LEGOโ€™s New Brick-by-Brick Climate Move: E-Methanol Replaces Fossil-Based Plastic

LEGO is turning to a renewable chemical to reduce its reliance on fossil fuels. The toy maker has started using e-methanol to help produce more than 90 types of plastic elements, including connectors, steering wheels, cross axles, and the hands of its famous minifigures.

The move marks a new step in LEGOโ€™s effort to use more renewable and recycled materials. The company says the change follows more than five years of testing and work with suppliers to bring e-methanol into its manufacturing process.

The material offers an alternative to fossil-based ingredients used to make plastic. However, LEGO is not replacing all conventional plastic at once. The new material enters a shared production process where renewable and fossil-based sources are mixed.

The move comes as companies look for ways to cut emissions from materials that are difficult to replace. It also supports LEGOโ€™s wider climate goals: cutting its total greenhouse gas emissions by 37% by 2032, compared with 2019, and reaching net zero by 2050.

LEGO Starts Using E-Methanol in More Than 90 Elements

LEGOโ€™s new material is being used in more than 90 rigid and durable elements. These include small parts that connect pieces, steering wheels, cross axles, and minifigure hands.

These parts may be small, but making them requires plastic materials that meet strict safety and quality standards. LEGO products are made for repeated use. So, any new material needs to have the strength and durability LEGO demands.

The company noted in its release:

“This marks the latest step on our journey to increase the recycled and renewable materials we purchase to make Lego products, without compromising on safety, quality or durability.”

E-methanol gives LEGO another way to reduce its use of virgin fossil-based materials. Virgin fossil materials are made from newly extracted oil or gas rather than recycled or renewable sources. The company has not disclosed how many tonnes of e-methanol it will use, the share of each product made from it, or the expected emissions savings from this first rollout.

That makes the announcement an important manufacturing step, but not yet proof of a specific reduction in LEGOโ€™s total emissions. The wider impact will depend on how quickly the company can increase its use of the material and how much fossil-based input it replaces.

From Renewable Power to Plastic: How E-Methanol Works

E-methanol is a form of methanol made using renewable electricity and captured carbon dioxide (COโ‚‚). Methanol is a chemical used to make many products, including plastics and industrial materials.

The process begins with renewable electricity, which powers equipment that splits water to produce hydrogen. That hydrogen is then combined with captured COโ‚‚ to make methanol.

LEGOโ€™s e-methanol comes from the Kassรธ facility in southern Denmark. Developed by European Energy and operated with Japanese trading company Mitsui & Co., the plant began commercial production in 2025. The facility has an annual production capacity of 42,000 tonnes and runs on renewable energy. It uses COโ‚‚ from a biogas facility as a key input.

The methanol can then be used to make plastic materials, replacing some of the fossil-based raw materials normally used in production. However, e-methanol is not the same as recycled plastic. It provides an alternative chemical feedstock, while recycling uses existing materials again. Both approaches can help reduce reliance on newly extracted fossil resources.

The climate benefits also depend on how the material is produced. Renewable electricity, the source of captured carbon, manufacturing emissions, and the amount of fossil-based material displaced all affect the final result.

LEGO e-methanol

A Shared Production System Helps Scale the Material

One challenge for LEGO is introducing new materials without disrupting its existing factories and supply chains. The company says its e-methanol enters a continuous production process where conventional fossil-based material is also present. This approach allows suppliers to increase the use of renewable inputs within existing production systems.

LEGO uses a method known as mass balance for some recycled and renewable materials. Under this system, suppliers mix certified renewable or recycled sources with conventional fossil-based inputs. They track the amounts entering and leaving the production system.

LEGO ghg emissions mass balanced
Source: LEGO

The approach can help companies increase the use of alternative raw materials without building an entirely separate manufacturing system.

However, it has an important limitation. LEGO cannot guarantee that each part has a specific minimum percentage of renewable or recycled material because the inputs are mixed. Instead, the company tracks the sources and quantities across the supply chain.

This distinction matters when assessing environmental claims. Using renewable feedstocks can reduce the need for fossil resources, but the exact benefit depends on the amount used and the accounting method.

LEGO says the e-methanol rollout is part of its wider effort to increase renewable and recycled materials without compromising product safety, quality, or durability. The toymaker is also using sustainable packaging materials and processes.

LEGO more sustainable materials
Source: LEGO

LEGOโ€™s Material Shift Supports Its Climate Targets

LEGO has set a science-based target to cut its total greenhouse gas emissions by 37% by 2032, compared with a 2019 baseline. It also aims to reach net zero by 2050. The targets cover emissions from its operations and wider value chain, including suppliers.

The latest figures show why further action is needed. LEGO reported 2.19 million tonnes of carbon dioxide equivalent (tCOโ‚‚e) in total greenhouse gas emissions in 2025. This is a small increase of 0.2% from 2024, based on its market-based reporting method. Most of these emissions came from its wider value chain, classified as Scope 3.

Scope 3 emissions include indirect emissions from activities such as producing purchased materials and transporting goods. These emissions can be harder to reduce because they occur outside a companyโ€™s direct control.

LEGO is working with suppliers to lower the impact of the materials it buys. It is also expanding renewable energy use at its factories and improving energy efficiency.

The company reported that 52% of the materials it purchased to make LEGO bricks and elements in 2025 came from recycled and renewable sources. These materials were used in more than 200 different elements, and around half of LEGO sets contained at least one such element. The figure relies largely on the mass-balance approach.

LEGO aims to keep raising that share by 2032, when the company celebrates its 100th anniversary. The e-methanol initiative adds another option alongside other renewable and recycled materials.

LEGO greenhouse gas emissions
Source: LEGO

E-Methanol Faces a Cost Gap as Global Methanol Output Tops 100 Million Tonnes

LEGOโ€™s move reflects a wider effort to replace fossil-based chemicals with lower-carbon alternatives, but renewable methanol remains a small part of the overall market.

European Energy says more than 100 million tonnes of methanol are produced worldwide each year, mainly using natural gas and coal. The Kassรธ plant can produce 42,000 tonnes a year. This shows how limited current commercial e-methanol production is compared to traditional supply.

The International Renewable Energy Agency (IRENA) and the Methanol Institute have identified renewable methanol as a potential tool for cutting emissions in chemicals and transport. Their 2021 outlook said production costs were high and output was low. However, costs might decrease as technology and supply chains improve.

Current and future production costs of bio- and e-methanol
Source: IRENA

The International Energy Agency (IEA) has also warned that renewable fuel growth remains too slow to meet a net-zero pathway. The 2024 outlook predicts that e-fuel use must increase over ten times by 2030. This is necessary to meet the IEAโ€™s Net Zero by 2050 Scenario. This applies to e-fuels broadly, not only e-methanol for plastics.

High production costs, the need for large amounts of renewable electricity, and limited supply remain major barriers. Companies also need clear ways to verify the source of materials and measure emissions savings.

For LEGO, the supply agreement offers access to a commercial source of e-methanol. Demand from manufacturers can boost investment in production capacity. However, the impact will depend on future contracts and prices.

Can Renewable Feedstocks Deliver Measurable Emissions Cuts?

LEGOโ€™s e-methanol rollout will not immediately transform the materials used across its entire product range. The company has not yet announced the volume it will use or the emissions savings expected from the new material.

Still, the initiative shows how manufacturers can begin replacing fossil-based raw materials without redesigning every product or factory at once. The approach may also help suppliers gain experience with renewable feedstocks and improve production systems.

As LEGO works toward its 2032 emissions target and 2050 net-zero goal, e-methanol adds another tool to its materials strategy. Its long-term value will depend on scaling supply, reducing production costs, and proving that renewable inputs deliver measurable emissions cuts.

South Korea Unveils $747 Billion Green Plan to Decarbonize Industry

South Korea has unveiled a 1,000 trillion won ($747 billion) green investment plan to cut emissions, expand clean energy, and help its industries compete in a lower-carbon economy.

The Korean Green Transformation Strategy, known as K-GX, will run from 2026 to 2035. Announced on October 7, 2026, it aims to support cleaner manufacturing, renewable energy, electric vehicles, and new climate technologies.

The government plans to mobilize 1,000 trillion won through public funding and policy-backed climate finance. It also expects a further 220 trillion won in private-sector investment for selected green projects. These are investment targets, not funds already spent.

South Koreaโ€™s Ministry of Climate, Energy and Environment said:

โ€œThis framework guarantees that South Korea will firmly adhere to its global carbon neutrality milestones while actively building domestic green jobs and securing the next generation of energy self-reliance.โ€

How South Korea Will Fund the Plan

South Korea wants to cut greenhouse gas emissions by 53% to 61% from 2018 levels by 2035 and reach carbon neutrality by 2050. The new plan is designed to support those goals while protecting the countryโ€™s manufacturing and export industries.

The government plans to combine public spending with loans, guarantees, and private investment. Its financing plan includes around 200 trillion won from government budgets and more than 790 trillion won in policy-backed climate finance. This financing aims to support clean energy infrastructure, industrial upgrades, and research into low-carbon technologies.

The government also wants private companies to invest another 220 trillion won in designated projects. Tax incentives, easier access to financing, and public-private partnerships are expected to help attract that money.

The goal is to help companies manage the high cost of changing how they make products. Many factories rely on fossil fuels, and replacing their equipment can take years and require major investment. However, the planโ€™s success will depend on how much funding reaches actual projects and whether those projects deliver measurable emissions cuts.

Five Industries Face Pressure to Cut Emissions

K-GX focuses on five major industrial groups:

  • steel,
  • petrochemicals,
  • cement,
  • semiconductors and displays, and
  • oil refining.

These industries support South Koreaโ€™s economy but can produce large amounts of greenhouse gases. Some also need very high temperatures or specialized industrial gases that are difficult to replace. The government plans to support cleaner production methods across these sectors.

In steelmaking, it aims to demonstrate hydrogen-based iron production at a scale of 30,000 tonnes by 2030. This technology uses hydrogen instead of coal to remove oxygen from iron ore.

Petrochemical and refining companies are expected to explore cleaner fuels, feedstocks, and electric equipment. Cement makers will focus on lower-carbon methods. At the same time, semiconductor and display manufacturers will find ways to cut emissions from industrial gases.

These changes could help South Korean manufacturers supply customers seeking lower-carbon products. But companies will need affordable clean electricity, reliable technology, and suitable infrastructure to make the transition.

South Korea Targets 100 GW of Renewable Power by 2030

South Korea aims to expand its renewable energy capacity to 100 gigawatts by 2030. Solar and wind power are expected to play major roles.

The government plans to upgrade the electricity grid. This will help it carry more renewable power from generation sites to factories and cities.

This is important because building solar and wind farms alone will not be enough. The country also needs transmission lines and other equipment to deliver that electricity where it is needed.

More renewable power could help manufacturers reduce emissions from their electricity use. It could also create opportunities for solar panel makers, wind developers, battery companies, and grid equipment suppliers. Still, meeting the target will depend on construction, permits, financing, and the speed of grid upgrades.

South Korea decarbonization

EVs and Hydrogen Vehicles to Gain Ground

South Korea wants electric and hydrogen-powered vehicles to account for more than 70% of new vehicle sales by 2035. The plan includes support for charging stations and cleaner transport. It also covers buses, rail, construction equipment, ports and ships.

The shift could support South Korean companies that make electric vehicles, batteries and charging equipment. It may also increase demand for better battery technology and related infrastructure.

The government has identified 10 priority green industries for support. These include electric vehicles, batteries, solar panels, wind power, small modular nuclear reactors, power equipment, power semiconductors, heat pumps, hydrogen and carbon capture.

It plans to support research and demonstration projects to help these technologies reach the market. However, growth will depend on costs, customer demand, and competition from other countries.

Can South Korea Cut Emissions Without Losing Industrial Ground?

South Koreaโ€™s climate targets require changes across its energy and manufacturing sectors. As a top ten global energy consumer reliant on coal for 33% of its power, the nation faces a steep climb to modernize its massive steel, semiconductor, and petrochemical industries.

Through new transition finance frameworks and stricter ESG reporting, the government aims to channel this capital into renewable energy, hydrogen tech, and low-carbon manufacturing. The ultimate goal is to help corporate giants slash emissions to hit South Korea’s aggressive climate targets: a 40% reduction by 2030 and full carbon neutrality by 2050.

2050 CARBON NEUTRAL STRATEGY South Korea
Source: UNFCCC
The transition will not be simple. Heavy industry depends on equipment that can operate for decades, and replacing it can be expensive. Companies will also need steady supplies of low-carbon energy. The K-GX strategy is intended to help meet those targets while supporting economic growth.ย 

The plan includes support for workers and regions affected by the shift away from high-emission industries. It also calls for stronger protection against climate risks for industrial sites and sectors such as shipbuilding and logistics.

These measures aim to make the transition easier for businesses and communities while encouraging companies to adopt cleaner technologies.

What the Plan Means for Green Investment

The strategy could create new demand for renewable power, grid upgrades, batteries, and low-carbon industrial equipment.

South Korea has also highlighted projects involving Hanwha Qcells, POSCO Holdings, LG Electronics, and Samsung Electronics. These companies presented projects linked to renewable energy, cleaner industry, and greener buildings at the strategyโ€™s launch.

For investors, the $747 billion headline figure needs context. It represents planned financing to be mobilized over a decade, not a single government payment or guaranteed return.

Actual investment will depend on project approvals, company spending, and the ability of new technologies to compete on cost. Renewable energy growth needs better grid systems. Industrial upgrades must cut emissions effectively.

A Decade-Long Shift Toward a Lower-Carbon Economy

South Koreaโ€™s K-GX strategy sets out a 10-year plan to change how the country produces energy, manufactures goods, and moves people and products.

Its main goals are to:

  • Mobilize 1,000 trillion won in financing.
  • Attract 220 trillion won for private projects.
  • Reach 100 GW of renewable energy by 2030.
  • Make electric and hydrogen vehicles over 70% of new sales by 2035.

The plan supports South Koreaโ€™s wider target of cutting emissions by 53% to 61% from 2018 levels by 2035 and reaching carbon neutrality by 2050.

Whether it achieves these goals will depend on how quickly funding reaches projects, how much clean energy becomes available, and whether industries can adopt lower-carbon technologies at scale.

EnergyX Signs $2 Billion Lithium Supply Deal With Trafigura

Energy Exploration Technologies, Inc or EnergyX, has signed a 10-year lithium supply agreement with global commodities trader Trafigura, securing a long-term buyer for products from its planned lithium projects in Chile and the United States.

The binding agreement covers 100,000 metric tons of battery-grade lithium products. Based on current lithium prices of approximately $20,000 per metric ton, EnergyX estimates the contract could generate more than $2 billion in revenue over its 10-year term.

Announced on October 13, 2026, the deal marks EnergyXโ€™s first publicly disclosed commercial offtake agreement. It also gives the company a potential source of long-term sales revenue as it seeks financing to develop its lithium production facilities.

The agreement comes as demand for lithium-ion batteries expands beyond electric vehicles (EVs) to include grid-scale energy storage. However, EnergyX must still complete project development, secure sufficient financing, and bring its facilities into commercial production before it can fulfill the contract.

EnergyX to Supply Lithium From Chile and Texas

Under the agreement, EnergyX will supply battery-grade lithium carbonate from Project Black Giant in Chile and lithium hydroxide from Project Lonestar in Texas.

The contract follows a take-or-pay structure, under which Trafigura commits to purchasing agreed volumes under the terms of the contract. The arrangement provides a commercial framework for future sales, although the estimated $2 billion value depends on lithium prices and the contractโ€™s pricing terms.

Trafigura will purchase an average of 10,000 metric tons of lithium products annually over the contract period, according to Reuters. This includes 5,000 metric tons each of lithium carbonate and lithium hydroxide per year.

The agreement also allocates a significant share of the projectsโ€™ planned initial production to Trafigura.

  • Project Black Giant, Chile: Trafigura will take 66% of the projectโ€™s Phase 1 output. EnergyX plans to produce 7,500 metric tons of lithium carbonate annually, with production targeted to begin in 2028.
  • Project Lonestar, Texas: Trafigura will purchase 30% of Phase 1 output. EnergyX plans to produce 15,000 metric tons of lithium hydroxide annually in Texas, with commercial production targeted for 2029.

The company is pursuing additional offtake agreements as it works toward securing commitments for 80% of planned production. Such agreements can help developers demonstrate market demand and strengthen their case when approaching lenders and investors.

Here’s the infographic that explains the key highlights of the deal:

energy X lithium trafigura

$690 Million US EXIM Financing in Focus

The Trafigura agreement could support EnergyXโ€™s efforts to secure financing for its commercial lithium projects.

EnergyX has received a $690 million letter of intent from the US Export-Import Bank (EXIM Bank) for potential debt financing associated with Project Black Giant. An offtake agreement can help lenders assess future sales prospects, although it does not guarantee loan approval or the release of funds.

Additionally, the company has also secured a $225 million strategic investment from Italian energy company Eni for Project Black Giant, according to its announcement.

Together, the commercial agreement and financing initiatives are intended to advance EnergyXโ€™s plans to develop lithium production capacity in the Americas.

โ€œOfftake agreements are among the most important steps in taking a lithium project from development to production,โ€ said Teague Egan, Founder and CEO of EnergyX. โ€œA long-term purchase commitment from a counterparty of Trafiguraโ€™s scale and credit quality shows that the market wants EnergyXโ€™s product. It also gives lenders and investors the revenue visibility they need before committing capital to commercial construction.โ€

The agreement is an important commercial milestone, but EnergyX still needs to fund, build, and commission its planned facilities. The timing and scale of future production will therefore be important to its ability to meet the contract.

Lithium Demand Forecast Points to Long-Term Growth

The deal comes amid changing demand patterns in the global lithium market. EV batteries remain a major source of consumption, while battery storage systems are becoming an increasingly important source of demand.

The International Energy Agencyโ€™s (IEA) Global Critical Minerals Outlook 2026 projects that lithium demand will more than triple by 2040 under its Stated Policies Scenario. Electric vehicles, battery storage, renewable energy, and electricity networks are major drivers of demand for critical minerals.

Battery storage is gaining importance as electricity grids accommodate more renewable power and data centers require additional electricity infrastructure.

  • Reuters reported in January 2026 that lithium demand from energy storage was expected to rise by 55% during the year, following growth of 71% in 2025, based on UBS data.

The report also highlighted forecasts of a potentially tighter lithium market in 2026, although analysts differed on the expected balance between supply and demand.

These trends could support long-term demand for battery-grade lithium chemicals. However, the market remains sensitive to EV sales, battery technology changes, new production capacity, and fluctuations in lithium prices.

Global Lithium Supply and Processing Capacity

Despite the demand outlook, the lithium industry has faced periods of oversupply and falling prices as new production has outpaced consumption. The marketโ€™s future balance will depend on how quickly demand grows relative to mine output, refining capacity, and recycling.

The IEAโ€™s 2026 outlook suggests that the supply outlook for lithium has improved compared with earlier assessments as more projects enter the development pipeline. However, it also highlights an ongoing challenge: mining and refining capacity do not always develop at the same pace.

This distinction matters because lithium extracted from brines or mined from hard-rock deposits must be processed into chemicals that meet battery manufacturersโ€™ specifications. Producing battery-grade lithium consistently at commercial scale can be more demanding than producing lower-grade material.

lithium battery market size

China remains central to this processing chain. Its established refining infrastructure gives it a major role in supplying lithium chemicals to battery manufacturers, while companies in the United States and other regions seek to develop alternative sources.

EnergyX aims to address part of this challenge through its direct lithium extraction (DLE) technology. The process is designed to extract lithium from brine without relying solely on conventional evaporation ponds. Its commercial performance will depend on factors such as recovery rates, operating costs, brine chemistry, and the ability to scale production reliably.

EnergyX Advances Direct Lithium Extraction Technology

Founded in 2018 by Teague Egan, EnergyX is developing lithium projects across North and South America. Its technology platform, GET-Lit, combines direct lithium extraction and refining processes intended to support lithium production from brine resources.

  • The company commissioned its Project Lonestar demonstration facility in Texas in 2026. The facility is designed to test its extraction technology using locally sourced brine from the Smackover formation, which extends across parts of the southern United States.
  • EnergyX is also advancing Project Black Giant in Chile, a planned 52,500-ton-per-year lithium project, according to the companyโ€™s announcement. Its other US operations include brine resources in Texas and Arkansas.

Commercial-scale production remains the next major step. Demonstration facilities can show whether a process works under operating conditions, but developers must still prove that the technology can deliver consistent output at the required scale and cost.

Daniel von Arx, Head of Battery Metals at Trafigura, said,

โ€œWe are pleased to support EnergyX as it develops its lithium projects in Chile and the US. Long-term offtake is an important step in moving projects into production, and this agreement reflects our ability to help bring strategic critical minerals projects online and build secure, diversified supply chains.

Drawing on our logistics network and market expertise, we look forward to supplying these battery-grade lithium products to customers, supporting supply chains for the US automotive and energy storage industries.โ€

What the Agreement Means for the Lithium Market

For EnergyX, the Trafigura deal provides a defined commercial route for future lithium production and may strengthen its efforts to secure project financing. For Trafigura, it offers access to planned lithium supplies from projects in two countries, with potential links to expanding battery and energy storage markets.

The agreement also reflects a broader effort to diversify lithium supply chains beyond established processing hubs. However, bringing new capacity online requires capital, reliable technology, regulatory approvals, and competitive production costs.

As battery demand expands, the market will need both additional lithium resources and enough processing capacity to convert them into battery-grade products. EnergyXโ€™s progress will depend on whether it can translate its offtake commitment and technology development into commercially viable production.

British International Investment (BII) Pledges $1.6 Billion for Southeast Asiaโ€™s Clean Energy Transition

British International Investment (BII), the UKโ€™s development finance institution, plans to commit $1.6 billion to climate finance in Southeast Asia over the next five years. The investment aims to help countries reduce their reliance on fossil fuels, expand renewable energy, and build more climate-resilient economies.

The announcement marks the fifth anniversary of BIIโ€™s Asian headquarters in Singapore. It also signals a bigger push to bring private investors into the regionโ€™s clean energy transition.

BII will invest in developing economies, including Vietnam, Indonesia, the Philippines, Malaysia and Thailand. These countries face growing energy demand and still rely on fossil fuels for a significant share of their electricity.

To support the transition, BII plans to combine its own funding with private investment. Of the $1.6 billion commitment, approximately $800 million will come from BII, while the remaining amount is expected to come from private investors.

The goal is to make more money available for renewable energy and other climate-related projects across the region.

BII Targets $1.6 Billion in Climate Finance

The new commitment builds on BIIโ€™s existing investments in Southeast Asia. Between 2023 and 2025, the institution committed nearly $400 million in climate finance in the region.

Now, it plans to scale up that investment over the next five years.

A significant share of the new funding will flow through British Climate Partners (BCP), a climate finance initiative launched by BII earlier this year. BCP focuses on fast-growing Asian economies with high carbon emissions, where investment can help cut pollution while supporting economic growth.

Moreover, BII plans to use its funding to attract private capital into projects that need substantial upfront investment. This approach could help renewable energy developers and infrastructure companies secure the financing needed to expand their operations.

The UK Foreign Secretary, Ed Miliband, said:

โ€œThe climate crisis is a national security issue that demands urgent attention. That is why this government has a world leading agenda on tackling the climate crisis at home and internationally.

โ€œI am proud that BII, the UKโ€™s development finance institution, is taking action to help countries across South-East Asia build cleaner, more resilient economies. BII is central to the UKโ€™s efforts to unlock much more private investment to deliver on our climate and development goals.โ€

climate finance
Source: BII

Renewable Energy and Infrastructure Take Center Stage

BII will focus on sectors that can reduce emissions, improve energy access, and help countries prepare for climate risks.

Its investment priorities include:

  • Renewable energy: Expanding clean electricity generation to reduce dependence on fossil fuels.
  • Power transmission: Supporting infrastructure that moves electricity from power plants to homes and businesses.
  • Electric vehicle infrastructure: Developing the infrastructure needed to support the shift toward electric transport.
  • Waste management: Funding projects that improve waste treatment and resource recovery.
  • Water infrastructure: Helping communities and businesses manage water-related climate risks.

Together, these investments are expected to add around 1.8 gigawatts (GW) of clean energy capacity and avoid nearly 1.7 million tonnes of carbon emissions.

Existing Investments Deliver Clean Energy and Economic Benefits

BII has already backed several companies and funds working across the regionโ€™s clean energy sector.

These include renewable energy developer ib vogt, clean energy company Skye Renewables, and Indonesian solar company Xurya. BII has also invested in Vietnam-based lenders VPBank and HDBank, as well as the Asian Development Bank.

In addition, its fund investments include Pentagreen Capitalโ€™s Green Investment Partnership, Gresham Houseโ€™s SUSI Asia Energy Transition Fund and 100ร—100 Impact Fund I.

  • BIIโ€™s existing infrastructure and climate portfolio in Southeast Asia has supported approximately 358 megawatts (MW) of operational or installed clean energy capacity.
  • The portfolio has also generated more than 556,000 megawatt-hours (MWh) of renewable electricity and reported around 368,000 tonnes of avoided carbon emissions.

These projects have also supported more than 2,000 direct, operational and temporary construction jobs. Therefore, the investment strategy aims to deliver economic benefits alongside emissions reductions.

BIIโ€™s Climate Strategy Extends Beyond Clean Energy

The $1.6 billion commitment also supports BIIโ€™s wider climate strategy, which aims to align its investments with the Paris Agreement.

The institutionโ€™s approach rests on three main priorities:

  • Net zero by 2050: Support the shift to a low-carbon economy through investments that help reduce emissions over time.
  • A just transition: Promote decent jobs and skills development as countries move away from fossil fuels.
  • Climate adaptation and resilience: Help businesses, communities and essential infrastructure prepare for the effects of climate change.

BII has also pledged to direct at least 30% of its total new commitments toward climate finance over the next five years. Separately, it aims to bring its portfolio of more than 1,500 companies to net-zero emissions at the portfolio level by 2050 at the latest.

For Southeast Asia, these goals come at a time when countries need to expand electricity supplies while managing emissions and climate risks. Investment in renewable power, electricity networks and supporting infrastructure will be important to meeting that challenge.

Source: BII

Leslie Maasdorp, Chief Executive Officer of BII, said:

โ€œOur singular focus for the South-East Asia region is to fund climate finance projects that will contribute to the regionโ€™s clean and sustainable economic future. The global challenge of the climate emergency knows no borders. Thatโ€™s why we are committed to powering economic growth in the region, while driving emissions down and delivering a return for the UK taxpayer.โ€

Srini Nagarajan, Managing Director and Head of Asia at BII, added:

โ€œBII has established itself in South-East Asia as a provider of capital focused on accelerating the development of key climate finance projects in the region. The next five years will see us commit a significantly greater level of capital to widen the pipeline of climate finance opportunities and turbocharge the pace of the green transition.โ€

Southeast Asiaโ€™s Renewable Energy Capacity Set to Surge 3x by 2035

Southeast Asiaโ€™s renewable energy market is poised for rapid growth as electricity demand rises. According to the International Energy Agency (IEA), the region had 120 gigawatts (GW) of renewable energy capacity in 2024. Under current policies, capacity could nearly triple by 2035, while meeting announced targets could increase it fivefold.

The IEA also projects that:

  • Rising electricity demand: Electricity demand could increase by around 70% by 2035 from 2024 levels under the announced pledges scenario.
  • Solar and wind growth: Solar generation could exceed 450 terawatt-hours (TWh) by 2035, while wind generation could surpass 270 TWh.
  • Cleaner power mix: Low-emissions sources could supply just over 50% of Southeast Asiaโ€™s electricity generation by 2035 if governments meet their announced pledges.
  • Grid investment: Annual investment in electricity grids and storage would need to reach $50 billion by 2050, up from around $13 billion today, under the same scenario.

southeast asia clean energy

However, achieving these targets will require more funding for renewable energy projects, electricity networks and energy storage. This creates opportunities for development finance institutions such as BII to attract private capital and support the regionโ€™s clean energy transition.

Can BIIโ€™s Investment Attract More Private Capital?

BIIโ€™s $1.6 billion commitment aims to do more than fund individual climate projects. By mobilizing a similar amount from private investors, the institution hopes to increase the capital available for Southeast Asiaโ€™s energy transition.

However, the results will depend on how quickly the funding reaches projects, how much private investment it attracts and how effectively those investments reduce emissions.

If successful, the initiative could help expand clean energy capacity, improve infrastructure and create jobs while supporting economic growth across Southeast Asia.

For climate investors, the commitment also highlights the growing role of development finance institutions in funding the transition to cleaner energy in emerging markets.

Urenco and Thorizon Target Next-Gen Nuclear Fuel Markets as Uranium Demand Grows

Thorizon and Urenco have signed a memorandum of understanding (MoU) to explore cooperation on nuclear fuel for advanced molten salt reactors. The companies will assess how Urenco could supply enriched uranium and whether Thorizonโ€™s future reactors could use depleted uranium, a by-product of the enrichment process.

The agreement could help Thorizon secure fuel for its planned reactors while allowing Urenco to expand its role in the advanced nuclear market.

The partnership comes as countries look to nuclear power for reliable, low-carbon electricity. However, the industry must address a key challenge: securing enough uranium and expanding the facilities needed to process it into reactor fuel.

What Thorizon and Urenco Bring to the Partnership

Thorizon is a European nuclear technology company developing molten salt reactors. The company is working on the Thorizon One, a reactor designed to produce electricity and industrial heat.

Unlike conventional reactors, which use solid fuel assemblies, molten salt reactors dissolve nuclear fuel in a liquid salt mixture. The salt also carries heat away from the reactor core.

Thorizon aims to develop a low-pressure reactor that could make better use of nuclear materials. However, the technology remains under development, and its commercial potential will depend on testing, licensing and successful deployment.

Urenco brings experience in uranium enrichment, a critical stage in the nuclear fuel cycle. The company operates enrichment facilities in Germany, the Netherlands, the United Kingdom and the United States.

Enrichment increases the concentration of uranium-235, the isotope used to sustain a nuclear chain reaction in most commercial reactors. Without the right fuel specifications, nuclear plants cannot operate as designed.

Under the MoU, the companies will explore several areas of cooperation:

  • Uranium enrichment: Urenco could support the supply of enriched uranium for Thorizonโ€™s reactor programme.
  • HALEU supply: The companies will examine options for high-assay low-enriched uranium, or HALEU, used by certain advanced reactor designs.
  • Depleted uranium: They will investigate whether Thorizonโ€™s technology could use this material as part of its fuel cycle.

The agreement is exploratory. It does not confirm a binding fuel supply contract or guarantee that Thorizon will use depleted uranium commercially.

HALEU and Depleted Uranium Could Play a Role

HALEU contains between 5% and 20% uranium-235. Conventional commercial reactors typically use uranium enriched to less than 5%.

Some advanced reactor designs need higher enrichment levels to meet their fuel and operating requirements. Thorizon plans to use HALEU in its molten salt reactor design, with the first reactors targeted for the mid-2030s.

Urenco is developing an Advanced Fuels Facility at Capenhurst in the UK, with HALEU production expected to begin in 2031. The proposed cooperation could help Thorizon explore a potential fuel supply route ahead of its planned deployment.

The companies will also study the possible use of depleted uranium.

Enrichment removes a portion of uranium-235 from natural uranium, leaving behind material with a lower concentration of that isotope. This leftover material, known as depleted uranium, consists mainly of uranium-238.

Some advanced reactor designs can use uranium-238 to produce fissile material through nuclear reactions. If Thorizon can establish a technically and commercially viable way to use depleted uranium, it could extract more value from existing nuclear materials and potentially reduce its reliance on newly mined uranium.

However, the outcome will depend on the reactor design, fuel chemistry, and technical validation.

Uranium Supply Struggles to Keep Pace With Demand

The proposed partnership comes as the nuclear industry prepares for higher fuel demand.

According to the World Nuclear Association (WNA), global nuclear reactors required an estimated 68,920 tonnes of uranium in 2025, while mines produced around 60,000 tonnes.

The difference highlights the industry’s reliance on inventories and secondary sources, including previously mined uranium, to meet reactor requirements.

Demand could rise further as countries extend existing reactor operations and build new nuclear plants. The WNA’s reference scenario projects annual uranium requirements could exceed 150,000 tonnes by 2040.

URANIUM
Source: NEA

Several factors could put pressure on future supply:

  • Growing nuclear capacity: New reactors and lifetime extensions will increase demand for nuclear fuel.
  • Long mining timelines: Uranium projects can take years to develop, permit, and bring into production.
  • Supply concentration: A relatively small number of countries account for much of global uranium production, making diversification important.
  • Processing constraints: Miners must supply uranium, but conversion, enrichment and fuel fabrication facilities must also keep pace with demand.

These challenges create opportunities for companies across the nuclear fuel cycle, from uranium miners to enrichment providers and advanced fuel developers.

Urenco Expands Its Enrichment Capacity

Urenco is investing in additional capacity to meet anticipated demand for enriched uranium.

On October 8, 2026, Urenco USA reported that it had started production in the sixth of eight planned new centrifuge cascades at its New Mexico facility. The expansion will add 700,000 separative work units (SWU) of annual enrichment capacity, with the final cascade expected in spring 2027.

Urenco also plans a further 2.1 million SWU expansion at the site, with initial production targeted for 2032.

These investments could help strengthen the fuel supply chain as conventional and advanced nuclear technologies compete for enrichment services.

For Thorizon, cooperation with an established supplier could help address one of the major hurdles facing new reactor designs: securing suitable fuel at the right time. For Urenco, the agreement provides a way to explore a potential role in the next generation of nuclear power.

The immediate outcome remains uncertain. The companies must still determine whether their proposed fuel arrangements are technically and commercially viable. But as uranium demand rises, partnerships that connect fuel suppliers with advanced reactor developers could become increasingly important.

Korean Airlines Race for Carbon Credits as CORSIA Deadline Draws Closer

South Korean airlines are stepping up purchases of carbon credits as they face a growing compliance obligation under the International Civil Aviation Organizationโ€™s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA.

The first compliance period covers 2024 through 2026, but airlines must secure and cancel the required eligible emissions units by the end of January 2028. With less than 16 months remaining, Korean carriers are moving to secure credits in a market where supply is already tightening.

Eastar Jet became the first South Korean airline to acquire CORSIA-eligible credits, purchasing 100,000 tonnes late last year. Trinity Airways, formerly T’way Air, followed in September 2026 with a purchase of 20,000 tonnes and plans to acquire more by the end of the year.

The moves highlight a broader challenge facing airlines worldwide: demand for CORSIA-eligible units is growing faster than authorized supply.

CORSIAโ€™s First Compliance Test Is Getting Closer

CORSIA is the aviation industry’s global market-based system for addressing international flight emissions. Under the scheme, participating airlines must offset emissions above the applicable baseline by purchasing and cancelling eligible emissions units. The first phase covers 2024โ€“2026, followed by the second phase from 2027โ€“2035.

For 2024โ€“2035, the CORSIA baseline is set at 85% of 2019 international aviation emissions. Any emissions above the applicable baseline create sector-wide offsetting requirements that are allocated among participating operators.

The compliance process is already underway.

Airlines must report their 2025 emissions during 2026. By November 30, 2026, states will use ICAO’s Sector’s Growth Factor to calculate each operator’s 2025 offsetting requirement. That makes 2026 a critical year for airlines to understand their eventual obligations and secure eligible units.

CORSIA implementation overview ICAO
Source: ICAO

Korean Airlines Face Millions of Tonnes of Credit Requirement

South Korea has eight airlines subject to its international aviation carbon law: Korean Air, Asiana Airlines, Jeju Air, Air Busan, Jin Air, T’way Air, Air Incheon and Air Seoul. Their potential exposure is significant.

For 2024, Korean carriers collectively had an estimated CORSIA offsetting requirement of about 2.75 million tonnes. Korean Air led with about 1.55 million tonnes. Asiana Airlines followed with around 706,430 tonnes, and Jeju Air had about 133,202 tonnes.

By July 2026, only Eastar Jet had secured credits. Its purchase of 100,000 tonnes was about 3.6% of the 2024 national airline requirement. Korean Air, Asiana and the other major carriers had yet to secure credits for that obligation, according to Korean reporting.

The final 2025 and 2026 requirements will depend on ICAO’s calculations and reported emissions. Therefore, the 2.75-million-tonne figure should not be treated as the final three-year requirement. Still, it shows the potential scale of the market.

Why CORSIA Credits Are Different From Standard Offsets

Airlines cannot simply buy any carbon credit and use it for CORSIA. ICAO maintains specific eligibility rules for emissions units. For the 2024โ€“2026 first phase, eight programs are currently approved to supply eligible units, including:

  • American Carbon Registry,
  • Architecture for REDD+ Transactions,
  • Climate Action Reserve,
  • Global Carbon Council,
  • Gold Standard,
  • Isometric,
  • Thailand’s Premium VER Program, and
  • Verra’s Verified Carbon Standard.

Credits also face safeguards against double counting. Host countries may need to issue authorization confirming that emissions reductions used for CORSIA are not also counted toward their Paris Agreement climate targets. This is linked to the use of corresponding adjustments under Article 6.

This restricted eligibility makes the market smaller than the broader voluntary carbon market. It also helps explain why airlines cannot wait until the last minute to source credits.

CORSIA Supply Is Falling Behind Demand

The shortage is not limited to South Korea. The International Air Transport Association (IATA) estimates airlines will need to purchase and cancel more than 200 million CORSIA-eligible emissions units by January 2028 to meet requirements for the 2024โ€“2026 first compliance period.

Yet, as of August 2026, only about 72 million emissions units were covered by 42 CORSIA-compatible Letters of Authorization issued by host countries. That leaves an estimated gap of roughly 150 million units that must be filled over the following 15 months.

CORSIA EEU demand versus supply
Source:

IATA said eligible supply is growing but remains well below the level needed. The available units are spread across Africa, Latin America and Asia-Pacific, with each region contributing a broadly similar volume.

The supply gap could put upward pressure on carbon prices as airlines move closer to the retirement deadline.

Korean Airlines Are Also Using SAF to Cut Obligations

Carbon credit purchases are only one part of the response. Airlines can also reduce their CORSIA obligations by lowering emissions through measures such as sustainable aviation fuel (SAF).

South Korea has been expanding its SAF market. The government plans to require 1% SAF blending for international flights departing Korea from 2027. The transport ministry estimated that this could reduce annual carbon emissions by about 160,000 tonnes, based on the country’s previous-year traffic volume.

Korean Air has already expanded its SAF use. In 2025, it began using domestically produced SAF on flights between Seoul and Japan. Its latest program applies a 1% SAF blend to selected flights between Incheon and Kobe and between Gimpo and Osaka through the end of 2026.

The SAF is made from used cooking oil and is CORSIA-certified. This drop-in fuel can therefore serve two purposes. It lowers the lifecycle emissions of flights and can reduce the number of carbon units an airline ultimately needs to purchase.

Korean Air Is Cutting Flight Emissions

Korean Air has also reported progress in reducing its direct flight emissions. The airline recorded 12.18 million tonnes of carbon emissions from aircraft operations in 2025, down from 12.60 million tonnes in 2024.

That represents a reduction of about 420,055 tonnes, or 3.3%, even though the number of flights increased approximately 2.6%.

The airline attributed the reduction to newer aircraft, optimized flight routes, improved fuel planning and more precise management of passenger, baggage and cargo weight.

Its newer aircraft fleet includes Boeing 787-9 and 787-10 aircraft, Airbus A350s and A321neos. Aircraft introduced since 2017 accounted for 41.6% of Korean Air’s total flights in 2025. These efficiency measures can help reduce both fuel consumption and future CORSIA exposure.ย 

Korean Airlines Are Also Using SAF to Cut Obligations

The Carbon Market Is Becoming an Aviation Cost

The Korean airline market shows how CORSIA is turning carbon emissions into a direct operating consideration.

The challenge is particularly significant because CORSIA credits must meet specific eligibility requirements. Airlines therefore compete for a relatively limited pool of units while international aviation demand continues to recover.

IATA estimates that over 200 million units will be needed by January 2028. In contrast, only about 72 million units have host-country authorizations as of August 2026. This shows a significant gap.

For Korean carriers, the next step is securing enough eligible units while continuing to reduce fuel use and adopt SAF. The market is already moving in that direction. Eastar Jet has secured 100,000 tonnes, while Trinity Airways has purchased 20,000 tonnes and plans further purchases.

For larger carriers such as Korean Air and Asiana, the potential requirement is substantially greater. As the January 2028 deadline approaches, CORSIA is therefore creating a new procurement market for airlines โ€” one where access to eligible carbon units, SAF and lower-emission aircraft could directly affect compliance costs.

The Korean experience also reflects a broader global trend: as international aviation grows, carbon compliance is moving from a long-term sustainability issue toward an increasingly immediate financial and operational consideration.

Gevo Sells 10,000 Carbon Removal Credits as (GEVO) Stock Gains 5%

Gevo is expanding its carbon removal business after completing a sale of 10,000 carbon removal credits through climate-finance company ClimeFi. The deal gives the U.S. renewable fuels producer another way to earn revenue from its existing carbon capture operations.

Announced on October 8, 2026, the transaction involved credits generated at Gevoโ€™s North Dakota ethanol facility. Gevo says the site has produced more than 700,000 tonnes of carbon dioxide removal since carbon capture and storage began.

The announcement came as Gevo shares gained 5.13% in European trading. The report cited a move from โ‚ฌ1.17 to โ‚ฌ1.23 on the Lang & Schwarz platform. This was not necessarily the closing price of Gevo shares on Nasdaq, and the timing alone does not prove the deal caused the increase.

Gevo is targeting more than $30 million in annual carbon business revenue from existing operations. That remains a company target, not revenue already achieved. The latest sale provides another example of how Gevo plans to turn carbon capture into a source of income alongside renewable fuels.

How Gevo Turns Ethanol Production Into Carbon Removal Credits

Gevoโ€™s project captures carbon dioxide released during ethanol production and stores it underground. Ethanol plants use microorganisms to convert plant-based sugars into alcohol. This process releases carbon dioxide. Gevo captures that gas and injects it into a geological formation more than a mile beneath its North Dakota facility.

The process is known as bioenergy with carbon capture and storage (BECCS). It combines fuel production from biological material with carbon capture and long-term storage.

Gevo says the stored carbon can remain underground for more than 1,000 years. The company uses its existing ethanol plant, capture equipment, and storage well to support the process.

The captured carbon can generate carbon removal credits when the project meets the required monitoring and verification standards. Each credit represents one tonne of carbon dioxide removed from the atmosphere and stored.

However, capturing biogenic carbon does not automatically guarantee a net climate benefit. Project assessments must account for emissions from growing and transporting feedstock, operating the facility, and storing the carbon. The overall process must demonstrate that it delivers genuine net removals.

Gevo says its North Dakota operation is among the first commercial-scale BECCS projects in the United States to deliver verified carbon removal credits to the voluntary market.ย 

Gevo CCS
Source: Gevo

Gevo Chief Executive Officer Paul Bloom:

“With proven sequestration infrastructure, commercial operations and access to both compliance and voluntary carbon markets, we believe our existing operations can support a growing carbon business and create a meaningful contributor to earnings, cash generation and shareholder value.”

ClimeFi Helps Connect Gevo With Buyers

ClimeFi facilitated the transaction and helped connect Gevoโ€™s credits with a corporate buyer. The companies did not publicly identify the buyer or disclose the sale price.

Intermediaries such as ClimeFi help carbon removal suppliers reach companies seeking verified climate solutions. They can also help buyers assess projects, compare removal technologies, and manage credit purchases.

Carbon removal differs from credits that represent avoided emissions. A removal credit represents carbon taken out of the atmosphere and stored. Avoidance credits generally represent emissions that a project prevents from being released.

Durable carbon removal can be more expensive because projects must capture carbon and demonstrate that it remains stored over time.

Gevo has previously reported carbon credit sales involving buyers such as Nasdaq and Whirlpool. The ClimeFi transaction adds another completed sale to its commercial record.

climefi
Source: ClimeFi

However, without a disclosed price, the transaction does not establish how much revenue Gevo earned per credit. It also does not provide a reliable price benchmark for the wider carbon removal market.

Gevo Targets $30 Million in Annual Carbon Revenue

Gevo wants to build a carbon business alongside its renewable fuels operations. Its target of more than $30 million in annual carbon business revenue would create another income stream from existing facilities.

The company is also earning money through U.S. clean fuel tax incentives. These incentives are separate from carbon removal credit sales.

On October 1, Gevo announced that it had sold substantially all the Section 45Z tax credits it expected to generate from its ethanol and renewable natural gas facilities in 2026. The expected total was $70 million.

Gevo had received more than $30 million in cash from those sales by September 30. It expected to receive the remaining proceeds over the following six months.

The company also forecast more than $77 million in Section 45Z credits for 2027. Planned production improvements at its North Dakota facility could add an estimated $7 million to $10 million to that amount.

These tax credits are not carbon removal credits. Section 45Z is a government incentive for qualifying low-emission transportation fuels, while carbon removal credits are sold to buyers seeking verified emissions removals.ย 

Gevo carbon removal credits

Both can support Gevoโ€™s finances, but they depend on different rules and markets. The companyโ€™s ability to grow its carbon business will depend on future credit sales, buyer demand, verification requirements, and operating costs.

Durable Carbon Removal Demand Surges, But Delivery Lags

Gevoโ€™s deal comes as buyers show growing interest in durable carbon removal. However, the market still faces a gap between credits purchased for future delivery and removals already delivered.

CDR.fyi reported that buyers contracted for 2.3 million tonnes of durable carbon removal in the first quarter of 2026. That was about 560% higher than in the first quarter of 2025.

The market also recorded approximately 145,000 tonnes delivered in the first quarter of 2026, a 67% increase from a year earlier. These figures cover the wider durable carbon removal market, not just BECCS projects.

The difference between contracted and delivered volumes remains substantial. Contracts can cover removals that will occur years later, while delivered credits represent a more advanced stage of project execution.

durable CDR

That makes Gevoโ€™s completed transaction important. It shows that the company has moved beyond developing carbon capture infrastructure to selling credits from its operations.

Still, one transaction does not prove that the market can sustain rapid growth. Future demand will depend on corporate climate commitments, credit quality, prices, and confidence that projects deliver measurable, durable removals.

What the Stock Gain Means

Gevo shares gained 5.13% in European trading on October 8, rising from โ‚ฌ1.17 to โ‚ฌ1.23 on the Lang & Schwarz platform, according to AD HOC News.

Investors may see the sale as a positive sign for Gevoโ€™s carbon business. However, a single dayโ€™s share-price movement does not establish that the transaction caused the increase.

The companyโ€™s wider progress also matters. Gevo is working to improve production at its North Dakota facility and increase the value it earns from renewable fuels, tax incentives and carbon products.

Gevo stock price

The 10,000-credit transaction provides evidence that Gevo can sell removals from its existing operations. The next challenge is to repeat those sales at prices and volumes that make carbon removal a reliable source of revenue.

One Credit Sale, a Bigger Carbon Business Ambition

Gevoโ€™s sale through ClimeFi shows how an ethanol plant can generate revenue from both fuel production and carbon removal.

The company says its North Dakota facility has generated more than 700,000 tonnes of carbon dioxide removal. It is now seeking to grow its carbon business to more than $30 million in annual revenue.

The latest sale advances that goal, but the undisclosed price means the transactionโ€™s financial contribution remains unclear.

For the carbon market, the deal highlights the importance of actual delivery. Buyers need projects that can capture carbon, store it securely, and support credits with credible monitoring and verification.

If Gevo can expand its credit sales while maintaining reliable storage and emissions accounting, carbon removal could become a more important part of its business. For now, the 10,000-credit deal is a concrete step toward that targetโ€”not proof that the company has already achieved it.

Google, Constellation Strike 890 MW Nuclear Deal to Support PJM Grid

Google and Constellation Energy have signed a 20-year power purchase agreement (PPA) to add 890 megawatts (MW) of new nuclear capacity to the PJM electricity grid.

The agreement will support more than $4.3 billion of investment by Constellation to upgrade 11 existing nuclear units across Illinois, Pennsylvania, and New Jersey. The upgrades are expected to increase the plants’ output without building new reactors from scratch.

The first upgraded capacity is expected to reach the grid in 2028, with the full 890 MW targeted by the end of 2032. Constellation says the additional power is roughly equivalent to adding a large new nuclear reactor to the PJM system.

Amanda Peterson Corio, global head of energy and power at Google, said:

“We’re committed to meeting our growth responsibly by actively investing in clean, reliable power that brings new capacity to our nation’s grids. Our agreement with Constellation to fund nuclear reactor uprates will strengthen the PJM grid, which serves 67 million people, all while protecting energy affordability and supporting local union jobs.”

Google Is the Anchor Customer

Google’s role in the deal is important to understand. The tech giantย is not building or operating the nuclear plants. Instead, it has committed to buying the additional electricity under the 20-year PPA.

That long-term commitment gives Constellation greater revenue certainty to invest in upgrades at its existing reactors. In other words, Google is acting as the anchor customer that helps make the nuclear uprates commercially viable.

Constellation will fund and carry out the physical upgrades, including improvements to turbines, steam generators, and digital control systems. These changes can increase the amount of electricity produced by an existing reactor without requiring a completely new plant.

The agreement is expected to:

  • Add 890 MW of new, firm nuclear capacity to PJM.
  • Support more than $4.3 billion of investment by Constellation.
  • Sustain about 4,400 existing jobs.
  • Create roughly 7,200 construction jobs during the upgrade program.
  • Bring the first additional capacity online in 2028.

Google and Constellation also signed a separate 15-year agreement covering another 2,700 MW from Constellation’s PJM generation fleet.

Importantly, this second 2,700 MW should not be described as new nuclear capacity. It covers additional electricity from Constellation’s existing PJM generation assets and provides longer-term revenue certainty for those facilities. Combined, the two agreements cover 3,590 MW of electricity supply.

The Importance of Existing Nuclear Plants

The 890 MW expansion is based on nuclear uprates rather than new reactor construction.

A nuclear uprate involves upgrading an existing reactor so it can produce more electricity. This can be faster than developing a new nuclear plant because the facility already has its site, grid connection, and operating infrastructure.

The approach is becoming more important as the U.S. looks for additional firm electricity to meet growing demand.

The U.S. had 94 operating commercial nuclear reactors at 54 nuclear power plants as of March 2026, with a combined net summer generating capacity of 98,441 MW, according to the Energy Information Administration (EIA). The average nuclear capacity factor was 91% in 2025, showing how intensively the existing fleet is used.

EIA also expects U.S. electricity demand to reach new records in 2026 and 2027. Its latest outlook puts total U.S. electricity consumption at 4,288 billion kilowatt-hours in 2026 and 4,356 billion kWh in 2027. Nuclear power is expected to account for about 18% of generation in both years.

US electricity nuclear

That makes additional output from existing nuclear plants an important option for meeting demand without waiting for entirely new reactors.

PJM Faces Rapid Load Growth

The Google-Constellation deal is particularly significant for PJM.

The PJM Interconnection operates the largest U.S. power market, covering 13 states and serving about 67 million people. The region is facing rapidly rising electricity demand from large data centers and other industrial customers.

PJM has proposed a “Bring Your Own Power” approach for large new electricity users. The idea is that companies adding major loads should also help bring additional generation onto the system.

The Google-Constellation agreement provides a practical example of that model.

Instead of simply connecting new data centers to the existing grid and increasing demand, Google is supporting additional generation capacity through a long-term purchase commitment.

This could help address one of the biggest challenges facing the U.S. power sector: adding electricity supply quickly enough to keep up with new demand. i.e., primarily from data centers.

EIA electricity consumption

Google Links Nuclear Power to Its Clean Energy Goals

The nuclear agreement also fits Google’s broader clean-energy strategy.

Google aims to operate its data centers and campuses on carbon-free energy 24 hours a day, every day, by 2030. The company has already matched 100% of its annual electricity consumption with renewable energy purchases since 2017, but its 24/7 goal is more demanding because electricity must be carbon-free at the time and location it is consumed.

The rapid expansion of AI has made that target more difficult.

Google’s 2026 Environmental Report said the company signed agreements for more than 12 GW of net-new clean energy in 2025. Between 2010 and 2025, it signed more than 240 agreements covering nearly 35 GW of new clean-energy capacity. At the same time, Google said its AI infrastructure is growing faster than the grid is decarbonizing.

google clean energy
Source: Google

Nuclear power gives Google access to carbon-free electricity that can operate around the clock, complementing variable renewable sources such as wind and solar.

The company said its nuclear agreements, including this latest deal, have now enabled more than 1.5 GW of new nuclear capacity for the U.S. power system through uprates and reactor restarts.

Ratepayer Protection Adds Another Layer

The agreement also aligns with the White House’s Ratepayer Protection Pledge, launched in March 2026.

Google was among seven major technology companies that initially signed the pledge. Under it, participating companies committed to build, bring, or buy the power needed for their data centers and pay for new power-delivery infrastructure required to serve them.

The pledge also calls on companies to pay for power and infrastructure brought online for their facilities even when they do not use all of that electricity.

The broader goal is to prevent the cost of rapidly growing data-center electricity demand from being shifted to residential and other existing electricity customers.

As of October 2026, the White House says the pledge has expanded to more than 300 organizations, covering about 80% of the electricity delivered to U.S. homes and businesses.

The Google-Constellation agreement fits this model because the company is helping support new power supply rather than relying only on existing grid capacity.

AI, Nuclear Power and the Grid

The deal points to a changing relationship between technology companies and the power sector.

For Constellation, it provides a long-term customer and supports billions of dollars in nuclear upgrades. For Google, it secures additional firm, carbon-free electricity while supporting its 24/7 clean-energy ambitions.

More broadly, the deal shows how large electricity users could play a bigger role in financing new power supply as the U.S. grid enters a period of rapid load growth.

Rather than waiting only for new power plants to be built, companies can help unlock additional capacity from existing infrastructure.

And lastly, for PJM, that could mean more reliable electricity. For Google, it means more power for AI and data centers. And for the U.S. nuclear industry, it creates another commercial pathway to expand generation from an existing fleet that already provides nearly one-fifth of the country’s electricity.

Sumitomo Projects 34,000-Ton Nickel Surplus in 2027 Amid Indonesia Output Recovery

Japanโ€™s Sumitomo Metal Mining expects the global nickel market to remain in surplus in 2027, even as demand from electric vehicles, stainless steel, and AI data centers continues to grow.

Reuters originally reported that the company forecasts a 34,000-metric-ton global nickel surplus in 2027, narrowing from an estimated 38,000 tons this year. The outlook highlights Indonesia’s continued influence on the global nickel market, with the country accounting for more than 60% of global production.

The forecast comes as nickel prices remain well below earlier-year peaks. At the same time, Indonesia is adjusting mining quotas and considering tighter controls on new processing capacity as it tries to prevent another prolonged period of oversupply.

Nickel Supply Set to Recover in 2027

Sumitomo expects:

  • Global nickel supply to increase 5.8% to 3.96 million tons in 2027, compared with 3.74 million tons estimated for 2026.
  • Demand is also expected to grow strongly. Global nickel consumption will rise 6% to 3.92 million tons next year.

The difference leaves the market with a relatively small surplus of 34,000 tons.

Indonesia will remain the biggest factor behind the supply outlook. Sumitomo expects Indonesian nickel pig iron (NPI) production to rebound 11.9% to 1.88 million tons in 2027.

NPI is a lower-grade form of nickel mainly used to produce stainless steel. Sumitomo expects production to decline 2.3% in 2026 after rising 12.4% in 2025, following Indonesiaโ€™s decision to reduce mining quotas.

Lower sulfur and sulfuric acid prices could also reduce production costs and support higher output of nickel intermediates such as mixed hydroxide precipitate.

Indonesia Holds the Key to Nickel Prices

Indonesia has spent much of 2026 trying to balance its enormous nickel processing industry with a tighter supply of domestic ore.

The government initially set the 2026 nickel ore production quota at around 260 million to 270 million metric tons, well below the 379 million tons approved in 2025. The lower quota briefly pushed LME nickel prices toward $20,000 per ton in May.

But the rally did not last.

Reuters reported in September that nickel had fallen back to around $16,500 per ton as the market became less convinced that Indonesia could maintain tight supply. Higher quota allocations later in the year and rising imports from the Philippines added to that pressure.

  • The latest LME data show three-month nickel closing at about $16,481 per ton on October 7, with exchange stocks at roughly 278,628 tons.
nickel
Source: LME

On October 7, three-month nickel was also reported at $15,840 per ton in Indonesian market data, underscoring the volatility across the market.

Indonesian Nickel Ore Prices Ease

The pressure is also visible in Indonesiaโ€™s domestic nickel ore market.

Shanghai Metals Market reported that Indonesiaโ€™s first-half October nickel benchmark price, or HMA, fell to $16,322.67 per ton, down 2.25% from $16,698 in the second half of September. Nickel ore prices also weakened as additional mining quotas entered the market.

SMM indonesia nickel
Data Source: SMM

These prices matter because Indonesiaโ€™s large processing industry requires huge volumes of ore. Indonesian industry group FINI estimates the countryโ€™s 2026 processing capacity at about 2.7 million tons across RKEF and HPAL facilities, requiring roughly 340 million to 350 million wet metric tons of ore.

That creates a supply dilemma. Indonesia has restricted mining to support prices, but its large smelter base needs enough ore to keep operating.

Indonesia May Restrict New Nickel Processing Plants

Jakarta is now looking beyond mining quotas.

Indonesia is considering a moratorium on new processing facilities that produce partly processed nickel products, according to a Reuters report on October 7.

Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said the government was considering limiting new plants producing semi-finished nickel because oversupply has pushed down prices.

Indonesia wants to encourage investment in higher-value finished products instead of adding more capacity for nickel pig iron, ferronickel and other semi-processed materials.

The policy could become increasingly important if Indonesia continues adding processing capacity faster than global demand grows.

Nickel Demand Gets a Boost From EVs and AI

The supply outlook remains bearish, but demand is not standing still.

Sumitomo expects global nickel demand to rise 6% next year, helped by stable stainless steel consumption and increasing demand for specialty steel used in AI data centers.

  • Battery demand should also improve. Sumitomo expects global nickel demand from batteries to rise to 620,000 tons in 2027, up from 560,000 tons in 2026.
  • Significantly, earlierย Benchmark also forecasted that over 50% of nickel demand growth by 2030 will come from batteries. By the end of the decade, battery nickel demand could hit 1.5 million tonnes annually.

Chinese EV sales remain an important driver of this growth. However, the battery market is changing. Lithium iron phosphate (LFP) batteries do not use nickel, limiting how quickly EV growth translates into higher nickel demand.

nickel demand
Source: IEA

Sumitomo also expects continued declines in Chinese cathode production to reduce the surplus of high-purity Class 1 nickel. At the same time, a recovery in Indonesian NPI production could ease the shortage of Class 2 nickel, creating different supply conditions across nickel products.

Nickel Market Faces a Delicate 2027 Balance

The latest outlook points to a nickel market that is moving closer to balance but has not reached it yet.

Indonesiaโ€™s production decisions will remain the biggest variable. Lower quotas can tighten ore availability and support prices, while higher allocations can quickly bring additional supply back into the market.

At the same time, battery demand is growing, but LFP technology limits nickel intensity in EVs. Stainless steel remains the largest demand driver, while AI data center construction is creating a newer source of specialty-steel demand.

For investors and mining companies, the key question is whether Indonesia can restrain supply faster than global demand expands.

However, as of now, Sumitomoโ€™s forecast suggests the answer is no. The 34,000-ton surplus expected in 2027 is much smaller than previous oversupply estimates, but it still leaves the nickel market vulnerable to renewed downward price pressure if Indonesian production rebounds faster than expected.

Verra Approves First Carbon Credits Under Food Loss and Waste Methodology

Verra has approved the first carbon credits generated under its methodology for reducing food loss and waste, opening a new pathway for food rescue projects to access carbon market finance.

The credits come from the Brightly โ€“ Reducing Food Loss and Waste project in the United States. The project generated 721,649 Verified Carbon Units (VCUs) by redirecting surplus food to people instead of allowing it to enter waste streams.

The milestone gives food rescue organizations a new way to monetize avoided methane emissions while addressing food insecurity. It also broadens the types of activities that can earn verified carbon credits. This goes beyond traditional areas like forestry, renewable energy, and methane capture.

Verra approved the credits under its VM0046 Methodology for Reducing Food Loss and Waste, v1.0. Mandy Rambharos, CEO, Verra, remarked:ย 

โ€œFood waste is one of the most overlooked sources of methane, and preventing it is one of the most solvable issues. This first issuance under VM0046 proves that keeping food out of landfills can be measured with integrity, and that carbon markets can move finance to the organizations making it happen. It also shows why Verra keeps broadening its methodology portfolio: there are many ways to cut emissions, and each one needs a credible pathway to carbon finance.”

721,649 Credits Put Food Rescue on the Carbon Map

Brightlyโ€™s project covers food rescue activities carried out between March 2020 and December 2023. During that period, participating organizations rescued 15.3 billion pounds of surplus food. After applying historical baselines and accounting for project-related emissions, 3.1 billion pounds of the rescued food qualified for carbon crediting.

That activity produced 721,649 VCUs, with each credit representing one tonne of avoided greenhouse gas emissions. The credits received an A ex-ante rating from BeZero Carbon, indicating a high likelihood that each credit represents one tonne of avoided emissions.

SCS Global Services, a Verra-approved body, independently validated and verified the project. Then, Verra reviewed and approved the issuance.

The first issuance follows Verraโ€™s registration of Brightlyโ€™s project in May 2026. At that stage, Verra expected the project to save about 167 million pounds of food over seven years, from 2020 to 2027. It would also cut emissions by about 115,118 tonnes of CO2e.

The latest issuance reflects verified historical activity rather than the entire future potential of the project.ย ย 

Brightly โ€“ Reducing Food Loss and Waste
Source: Brightly

How Verraโ€™s Food-Waste Methodology Works

Verraโ€™s VM0046 methodology has been active since July 12, 2023. It falls under the Verified Carbon Standardโ€™s waste-handling and disposal sector.

The methodology allows projects to quantify emissions avoided when food that would otherwise become waste remains in the human food supply chain. Projects can operate at several points along the food chain, including:

  • Farms,
  • Food processing facilities,
  • Retailers,
  • Food-service and hospitality businesses, and
  • Households.

The methodology measures the emissions that would happen if the food went to a waste site, like a landfill. That makes it different from carbon removal projects. The credits represent avoided emissions, primarily by preventing food from decomposing in waste streams and generating methane.

The methodology also addresses additionality. Brightly establishes a conservative historical baseline for participating organizations, with only food rescued above that baseline eligible for crediting. This ensures that credits show real climate impact. They don’t just reward current food-rescue efforts.

A Billion-Tonne Waste Stream With a Climate Cost

The potential market for this type of project is large because food loss and waste occur across the global food system.

The UN Environment Programme estimates that 1.05 billion tonnes of food waste were generated in 2022 at the retail, food service and household levels. That amounted to 132 kilograms per person and nearly one-fifth of food available to consumers. Households alone wasted more than 1 billion meals per day.

global food waste in 2022
Source: UN Environment Programme

Food loss also occurs before food reaches consumers.

The Food and Agriculture Organization estimates that 13.2% of food is lost worldwide from harvest to retail. Additionally, 19% is wasted at retail, food service, and households, according to 2024 UNEP statistics. Together, food loss and waste account for an estimated 8% to 10% of global greenhouse gas emissions, according to FAO.

This gives carbon markets a large potential emissions reduction opportunity. However, not every tonne of wasted food automatically translates into a carbon credit.

Projects must establish baselines, quantify eligible activity, and account for emissions associated with the intervention. VM0046 provides the framework for doing that.

Carbon Revenue Could Help Scale Food Rescue

The Brightly project connects climate finance with food rescue. The company works with food rescue organizations that collect edible surplus food and redistribute it instead of allowing it to enter waste streams. The organizations can then receive revenue from carbon credit sales.

Feeding America said the majority of net proceeds from credit sales will return to participating food rescue organizations. The funding can cover costs like trucks, drivers, refrigeration, staff, and other infrastructure needed to recover and distribute food.

The scale of the network has also expanded significantly.

Brightly partners with 198 Feeding America food banks and 28 independent food rescue groups. This helps us reach communities in every U.S. state and about 97% of U.S. counties. Together, these organizations rescue more than 5 billion pounds of surplus food each year, according to Feeding America.

Brightly food rescue
Source: Brightly

This can lead to a feedback loop. More carbon revenue helps organizations recover more food. This, in turn, can create further measurable emissions reductions.

Carbon Markets Broaden Beyond Forests and Renewables

The first food-loss-and-waste issuance comes as the broader carbon credit market continues to develop.

The World Bank reported that global carbon credit issuances increased 8% between 2024 and 2025, although issuance remained about 20% below its 2022 peak. Independent crediting mechanisms still accounted for about 70% of total issuance.

At the same time, carbon credit retirements fell by more than 10% in 2025. Voluntary uses made up over 80% of retired credits. Meanwhile, companies and other buyers signed around $12 billion in offtake agreements for future carbon credits. This amount is three times what was recorded in 2024.

Prices also varied sharply by project type. The World Bank said carbon credit prices declined slightly across 2025, but higher-quality and compliance-eligible credits continued to command premiums. CORSIA-eligible credits, for example, traded at around $15 to $22 per tonne, compared with roughly $1 to $14 for most other credit types.

For food-loss-and-waste projects, the key question will be whether buyers place a premium on the combination of methane avoidance, food security, and measurable local impact.ย 

Verra food waste carbon credits

Food Rescue Enters the Carbon Credit Economy

Verraโ€™s first VM0046 issuance does more than create another category of carbon credits. It demonstrates that food rescue can be measured through a standardized carbon methodology and converted into a tradable environmental asset.

The Brightly project also shows how carbon finance can potentially reach organizations that traditionally depend heavily on grants and donations.

With 721,649 credits now approved from the first issuance, the project provides an initial test of demand for this new credit type. Future projects could expand the market to other parts of the food supply chain, including retailers, food processors, farms, and food-service businesses.

The climate opportunity is significant. Over 1 billion tonnes of food waste are created each year at the consumer level. This waste contributes to nearly 10% of global greenhouse gas emissions.

VM0046 does not solve that problem by itself. But it gives project developers a standardized way to measure a portion of the emissions avoided when food stays in the human food system. For carbon markets, that creates a new pathway to finance climate action while also reducing food waste and supporting food security.