650 megawatts (MW) of solar power. Also, long-duration battery storage systems will support it. This setup lets the plant run 24/7 without needing grid electricity or fossil fuels. This way, hydrogen production stays clean and emission-free.

Lancaster Clean Energy Center
Source: Element Resources

The plant will use advanced electrolyzers. These machines split water into hydrogen and oxygen with electricity. The hydrogen produced is called “green” because it comes from renewable energy sources.

Traditional methods, on the other hand, burn fossil fuels and release greenhouse gases. The facility will produce gaseous and liquid hydrogen. It will distribute them with zero-emission fuel cell trucks.

The Project’s Environmental and Community Benefits

Reducing Carbon Emissions:

One of the main goals of the Lancaster Clean Energy Center is to reduce carbon emissions. If the plant produces 22,000 tons of green hydrogen each year, it can replace diesel or natural gas in transport and industry.

This switch could cut carbon dioxide emissions by over 200,000 tons annually, helping California reach its climate goals. These goals aim to cut greenhouse gas emissions by 40% below 1990 levels by 2030.

green hydrogen for net zero Element Resources
Source: Element Resources

Improving Air and Water Quality:

Using green hydrogen instead of fossil fuels also improves air quality. Hydrogen fuel produces only water vapor as a byproduct, which helps lower local air pollution and benefits public health.

The Lancaster plant will use groundwater from a nearby aquifer. It will only take 15–20% of the water that was used for farming on the same land. This change will ease the pressure on local water resources and promote sustainable development.

Supporting Local Communities

The project will create jobs during construction and operation. This includes roles for contractors, engineers, electricians, and plant workers. Local businesses that provide equipment and services will benefit too. This will help boost the regional economy.

The growth of green hydrogen plants also comes from tax incentives and state programs. One key program is California Jobs First. It promotes clean energy and boosts economic growth in the area.

The Role of Green Hydrogen in the Energy Transition

Green hydrogen is viewed as a vital solution for cutting carbon emissions in hard-to-electrify sectors. This includes heavy-duty transportation, shipping, and steelmaking.

Green hydrogen is different from fossil fuels. It doesn’t release harmful gases when used. This makes it important for countries and regions aiming to meet strict emissions targets.

Making hydrogen from renewable sources also boosts energy security. It lowers the need for imported oil and gas.

The Lancaster Clean Energy Center is part of a larger trend toward adopting green hydrogen across North America. The market for green hydrogen is growing rapidly, with projections showing that it could meet up to 22% of the world’s energy needs by 2050.

In the United States, government incentives from the Inflation Reduction Act are boosting major projects. They also speed up the shift to clean energy.

US green hydrogen market by source 2032
Source: GMInsights

Here are three notable green hydrogen plants in the U.S.:

  1. SoHyCal (California): The largest operational green hydrogen plant in North America, producing up to three tons daily using solar power, supporting hydrogen refueling stations. It could fuel up to 210,000 cars or 30,000 city buses annually once fully operational by mid-2025.

  2. Sauk Valley (Illinois): Operated by Invenergy, this plant produces about 40 tons annually, using solar energy to supply hydrogen for industrial and power generation uses.

  3. St. Gabriel (Louisiana): A joint venture by Plug Power and Olin, under construction to produce 15 tons daily, aiming to reduce CO₂ emissions and create jobs. Operation can start by the end of 2025.

Hydrogen Goes Global: A Market on the Rise

The global green hydrogen market is growing fast. It is set for major expansion in the next ten years.

Estimates say the market, worth about $7.98 billion in 2024, might grow to between $25 billion and $60 billion by 2030, depending on the source. The annual growth rates could range from around 22% to almost 39% from 2025 to 2030. This growth comes from more government support, new technology, and higher demand in many industries.

global green hydrogen market 2030
Source: Grand View Research

Government initiatives worldwide are critical drivers. Countries like India, Japan, Germany, and the United States are pushing hard on hydrogen. They have started strong strategies and funding programs. Their goal is to boost green hydrogen production and build the needed infrastructure.

  • For example, India aims to produce 5 million metric tons annually by 2030, while Japan targets 20 million tons by 2050.

These policies support global goals from the Paris Agreement. They position green hydrogen as a key way to cut emissions in hard-to-electrify areas like steelmaking, heavy transport, and chemical manufacturing.

New technology is lowering the costs of electrolyzers and renewable energy. This makes green hydrogen production cheaper and more practical. Renewable energy sources, such as solar and wind, work with electrolyzers to create clean hydrogen. This method ensures steady hydrogen production, which helps with energy storage and keeps the grid stable.

Also, infrastructure investments are growing worldwide. This includes hydrogen production plants, refueling stations, and distribution networks to meet rising demand.

From Lancaster to the World: A Blueprint for Clean Hydrogen

Looking ahead, green hydrogen could supply up to 24% of global energy needs by 2050, with the market potentially reaching $700 billion by 2040. Asia-Pacific, Europe, and parts of the Middle East and Latin America have many renewable resources. These regions are becoming leaders in green hydrogen development.

North America, especially states like California, is quickly embracing hydrogen technologies. They aim to achieve bold climate goals and build clean energy economies.

The Lancaster facility could set a new standard for large-scale green hydrogen production in North America. As more areas and companies aim for net-zero carbon goals, projects like this show how useful and efficient green hydrogen can be. 

The plant’s output will help with transportation, public transit, port operations, and aviation. This will aid in decarbonizing many sectors and will inspire more investment and growth in the sector.

The Element Resources initiative represents a major step forward for green hydrogen in North America. As the largest green hydrogen plant on the continent, it will serve as a model for future projects and play a crucial role in the transition to a sustainable energy future.

Japan’s Exclusive Economic Zone (EEZ) Unleashes Massive Offshore Wind Potential

Aiden Green
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Japan’s Exclusive Economic Zone (EEZ) Unleashes Massive Offshore Wind Potential

Media agency, The Maritime Exclusive, reported that Japan’s parliament has passed a pivotal amendment that will allow offshore wind projects in the country’s Exclusive Economic Zone (EEZ)—marking a major shift in the nation’s clean energy strategy.

First introduced in January 2024, the legislation aims to unlock over 4 million square kilometers of Japan’s EEZ for renewable energy development. Until now, wind farms have been limited to Japan’s territorial and internal waters.

Japan Unlocks Its Ocean to Tap Wind Energy

The Maritime Exclusive also highlighted, “according to the Japan Wind Power Association (JWPA), Japan’s EEZ holds the potential for up to 552 GW of offshore wind capacity primarily from deep-water floating turbines—a technology well-suited to the country’s geography.”

Key Features of the Amendment:

  • Designated Zones: The bill enables specific areas within the EEZ to be earmarked for offshore wind development.

  • Interagency Council: It mandates the Ministry of Economy, Trade and Industry (METI) to set up a coordinating council to work with local authorities, industry players, and other stakeholders.

  • Environmental Oversight: The legislation streamlines government-led environmental assessments, ensuring that renewable energy expansion does not come at the cost of marine biodiversity.

This legal reform not only boosts Japan’s ambitions to scale offshore wind but also strengthens its energy security and progress toward net-zero emissions by 2050.

2024: Cumulative installed capacity of Wind Power in Japan: 5,840.4MW (2,720 units)

japan wind
Source: JWPA

Energy Independence Meets Climate Action

Japan has long relied on fuel imports, especially after the 2011 Fukushima disaster reduced nuclear power use. Fossil fuels still dominate Japan’s energy supply. Offshore wind power offers a way to cut imports and add stability to the energy system.

The Japan Wind Power Association estimates offshore wind could produce 3.6 gigawatts (GW) of electricity by 2030. Japan targets 10 GW by 2030 and 45 GW by 2040. Offshore wind farms offer a steady energy supply, not influenced by land use or sunlight.

Offshore wind energy produces no greenhouse gases while operating. This makes it a strong tool against climate change. Electricity from offshore turbines replaces power from coal or liquefied natural gas. This shift aids Japan’s goal of carbon neutrality by 2050.

Japan’s latest Strategic Energy Plan aims for renewables to make up 40–50% of the energy mix by 2040. Offshore wind is expected to contribute 4–8% of that total. These projects avoid land use problems and urban conflicts, making them suitable for densely populated areas.

To protect marine ecosystems, the law includes environmental assessments. These surveys will look at risks like noise pollution and habitat disruption, ensuring projects align with ecological safeguards.

Offshore Wind Needs to Hit 2,000 GW by 2050 to Stay on Climate Track

In 2020, the Ocean Renewable Energy Action Coalition (OREAC) set a bold target: 1,400 GW of offshore wind by 2050 to align with the 1.5°C climate goal. Since then, leading institutions like the International Renewable Energy Agency (IRENA) have raised the bar, now calling for at least 2,000 GW of offshore wind by mid-century to reach net-zero emissions.

However, the world remains far behind. As of now, only 35 GW of offshore wind is installed globally. Even with current momentum, we’re only expected to reach 234 GW by 2030, according to GWEC Market Intelligence. Only the European Union has set a long-term target—300 GW by 2050.

wind energy
Source: GWEC

To close the gap, governments and private players must act fast. This decade is critical to unlock offshore wind’s full potential and keep climate goals within reach.

The law also makes Japan a more appealing partner for joint ventures. International companies may seek research collaborations, technology exchanges, and co-investment projects in Japan. This will strengthen Japan’s market presence and influence policy in the Asia-Pacific region.

Overcoming Offshore Wind Challenges

Despite strong government backing, developers may face technical, social, and financial challenges. Building turbines in deep waters and harsh weather areas adds complexity and cost. Securing stable financing and public support will be crucial. Engaging with fishermen and coastal communities early will help reduce opposition.

The success of these projects relies on teamwork. National agencies, local stakeholders, and private investors must work together. Effective grid planning and better port infrastructure are essential. They help maximize the benefits of offshore wind for consumers.

What Does This Mean for Japan’s Net-Zero Future?

As per Japan’s Ministry of Environment, the country’s greenhouse gas emissions and removals for FY2023 totaled 1,017 million tonnes of CO₂ equivalent (Mt CO₂e)—the lowest level ever recorded.

This marks a 4.2% drop (44.9 Mt CO₂e) from FY2022 and a 27.1% decline (378.1 Mt CO₂e) compared to FY2013, continuing the country’s steady progress toward its 2050 net-zero goal.

Japan emissions

The decline was largely driven by two key factors: a cleaner energy mix, with renewables and nuclear combined surpassing 30% of power generation, and lower energy demand, mainly due to reduced industrial output in the manufacturing sector.

Subsequently, this new law also fits in Japan’s energy policy. With technology, global demand, and government backing, offshore wind could lead to a major energy shift for the country. If done right, this law may lower energy imports, cut emissions, and encourage similar laws in Asia.

Meta Partners with Constellation to Power Illinois AI Data Centers with Nuclear Energy

Aiden Green
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Meta Partners with Constellation to Power Illinois AI Data Centers with Nuclear Energy

Meta has signed a 20-year energy deal with Constellation Energy to supply nuclear power to its growing AI data centers in Illinois. Beginning in 2027, this agreement will ensure a steady supply of clean energy. This will help Meta grow its AI operations and cut carbon emissions.

Nuclear energy is low in carbon and reliable, making it a good choice for big tech companies. As these companies increase their green power commitments, they also face more regulatory pressure.

Why Meta Is Betting Big on Nuclear for Its AI Future

Meta signed a long-term contract to support its growing energy needs. This is important as its AI infrastructure expands in Illinois. AI data centers use a lot of electricity, and nuclear power provides a reliable and strong energy source.

data center electricity demand due AI 2030
Source: IEA

Moreover, nuclear doesn’t emit greenhouse gases while running. This makes nuclear a strong alternative to fossil fuels, which still dominate much of the U.S. energy landscape.

Constellation Energy will supply energy from the Clinton Clean Energy Center. This nuclear plant currently powers about 800,000 homes. As part of the deal, the plant will boost output by 30 megawatts to meet increased demand from Meta’s operations.

The agreement lets Meta boost its AI skills using clean energy, not coal or gas. This helps the tech giant lead in the shift to sustainable power.

The Environmental Edge of Meta’s Nuclear Pact

Nuclear power plays a key role in reducing carbon footprints. Unlike fossil fuels, nuclear energy does not emit CO2 when generating electricity. Meta’s new deal helps the company limit its environmental impact while supplying the massive energy needs of AI systems.

Nuclear power accounts for about 20% of the U.S. energy supply. This helps reduce the emissions that contributes to climate change.

The World Nuclear Association says that since 1971, nuclear energy use has stopped more than 64 gigatons of CO2 emissions. That equals removing every car from U.S. roads for 14 years. Worldwide, about 10% of power comes from nuclear.

nuclear power share of electricity global 2024
Source: Our World in Data

Meta boosts the argument for nuclear energy in climate efforts by using Illinois’ nuclear network. This network already provides more than half of the state’s electricity.

The Clinton plant will keep running under this deal. This helps the environment by stopping new fossil-fuel plants from being built. It also cuts down the need for carbon-heavy peaker plants used during peak power times.

What’s the Economic Impact of This Energy Agreement?

The Clinton Clean Energy Center will maintain more than 1,100 local jobs and generate roughly $13.5 million in annual tax revenue. That’s a big boost for the state’s economy. It shows how clean energy investments help the environment and support local jobs.

Meta’s partnership with Constellation shows that nuclear power is not only good for the environment but also makes economic sense. By securing fixed energy costs in the long term, companies like Meta can avoid price volatility in fossil fuels. With AI and data center growth accelerating, this kind of cost stability becomes even more critical.

How Does This Fit Into Tech’s Clean Energy Strategy?

Tech companies increasingly look to clean energy like nuclear to power their operations while reducing emissions. Meta plans to reach 100% renewable energy use for all global operations by 2025. The map below shows where its renewable energy projects are.

Meta renewable energy projects map
Source: Meta

Signing long-term clean energy deals supports this goal. It also helps the company meet climate reporting and disclosure rules from investors and governments.

According to the International Energy Agency, global investments in renewable energy will surpass $1 trillion annually. Much of this growth is being driven by corporate buyers like Meta, who are paving the way with large-scale power purchase agreements.

The partnership with Constellation boosts Meta’s goal to lead in sustainability. It also helps support clean energy infrastructure.

Why Does Nuclear Energy Appeal to Big Tech?

Nuclear energy offers constant output, unlike solar or wind, which depend on the weather. For data centers that require 24/7 energy supply, this reliability is critical. It avoids downtime and reduces the need for diesel generators or carbon-heavy energy backups. With AI functions demanding even more power than traditional digital systems, nuclear becomes a logical choice.

Federal energy policies are also evolving to support expanded nuclear capacity. The Biden administration, for example, has called for tripling global nuclear capacity by 2050. That momentum adds long-term policy backing for deals like Meta’s, helping reinforce nuclear’s key role in the clean energy grid.

The Market Trends Behind This Move

Meta’s move reflects a growing trend among tech leaders to sign long-term clean energy contracts. Market leaders like Amazon, Google, and Microsoft have already invested heavily in solar and wind. Now, these companies are focusing on nuclear power. They want clean energy that’s always available. This energy can support big operations, like AI data centers.

This trend aligns with expected growth in clean energy investments, particularly in more reliable forms of power. The U.S. market continues to prioritize decarbonization, and nuclear energy stands out by offering consistent output with zero emissions during operation. Meta’s decision highlights nuclear’s rising appeal in a changing energy market.

What Challenges Still Remain?

Despite nuclear power’s advantages, scaling up remains difficult. New plants face long construction times and high upfront costs. The U.S. is only building a few new reactors, and existing infrastructure requires upgrades. Modernizing the grid and improving energy storage are crucial. They will help ensure clean energy supplies run smoothly.

Still, Meta’s investment helps keep the conversation active around nuclear’s potential. It supports existing plants, encourages innovation, and strengthens demand for new regulatory solutions and financing methods.

More notably, President Donald Trump recently signed a series of executive orders aimed at revitalizing and transforming the U.S. nuclear energy sector. These orders focus on accelerating reactor development, easing regulatory barriers, increasing domestic uranium production, and reforming the U.S. Nuclear Regulatory Commission (NRC).

Meta’s energy deal with Constellation signals a new chapter for tech’s relationship with clean power. As AI continues to drive up energy needs, reliable and carbon-free sources like nuclear will become essential for managing environmental impact and meeting corporate climate targets.

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