Australian environmental technology startup Samsara Eco, in collaboration with athletic apparel giant Lululemon, has unveiled the world’s first enzymatically recycled nylon 6,6 product. Their initiative represents a significant milestone, advancing the fashion industry closer to establishing a circular, sustainable ecosystem.

Launched in 2020, Samsara Eco specializes in infinite recycling to end plastic pollution. They believe that the planet can’t solve the climate crisis without solving the plastics crisis. The company’s patented process that breaks plastic down to its core molecules is carbon-neutral and can re-create brand-new plastic infinitely. 

A Step Towards Sustainable Fashion

The fashion industry currently contributes about 10% of annual global carbon emissions, poised to increase by 50% by 2030. Additionally, the industry heavily relies on plastic-derived textiles sourced from petroleum, equivalent to 342 million barrels of petroleum.

Alarmingly, the industry produces 2 million tonnes of textile waste every year, while around 10% of microplastics found in the ocean come from this waste.

However, a small portion of these materials undergo recycling. According to the U.S. Environmental Protection Agency, merely 15% of plastic-derived textiles are recycled.

Nylon 6,6 is one of the most widely used plastics in the textile sector, with nearly 4 million tonnes of it manufactured annually. The material serves as a fundamental fiber in many of Lululemon’s top-selling products, particularly its popular Swiftly Tech long-sleeve top. 

Using the recycled nylon 6,6 produced through Samsara Eco’s recycling technology, the clothing giant has developed samples of the said top, marking the world’s first instance of this nylon recycled in such a manner. 

Due to its robust, heavy-duty properties, nylon 6,6 has traditionally posed challenges for recycling. Yet, it has found applications across various industries, including fashion, automotive, and electronics.

But with Samsara Eco’s pioneering technology (patent pending), nylon 6,6 can now be recovered and extracted from end-of-life textiles. This offers the potential to create a fully circular ecosystem for the apparel industry. 

Enzymatic Recycling: Revolutionizing the Textile Industry

Currently, fashion companies like Lululemon have two primary methods for recycling textiles: mechanical and chemical processes involving solvents. However, both approaches pose challenges. Mechanical recycling limits the number of times recovered plastics can be recycled, while chemical methods often consume excessive energy.

Samsara Eco, which secured a $56 million Series A in 2022, addresses both of those concerns through its innovative enzymatic infinite textile recycling. The Australian startup’s manufacturing process operates swiftly and at low temperatures, producing a more sustainable recycled and new product. 

Paul Riley, the company’s CEO and Founder, highlighted their commitment to keeping a low carbon footprint during their recycling process. Riley also noted that their enzymatic recycling process reduces emissions and can save millions of tonnes of carbon compared to producing virgin nylon 6,6. He further said that:

“We’ve started with nylon 6,6, but this sets the trajectory of what’s possible for recycling across a range of industries as we continue expanding our library of plastic-eating enzymes. This is one giant leap for the future of sustainable fashion and circularity.” 

The company employs enzymes capable of targeting complex plastics, known as polymers, and converting them back to their original chemical composition, referred to as monomers. This unique capability is what renders the startup’s recycling technology infinite.

Here’s how the recycling process looks like and its major benefits:  

Over 90% of the nylon used in each of the Lululemon Swiftly top samples is from Samsara’s enzymatic recycling process.

In June 2023, Samsara Eco unveiled its partnership with Lululemon as its inaugural textile collaborator. The Swiftly recycled nylon marks the subsequent phase of their collaboration, fostering lower-impact alternative textiles within the apparel industry.

READ MORE: Lululemon to Recycle Textiles Infinitely with Plastic-Eating Enzymes

Collaboration and Innovation in Sustainability

For decades, scientists have dedicated extensive research efforts to discovering the most cost-effective methods for breaking down plastics, with a particular focus on polyethylene terephthalate (PET). Through collaborative initiatives and the integration of artificial intelligence (AI), practical applications of plastic-eating enzymes have been accelerated.

Other startups are also innovating in the field to help address the plastic crisis. For instance, Circ has pioneered a distinctive hydrothermal processing technology tailored for recycling blended textiles, such as polyester-cotton blends. The Circ system utilizes hot water, pressure, and chemical solvents to recycle both materials.

RELATED: Revolutionizing Textile Recycling with HTC

These innovative ventures may qualify for plastic credits or carbon credits. Each plastic credit represents the diversion or recycling of one ton of plastic waste that would otherwise have been left uncollected or unrecycled.

By incorporating plastic credits alongside carbon credits, companies can effectively address their sustainability objectives. Many organizations view reducing plastic waste as an integral component of their broader commitments to achieving net-zero emissions.

The partnership between Lululemon and Samsara Eco goes beyond mere material innovation. They embody the exciting potential and influence that can be realized through collaboration and inter-industry partnerships. This breakthrough not only heralds a pivotal moment for sustainable innovation in apparel but also for all sectors aiming to transition towards more circular models. 

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The US Environmental Protection Agency (EPA) has released a report highlighting a significant milestone: a 7% decrease in carbon dioxide emissions from the country’s power sector in 2023, marking the most substantial annual drop since 2020. This achievement reflects shifts in fossil fuel-based electricity generation and underscores ongoing efforts to mitigate climate impact.

The agency’s data showed that all four quarters of 2023 saw significant reductions in measured pollutants compared to 2022. The decline in emissions is mainly due to shifts in the mix of fossil fuel-based electricity generation.   

Key Driver of Emission Reductions

Power plants, including coal, natural gas, and oil facilities, significantly contribute to CO2 emissions, demanding urgent action for environmental preservation. The United States, a major emitter, has been implementing various measures to address these planet-warming emissions to mitigate climate impact. 

The EPA publishes quarterly and annual updates on power plant emissions data, including sulfur dioxide (SO2), nitrogen oxides (NOx), carbon dioxide (CO2), and mercury (Hg). The following is the breakdown of the change in annual emissions, 2023 versus 2022, per pollutant:  

15% decrease for NOX
24% decrease for SO2
17% decrease for Hg
7% decrease for CO2

In the long-term, between 1990 and 2023, power plant emissions also saw significant reductions: SO2 emissions dropped by 96%, NOx emissions by 90%. In 2023, Cross-State Air Pollution Rule and Acid Rain Program sources emitted 0.65 million tons of SO2, down by 11.2 million tons from 1995. 

Similarly, NOx emissions were reduced by 5.2 million tons. Additionally, power plants cut CO2 emissions by 28% from 1995 to 2023 while complying with emission reduction programs.

Natural Gas Role and Future Regulations

Coal generation dropped by 18%, leading to notable emission reductions compared to the previous year. Meanwhile, power production from natural gas plants increased by 8%. 

Despite the rise in natural gas plant output, carbon pollution from these facilities rose by 6.4% in 2023. The agency discovered that the country’s 2,000+ natural gas-powered plants emitted 697 million metric tons of CO2 last year, up from 655 million metric tons in the previous year. 

However, because natural gas-fired plants emit less CO2 than coal-fired ones, they have contributed to an overall reduction in US greenhouse gas emissions. 

Nevertheless, efforts to expand natural gas-fired fleets have faced opposition in some communities concerned about environmental impact. Currently, natural gas-fired power plants account for about 35% of the sector’s emissions, per the US Energy Information Administration report.

The Edison Electric Institute (EEI), a trade group representing US investor-owned utilities, has consistently advocated for the importance of natural gas-fired power plants in facilitating the integration of renewables into the electric grid. They emphasized the evolving US energy mix, noting that 40% of electricity now comes from clean, carbon-free resources. 

In May 2023, the Biden administration proposed new rules aimed at reducing climate-warming emissions from large gas-fired power plants. 

These rules would mandate that such plants co-fire with 96% clean hydrogen by 2038. Additionally, the proposed regulations would require nearly all coal-fired plants lacking carbon capture and sequestration technology to cease operations by 2035.

READ MORE: EPA to Regulate Gas-Fired Power Plants with Carbon Capture

EPA’s Call for Continued Action

The EPA further reported that overall fossil fuel generation decreased by 2% in 2023 compared to 2022. Total CO2 emissions from the power sector decreased from about 1.5 billion metric tons in 2022 to 1.4 billion metric tons in 2023.

Furthermore, the retirement of coal-fired power plants in 2023 led to significant reductions in other pollutants detrimental to public health. Joseph Goffman, Assistant Administrator for EPA’s Office of Air and Radiation acknowledged the progress made but emphasized the need for further advancements. He particularly noted that:

“This snapshot of progress over the past year shows we are moving in the right direction, but more progress is needed… President Biden is committed to building a clean energy future, and EPA will continue to work with state, Tribal and local leaders, in addition to major players in the power sector, to build on our progress and protect public health.”

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Lithium producers are facing challenges due to the low prices of lithium, prompting them to take measures to cut costs and protect profits. The drop in lithium prices has been significant, driven by increased supply and a slowdown in electric vehicle (EV) sales. 

Source: Trading Economics

In response to these market conditions, lithium producers are reducing production, scaling back expansion plans, and focusing on cost-saving initiatives. The world’s biggest provider of lithium for EV batteries, Albemarle, announced additional cost-saving measures, reducing capex by delaying planned lithium investments. 

Albemarle’s Cost-Cutting Measures 

Albemarle outlined plans to cut capital expenditures for 2024 by $300 million to $500 million compared to 2023. 

Moreover, the company aims to slash costs by about $100 million, with over $50 million targeted for the current year. They’ll be implementing measures such as reducing headcount and decreasing spending on contracted services.

The leading lithium producer’s Q4 2023 financial report showed a significant decline in adjusted EBITDA. It has a net loss of $315 million, representing a 125.3% decrease year-over-year. Net sales totalled $2.36 billion, down 10.1% compared to the previous year.

Looking ahead to 2024, Albemarle has identified strategic investments and projects for slow down in response to current market dynamics. 

Albemarle’s Chairman and CEO Jerry Masters noted that new greenfield projects, particularly in the West, are not economically feasible at current lithium prices. 

Construction and engineering work at the Richburg, SC, MegaFlex conversion facility has been halted until prices improve. But permitting activities will continue at the company’s Kings Mountain site in North Carolina.

READ MORE: Albemarle Shifts Focus in Lithium Strategy Amid Market Softening

In terms of future initiatives, Albemarle will prioritize large, high-return projects that are nearing completion or in startup stages. Meanwhile, they’ll be limiting mergers and acquisitions activity.

Projects that will continue development include the commissioning of the Maison lithium conversion facility and the expansion of the Kemerton lithium conversion facility in Western Australia.

The Rise and Fall of Lithium: From EV Boom to Market Downturn

During 2020 and 2021, the electric vehicle (EV) market experienced significant growth, leading to a surge in demand for lithium, a key component in EV batteries. EV sales saw remarkable increases, with a 45.9% jump in 2020 and a further 100% increase in 2021. This led to a total of EVs sold at 9.78 million units. 

This surge in demand created a deficit in lithium supplies in 2021, quickly turning into a surplus of 40,000 metric tons of lithium carbonate equivalent by 2022. Despite the surplus, market expectations continued to drive lithium prices upwards.

However, the boom in the lithium market was short-lived as the global economy weakened and EV sales slowed down, particularly in Mainland China, due to the repeal of EV subsidies. This led to a significant downturn in the lithium market in 2023. 

As more lithium production capacity comes online, the surplus of lithium is expected to widen further, reaching 100,000 Mt of LCE in 2024.

Australia remains the largest producer of lithium, followed by Chile and China. The U.S. lagged far behind, at the 8th spot after Canada.

Production of lithium is forecasted to increase by 35.7% in 2024 compared to the previous year. Analysts anticipate that lithium prices will stabilize and reach a cyclical bottom in 2024 as inventory build ups are relieved.

The current market conditions are particularly challenging for lower-grade spodumene concentrate and lepidolite producers. These producers are feeling the brunt of the downturn, as they are more susceptible to price changes and are typically the first to reduce output when prices drop too low. 

For instance, Pilbara Minerals, an Australian spodumene producer, announced that it’s unlikely to pay an interim dividend for the first half of fiscal year 2024 to preserve its balance sheet. 

Similarly, some spodumene producers have been considering changes to pricing settlement terms to prevent buyers from relying on inventories. For example, IGO Ltd. modified the offtake pricing model for spodumene from the Greenbushes deposit, the world’s largest lithium spodumene deposit. The company also announced a reduction in production for the second half of 2024. 

Core Lithium Ltd., another Australian producer, halted mining operations at the Grants open pit to slow output and alleviate oversupply. Analysts anticipate that Australian lithium miners will continue to curtail supply in the near term due to uncertain prices. 

What Lithium Producers and Investors Can Expect

As some lithium miners reduce production, investors in lithium projects are grappling with whether to proceed or postpone project development. Analysts anticipate that projects may face delays, with a particular impact on unfunded greenfield projects. They also foresee more higher-cost and pure-play lithium producers exiting the market or postponing their projects due to the current challenging conditions. 

RELATED: Top Lithium Stocks Making Waves in 2024

With lithium projects facing financial challenges, analysts also expect an increase in merger and acquisition (M&A) activity. Major producers with positive cash flow may seek deals in the market, while junior companies may attempt to sell projects, especially given the scarcity of private capital compared to previous years. But this isn’t the case with Li-FT Power (LIFT; LIFFF), the fastest developing North American lithium junior. 

Li-FT Power‘s strategy centers on consolidating and advancing hard rock lithium pegmatite projects in Canada, focusing on established lithium districts. The company is well-financed to advance its projects, underscoring its dedication to exploring and developing top-tier lithium assets in Canada.

The tumultuous journey of lithium producers reflects the cyclical nature of commodity markets, where booms are often followed by busts. As Albemarle and other key players in the industry adapt to the challenges posed by plummeting lithium prices, their resilience and strategic responses will shape the future landscape of the lithium market.

Disclosure: Owners, members, directors and employees of carboncredits.com have/may have stock or option position in any of the companies mentioned: LIFFF

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The Canadian Parliament is introducing a new drastic, and highly controversial move against false fossil fuel advertising.

With more and more countries implementing stricter greenhouse gas emissions controls, such as banning future sales of gas-powered vehicles, it could soon no longer matter what pro-fossil fuel supporters advocate for.

The fight against climate change and emissions reductions is being taken up by regulatory bodies and organizations with the power to enforce these new laws and take action against those who break them.

But it didn’t always used to be this way. In fact, big oil fought for a very long time to conceal, downplay, and outright deny the evidence of the impact that fossil fuels were having on our planet.

Take the picture above, for instance. This newspaper ad ran all the way back in 1991 and was paid for by an organization named “Informed Citizens for the Environment”.

Despite the name, this organization was created by a coalition of the National Coal Association, the Western Fuels Association (another coal supplier), and the Edison Electrical Institute (an association that includes all publicly traded U.S. electric companies).

Also known as the “Information Council for the Environment” or ICE, this group had one simple goal: to “reposition global warming as theory (not fact).”

And that’s not just an assumption either. That’s taken verbatim from one of their own internal documents, seen below:

Source: ICE campaign plan enclosures

This was only the start of what would become a lengthy and drawn-out fight over an inconvenient truth… all for the sake of oil money.

Putting the Gas in Gaslighting

One of the most prominent examples of big oil’s attempt to keep climate change under wraps comes from oil supermajor ExxonMobil.

Mobil led a campaign in the mid-90s prior to their merger with Exxon, spending money on an aggressive ad campaign that produced over 50 ads in the ‘90s and 2000s that all questioned the scientific validity of climate change.

Of course, it wasn’t just Exxon and Mobil. One major group lobbying for climate change denial was the Global Climate Coalition (GCC for short).

With members comprised of Phillips, Exxon (later ExxonMobil), the American Petroleum Institute, National Coal Association, Edison Electric Institute, and more, the GCC was one of the loudest voices at the table when it came to climate change, actively lobbying key government officials as well as running vicious ad campaigns and smear attack against climate scientists.

The defeat of former President Clinton’s early 1993 carbon energy tax proposal, part of his plan to reduce U.S. greenhouse gas emissions, is largely attributed to lobbying by the GCC.

Later on, GCC efforts to have the U.S. withdraw from the Kyoto Protocol under President Bush Jr. were successful, with the decision having said to be “… in part based on input from [the GCC]”, according to White House briefing notes.

While the GCC would later disband in 2001 following the United States’ withdrawal from the Kyoto Protocol, big oil’s efforts to detract and downplay climate change would continue well past the turn of the millennium. Their strategy gradually shifted from outright denial, to doubt, to shifting the blame, and finally to greenwashing.

Better Late than Never: The Government Steps In

Remember what was said earlier about how the fight against climate change is now being taken up by regulatory bodies with the power to enforce laws?

Well, it may be a few decades late and much of the damage may already be done, but at least one government is finally taking action: the Canadian one.

In bill C-372 brought to Canada’s House of Commons on February 5th, known as the Fossil Fuel Advertising Act, the government is looking to make it illegal to falsely promote the burning of fossil fuels as a benefit to the public – much as the Canadian parliament did back in 1989 with tobacco.

Those of you reading this who aren’t Canadian may not be aware, but thanks to the efforts of the Canadian government, there are very strict laws regarding tobacco advertising and packaging in Canada.

Take a look at some of these:

Is it enough to keep away the kids who really want to try smoking? Probably not. But peeling away the glamourization and “cool” factor of tobacco and speaking plainly about its health impacts can go a long way towards keeping it out of the hands of the young and impressionable.

In the same way, the Fossil Fuel Advertising Act has a similar aim, which was directly referenced by MP Charlie Angus who developed the bill.

“To claim that there are clean fossil fuels is like saying there are safe cigarettes. We know that is simply not true.”

– Charlie Angus

In the terms of the language of the Bill:

It is prohibited for a person to promote a fossil fuel or the production of a fossil fuel in a manner that is false, misleading or deceptive with respect to or that is likely to create an erroneous impression about the characteristics, health or environmental effects or health or environmental hazards of the fossil fuel, its production or the emissions that result from its production or use.

In simpler terms: no more lying about the health and environmental impacts of fossil fuels.

Failure to do so could result in a fine of up to $1.5 million dollars and potentially even a two-year jail term.

Though this bill hasn’t passed yet and won’t come up for vote until later this fall at the earliest, it’s a strong (if overdue) move from the Canadian government that will hopefully spur other countries to take similar courses of action.

In the meantime, you can check out the bill for yourself here – it’s a short read.

The post Ending the Big Lie: No More Fake News for Fossil Fuels appeared first on Carbon Credits.