The United States is poised for a significant boost in renewable energy capacity by over 67 gigawatts (GW) in 2024, driven by policy shifts and economic factors, per S&P Global Market Intelligence analysis. Solar energy, in particular, is set to lead the charge, with over 56 GW of capacity expected to come online. 

This surge reflects a broader trend toward cleaner energy sources and marks a pivotal moment in America’s energy transition. Additionally, around 11 GW of wind generation and 21 GW of energy storage are projected to come online.

Solar Dominance in America’s Energy Landscape

While natural gas has been considered a transitional fuel, the analysis indicates a net gain of only 394 megawatts (MW) of natural gas capacity in 2024. This is overshadowed by planned retirements, with 4,028 MW of natural gas expected to be retired. 

The only new nuclear capacity addition is the 1,114-MW unit 4 at the Vogtle Nuclear Plant in Georgia. 

But the International Energy Agency (IEA) forecasted that nuclear power will reach an all-time high in 2025. Industry experts also believe that nuclear will start to soar this year.

RELEVANT: How Nuclear Energy in the U.S. Got Its Groove Back, Poised to Soar in 2024

US Energy Secretary Jennifer Granholm recently stated that wind and solar energy could surpass coal generation for the first time in US history. The trend towards cleaner energy sources will continue, to achieve 80% clean energy on the path to 100% clean electricity by 2035.

In 2024, around 5 GW of fossil-fired capacity will retire, which is less than half of the previous year’s total. Of this, around 3,634 MW of gas-fired capacity and 1,035 MW of coal-fired resources will shut down.

However, the challenges and opportunities of the energy transition are evident, particularly in grid operator PJM Interconnection LLC. 

PJM has seen a surge in renewables, prompting concerns about reliability risks. Solar energy has surpassed natural gas in new service requests, indicating a shift in the energy landscape.

Cargill’s Sustainable Power Partnership

Solar energy is taking the lead in the energy landscape, with 56 GW of solar capacity this year. Within the PJM Interconnection region alone, around 9 GW of solar capacity is anticipated.

READ MORE: Harnessing the Sun: America’s Solar Snapshot in April 2024

PJM plans for about 10 GW of new capacity additions in 2024, with minimal retirements of just 80 MW from wind generation.

Cargill Inc., a major player in the food industry, has expanded its renewable energy portfolio by contracting an additional 300 MW of wind and solar capacity. With this addition, Cargill’s offsite renewable energy portfolio now stands at 716 MW.

The company has entered into five power purchase agreements (PPAs) to bring online the new wind and solar capacity. However, the specific locations of these new generating resources were not disclose. 

Still, once operational later this year, they can help Cargill reduce its carbon emissions by nearly 820,000 metric tons/year.

Cargill’s global renewable energy portfolio comprises 15 projects across 12 countries. These include virtual PPAs with: 

Ocean Breeze Energy GmbH & Co. KG for 35 MW from the Bard offshore wind farm in Germany, 
Galileo Green Energy GmbH for 55 MW from a solar project in Italy, 
Vattenfall AB for 78 MW from the Hanze Windpark project in the Netherlands, 
TC Energy Corp. subsidiary Blue Cloud Wind Energy LLC for 130 MW from a Texas wind farm, and
A self-production contract for generation from a wind farm in Bahia, Brazil.

Regional Insights into Renewable Energy Expansion

The Electric Reliability Council of Texas Inc. (ERCOT) will also see over 27 GW of new resources added in 2024, including over 16 GW of solar capacity, according to S&P Global. Additionally, nearly 8 GW of energy storage, over 2 GW of wind resources, and 790 MW of natural gas generation are part of the planned capacity additions.

California ISO will also add over 12 GW of capacity, with 5 GW and 7 GW, from solar and energy storage, respectively. ISOs refer to independent system operators.

In the Midcontinent ISO (MISO) region, over 12 GW of capacity additions are projected. Meanwhile, the retirement in this region will be at 1,368 MW of fossil fuel generation.

ISO New England is forecast to add over 2 GW of capacity, offset by 1,692 MW of natural gas retirements. Meanwhile, the New York ISO region will add 2,044 MW of capacity in 2024.

Within the Southwest Power Pool (SPP) region, about 2 GW of renewable capacity additions are anticipated, along with 788 MW of natural gas additions.

Outside of formal ISO or RTO regions, approximately 25 GW of capacity additions and 2 GW of retirements are forecasted. This includes over 14 GW of solar projects, followed by over 4 GW of energy storage, 2 GW of wind, and 2 GW of gas.

As the US continues its transition towards a more sustainable energy future, the surge in renewable energy capacity in 2024 underscores the nation’s commitment to combating climate change and embracing clean energy solutions. 

READ MORE: US EPA to Invest $20B in Climate and Clean Energy Projects for Underserved Communities

The post America to See a Surge in Renewable Capacity in 2024 appeared first on Carbon Credits.

In the latest developments in the carbon market, Malaysian University – Universiti Teknologi Malaysia (UTM) and Singapore-based Climate Resources Exchange International (CRX) have collaborated by signing a Memorandum of Understanding (MoU) to spearhead carbon-related projects in Malaysia. This alliance is poised to help both countries leverage their expertise to address the pressing climate challenges.

Unlocking Advantages of the CRX-UTM Partnership in Malaysia

Singapore-based CRX is a carbon management consultancy firm dealing with renewable projects, carbon profiling, carbon offsetting, and carbon trading.

The MoU was signed by the UTM Vice-Chancellor, Professor. Datuk Fauzi and the CEO of CRX, Mr. Vinod Kesava towards the end of March. This collaboration is expected to change the carbon economy of Malaysia.

Mr. Vinod Kesava has highly applauded the partnership and has said,

 “It is our great privilege and honor to collaborate with UTM in addressing the climate emergency and provide credible and pragmatic solutions for climate change mitigation and adaptation. Carbon finance is a critical element in developing robust projects with clear and transparent methodologies for monitoring, reporting, and verification. This cooperation paves the roadmap forward for accelerating initiatives created by putting our heads together and working as one.”

We note them down below:

Fulfill Commitments to the Paris Agreement

One key goal of this partnership is to produce carbon credits in Malaysia, aligning with the nation’s Paris Agreement commitments and net-zero targets. These credits will flow through Malaysia’s voluntary carbon market (VCM) exchange- the Bursa Carbon Exchange (BCX).

(BCX is a shariah-compliant multi-environmental product exchange that facilitates the trading of high-quality carbon credits via standardized carbon contracts.)

Introducing Climate-Friendly Solutions

Both organizations will primarily focus on climate-friendly solutions like:

Harnessing blue carbon from oceanic areas
Building large-scale afforestation projects
Inducting technology in agricultural activities- For example, producing biochar from agricultural waste via controlled pyrolysis.

Malaysia’s forests play a crucial role in reducing climate impact by sequestering approximately 259 MtCO2e annually. This is achieved legally by conserving the forests and demarking protected areas for national parks and wildlife sanctuaries.

Paving the road for EVs.

With the EV revolution happening globally, CRX plans to ramp from EV infrastructure in Malaysia through its registered Electric Vehicle Accelerator (EVA) Grouped Project Activity. Malaysian EV operators will join EVA and generate revenue from carbon credits through their involvement.

Forging a Joint Effort Towards Carbon Credit Development

According to McKinsey Nature Analytics, the country has a carbon crediting potential of up to 40 MT of CO2 annually through Nature-based solutions (NBS) projects. This is equivalent to 3% of the global NBS potential.

The collective expertise and resources of academia and industry have the potential to pave the way for a more sustainable future. CRX and the Malaysian university will pool their resources to create premium carbon credits. They would adhere to both compliance and voluntary market regulations through the procurement of carbon finance.

Late last year the organizations had agreed to bolster collaboration in renewable energy. Well, this partnership is an extension of the previous agreement that promised proper carbon capture, utilization, and storage. The expected output would be the generation of high-quality carbon credits in the Malaysian economy.

RELATED: Net Zero Framework For Malaysia To Be Released This Year (carboncredits.com)

The CRX-UTM Collaboration: Powering Malaysia’s Net-Zero Drive

Malaysia strongly believes in robust collaboration between government, businesses, academia, and society to propel its net-zero ambition. UTM has supported the Malaysian government’s vision and has established an innovative sustainability agenda known as the UTM Sustainability Blueprint. It serves as a roadmap for sustainable practices within the university.

Professor Datuk Fauzi, Vice-Chancellor of UTM has noted,

“The partnership with CRX is a testament to unwavering commitment to tackling climate change and achieving net-zero emissions. Together, we are creating an unstoppable force that will drive global and local efforts to combat this urgent threat and shape a sustainable future for our planet.”

Furthermore, joining forces with a global brand renders significant recognition for the Malaysian University. CRX’s extensive expertise in international carbon trading offers UTM vast opportunities to engage in carbon credit projects. It will further give the institution exposure to industry stakeholders and governmental agencies in Malaysia.

As discussed by eminent leaders in academia, the collaborative activities between UTM and CRX will facilitate the exchange of knowledge, expertise, and research aimed at effectively addressing the impact of climate change.

The innovative carbon projects will catalyze the emergence of new industries and business opportunities. This, in turn, could contribute to job creation and economic diversification, positioning both Singapore and Malaysia as leaders in the global transition to a low-carbon economy.

All in all, these collaborative activities will bolster Malaysia’s ambition to become a net-zero country by 2050.

FURTHER READING: Singapore’s Carbon Credit Market Surging At 21% CAGR • Carbon Credits

The post Singapore’s CRX Partners with Malaysian University for Carbon Projects appeared first on Carbon Credits.

French carbon removal company NetZero has secured €18 million ($19.5 million) in new funding from government-backed impact investor STOA Infra & Energy. The capital infusion aims to support NetZero’s expansion by establishing new biochar plants in Brazil and other tropical regions. 

The announcement coincides with French President Emmanuel Macron’s state visit to Brazil and follows NetZero’s previous €11 million Series A funding round. The transaction marks the first investment of STOA’s carbon strategy and is significant as one of the largest deals in the biochar sector. It also represents the first major initiative aimed at scaling carbon removal efforts in emerging countries.

NetZero’s Vision for Climate, Agriculture, and Society

NetZero focuses on scaling up biochar in tropical regions, aiming to benefit both the climate and local communities.

Biochar, derived from plant residues and stored in soil, serves as an effective method for permanently removing carbon from the atmosphere while simultaneously enhancing soil quality. This results in increased agricultural productivity, reduced fertilizer usage, and higher crop yields.

NetZero’s innovative biochar technology addresses 3 significant challenges simultaneously:

Climate change: By producing biochar, NetZero removes atmospheric carbon for millennia, contributing to long-term carbon sequestration.
Sustainable agriculture: The use of biochar as a soil amendment improves soil quality and crop productivity, promoting sustainable farming practices.
Social impact: NetZero’s initiatives enhance farmers’ livelihoods and create well-paid industrial jobs in rural areas of developing countries, thereby fostering economic development and social equity.

 

NetZero’s unique approach to leveraging biochar allows for high-permanence carbon removal from the atmosphere. The company’s model aligns with the Intergovernmental Panel on Climate Change (IPCC) and the European Union’s recognition of atmospheric carbon removal as crucial for achieving net zero emissions globally. 

Among the IPCC’s validated technical solutions, biochar stands out for its proven ability to remove carbon from the atmosphere and store it in soils for extended periods.

What is Biochar? Harnessing Nature’s Power

The carbon removal company uses agricultural residues exclusively as feedstock for producing biochar. These residues include coffee or cocoa husks and shells, sugarcane bagasse, coconut shells and fibers, peanut/cashew shells, and more.

Through a process called pyrolysis, these organic materials undergo intense heating in the absence of oxygen. This results in the breakdown of complex molecular chains and the formation of a solid, stable product known as biochar.

While biochar can serve various purposes, NetZero’s primary focus lies in its agricultural application, where it is mixed with topsoil to enhance soil quality and fertility.

During the production process, substantial amounts of renewable energy in the form of gases and heat are generated. The startup then harnesses this energy, using a portion for its own operations while supplying the rest to local partners as electricity or heat. 

Biochar has gained attention for its ability to sequester carbon dioxide when introduced into the soil. 

The biochar carbon credit market, although still in its early stages, is rapidly expanding, with prices showing a bullish trend. Over the past year, deals for smaller volumes of credits have closed above $500/mt, per DGB Group report. Other deals have begun to clear below $100/mt. 

Recent bids for biochar credits ranged from $134/mt to $145/mt, indicating growing interest and potential in this sector, with matching offers between $152/mt to $167/mt.

RELEVANT: Shell to Buy 22,500 Biochar Removal Credits from The Next 150

Scaling Up for Impact

The $19.5 million capital raise will enable NetZero to scale up its technology and deploy production sites at a larger scale in tropical regions. The company aims to remove over 5 million tonnes of CO2 from the atmosphere by 2030.

STOA’s investment in NetZero represents a significant milestone in the biochar space. STOA, established in 2017, focuses on infrastructure and energy investments in developing countries. 

Currently, NetZero operates two commercial-scale biochar plants in Cameroon and Brazil. Last month, it partnered with Swiss commodities trader Ecom Agroindustrial Corp. to produce biochar from coffee husks in Brazil, with an expected annual production of over 4,000 metric tons.

In Mexico, another biochar startup, The Next 150, is ramping up its production, aiming to capture 150,000 tons of CO2 equivalent. If that happens, it would be the largest biochar initiative in Mexico.

Global biochar production reaches at least 350,000 metric tonnes annually, representing a remarkable 91% growth rate over 2021 production levels. 

From an economic standpoint, revenues generated by biochar and equipment manufacturers surpassed $600 million in 2023. This shows a substantial growth rate of 97% between 2021 and 2023. More notably, projections indicate further revenue growth, expected to reach over $3 billion by 2025.

In terms of market size, a research shows that biochar could reach over $1,540 million in 2031 as seen below.

NetZero has been recognized for its achievements. For instance, it won the Milestone Award in the XPRIZE Carbon Removal competition sponsored by the Musk Foundation. The startup was also certified as a carbon-removal project under the Puro Standard. 

The company’s biochar plants contribute to carbon removal efforts and have already supplied carbon removal credits to companies like Boston Consulting Group, though specific volumes and prices were not disclosed.

RELATED: North America’s Largest Biochar Plant Announced In Canada

With Brazil being one of the world’s largest agricultural countries and committed to decarbonization, it represents a strategic market for NetZero and the company’s goal of leading the biochar carbon removal revolution. 

The post NetZero Raises Over $19M for Biochar Expansion in Brazil appeared first on Carbon Credits.

In a move with significant developments, Illinois’ governing board overseeing building standards has declined to adopt the all-electric code. The “all-voluntary electrical code” in Illinois refers to a code or set of regulations governing electrical systems and installations in buildings that is optional or voluntary for compliance.

This decision comes amidst a growing trend in northern Illinois, mainly the Chicago communities to curb natural gas use in new construction projects.

The Legal Tussle Between Illinois International Code Council (ICC) and Federal Court

Illinois International Code Council (ICC) discarded an optional all-electric construction code in its 2024 International Energy Conservation Code. It is the standard model for building codes nationwide. The decision to reverse the code echoed a landmark ruling by the US Court.

However, it has received significant repercussions from the ICC board of directors.

Painting a clearer picture, the advisory council of experts, tasked with updating the state’s building codes over time, initially incorporated the all-electric option into the Illinois stretch energy code.

However, on March 20, the Illinois Capital Development Board (CDB), appointed by the governor, countered this decision by removing the all-electric appendix from the stretch code. This action stemmed from apprehensions regarding potential legal liabilities for communities.

Consequently, Illinois communities will find themselves without a standardized, readily available method for enforcing all-electric new construction.

The insights of this ruling, fetched from S&P Global Market Intelligence are noted below:

The ICC cautioned cities and states that embracing the 2024 international code’s draft all-electric provision could lead to a “significant risk” of federal law conflicts.
This decision was influenced by the US Court of Appeals for the 9th Circuit, which held that the federal Energy Policy and Conservation Act (EPCA) preempted Berkeley, Calif.’s pioneering building gas ban.
The conflict between ICC and CDB highlights the larger impact of obstructing building decarbonization efforts.
This ruling can affect Western US states and territories. It can also go beyond the regions of the 9th Circuit’s jurisdiction, where courts have not yet addressed EPCA’s compatibility with local electrification codes.

Although the new rule marks a fallout from a nationwide decision, it has established a precedent that challenges local electrification mandates across the country.

Illinois Seeking Sustainable Solutions through CEJA 

Illinois located in the heart of the United States, is the nation’s third-largest consumer of gas in both residential and commercial sectors.

While Illinois aims for emission reductions through its Climate and Equitable Jobs Act (CEJA), the clash between state aspirations and federal preemption poses a formidable challenge. The recent decisions highlight the complexity of balancing environmental objectives with legal compliance.

Amidst all the conundrum, Illinois seeks to navigate through the legal and environmental challenges with some sustainable solutions.

Stretch Code Development by CDB

CDB’s Energy Conservation Advisory Council has developed a stretch code in Illinois aimed to align with CEJA’s goals. The climate bill required the CDB to create an optional code exceeding Illinois Energy Conservation Code standards. It would also adhere to international code standards.

It is expected to offer additional measures to enhance building efficiency and reduce emissions. The removal of the all-electric appendix raises doubts about the state’s ability to offer a unified sustainable construction approach.

The stretch code further gives a boost to the rising movement in Chicago and neighboring regions to curb gas and fossil fuel usage in new construction projects.

READ MORE: Billionaire Tom Steyer to Invest in Net Zero Buildings (carboncredits.com)

During the March 20 meeting, numerous local government representatives emphasized to the CDB the importance of efficiency and decarbonization measures in the stretch code. They highlighted that local governments frequently lack the resources to independently develop such policies.

Evanston Mayor Daniel Biss said,

“We rely on the expertise of the state to give us these model ordinances that will be feasible to allow us to achieve our objectives. We are willing to take that risk and prove out the concepts so that other communities can follow.”

Striking a Balance on the Electrification Debate

Differences in opinion and demand among individuals and groups have given rise to the need to balance out the situation. While some from the industry group support 100% electrification others argue for flexibility and affordability. They argue against provisions like the electric-ready requirement, citing potential high costs for homes and threats to energy affordability.

On the contrary, proponents of electrification, like RMI’s Chiu, dispute these claims. He stresses the importance of efficiency measures, such as incentivizing the installation of heat pumps.

However, whatever the outcome is, it must be economically and environmentally viable.

Climate experts emphasize the importance of prioritizing energy efficiency and sustainability. They favor promoting heat pumps and other innovative approaches to achieve climate objectives.

Noteworthy, this strategy aims to mitigate GHG emissions within the community by 60% before 2030. And finally, become net zero by 2050. This aligns closely with recommendations from leading climate scientists worldwide, intending to combat climate change.

The graph shows the total natural gas consumed in Illinois through 2022.

source: US Energy Information Administration

Despite these debates, the Illinois stretch code maintains the all-electric provision, pointing to a continued focus on promoting energy-efficient solutions. Stakeholders will be responsible for reconciling divergent interests while advancing towards a common goal of sustainable development.

Robert Coslow, administrator of professional services at the CDB and chair of the Illinois Energy Conservation Advisory Council has noted,

“The Illinois stretch code pushes builders to install heat pumps through incentives because they are proven to be the most efficient heating source on the market.”

Illinois has set an ambitious goal of achieving 100% clean energy by 2050. To address this, the state utility regulator is examining the future of the gas industry in light of CEJA. However, amidst this transition, there are divergent views on the best path forward.

The next update in 2025 mandated by CEJA will offer an opportunity to reassess contentious issues regarding the all-electric move. Let’s hope the decision paves the way toward a greener future for Illinois and the entire nation.

Disclaimer: The data is fetched from primary source S&P Global Market Intelligence.

FURTHER READING: Harnessing the Sun: America’s Solar Snapshot in April 2024 • Carbon Credits

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