September 2024 – Page 2 – The Global Carbon Fund

British Airways Commits £9M to Carbon Removal Credits. Can this Propel Aviation to Net Zero?

September 26, 2024/in Uncategorized /by

British Airways, one of the finest airlines has launched an ambitious initiative to accelerate its climate action by investing over £9 million in carbon removal credits. The move strengthens its position as the UK’s largest carbon removal purchaser and the leading airline in the space. These efforts are part of the company’s broader strategy to achieve net zero emissions by 2050.

In Pursuit of Aviation Sustainability!

Carrie Harris, Director of Sustainability at British Airways, gave a long statement on this move. He said,

As we approach the halfway point in this critical decade of action, we’re sharpening our focus on delivering real, tangible progress by 2030. We know flying has a significant impact on the planet, and achieving net zero by 2050 requires bold, innovative action today, as well as long-term transformation, and our latest investments in carbon removals reflects this commitment. While small in comparison to our total emissions, these projects are crucial in stimulating the carbon removals market. By supporting pioneering solutions, we’re not only contributing to immediate progress but also laying the groundwork for the large-scale changes needed to meet our climate goals. There is no pathway to net zero for aviation without carbon removals.”

From the UK to Canada: British Airways’ Innovative Carbon Removal Projects

The press release has rolled out details of all the innovative carbon removal projects that British Airways is pursuing in both the UK and abroad. One standout initiative is in Scotland, which involves capturing CO2 emissions from whisky distilleries and repurposing them into building materials. Additionally, they have invested in an enhanced rock weathering (ERW) technique that locks carbon for a prolonged time in different parts of the country.

The airline has also committed to purchasing carbon credits from high-durability reforestation projects in Scotland and Wales, aimed at expanding forested areas. These projects demonstrate British Airways’ focus on both reducing emissions and enhancing natural carbon sinks.

Aviation’s carbon capture efforts in Canada involve removing carbon dioxide from rivers and oceans using alkaline rock particles. Another key initiative is its investment in a biochar project in India. This project not only boosts soil biodiversity but also empowers female farmers by enhancing farm productivity. Through this effort, the airline is supporting sustainable agriculture while addressing climate change.

Partnering with CUR8, Earthshot Prize, and Climeworks

To further scale up its sustainability goals, British Airways has teamed up with UK-based CUR8, which specializes in sourcing high-quality carbon removal credits. The airline purchased 33,000 tons of these credits, a step that, while small compared to its total emissions, signals its commitment to advancing this emerging sector.

Marta Krupinska, CEO of CUR8, applauded British Airways’ crucial role in carbon removals. She expressed pride in partnering with the airline that is building a diverse portfolio spanning from the UK to Canada.

She also highlighted that CUR8 has top scientists and the best climate software to help organizations like British Airways source and manage carbon removals, reducing risks for their net zero goals.

British Airways is also a key partner of The Earthshot Prize, an organization dedicated to discovering and scaling climate solutions. This partnership aligns with the airline’s focus on fostering innovation in the aviation sector, including the development of sustainable aviation fuels and advanced carbon removal techniques. In addition, British Airways has purchased carbon removal credits from Climeworks, which operates the world’s two largest Direct Air Capture plants in Iceland.

Flying Toward a Greener Future: Net Zero Ambitions

British Airways acknowledges that achieving net zero by 2050 is a significant challenge for the aviation industry. According to Carrie Harris, roughly one-third of the airline’s emissions reductions by 2050 will come from carbon removals. While these investments are a fraction of the airline’s overall emissions, they play a crucial role in scaling up a sector that is vital for long-term climate goals. With its new investment, British Airways is actively supporting the growth of this essential market.

Carbon Removals are Not Enough…

In March the company announced is investing millions to upgrade its ground support equipment at Heathrow Airport, reinforcing its commitment to cutting emissions both on the ground and in the air. The airline is gradually replacing its vehicles, including vans, cargo transporters, and passenger steps, with hybrid or electric alternatives. Currently, over 90% of its ground vehicles at Heathrow run on zero-emission electric power or operate using hydrotreated vegetable oil (HVO) fuel.

British Airways is the first global airline to commit to net zero emissions by 2050, aligning with the Paris Agreement’s 1.5-degree goal. This commitment addresses Scope 1, 2, and 3 emissions, covering the entire value chain.

Source: BA

Significantly, it aims to reduce its emissions intensity to 86gCO2 per passenger kilometer by 2050. The airline will continue to monitor its progress and adjust its plans with emerging innovations to achieve this goal.

Commitment to SAF

The airline uses SAF produced from sustainable sources, including used cooking oil, woody biomass, and agricultural waste. By 2030, British Airways aims to fly with 10% SAF, following the UK government’s SAF Mandate guidelines. This initiative includes investing in innovative SAF plants in the UK and the US to enhance SAF availability and improve aircraft operations.

This study highlights British Airways as a leader in carbon removal credits and a key driver of change in the aviation sector. The airline’s current efforts are paving the way for the large-scale transformations needed to achieve net zero climate goals for all airlines.

FURTHER READING: Oxford University Spinoff Reveals Synthetic Fuel Plant That Could Revolutionize Aviation

The post British Airways Commits £9M to Carbon Removal Credits. Can this Propel Aviation to Net Zero? appeared first on Carbon Credits.

Amazon and Five Others Commit $180 Million in Brazil’s Amazon Carbon Credit Deal

September 26, 2024/in Uncategorized /by

Amazon, alongside five other major companies, has committed to purchasing carbon offset credits to support the preservation of the Amazon rainforest in the Brazilian state of Para. This agreement, valued at around $180 million, marks a significant step toward protecting one of the world’s most vital ecosystems in the fight against climate change.

Amazon LEAF Coalition’s First Amazon Deal

The carbon credits will be purchased through the LEAF Coalition, a forest conservation initiative co-founded by Amazon in 2021 in partnership with other companies and governments, including the United States and the United Kingdom. This deal is the LEAF Coalition’s first agreement in the Amazon rainforest, the world’s largest tropical forest. It plays a critical role in curbing climate change by absorbing massive amounts of greenhouse gases.

The Para state government and the LEAF Coalition announced the agreement during New York Climate Week, where more than 900 climate-focused events were held alongside the UN General Assembly.

Governor Helder Barbalho of Para shared details of the deal. He noted that the state will retain only the portion of the sales proceeds necessary to fund its ongoing efforts to reduce greenhouse gas emissions. The remainder of the funds will be distributed to local communities, including Indigenous peoples, former slave descendants, traditional extractivist communities, and family farms.

Barbalho emphasized the symbolic importance of the agreement, stating:

“Clearly it sends an important message: A company with a name referencing the Amazon making its first purchase with a state in the Amazon.”

Supporting Nature Conservation Efforts and Indigenous Communities

Amazon will purchase carbon offset credits alongside other big companies such as drug and chemical maker Bayer, consultancies BCG and Capgemini, H&M, and the Walmart Foundation. The fund will help protect the Amazon rainforest from deforestation.

Under the agreement, 5 million carbon credits will be bought at $15 per credit, which is well above the average price of $4.49 for credits linked to nature conservation, per Allied Offsets data.

Chart from Allied Offsets; altered highlighting price of nature-based forestry

Each credit represents a reduction of one metric ton of carbon emissions through efforts to reduce deforestation in Para. This forest conservation initiative covers from 2023 to 2026.

An additional 7 million carbon credits will also be made available for purchase by other companies. Governments from the U.S., U.K., and Norway have guaranteed a portion of these credits, committing to buying them if other corporations do not.

How Significant is This Carbon Offset Deal?

The Amazon rainforest is a critical carbon sink that helps mitigate climate change. However, Para has been the Brazilian state most affected by deforestation since 2005. Despite the challenges, there has been progress, with deforestation rates in Para decreasing since 2021.

In the first eight months of 2023, an area larger than New York City was deforested in Para, representing a 20% decline from the previous year.

Para is also set to host the UN COP30 Climate Summit in 2025. This aligns with President Luiz Inácio Lula da Silva’s efforts to restore Brazil’s environmental leadership after years of increased deforestation. The hosting of COP30 reflects Brazil’s renewed commitment to environmental protection and sustainability.

For Amazon, this purchase aligns with its broader environmental initiatives and corporate responsibility goals. And that includes the Climate Pledge, which aims to achieve net zero carbon emissions by 2040.

Supporting Para’s nature conservation project through carbon credits is a big part of its carbon neutralization strategy. The retail giant is focusing on slashing carbon emissions within its operations as well as backing carbon-neutral initiatives.

In 2023, Amazon cut its total carbon emissions by 3%, thanks to an 11% reduction in Scope 2 emissions (electricity) and a 5% decrease in Scope 3 emissions (supply chain). However, Scope 1 emissions (direct operations) rose by 7%, mainly due to increased transportation fuel use.

To tackle the increasing emissions, Amazon invests in various carbon neutralization efforts. The company partners with projects that protect tropical forests, such as the LEAF Coalition. It also supports programs that enhance forest carbon capture and improve local livelihoods while investing in new technologies for efficient carbon capture.

A Boost for Carbon Offset Markets

This deal comes at a time when global demand for carbon credits has slowed. However, major tech companies like Microsoft, Meta, and Google have recently invested in carbon offsets in Brazil, underscoring the growing recognition of nature-based solutions to combat climate change.

Amazon’s statement about the purchase highlighted the importance of preserving tropical forests in addressing climate change. The company’s involvement in this deal, especially given its association with the rainforest through its name, sets a strong example for corporate involvement in environmental conservation.

In addition to the carbon credit deal, Para’s state government is working to enhance supply chain transparency to combat deforestation. This is particularly true in the cattle industry. Cattle ranching has been a significant driver of deforestation in the region.

Governor Barbalho further announced that by 2026, the Para government aims to have full traceability of cattle supply chains, helping to prevent illegal deforestation and ensuring sustainable land-use practices.

While the purchase of carbon credits alone will not solve deforestation challenges, it reflects the critical role that corporations can play in financing conservation initiatives. This $180 million collaborative approach, involving governments, corporations, and local communities, offers a model for how other regions could approach forest conservation and climate action.

The post Amazon and Five Others Commit $180 Million in Brazil’s Amazon Carbon Credit Deal appeared first on Carbon Credits.

DOE Supercharges the U.S. Battery and Critical Minerals Industry with $3 Billion Boost

September 25, 2024/in Uncategorized /by

On September 20, the U.S. Department of Energy (DOE) announced over $3 billion in funding for 25 projects across 14 states. These initiatives are a part of the Biden-Harris Administration’s Investing in America agenda, which aims to boost domestic production of advanced batteries and essential materials like lithium.

Unlocking DOE’s $3B Boost for a Stronger U.S. Battery Industry

Notably, this effort builds on the administration’s previous commitment of nearly $35 billion to strengthen U.S. critical minerals and battery supply chains. The $3 billion in grants for these new projects will help expand EV and energy storage production while reducing reliance on foreign supply chains, particularly China’s.

Furthermore, the selected projects will be administered by the U.S. DOE’s Office of Manufacturing and Energy Supply Chains (MESC). The main goals of the funding are:

Build a robust domestic battery supply chain, including the production of key battery components like cathodes, anodes, and electrolyte materials. These elements are crucial for both current and next-generation battery technologies.
Focus on constructing, expanding, and retrofitting facilities for battery production, recycling, and the processing of critical minerals, such as lithium, graphite, and manganese.

U.S. Secretary of Energy Jennifer Granholm emphasized the importance of this initiative, stating,

“We’re witnessing a manufacturing revival in America, thanks to the Investing in America agenda. By establishing the U.S. as a leader in battery manufacturing, we’re not only creating high-paying jobs but also securing our energy future and strengthening our global leadership.”

Battery manufacturing investment in the United States from 1st quarter 2022 to 2nd quarter 2024

Source: Statista

Key Projects in Lithium Extraction and Recycling, A S&P Global Report

Arkansas and Texas

Among the new projects, the DOE awarded the two largest grants—$225 million each—for direct lithium extraction (DLE) initiatives. These projects will be based in Arkansas and Texas, both part of the Smackover Formation. SWA Lithium LLC, a joint venture of Standard Lithium Ltd. and Norway’s Equinor ASA, is one of the recipients. Their Arkansas-based project aims to produce 45,000 metric tons of battery-grade lithium carbonate per year.

The DOE also selected Terravolta Resources LLC for another $225 million grant for a DLE project located in the Texarkana region. This project will focus on producing 25,000 metric tons of lithium carbonate annually.

Another significant investment includes a $200 million grant to Cirba Solutions US Inc., which plans to build a lithium-ion battery recycling facility in Columbia, SC. The plant will recycle batteries from EVs, energy storage systems, and consumer electronics, processing up to 60,000 metric tons per year.

South Carolina and Michigan

The Cirba Solutions project is one of five selected facilities in South Carolina. It is joined by a $198.7 million grant awarded to EnerSys Advanced Systems Inc. to establish a new lithium-ion battery cell plant in Piedmont, SC, set to begin production in 2028 with an initial capacity of 5 GWh.

In Michigan, four projects were highlighted, including a $145 million grant for Revex Technologies Inc. to collaborate with Eagle Mine LLC, a subsidiary of Canada’s Lundin Mining Corp., on the REV Nickel Project. This initiative aims to process Eagle Mine waste and spent batteries to recover valuable materials.

Additionally, Mitra Future Technologies Inc. received a $100 million federal grant for a facility in Muskegon, focused on producing lithium iron phosphate cathode materials for electric vehicles, energy storage, and defense applications.

MUST READ: Li-FT Quadruples Cali Property Through Staking, Boosts Lithium Prospects

On the West Coast

The DOE also selected Group14 Technologies Inc. to negotiate a $200 million award for a silane production facility in Moses Lake, Washington. This facility will manufacture silicon-based anode materials. Furthermore, Form Energy Inc. received a $150 million grant to support its production of iron-air battery storage systems at a factory in Weirton, West Virginia.

Meanwhile, Reuters reported Albemarle is slated to receive $67 million for a project in North Carolina aimed at producing commercial quantities of anode material for next-generation lithium-ion batteries. Additionally, Honeywell will be awarded $126.6 million to build a commercial-scale facility in Louisiana that will produce a key electrolyte salt essential for lithium batteries.

The media agency also noted that DOE intends to grant DOW Chemical Company $100 million to manufacture battery-grade carbonate solvents for lithium-ion battery electrolytes. Others in the pipeline include Clarios Circular Solutions, in partnership with SK ON and Cosmo Chemical will receive $150 million for a project in South Carolina to recycle lithium-ion battery production scrap materials from SK ON, the battery division of SK Innovation.

A Bold Step Toward Economic and Energy Security

John Podesta, Senior Advisor to President Biden for International Climate Policy, remarked on the importance of securing EV and battery supply chains.

“The administration is using every tool available to onshore and ‘friend-shore’ supply chains. This will boost national security, strengthen our economy, and help combat the climate crisis,”

The press release mentions, the battery sector will see a total investment of $16 billion, which includes contributions from private companies. However, a significant purpose of the selected projects is job creation. Considering this, more than half of the 25 projects have committed to labor agreements and can potentially create 8,000 construction jobs and over 4,000 long-term operating jobs.

The next step for these projects involves a negotiation process with the DOE before funding is finalized. Environmental reviews will also be completed during this time. This groundbreaking investment boosts domestic battery manufacturing and strengthens the country’s leadership in the global clean energy transition.

Shifting Dynamics in the U.S. Battery Market

Batteries are crucial to enhancing the U.S. energy grid, powering homes and businesses, and supporting EVs. It’s a known fact that China has dominated the battery market, controlling key minerals like lithium, and rare earth elements. However, U.S. production is rising.

S&P Global forecasts suggest that domestic battery capacity will surge to 603 GWh by 2027 and 1,169 GWh by 2030, boosting the U.S. share of global battery capacity to 16%. In contrast, China’s share is expected to fall from 78% in 2023 to 58% by 2030.

The market research firm also noted, that China, which is the prime hub for big lithium-ion battery makers such as CATL and BYD, accounted for 82.2% of US battery imports in the second quarter of 2024.

The U.S. is intensifying efforts to boost domestic battery manufacturing by implementing robust measures to protect its interests. Furthermore, The Biden administration is introducing new tariffs on Chinese products, including lithium-ion batteries and EVs.

Lael Brainard remarked to S&P Global that these “tough, targeted measures” aim to counter unfair trade practices by China, enhancing the resilience of the U.S. supply chain. In response, China’s government criticized the tariffs, labeling them as a reflection of U.S. protectionism.

This effort not only propels the US battery industry forward but also drives innovation and minimizes dependence on foreign suppliers. All in all, it would position the country as a leader in clean energy, ensuring access to crucial materials, mainly lithium remains domestic.

The post DOE Supercharges the U.S. Battery and Critical Minerals Industry with $3 Billion Boost appeared first on Carbon Credits.

Powering the West: How Transmission Projects Can Slash Power-Sector Emissions by 73%

September 25, 2024/in Uncategorized /by

The successful completion of 12 high-voltage electric transmission projects in the US West could dramatically reduce the region’s carbon emissions. It can cut power-sector emissions by 73% from 2005 levels by 2030, according to a recent study by the Pacific Northwest National Laboratory (PNNL).

The study underscores the critical role that renewable energy and transmission infrastructure will play in achieving national climate goals, specifically President Biden’s ambition to transition to a 100% carbon-free power system by 2035.

A Holistic Approach to Decarbonization

The 12 transmission projects could unlock over 72 GW of new solar, wind, and battery storage capacity. It can significantly contribute to the region’s decarbonization efforts. Importantly, all of these projects are either in advanced development, under construction, or already operational, making them essential components of the renewable energy expansion in the West.

The study was conducted in connection with the US Department of Energy’s forthcoming National Transmission Planning Study, which seeks to provide insight into regional and interregional grid planning efforts. It predicts a 32% drop in energy generation costs by 2030, assuming the completion of critical transmission projects.

The research, led by Konstantinos Oikonomou of PNNL, analyzes how the 12 new transmission lines across the Western Interconnection, which will add 3,000 miles of capacity, could lower carbon emissions and enhance grid reliability. With this infrastructure, the region could expand its renewable capacity by 35 GW of wind, 31 GW of solar, and 12 GW of energy storage.

In the study, titled the Western Interconnection Baseline Study, PNNL researchers assessed whether the current industry planning processes in the West are aligned with national climate goals. They created a base case using data from the Western Electricity Coordinating Council (WECC). They factored in expected generator additions, retirements, new transmission capacity, and load growth through 2030.

The study then compared this base case with a “high renewables case,” which assumes the completion of 12 high-voltage transmission projects across the region. These projects were selected because they are “sufficiently far along in the development pipeline”. This means that construction is either ongoing or in advanced stages of federal and state permitting.

Unlocking Renewable Potential

One notable project is the Ten West Link transmission line, which began commercial operation in June 2024. Spanning 125 miles, this line is set to deliver over 3 gigawatts (GW) of renewable energy to consumers in California and the Desert Southwest. Owned by Lotus Infrastructure Partners and operated by California ISO, the Ten West Link exemplifies the vital role transmission lines play in decarbonizing the power sector.

Another significant project in the study is the Gateway West project, which stretches 488 miles and is developed by PacifiCorp. This project is specifically designed to transmit wind energy from Wyoming to a substation in Idaho.

From there, the energy will be further transmitted through the Boardman-to-Hemingway transmission line. This nearly 300-mile line is a collaborative effort by Berkshire Hathaway Energy and other partners.

These interconnected projects showcase a coordinated approach to transferring renewable energy from low-density states, like Wyoming and New Mexico, to more densely populated regions throughout the West.

The complementary nature of these projects is essential for ensuring that renewable energy can flow across long distances. This capability is crucial for reducing carbon emissions in large urban centers, as it enables cities to access cleaner energy sources.

Enhancing Grid Reliability with High Renewables

The transition to renewable energy is essential for reducing carbon emissions and achieving a sustainable power grid in the US. However, integrating more renewable sources, like solar and wind, into the grid presents challenges.

Notably, the PNNL study uses a unique modeling approach called alternating current (AC) power flow modeling. This method differs from the more traditional production cost analysis, which primarily focuses on the cost of energy production.

Instead, AC power flow modeling allows researchers to simulate how new renewable energy sources affect the grid. They can identify potential weaknesses and vulnerabilities in the grid when high levels of renewables are integrated.

The study found that the additional high-voltage transmission lines would support 29 GW of new solar capacity, 26 GW of onshore wind, 15 GW of battery storage, and 3 GW of offshore wind.

Additionally, the study assumed that all new solar installations would incorporate 4-hour battery storage with a storage capacity equivalent to 50% of the solar resource’s nameplate capacity. This is a critical feature, as it would make solar and wind energy dispatchable. It means that energy generated by these sources could be stored and used when demand spikes or during periods of low generation.

However, even with these advancements in renewable energy and storage, the study found that some thermal generation capacity may still be required. This is particularly true during the early morning hours when storage systems may not be fully charged or available.

Nader Samaan, a PNNL power systems research engineer and co-author of the study, noted that:

“This could be one of the more challenging periods, where you need to have some thermal generation on your system to help with the morning ramp-up period.”

The completion of the transmission projects represents a significant step toward achieving a carbon-free power system in the US West by 2035. The study highlights the importance of advancing transmission infrastructure to support the nation’s decarbonization goals.

The post Powering the West: How Transmission Projects Can Slash Power-Sector Emissions by 73% appeared first on Carbon Credits.

Xpansiv Joins Forces with S&P Global and CME to Supercharge Australia’s Carbon Credit Market

September 24, 2024/in Uncategorized /by

Xpansiv announced a strategic collaboration with S&P Global Commodity Insights and CME Group to enhance the Australian Carbon Credit Unit (ACCU) market. This partnership will introduce new pricing mechanisms, improve liquidity, and provide risk management tools, including ACCU futures contracts.

The effort marks a milestone in carbon markets, allowing for better carbon price discovery and future price risk management.

Strengthening Carbon Price Discovery and Liquidity

Xpansiv, a leading market infrastructure provider for the global energy transition, is set to integrate its existing standardized ACCU spot contracts with a new CBL-Platts ACCU price assessment. This will improve alignment in end-of-day price references and support physical market trading.

CME Group will also launch a CBL ACCU futures contract, scheduled for October 13, 2024, pending regulatory review. This contract will settle against Xpansiv’s CBL spot ACCU market, creating a seamless carbon credit trading experience for market participants.

The collaboration marks the first initiative of its kind for compliance carbon market. This partnership aims to enhance the transparency and liquidity of the ACCU market, a key component in achieving national emission reduction goals.

By leveraging expertise in market insights and commodity exchanges, the collaboration seeks to create a more standardized and efficient trading environment for carbon credits. This, in turn, can promote stronger participation in carbon markets and support global climate efforts.

These carbon credits represent emissions reductions that fund renewable energy and decarbonization projects. Companies purchase these credits to offset their hard-to-abate emissions that they can’t reduce directly.

Ben Stuart, Chief Commercial Officer, Xpansiv, emphasized the importance of their initiative, saying:

“We are pleased to continue our collaboration with market leaders S&P Global Commodity Insights and CME Group, each of which are relied upon for solutions to pricing challenges in the marketplace. Together we have set a new standard for reliable price signals and trading instruments in this important, evolving market.”

A Robust Market for Compliance and Carbon Reduction

The ACCU market has grown rapidly. There are over 3.5 million tons of Australian carbon credits traded through Xpansiv’s CBL platform since January 2023. The new collaboration builds on this momentum by combining robust physical market data, improved price assessments from S&P Global, and a new hedging tool via CME’s futures contracts.

The initiative is designed to give carbon market participants, including major carbon emitters and financial institutions, enhanced tools for price risk management and portfolio reporting.

Brian Casey, Head of Markets Strategy & Partnerships at S&P Global Commodity Insights, noted that the partnership will deliver “a deeper and broader view of value” in the ACCU market.

Australia’s carbon market is rapidly expanding, positioning itself as a major global producer of carbon credits. Recent data from the Clean Energy Regulator shows that 51% of all ACCUs are now by safeguard or safeguard-related entities. Leveraging these volumes could further boost the market.

Rising ACCU Holdings and Issuances

As of Q1 2024, the Australian National Registry of Emissions Units (ANREU) reported a holding of 38.6 million ACCUs. That’s a rise of 2.4 million during the quarter. ANREU issued 3.8 million ACCUs during the same period. This is robust progress towards a record issuance target of 20 million ACCUs for the year.

The number of Safeguard accounts holding ACCUs rose by 11, totaling 54 accounts. Safeguard entities now hold 12 million ACCUs, with a 4.6 million increase in Q1. Many ACCUs are likely held by intermediaries on behalf of these entities, suggesting a higher volume overall.

CME Group’s Peter Keavey, Global Head of Energy and Environmental Products, added that these developments are part of a broader suite of risk management tools designed to help clients meet carbon reduction targets, whether through compliance or voluntary programs.

A Growing Market Infrastructure for Environmental Commodities

CBL will manage futures delivery for positions held to expiration through its Xpansiv Connect post-trade infrastructure. This is linked to 14 prominent carbon and renewable energy registries. The CBL ACCU futures will be listed by and governed under the rules of the New York Mercantile Exchange (NYMEX).

Xpansiv has been instrumental in scaling market infrastructure for environmental commodities like carbon credits globally. The company operates the largest spot exchange for carbon credits and renewable energy certificates, as well as leading platforms for environmental portfolio management. This collaboration with S&P Global and CME further cements its role in shaping the future of energy transition markets.

The post Xpansiv Joins Forces with S&P Global and CME to Supercharge Australia’s Carbon Credit Market appeared first on Carbon Credits.

Can BC Hydro’s Clean Energy Push Transform British Columbia’s Power Grid?

September 24, 2024/in Uncategorized /by

BC Hydro, the government-owned electric utility company, supplies electricity to 95% population of British Columbia. In April 2024, they called for acquiring 3,000 GWh of clean energy to bolster B.C.’s electricity grid. Quite surprisingly, the government recently announced an overwhelming response to BC Hydro’s call for clean energy. Independent producers across the province submitted proposals that boosted the capacity 3X more than what they expected, totaling 9,000 GWh.

Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation

“We need more clean energy to power our homes, businesses and industries, to power growing communities and to power our future. Building an economy powered by clean, reliable and affordable electricity is one of the job-creation opportunities of our generation. Through regular calls for power and BC Hydro’s 10-year capital plan, we are creating over 10,000 construction jobs and driving sustainable growth across the province.”

From Diverse Projects to Economic Growth, BC Hydro Set to Revolutionize the Energy Landscape of British Columbia

Unlike other regions, British Columbia’s hydroelectric system offers a key advantage for integrating intermittent renewables like wind and solar. Hydroelectric dams, acting as energy reservoirs, can store water and release it when needed. This flexibility allows BC Hydro to balance the grid, ensuring consistent power amid adverse weather. Concisely, the hydroelectric dams are stable and reliable sources of clean energy.

The 21 submitted proposals cover a wide range of renewable sources, with approximately 70% focusing on wind power, 20% on solar, and 10% on biomass and hydroelectric projects.

The projects span almost every region of British Columbia, namely the southern Interior, central Interior, north coast, Peace Region, and Vancouver Island. The government also highlighted that this was the first competitive energy call in over 15 years.

As BC Hydro evaluates the proposals, electricity purchase agreements are expected by December. Construction of these clean energy projects could start by fall 2028, bringing an estimated $2.3 to $3.6 billion in private investment and creating 800 to 1,500 jobs annually across the province.

INTERESTING: Canada Carbon Rebate to Offset Carbon Pricing Costs For Millions of Canadians

Electricity Generation by Fuel Type (2021)

Source: Canada Energy Regulator

Ongoing Investments Driving BC Hydro’s Future

Chris O’Riley, president and CEO, of BC Hydro emphasized the significant changes they are making to enhance connections timeless in newly constructed homes and buildings.

He further added,

“In growing municipalities like Vancouver, where we are seeing substantial population growth and increasing residential, commercial and industrial customers clean electricity needs, we are embarking on significant upgrades to our electricity system, including adding new substations and expanding existing substations, transmission lines and distribution network to ensure we can continue to provide reliable and clean electricity to our customers.”

The company revealed that it is just not boosting clean electricity generation but also upgrading its transmission and distribution networks. In January 2024, the company rolled out a 10-year, $36 billion capital plan to expand infrastructure and support clean growth. These projects will create 10,500 to 12,500 jobs annually, while ensuring a stable energy supply as large projects, like the Site C dam, wrap up.

Site C dam artist render

Source BC Hydro

Furthermore, it will be holding competitive power calls every two years to keep pace with British Columbia’s growing economy and the need for renewable energy. This approach also fortifies the electrical grid and ensures that clean energy reaches homes, businesses, and industries while keeping electricity rates affordable.

In addition to increasing the electricity generation in the province, BC Hydro is also investing to expand and strengthen its transmission and distribution system through its capital plan. Upgrading BC Hydro’s electricity grid will ensure that clean power can be delivered to new homes, businesses, and industries when and where they need it.

SEE MORE: Canada’s 2024 Budget: Accelerating Towards a Clean Economy and Net Zero Future

Latest: BC Hydro Unveils High-Powered EV Charging Stations

In its latest news release, the company unveiled its plans to expand its electric vehicle (EV) fast charging network, adding two new 180-kilowatt chargers in Vanderhoof. These chargers will help British Columbians transition from gas-powered vehicles to those that run on clean electricity.

George Heyman, Minister of Environment and Climate Change Strategy assured that,

“These new stations will help British Columbians travel quickly and reliably using clean energy,” stated. More charging options also contribute to our goal of reducing climate-changing emissions by 40% by 2030.”

Source: Climate Change Accountability Report, British Columbia

This initiative reflects the growing enthusiasm for EVs among British Columbians. With over 170,000 EVs already on the road, BC Hydro anticipates this number could soar to between 700,000 and 900,000 in the next decade.

Overall, BC Hydro’s clean energy goals are set to transform the landscape of British Columbia. This shift will create a greener environment, allowing both residents and businesses to thrive.

The post Can BC Hydro’s Clean Energy Push Transform British Columbia’s Power Grid? appeared first on Carbon Credits.

Will AI Drive a Global Copper Shortage? BHP Rings the Alarm

September 24, 2024/in Uncategorized /by

As artificial intelligence (AI) is taking over industries, its impact on global copper demand is becoming increasingly evident. BHP, the world’s largest mining company, has warned that AI’s growth and clean energy transition could aggravate an already looming copper shortage. With copper’s critical role in powering data centers, EVs, and renewable energy systems, the metal’s future availability is a growing global concern.

BHP Predicts Soaring Copper Demand in The Future

BHP’s chief financial officer Vandita Pant has reported to Financial Times that the company predicts the global demand for copper to soar by 72% by 2050. This clearly shows a rising trend from 30.4 million tons in 2021 to 52.5 million tons annually. She further explained the surge to be driven by the increasing need for copper in electric vehicles (EVs), solar farms, and particularly, data centers powered by AI technologies.

Pant added,

“Today, data centers are less than 1 percent of copper demand, but that is expected to be 6 to 7 percent by 2050.”

Notably, AI applications, which require energy-intensive computing, are expected to increase copper demand by an additional 3.4 million tons each year by 2050. The copper dominates the power transmission and cooling systems that keep these facilities operational. As AI continues to drive the expansion of data centers, its infrastructure will rely heavily on copper, intensifying competition for the red metal.

To sum up, BHP right now sees a temporary weak copper demand but predicts strong long-term potential.

Global Copper Shortage an Imminent Challenge, Reports Financial Times

BHP’s concerns come amidst a broader conversation about the future of copper supply. A copper shortfall is expected in the medium to long term, triggering a race among mining companies to secure access to copper deposits.

Financial Times reported, that earlier this year, BHP failed to acquire Anglo American, a major copper producer, in a bid to strengthen its position in the copper market. Though the $49 billion offer was rejected, BHP continues to invest heavily in copper assets. In July 2024, the company teamed up with Canada’s Lundin Mining to acquire South America-focused Filo Corp. for $3 billion, securing copper-rich assets in Chile and Argentina.

Colin Hamilton, commodities analyst at BMO Capital Markets said,

“Data centers themselves are becoming incrementally less copper intensive, but getting the electricity to them, that is copper intensive”

Despite these efforts, global copper inventories have been declining. In CME warehouses, copper stock fell by 71% between March and July, reaching their lowest levels since 2008. Furthermore, new copper mines aren’t being developed quickly enough to meet rising demand, as it takes nearly more than a decade to actively set up a project. This lag in supply could lead to a significant shortage of copper in the coming decades.

Source: IEA

Is China’s Slowdown Holding Copper Prices Steady?

While the long-term outlook for copper remains robust, the short-term market is facing challenges. This year weak demand from China, the world’s largest consumer of copper, has weighed on prices. Copper is currently trading at around $9,207 per tonne, down 15% from its peak earlier this year. Media reports say that concerns about China’s property sector and slower-than-expected economic growth have contributed to this decline.

Most recently Bloomberg reported,

The latest 3-month closing price for LME copper is $9,515.00, reflecting a 1.22% increase.

Even The Wall Street Bank has projected copper prices to average $10,100 per metric ton in 2025 which is significantly lower than its earlier forecast of $15,000.

Source: Technopedia

However, analysts and mining executives agree that copper’s demand remains solid. The energy transition, driven by renewable energy projects and electrification, will be a key growth driver for copper demand. BHP expects that as the world advances towards its net-zero goals, the demand for copper will certainly spike, especially in developing countries.

A Race for Copper in the Age of AI: Who Are the Top Players?

As copper prices hit a two-month high, major mining firms like Anglo American, Southern Copper, Vale, Ero Copper, Rio Tinto (RIO), Antofagasta, Freeport-McMoRan, and Glencore gained the spotlight on the London Stock Exchange. Furthermore, the recent half-point rate cut by the U.S. Federal Reserve has contributed to broader gains in the metals market, making it an exciting time for copper investors.

Source: IEA

The growing influence of AI and the energy transition is reshaping the global copper market. BHP’s warnings about a potential shortage underscore the importance of securing copper resources for the future. As the demand for AI-driven data centers and clean energy solutions rises, industries are bracing up for the coming copper crunch.

We can see how significant sustainable mining and innovation in resource management have become more critical than ever. Copper, once only made for traditional industries, is now at the forefront of the global energy transition.

Well, the race to secure copper mines is on, with mining giants like BHP positioning themselves to meet the future needs of the tech world. Nonetheless, the question remains: Will the supply of copper keep up with the rapid advancements in AI and the shift toward renewable energy? Let’s wait and watch!

LATEST: The Clean Energy Powerhouses: US Lithium Imports Soar 49% and Argentina’s Copper Ambitions

The post Will AI Drive a Global Copper Shortage? BHP Rings the Alarm appeared first on Carbon Credits.

Carbon Price Showdown: Poilievre’s ‘Nuclear Winter’ Warning Rattles Canadian Politics

September 23, 2024/in Uncategorized /by

Conservative Leader Pierre Poilievre set the tone for his party’s fall agenda by targeting the Liberals’ carbon price policy. Poilievre warned of a “nuclear winter” for the economy if the government’s planned carbon price increases take effect.

Poilievre described a dire scenario, claiming that high taxes would lead to “mass hunger and malnutrition” and force older people to endure frigid conditions just to survive the winter. He further argued that rampant inflation would make it impossible for Canadians to afford basic transportation.

Singh and Trudeau Clash on Climate Strategy

With the fall session of Parliament set to resume, all parties are recalibrating their strategies after NDP Leader Jagmeet Singh ended the agreement that kept Prime Minister Justin Trudeau’s Liberal government in power. Poilievre, maintaining his party’s lead in the polls, is preparing to introduce a non-confidence motion as early as this week.

However, passing the motion will be a challenge, as the Conservatives would need support from both the NDP and the Bloc Québécois, and neither has shown a willingness to trigger an election.

Jagmeet Singh criticized both the Liberals and the Conservatives for their climate policies. But he avoided clarifying whether an NDP government would maintain the consumer carbon price.

The administration sets a carbon price of $65 per tonne of CO2 in 2023. This translates to an added cost of 14 cents per liter of gasoline, 10 cents for propane, and $145 per tonne of high-grade coal.

In response, Trudeau accused Singh of succumbing to political pressure from Poilievre. Meanwhile, Poilievre took aim at both leaders of Canada, calling the carbon tax an “existential threat to our economy and our way of life.” He also criticized Singh for failing to commit to bringing down the government despite withdrawing from the previous agreement.

The political stage is set for a heated session, with carbon pricing and economic policy at the forefront of the debate. Poilievre’s push against the carbon price signals a season of political maneuvering, as each party navigates shifting alliances and voter sentiments.

Poilievre’s ‘Nuclear Winter’ Comment Sparks Heated Political Debate

The Canadian political scene further heated up as Liberal House leader Karina Gould criticized Poilievre for his recent comments on carbon pricing. Poilievre warned of a “nuclear winter,” arguing that the federal carbon price would lead to widespread starvation and freezing as people struggle with unaffordable food and heating costs.

Gould fired back. She called Poilievre a “fraudster” for what she saw as irresponsible rhetoric that ignores Canada’s rebate system intended to offset carbon pricing.

The Canada Carbon Rebate (CCR), previously the Climate Action Incentive Payment (CAIP), is a tax-free benefit aimed at offsetting the federal carbon price for eligible individuals and families. It includes a basic amount plus a supplement for those in small or rural communities. The rebate amount varies by province and household size and is calculated annually based on the expected revenue collected from carbon pricing in each province.

Poilievre-Gould’s fiery exchange comes just as the House of Commons reconvenes, following the summer break and the end of an agreement that had insulated the Liberals from a snap election. Poilievre aims to trigger what he calls a “carbon tax election,” urging the other parties to vote the government down.

Bloc Québécois Leader Yves-François Blanchet hinted at the possibility of a short-lived parliamentary session, describing the current political climate as “playing chicken with four cars.”

Carbon Price Rebates: Poilievre’s Rejection and Public Misconceptions

The federal carbon price currently adds about 17.6 cents to every liter of gasoline, but quarterly rebates aim to offset these costs for Canadians.

The chart below shows the federal government’s proposed annual carbon price increases each April 1st.

The Parliamentary Budget Office notes that 80% of households in Canada receive more in rebates than they pay in carbon pricing. However, the long-term economic impact, such as potential harm to jobs and wage growth, remains a concern.

Despite these nuances, Poilievre dismisses the rebate system and criticizes carbon pricing as an “existential threat” to the economy. His comment sparked accusations that he is ignoring expert opinions.

More than 200 economists have cited carbon pricing as the most efficient way to lower emissions, yet Poilievre pushes forward with his campaign against it.

Political Strategy Amid Carbon Pricing Debate

The Liberals are sharpening their attacks on Poilievre in an attempt to reverse his rise in the polls. Despite the end of the supply and confidence agreement, Gould stated that they are returning to a “normal minority parliament.” That means they’re willing to collaborate with any party to advance legislation.

Meanwhile, NDP Leader Jagmeet Singh has distanced himself from the consumer carbon price, focusing instead on holding big polluters accountable. The Conservatives plan to bring a non-confidence motion against the government. However, they would need support from both the Bloc and NDP to succeed, which appears uncertain.

The stage is on for a potentially turbulent parliamentary session, with major bills like the online harms act and the NDP-backed pharmacare bill in the legislative pipeline. The political debate over carbon pricing is poised to continue dominating discussions in the House. At the same time, each party maneuvers to address Canadians’ concerns on affordability, climate policy, and economic stability.

The post Carbon Price Showdown: Poilievre’s ‘Nuclear Winter’ Warning Rattles Canadian Politics appeared first on Carbon Credits.

Alaska Energy Metals Pioneers A Model of Carbon-Neutral Mining

September 23, 2024/in Uncategorized /by

Alaska Energy Metals Corporation has announced a pioneering collaboration with the Colorado School of Mines and Virginia Polytechnic Institute (Virginia Tech). This partnership aims to evaluate the carbon sequestration potential of its Eureka nickel deposit at the Nikolai project in Alaska.

The collaboration aims to evaluate how much carbon dioxide (CO2) can be captured and stored by the project while simultaneously extracting critical minerals for the energy transition. These include nickel, copper, cobalt, and platinum group metals (PGMs).

Greg Beischer, President and CEO of Alaska Energy Metals, emphasized the importance of sustainable mining, saying that:

“U.S. domestic mining is essential for both the electrical energy expansion and U.S. national security. For these reasons, we have intentionally begun to study and assess the use of modern technological innovations like ultramafic mine tailings carbonation at the early stages of the development phase of our project.”

Ultramafic Rocks: Nature’s Carbon Vaults

The Eureka deposit contains more than 8 billion pounds of nickel, embedded in ultramafic rocks that are rich in magnesium. These rocks have a unique capability: they naturally react with atmospheric carbon to form carbonate minerals, which trap CO2 for a long time. This natural process, known as carbon sequestration, locks CO2 in solid rock, providing a long-term solution to storing greenhouse gasses.

Typically, ultramafic rocks remain buried beneath the Earth’s surface, limiting their interaction with carbon dioxide. However, mining operations provide an opportunity to bring these rocks to the surface. Crushing the rock to extract valuable minerals exposes more surface area to the atmosphere, creating ideal conditions for carbon sequestration.

Cutting-Edge Research and Technology

In 2023, the Colorado School of Mines received a grant from the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E) to develop new technologies for assessing the carbon-absorbing potential of ultramafic deposits. These deposits are enriched with essential metals like nickel, copper, and PGMs, which are vital for the energy transition.

The program focuses on using advanced scanning technologies and machine learning algorithms to analyze the potential of these rocks to capture carbon. These technologies are now being applied to Alaska Energy Metals’ Nikolai project. The goal is to better understand how the Eureka deposit can help mitigate climate change by sequestering carbon.

The research will be essential in understanding the environmental benefits of the mining operation and its potential economic advantages. The partnership between Alaska Energy Metals, Colorado School of Mines, and Virginia Tech aims to deliver these specific outcomes:

Eureka Deposit: A World-Class Resource

The Eureka deposit in Nikolai project contains a vast resource of potentially carbon-absorbing ultramafic rock. According to calculations, the deposit holds:

Indicated resource: 813 million metric tons averaging 0.22% nickel (3.88 billion pounds), 0.07% copper (1.28 billion pounds), 0.02% cobalt (303 million pounds), and 0.15 grams per metric ton palladium-platinum-gold (4 million ounces).
Inferred resource: 896 million metric tons averaging 0.21% nickel (4.23 billion pounds), 0.05% copper (1.04 billion pounds), 0.02% cobalt (327 million pounds), and 0.12 g/t palladium-platinum-gold (1.3 million ounces).

These resources represent a significant source of metals critical to renewable energy technologies and an enormous opportunity for carbon sequestration.

Key Research Objectives

The first phase of the study will focus on quantifying and characterizing the magnesium-rich minerals within the Eureka deposit. Key minerals such as brucite, olivine, pyroxene, and anorthite will be examined for their carbon-absorbing potential.

Previous research from the University of British Columbia has identified brucite as a particularly effective mineral for carbon sequestration.

Once these magnesium minerals have been thoroughly studied, researchers will use reactive transport modeling to simulate how much carbon can be sequestered into one ton of mining tailings. This model will provide a clear framework for estimating the carbon footprint reduction associated with nickel production at Eureka.

Pioneering Sustainable Mining for National Security and Energy Independence

The Eureka deposit, with its potential to supply energy-related metals, represents a significant opportunity for the U.S. to reduce its reliance on foreign sources of critical minerals.

The study findings will be instrumental in determining how much carbon can be captured by the mine’s tailings and wastes. These findings will provide a roadmap for implementing carbon capture technologies in future mining operations. As such, it can potentially help reduce the carbon footprint of nickel and other critical metal production.

Furthermore, this research may reveal economic benefits associated with carbon sequestration, such as the possibility of generating carbon credits. These credits can be sold to companies seeking to offset their emissions.

As governments and industries seek ways to reduce carbon emissions, projects like Eureka can play a crucial role in achieving net zero goals.

Alaska Energy Metals’ collaboration with the Colorado School of Mines and Virginia Tech represents a forward-thinking approach to mining in the 21st century. By integrating carbon sequestration into the mining process, AEMC is positioning itself as a leader in sustainable resource extraction. Its Eureka deposit could serve as a model for future carbon-neutral mining projects.

The post Alaska Energy Metals Pioneers A Model of Carbon-Neutral Mining appeared first on Carbon Credits.