Altman-Backed Startup Reveals Solar-Powered Solution for AI and Data Centers

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As AI data centers surge in number, their energy consumption poses a significant challenge. These facilities are increasingly straining power grids and threatening the climate commitments of major tech companies like Microsoft, Google, and Amazon. This is what the Miami-based Exowatt, a startup backed by Sam Altman of OpenAI, tries to solve.

The next generation renewable energy company aims to provide a clean, affordable alternative with its modular system that can generate, store, and dispatch solar energy to power these data centers. With a 1.2-gigawatt demand backlog, Exowatt is stepping into a market hungry for sustainable energy solutions.

Following a $20 million seed round led by a16z, Atomic, and Sam Altman, Exowatt could make a significant impact in renewable energy.

Revolutionizing Energy Storage

Exowatt’s system is revolutionary; it’s called Exowatt P3. It pairs a solar energy collector with a thermal battery that can either provide heat or electricity on demand. According to Jack Abraham, Exowatt’s co-founder, data center operators are desperate for affordable, renewable energy. Highlighting the demand for cleaner power, he said that:

“Even if our energy costs were three or four times higher, we’d still have nearly the same number of customers.” 

The system has been designed to help data centers self-sustain, thereby reducing their dependency on traditional grids or, worse, fossil fuels.

Exowatt’s Unique Energy Collection Process

Exowatt P3’s optical collection system features cutting-edge technology. It is akin to using a magnifying glass to focus the sun’s rays. The energy is then stored in a heat battery composed of a clay and ceramic composite—a readily available and cost-effective material.

The solar energy can be stored for months, but most customers are interested in storing energy for periods of 8 to 24 hours, to be used when other power sources become more expensive. Compact enough to fit within a 40-foot shipping container, this low-maintenance “install and forget” system meets the needs of industries aiming to cut energy costs and reduce their environmental footprint.

According to the company, their unsubsidized energy cost is $0.04 per kilowatt hour, competitive with conventional energy sources. Producing electricity at this rate, the Exowatt P3 is both scalable and efficient, storing energy for 24-hour use. 

In real-world application, the system can save up to $35 million in energy costs and reduce CO2 emissions by 438,000 tons for an average data center project.

Meeting Data Center Power Demand

As data centers continue to grow, Exowatt’s solution becomes even more critical.

According to an analysis by the Electric Power Research Institute (EPRI), data centers could account for between 4.6% and 9.1% of U.S. electricity consumption by 2030. The EPRI report estimated that data center energy use under four scenarios will be 2x more by 2030 due to AI.

EPRI U.S. Data Center Load Projections

RELATED: US Data Center Power Use Will Double by 2030 Because of AI

Exowatt’s first data center project will go live in West Texas later this year, targeting a large crypto-mining customer. 

By next year, this project could reach 50 megawatts. While Exowatt has declined to name its current customers, the demand points to its system’s ability to alleviate energy pressures on the grid and meet the clean energy needs of these power-hungry facilities.

Thermal Batteries and the Climate Tech Boom

Exowatt is part of a broader wave of investment in thermal battery technology. Competitors like Antora Energy and Rondo Energy have raised substantial funds to scale systems that store energy as heat. While these companies primarily target heavy industries such as cement and steel production, Exowatt has chosen a simpler and more scalable market in data centers.

Despite the fast-growing interest, scaling thermal battery systems can be challenging. Industries often require customized retrofits that are costly and complicated. Convincing customers to transition from fossil fuels can be a hard sell, especially where there’s institutional resistance. But by starting with data centers, Exowatt avoids much of this complexity, offering a more straightforward path to market.

Scaling Up: Challenges and Opportunities

The demand for the energy startup’s product is strong. However, scaling Exowatt’s production will be a significant challenge. As co-founder Hannan Parvizian pointed out, building a few prototypes is easy, but producing thousands or millions of units is an entirely different case. 

Supply chain issues and manufacturing capacity will play a critical role in determining whether Exowatt can meet the huge market potential.

Moreover, Exowatt’s solution also has geographical constraints. According to Abraham, about 60% of U.S. data centers are located in areas with enough sun to make the system viable. This means Exowatt’s technology may not be a universal fit, leaving a significant portion of the market unserved.

Despite its challenges, Exowatt’s approach to clean energy for data centers is a promising step toward reducing the carbon footprint of the tech industry. By providing an affordable, renewable alternative to fossil fuels, the startup is helping data centers meet their climate goals while also easing the strain on power grids. 

As AI continues to grow, the need for sustainable, reliable energy solutions like Exowatt’s will only become more pressing. The company’s success will depend on its ability to scale manufacturing, build a robust supply chain, and continue innovating in the thermal battery space. With the backing of Sam Altman and a growing list of eager customers, Exowatt could play a significant role in the future of clean energy for AI and data centers.

READ MORE: Who Leads the Data Center Surge in the US? S&P Global Report

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Microsoft’s 234,000 Carbon Credit Purchase Restores Mexican Rainforest

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Microsoft has once again extended unwavering support for carbon removal by announcing the purchase of 234,000 rainforest restoration credits from Mexico-based company Toroto. It creates a win-win situation, allowing Microsoft to both offset its carbon emissions and contribute to restoring the ecosystem of the forestland.

Microsoft’s Carbon Credit Deal Brings Hope for Mexico’s Rainforests

Toroto, a startup founded in 2019 specializes in nature-based solutions. It has been working to develop projects that enhance ecosystem services and combat climate change.

The press release from Toroto explains that these credits were generated by a nature-based project in the Calakmul region of Campeche, southeastern Mexico. They were issued under the Climate Action Reserve (CAR) Mexico Forest Protocol, and are the result of forest restoration efforts that actively remove atmospheric carbon dioxide.

Since 2021, a forest restoration project in this region has been working to regenerate over 47,000 hectares of tropical rainforest. This initiative promotes carbon sequestration while safeguarding a diverse ecosystem, home to endangered species like the Baird’s tapir and jaguar. The project not only protects wildlife but also provides essential services such as water filtration and habitat preservation.

By purchasing carbon credits from this project, Microsoft supports global climate goals while contributing to the conservation of this vast rainforest.

Brian Marrs, Senior Director of Energy and Carbon Removal at Microsoft says,

“The Conhuás project is an example of the potential for community-led ecosystem restoration to drive positive climate impact. We are pleased to collaborate with Toroto to help incentivize both natural ecosystem restoration and community-led climate action.”

Toroto’s Carbon Credits: Empowering Local Communities

Founded in 2019, Toroto has quickly become a leader in nature-based solutions. With projects across Mexico and aspirations to expand throughout Latin America and globally, the company focuses on large-scale ecological challenges. By balancing carbon sequestration, biodiversity protection, and water conservation the company is building ecosystems that can endure climate change.

Moving on, the collaboration with the tech giant gives a major boost to its innovative climate solutions. This partnership not only advances Toronto’s global sustainability goals but is also immensely beneficial for the local communities.

For instance, The Conhuás ejido benefits directly from this carbon credit initiative. By selling these credits, the community earns crucial income while helping to preserve one of the largest rainforests in the neotropics.

The Conhuás Project

According to Santiago Espinosa de los Monteros Harispuru, CEO and Cofounder at Toroto,

“Microsoft’s commitment to the Conhuás project represents a very important milestone for climate action in Mexico. They are setting an example on how the private sector can invest in nature through mechanisms that channel resources directly to the conservation and restoration of the rainforest, while the guardians of this rainforest, the Conhuás community, acquire the technical and financial capacities to continue caring for its regeneration.”

Microsoft’s Carbon Negative Milestones: Tech-Driven Solutions 

Microsoft continues to create milestones in carbon dioxide removal (CDR), advancing efforts to build large-scale, impactful projects. Last year it had been very eventful for the company as it procured 5.015 MMT of carbon removal credits as part of its drive toward carbon neutrality and negative emissions. These multi-year agreements are designed to help projects secure external financing while ensuring additional, durable, and measurable carbon credits that are net-negative.

MUST READ: Microsoft Strikes 2 Record-Breaking Carbon Credit Deals

Advancing High-Quality Carbon Removal

Additionally, contracts signed as of December 2023 are expected to contribute 875,000 metric tons toward the company’s 2030 target. These agreements include long-term carbon removal from reforestation in the Brazilian Amazon.

In 2023, the focus shifted to enhancing high-quality carbon removal through new investments and partnerships. Key innovations included advancements in digital monitoring, verification, and reporting (MRV), as well as improved efforts in ecosystem restoration.

Yard Stick PBC: Provides in-ground soil carbon measurements, accelerating project development and ensuring high-quality credits.
Vibrant Planet PBC: Uses AI to map forests, aiding in wildfire risk management, climate adaptation, and ecosystem service enhancement.

Partnerships between CarbonCure Technologies and Heirloom Technologies demonstrated the power of combining direct air capture with CO₂ storage in concrete. Heirloom captured CO₂ in California, and CarbonCure integrated it into concrete production in San Jose.

READ MORE: Microsoft Signs 10-year Carbon Removal Deal with Climeworks 

Microsoft remains dedicated to fighting climate change while supporting local ecosystems and communities. This partnership reflects Microsoft’s growing leadership in corporate sustainability, demonstrating how nature-based solutions can be a key element in achieving carbon neutrality while empowering local communities and preserving biodiversity.

FURTHER READING: Microsoft and Stockholm Exergi Strike Historic Deal for 3.33 MTs of Carbon Removal 

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Zefiro Methane Works with Fiùtur to Boost Transparency in Carbon Credits

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In a significant move to enhance transparency and reliability in carbon credit markets, Zefiro Methane has entered a strategic partnership with Fiùtur, a digital verification network ecosystem. This collaboration is poised to streamline the aggregation, verification, and delivery of environmental data critical for carbon credit issuance. 

By addressing gaps in the current system, Zefiro aims to bring much-needed integrity and transparency to carbon credit markets. The methane offsets provider gone public in Cboe Canada in April.

Tackling Environmental Market Deficiencies

One of the major challenges in today’s voluntary carbon markets is the lack of auditable, verifiable data. Through its partnership with Fiùtur, Zefiro intends to bridge this gap by using cutting-edge technology to generate reliable, large-scale data sets. These will be integrated into Fiùtur’s SMART Data Governance Framework, ensuring standardized and verifiable environmental data for carbon credit issuance.

Image from company website

Fiùtur created the SMART system to enhance financial investment opportunities in environmental outcomes. By automating and processing environmental data using structured digital monitoring, reporting, and verification (MRV) systems, SMART Programs ensure transparency and integrity in environmental claims, allowing them to be accurately priced and trusted.

Moreover, the Governance Framework aims to enable effective collaboration, ensuring an accurate and indisputable representation of climate action. The data comes from various sources, including farms, forests, factories, refineries, and infrastructure projects like buildings and energy systems.

Secured and Traceable Data

The partnership is set to leverage Fiùtur’s SMART ID-enabled partner ecosystem, enabling digital tracking or “digital lineage” from real-world field data to institutional-level distribution channels. This means that data collected from Zefiro’s well-plugging operations will not only be securely stored but also made traceable for issuing offsets, insets, and other related data products.

Additionally, Zefiro will use this digitally captured data for advanced analytics. This will help the company pinpoint high-leakage wells, optimizing its operations by reducing both costs and cycle times. 

The Zefiro Lifecycle Solution, built on Fiùtur’s technology, is scheduled for launch in Q4 2024.

Zefiro’s experience in methane measurement and abatement, coupled with Fiùtur’s advanced data-driven tools, allows for more accurate tracking and auditing of emissions reductions. This collaboration ensures that emissions removal data—whether from leaking wellheads or completed projects—will be captured, verified, and ready for the carbon market.

RELATED: Methane Offsets Provider Zefiro Methane Goes Public on Cboe Canada

Strengthening Carbon Markets with Transparency

In an era where trust is paramount in environmental markets, this partnership seeks to bolster confidence in carbon credit solutions. 

Zefiro and Fiùtur are focused on embracing interoperability with emerging network tools like Xpansiv Connect and the Canton Network, adding further credibility to their mission.

Zefiro Methane’s CEO, Talal Debs, emphasized the barriers institutions face in accessing high-quality environmental solutions, including reliable carbon offsets. According to Debs, data limitations have hindered progress in these markets, and Zefiro’s partnership with Fiùtur is a step toward resolving those issues. Debs further stated that:

“This step will enable Zefiro to deliver more high-quality environmental contract volumes to our existing customers and open up numerous new buyers and delivery channels.”

By embedding rich digital data and provenance into their offerings, Zefiro plans to meet the growing demands of institutional markets.

Forging A New and Digital Era for Carbon Credits

In a sign of its confidence in Fiùtur, Zefiro has also invested in Fiùtur’s Series A round. This financial commitment underscores the long-term potential of the partnership and the significant role Fiùtur will play in supporting Zefiro’s environmental remediation services.

Fiùtur’s open architecture platform allows for transparent, digitally enforced measurement, reporting, and verification (dMRV) protocols. This creates a robust ecosystem where market participants can develop and deliver verifiable, real-world outcomes—a critical need in the evolving carbon credit market.

Fiùtur CEO Joe Madden commented, “Zefiro’s vision of a digital future, combined with their unique commercial approach, is set to elevate these markets to new levels of scale and integrity.”

The Zefiro and Fiùtur partnership comes at a pivotal moment for carbon markets, as buyers increasingly demand verifiable, high-quality data. The Zefiro Lifecycle Solution could streamline the carbon credit process, enabling more efficient and trustworthy carbon offset and inset projects.

READ MORE: The Pitfalls of Low-Quality Carbon Offsets: Are They a Threat to Our Planet?

With the launch set for later this year, the collaboration between Zefiro Methane and Fiùtur is poised to lead the charge toward greater transparency, accountability, and scalability in the fight against methane emissions.

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Google Strikes $100/ton Deal with US DAC Startup Holocene

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Google has taken a bold step in the fight against climate change, signing a groundbreaking deal to purchase 100,000 tons of carbon removal from Tennessee-based startup Holocene. The $10Mn direct air capture (DAC) offtake agreement, set for delivery by 2030, establishes a record-low price of $100 per ton for carbon removal credits. This deal is expected to play a pivotal role in reducing the cost of DAC technology which has gained significant attention in global net zero goals.

Big Value, Small Price: What’s Inside Google’s $100 Price Tag

Achieving a price of $100 per ton for DAC removal is no small feat. Google made this possible by committing to an upfront payment, which provides Holocene with the necessary capital to scale its operations. But that’s not the only factor driving down costs.

The U.S. government’s 45Q tax credit, resulting from the Inflation Reduction Act, has been instrumental. This tax credit offers up to $180 per ton of carbon removed, providing a crucial financial incentive for companies like Holocene to invest in carbon capture technology.

Despite the optimism, Holocene has yet to deliver carbon removal on a large scale. The company only recently launched its first pilot plant in May 2024, which captures 10 tons of CO2 annually. Still, Holocene is confident that its innovative approach, coupled with Google’s financial backing, will enable it to meet the ambitious 100,000-ton target by the early 2030s.

The Looming Lithium Shortage

Worldwide lithium demand is expected to accelerate into 2024 and beyond.

EV sales are still growing every year. Automobile manufacturers have sold more EVs in 2024 than ever. And to power these electric vehicles, you need lithium for batteries that provide consistent, long range. Lithium production is starting to pick up again, and that has contributed to lower prices. The energy transition is happening. And no one can stop it.

Learn why investing in lithium explorers and producers looks promising >>

Betting on Holocene’s Innovate DAC Technology

Holocene’s approach to carbon removal is based on technology developed at the Department of Energy’s Oak Ridge National Laboratory. Unlike many other DAC systems, which rely on energy-intensive processes, Holocene’s solution is designed to be more cost-effective and scalable.

The press release revealed that Holocene uses a combination of liquid and solid-based systems that trap CO2 from the air. This is achieved by passing air through a waterfall mixed with an amino acid, which binds the CO2 molecules. The CO2 is then combined with guanidine to form a solid crystal, which is lightly heated to release pure CO2 for storage.

The company claims its technology stands out using lower temperatures, enabling it to harness waste heat or carbon-free sources. This further reduces energy costs and makes it sustainable.

Most importantly, Google and other tech giants are betting on this kind of DAC technology to slash costs dramatically to meet their carbon reduction goals.

MUST READ: US to Invest $1.2B in DAC Projects Led by Climeworks and Oxy

Roadblocks To Commercial Viability

However, this means of cutting emissions still has a long way to go before it becomes commercially viable and scalable. Currently, direct air capture can potentially remove ~ 2,000 tons of CO2 annually and needs to expand massively to create a huge dent in global emissions.

While the deal between Google and Holocene seems promising, the broader carbon removal market remains in its early stages. On the flip side, Google has pointed out certain challenges.

First, the competition for resources such as clean energy is cutthroat to power carbon capture plants and emerging data centers. This clean energy challenge could limit availability and give rise to conflicts. As demand grows, balancing these needs will become critical to ensure both sectors can thrive without straining resources.

A befitting instance of this kind of scenario was when Carbon Capture, the leading DAC developer, was recently forced to relocate its Project Bison facility due to growing competition for clean energy in Wyoming.

The second challenge is that Holocene is still in its early stages and has yet to achieve commercial viability. While it aims to capture 100,000 tons of CO2, this is far less than the billions of tons experts say must be removed annually to avoid severe climate impacts.

Additionally, costs remain high, and the demand for carbon removal services is uncertain. Thus, these costs must drop significantly for DAC projects to gain robust support from businesses and governments.

Image: CO2 capture by DAC, planned projects, and in the Net Zero Emissions by 2050 Scenario, 2020-2030

Source: IEA

SEE MORE: U.S. DOE Injects $54.4M to Boost Carbon Management Tech and Cut Carbon Emissions 

Holocene Confident in Breaking Through the Challenges in Carbon Capture

The DAC startup is confident it can scale its operations, aiming to remove 1 million tons of CO2 annually by 2030. Moreover, being equipped with custom-built systems, it has high hopes to meet its carbon capture goals.

Notably, CEO Anca Timofte, a former Climeworks executive, believes Holocene’s technology will be more cost-effective and easier to deploy on a large scale.

The partnership between Google and Holocene is a major step in tackling climate change. By providing funding and committing to buy carbon credits, Google is helping scale direct air capture. If successful, this collaboration could make carbon removal more affordable which is crucial for meeting global climate targets.

READ MORE: Altman-Backed Company Opens Biggest US Direct Air Capture Plant 

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Potential Volkswagen Demise Looms, Germany Gears Up for EV Revival

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The International Energy Agency (IEA) reported that “In Germany, where battery electric car subsidies ended in 2023, sales of electric cars fell by almost 5% in the first quarter of 2024.” Does this signal the impending downfall of Germany’s EV market? Absolutely not. Although the EV momentum has slowed down with Volkswagen’s planning closure, the German government is making bold moves to revive its domestic EV industry.

Is Volkswagen Shutting Down in Germany as Competition Looms?

Lately, this news has been making rounds as Germany’s home brand Volkswagen plans to shut down factories to cut costs. This is because the company has been facing stiff competition from Chinese EV makers, particularly in its largest market, China.

VW CEO Oliver Blume warned that Germany was losing its competitiveness as a manufacturing hub, noting that the European automotive industry was under significant strain. Industry experts explained this problem somewhat this way- Volkswagen, which launched a €10 billion ($11.1 billion) cost-cutting plan in 2023, struggled in China as local EV brands like BYD gained market share.

Consequently, the automaker saw a 7% drop in deliveries in the Chinese market in the first half of this year. This decline further contributed to an 11.4% fall in group operating profit, which dropped to €10.1 billion ($11.2 billion). Simply put., falling market share in China added to the pressure.

The transition to EVs disrupted Germany’s traditional automobile industry. In another media report, we discovered that car suppliers like ZF Friedrichshafen planned to cut up to 14,000 jobs in Germany by 2028 due to financial pressure and reduced orders. Amid all this clamor and turmoil, Volkswagen indicated that plant closures were a possible option to “future-proof” its business.

SEE MORE: Tesla Faces New 9% Tariff as EU Tightens Grip on China-Made EVs 

Volkswagen’s Alarm Prompts Urgent Government Action

Looking ahead, the German government has served some good news for its domestic EV industry. The coalition approved a new tax proposal to boost the EV market after last year’s sudden end to the subsidy program slowed progress. The initiative came just after Volkswagen blew the whistle of closing down. Notably, new registrations of EVs in Germany plummeted by 36.8% in July compared to the previous year. This highlighted the urgency for a renewed tax policy.

The plan, which is part of a larger package designed to revitalize the German economy, introduces significant tax reductions for company fleets of electric and zero-emission vehicles. Starting in 2024, companies will be able to write off up to 40% of the value of newly purchased EVs, gradually decreasing to 6% by 2028.

The government expects this tax relief to cost around €465 million ($514 million) annually.

Germany Pushes for EV Growth with New Tax Breaks

Chancellor Olaf Scholz’s cabinet also raised the price threshold for company cars eligible for tax breaks from €75,000 to €95,000. This change will benefit a broader range of vehicles, including luxury models from German automakers. Economy Minister Robert Habeck emphasized the importance of the car industry to the country’s economy, calling it a “cornerstone” that must keep up with global competition, especially from China.

However, while the auto industry association VDA praised the government’s initiative, critics argued the tax breaks would primarily benefit high-income earners. Environmentalists also doubted whether the new measures would significantly boost EV sales, especially after the sudden halt to consumer subsidies late last year, which led to a 70% drop in new EV registrations in August.

With Germany’s EV market struggling and competition from China increasing, the government’s move to incentivize corporate EV adoption signals a critical effort to revitalize the country’s automotive industry and ensure it remains competitive on the global stage.

Germany Drives Dynamic Developments in Automotive R&D

Germany has always pushed investment in automotive R&D. Currently, its automotive industry experiencing a major transformation, with digital and sustainable mobility emerging as the top choice for consumers.

In the latest report released by the EU Industrial R&D Investment, German automotive companies increased their R&D investments by 15% in 2022, reaching a total of €52.2 billion. This shows the industry’s commitment to staying competitive and leading the charge in future technologies.

Other than this, German automakers are making a significant impact on the global stage. Data shows:

In 2022, 30% of the global automotive R&D investments came from German companies.
German manufacturers and suppliers accounted for 72% of all R&D spending by European automotive companies worldwide.

Hildegard Müller VDA President noted,

“The massive investments by the German automotive industry show our determination to turn the transformation into an international success story. The German automotive industry supports the climate goals and wants to make climate-neutral mobility a reality as quickly as possible. We are drivers of transformation.”

Source: VDA Germany

With nearly one-third of global automotive R&D investments coming from Germany, the country is crucial in shaping the industry’s future. This strong focus on innovation, coupled with new EV tax incentives, demonstrates Germany’s commitment to advancing the EV market and tackling emissions. As a result, Germany is set to lead the way toward a brighter, more sustainable automotive future.

READ MORE: EU Commission Backs Germany’s Renewable Hydrogen Plan with $380M Funding

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Primary Nickel Production Surges 35%: Which Companies Are Nailing It?

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The second quarter of 2024 brought contrasting trends to the nickel industry. While primary nickel producers increased output year-over-year, mined nickel production faced a decline, reflecting the broader impact of global oversupply. These dynamics continue to reshape the nickel market, affecting producers across the globe.

Primary Nickel Takes the Lead

Primary nickel, which includes materials like ferronickel for steelmaking and intermediate products for EV batteries, saw substantial growth in Q2 2024. Per S&P Global Commodity Insights, the top five publicly listed producers achieved a combined output of 158,937 metric tons. That’s a notable 35.6% increase compared to the same quarter in 2023. 

This surge was driven by the growing demand for refined products, particularly in electric vehicle batteries and stainless steel production.

On the other hand, mined nickel production struggled. The top five producers saw a decline of 23.1%, equating to a drop of 5,362 metric tons, leaving their total output at 17,894 metric tons for the quarter. This pullback signals a deeper challenge for mined nickel producers, especially as global nickel prices remain volatile.

The London Metal Exchange (LME) cash price for nickel plunged to its lowest level of the year in July, dipping to $15,502.60 per metric ton on July 25. Although prices rebounded slightly to $16,383.96/t by September 3, this figure remains 49.9% below the high of $30,958/t recorded in January 2023. 

The steep decline has put pressure on many producers, particularly those operating at higher costs.

Indonesia’s Role in Nickel Oversupply

Despite the global oversupply and price downturn, Indonesia has maintained a strong presence in primary nickel production. The country has contributed significantly to the market surplus, although regulatory delays and restrictions on mining quotas have somewhat tempered their output. 

However, Indonesian producers remain resilient, continuing operations even as global prices struggle to recover.

The key player in the nickel market is striving to minimize Chinese involvement in its new nickel ventures. The country aims to meet the requirements for tax credits under the U.S. Inflation Reduction Act of 2022. 

Indonesia’s rapidly expanding nickel industry has led to an oversupply, causing prices to drop significantly. This surplus has driven nickel prices down as supply exceeds demand, impacting the overall market dynamics.

Jason Sappor, a senior analyst at S&P Global Commodities Insights, noted in a report that the nickel market is likely to remain in oversupply until at least 2028, with price pressures persisting over the medium term.

RELATED: Nickel Price Drops: A Temporary Setback or a Long-Term Trend?

How Major Nickel Companies Weather the Storm

Companies like Nickel Industries Ltd. managed to increase production despite unfavorable conditions. The company produced 31,975 metric tons of nickel in Q2, a 27.7% year-over-year increase, as reported in June. Bad weather and regulatory hurdles slowed output, but Nickel Industries demonstrated resilience, capitalizing on better operational efficiencies.

However, not all primary nickel producers enjoyed growth in Q2 2024. Glencore PLC, the Swiss-based diversified miner, recorded a drop in production, with 5,100 metric tons less than the previous year as seen in the above chart. This decline stems from challenges at their Koniambo joint venture in New Caledonia, which was under care and maintenance due to severe cost overruns.

Canada-based Lundin Mining Corporation also experienced a sharp downturn. The company’s mined nickel production fell by 63.3% in Q2, producing only 1,721 metric tons. Lundin attributed this drop to an underground collapse at its Eagle site in Michigan, which severely limited output. 

Consequently, the company revised its 2024 nickel production guidance down to 7,000-9,000 metric tons, significantly lower than the earlier estimate of 10,000-13,000 metric tons.

Not all miners faced setbacks though. Sweden’s Boliden AB achieved a production increase of 865 metric tons in Q2, pushing its total output to 2,980 metric tons. This uptick was driven by improved ore grades and recovery rates at Boliden’s Kevitsa mine in Finland, helping the company capitalize on operational efficiencies despite the overall market downturn.

A Challenging, Yet Progressing Road Ahead

The nickel market faces continued challenges, with oversupply and price fluctuations expected to persist. Although some primary nickel producers are managing to expand operations, mined nickel output is under strain. The price slump has affected profitability across the board, with companies wary of reducing production for fear of losing market share.

In a separate research and projection, nickel market size could almost double by 2034, reaching around $84 billion. Of this, the market analysis projected that North America would see the fastest market growth between 2024 and 2033. 

The global push for electric vehicles is a key driver of the nickel market, as the metal is essential for lithium-ion batteries. Nickel demand also surges from stainless steel manufacturing, fueled by the growth of construction and infrastructure sectors. 

Additionally, its widespread use in industries like aerospace, electronics, and chemical processing further boosts demand. Nickel’s crucial role in renewable energy, particularly in energy storage, adds to its rising importance. 

As the market adjusts to these pressures, the outlook remains uncertain. Indonesia’s dominance, regulatory delays, and global demand fluctuations will continue to shape the trajectory of both primary and mined nickel sectors in the years ahead.

READ MORE: Nickel’s Wild Ride: Market Surges, Supply Gluts, and the Global Power Play

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Orano’s Bold Move: A Multi-Billion Dollar New Uranium Plant Set for Tennessee

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The France-based nuclear and renewable energy company, Orano has picked Oak Ridge, Tennessee, as the top location for a new multi-billion-dollar uranium enrichment plant. Recently, U.S. legislation banned Russian uranium imports and allocated $2.7 billion for domestic projects.

On September 4, Tennessee officials and Orano USA announced new plans amid ongoing efforts by the Biden administration to decrease dependence on Russian uranium. Thus, this project is poised to give a solid boost to the domestic uranium reserves.

Government and Orano Partnership Bolsters Tennessee’s Nuclear Industry

Tennessee Governor Bill Lee revealed that the upcoming facility will span 750,000 square feet and generate over 300 direct jobs in Roane County. This makes it one of the largest enrichment centers in North America. Lee emphasized that Tennessee is a prime location for nuclear energy investments, highlighting the state’s Nuclear Energy Fund, which was set up to support such initiatives. An additional $10 million was appropriated in the state’s Fiscal Year 2024-2025 budget.

Governor Lee also remarked,

“Our administration created the Nuclear Energy Fund in partnership with the Tennessee General Assembly to support and expand the state’s nuclear ecosystem, and in the last six months, we’ve announced four projects that will further strengthen Tennessee’s position as a leader in safe, clean, and reliable energy for the future. Tennessee is the number one state for nuclear energy companies to invest and thrive, and we are proud to partner with Orano to lead America’s energy independence and drive continued economic growth and greater opportunity for Tennesseans.”

The fund also helps universities and research institutions expand their nuclear education programs. Additionally, Orano is the second company to benefit from the state’s nuclear support programs, further fortifying Tennessee’s role as a key player in the nation’s clean energy future.

The state is solidifying its leadership in nuclear energy by adding this major nuclear fuel enrichment facility. The press release also mentions that this project is backed by Oak Ridge National Laboratory, the TVA, and many other nuclear power plants supplying energy across the Southeast of the state. With its deep expertise and strategic investments, Tennessee is set to play a significant role in advancing the nation’s push for energy independence.

A MESSAGE FROM URANIUM ROYALY CORP.
[Disseminated on behalf of Uranium Royalty Corp.]

NASDAQ’s Sole Uranium Focused Royalty Company

The company is Uranium Royalty Corp., trading as (NASDAQ: UROY, TSX: URC), holding a strong portfolio includes strategic acquisitions in uranium interests with royalties, streams, equity in uranium companies, and physical uranium trading. Their strategic approach aims to support cleaner, carbon-free nuclear energy while fostering long-term relationships based on sustainability principles.

Learn about the company’s portfolio of royalty assets and uranium holdings >>

Orano’s Nuclear Footprint Grows Across America

Orano is a top player in the global nuclear industry, providing safe and effective solutions for managing nuclear waste. It also excels in uranium mining operations in Canada, Kazakhstan, and Niger. Known for its innovative and cost-efficient production methods, the company is leading in uranium extraction. Beyond mining, it also explores and develops new uranium sites and upgrades old mines. Consequently, this upcoming plant in Tennessee will enhance its U.S. presence and help bolster America’s energy independence.

Jean-Luc Palayer, CEO and President, Orano USA,

“We are very pleased to make this announcement with the great state of Tennessee. The warm welcome, responsive engagement, and established nuclear energy community in Oak Ridge, as well as access to continuous and stable power, have been key factors for this site selection. We’re already preparing for our next required steps, including securing available Federal support and customer commitments, obtaining an NRC license and Orano’s Board approval, but today we celebrate this major milestone towards bringing a new enrichment facility online to help meet our country’s need for an increased, secure domestic nuclear fuel supply.”

The Maryland facility is a top provider of technology and services for decommissioning closed nuclear facilities. It handles used nuclear fuel management, federal site clean-ups, and uranium sale, conversion, and enrichment services.

SEE MORE: Orano’s Unlikely Uranium Partner GoldMining (GLDG) Makes Big Strides at Rea 

Commitment to Combat Emissions and Climate Change

Orano is committed to reducing its greenhouse gas (GHG) emissions, aiming for a 25% decrease in direct and indirect emissions (Scopes 1 and 2) by 2025 compared to 2019 levels. This initiative aligns with Orano’s broader goal of addressing its total GHG footprint, including Scope 3 emissions, which come from purchased goods, capital goods, and fuel-related activities.

By 2030, Orano plans to significantly reduce GHG emissions intensity across all scopes. To reach this target, the company is focusing on several key strategies:

Enhancing energy efficiency
Phasing out fossil fuels
Decarbonizing electricity at mining sites
Reducing process emissions

source: Orano

Orano is also incorporating eco-design principles into future projects and operations, ensuring sustainability is integrated from the ground up. Carbon is now a key factor in evaluating new business offers, emphasizing its importance in Orano’s ESG strategy.

Furthermore, the company recently released its earnings reports confirming a stable revenue of around €4.8 billion. Additionally, it aims to maintain an EBITDA margin between 22% and 24%, with a positive net cash flow forecast for the year.

MUST READ: Unplugging The Energy Crisis… Fueled by Uranium

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India and UAE Sign Major Agreements with Focus on LNG and Nuclear

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In a historic move, India and the United Arab Emirates (UAE) have recently concluded significant agreements to deepen their energy cooperation and strategic partnerships. The deals cover many sectors, including liquefied natural gas (LNG), nuclear energy, and crude oil. With Prince Sheikh Khaled’s arrival, India’s Prime Minister Narendra Modi exuberantly tweeted,

“It was a delight to welcome HH Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. We had fruitful talks on a wide range of issues. His passion towards strong India-UAE friendship is clearly visible.”

A New Dawn in India-UAE Collaboration

Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s visit to India marked a significant moment for both nations. PM Modi held extensive discussions on Monday with Prince Khaled that concerned strengthening the bilateral relationship between the two countries.

These agreements highlight the growing relationship between the two nations as they collaborate to enhance energy security, develop new technologies, and strengthen economic ties.

India and the UAE have always enjoyed cordial relations, with India increasingly including the UAE as a key partner in its geopolitical strategy. In 2022-23, bilateral trade between the two nations hit around USD 85 billion, highlighting their robust economic relationship. The thriving Indian community in the UAE further emphasizes the deep cultural and social links between the countries.

Both nations continue to emphasize the importance of exploring new areas of cooperation, ensuring mutual benefits, and fortifying their long-standing relationship. Let’s deep dive into the focal points of the pact.

UAE Powers Up India’s Energy Security

One of the key agreements focuses on enhancing the UAE’s participation in India’s Strategic Petroleum Reserves. This is a critical move, as the reserves play a vital role in securing India’s energy future. The Indian government actively involved the UAE in this effort, strengthening its energy security.

Meanwhile, a production concession agreement between Urja Bharat, a joint venture of Indian Oil Corporation Ltd and Bharat Petro Resources Ltd, and the Abu Dhabi National Oil Company (ADNOC) will allow India to bring crude oil from Abu Dhabi Onshore Block 1. This will significantly contribute to India’s energy security by ensuring a steady flow of crude oil.

Notably in 2004, India launched its Strategic Petroleum Reserves to boost energy security. The Indian Strategic Petroleum Reserve Ltd (ISPRL) has filled underground caverns with 5.33 MMT of crude oil at three sites, including 1.5 MMT in Mangalore. ADNOC has stored 5.86 million barrels of crude at the Mangalore site, ready for use during global supply disruptions.

RECENT: TotalEnergies and Adani Green Form $444 Million JV for a Major Solar Project in India

15-Year LNG Supply Agreement with ADNOC

Another breakthrough in the energy sector is the signing of a 15-year deal between ADNOC and Indian Oil Corporation Limited (IOCL). Under this agreement, ADNOC will supply 1 MMTPA of LNG to IOCL. This supply will come from ADNOC’s Ruwais gas project, which focuses on lower-carbon production.

The Ruwais project, which will be powered by clean energy, will consist of two plants with a combined capacity of 9.6 million tonnes of LNG per year. This development is expected to more than double ADNOC’s LNG output, increasing it to 15 million tonnes annually. ADNOC’s ambition to become a major player in the LNG market is evident as it competes with regional rivals like Qatar and Saudi Arabia. This agreement with India is the third long-term LNG supply contract that ADNOC has signed with Indian companies in just over a year, following similar deals with IOCL and GAIL.

Expanding Collaboration in Nuclear Energy

In addition to fossil fuels, the two nations are also eyeing opportunities in nuclear energy. According to the UAE’s official news agency, WAM, the Nuclear Power Corporation of India Limited (NPCIL) and the Emirates Nuclear Energy Corporation (ENEC) have signed a MoU that outlines a framework for the operation and maintenance of the UAE’s first nuclear power plant at Barakah.

Indian Ministry of External Affairs further confirmed that this partnership will allow India to share its expertise in nuclear technology and services and simultaneously explore investment opportunities in the UAE.

Media reports revealed that construction of the Barakah plant, located in Abu Dhabi’s Al Dhafra region, began in 2009. Last week the UAE announced the commercial launch of its fourth and final reactor, which is set to generate 40 terawatt-hours of electricity annually.

SEE MORE: Abu Dhabi Becomes First Carbon Neutral International Financial Center 

Beyond LNG and Nuclear…

Apart from LNG and nuclear, both nations are also eager to collaborate on the latest technologies such as green hydrogen, artificial intelligence, and critical minerals. The MOU between The Abu Dhabi Developmental Holding Company (ADQ) and the Gujrat Government of India outlines plans to establish a food and agriculture park in Ahmedabad by the end of next year.

Image copyrights: carboncredits Data source: PM India

India’s External Affairs Ministry spokesperson Randhir Jaiswal also expressed himself on X, saying,

“A new milestone in a historic relationship. His Highness Sheikh Khaled bin Zayed Al Nahyan arrived in Delhi on his first official visit to India.”

This diverse collaboration highlights India and the UAE’s commitment to technological innovation and the shift to cleaner, sustainable energy. By focusing on reducing carbon emissions and embracing green technologies, both nations are positioning themselves as leaders in the global energy transition.

FURTHER READING: Indian State Inks Three Deals Worth $266M in Carbon Credits

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How the 2024 Election Will Shape the Future of Biden-Era Climate and Energy Policies

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As the 2024 US presidential election approaches, the future of the Biden-Harris administration’s ambitious climate and energy regulations stands at a critical juncture. This election could significantly influence the direction of US energy policy and climate action. It can also potentially shape the nation’s environmental landscape for years to come.

Biden-Harris Administration’s Climate Legacy

The Biden administration has made significant strides in advancing climate and energy policies, with the Inflation Reduction Act (IRA) being a cornerstone of its strategy. Passed in August 2022, the IRA represents a historic $370 billion investment in clean energy and climate initiatives. This landmark legislation can incentivize clean energy production and reduce greenhouse gas (GHG) emissions across various sectors.

Key provisions of the IRA include:

Clean Energy Production Tax Credits: These credits aim to support the generation of renewable energy from sources like wind, solar, and geothermal.
Investment Tax Credits: These credits are available for investments in renewable energy infrastructure, encouraging the growth of clean energy technologies.
Federal Tax Credit for Electric Vehicles: The IRA offers a $7,500 tax credit for the purchase of new electric vehicles (EVs). The incentive’s goal is to promote the adoption of cleaner transportation options.

These tax credits are central to the Biden administration’s efforts to cut emissions from the electricity sector, transportation, and oil and gas industries. The administration has set ambitious emissions reduction goals, including reducing GHG emissions by 50-52% below 2005 levels by 2030. However, the path to achieving these goals has been fraught with challenges.

Chart from America Is All In website

Despite these efforts, many of the administration’s new regulations face significant legal scrutiny, including:

Carbon Capture Requirements: In April 2024, the Environmental Protection Agency (EPA) finalized a rule mandating 90% carbon capture at existing coal-fired power plants by 2032. This regulation aims to mitigate emissions from one of the largest sources of industrial pollution.
Fuel Economy Standards: In June 2024, the US Department of Transportation published final fuel economy standards that require new cars and light-duty trucks to achieve a fleetwide average of 50.4 miles per gallon (mpg) by 2031. This measure is intended to improve fuel efficiency and reduce emissions from the transportation sector.

These regulations are currently undergoing litigation, and their future remains uncertain. The administration has worked to finalize many of these rules before potential Congressional Review Act (CRA) deadlines, which could allow Congress to overturn recent regulations. However, these rules are still vulnerable to challenges in court, particularly from conservative judges.

Trump’s Deregulatory Agenda

Former President Donald Trump’s campaign is promising a significant shift in energy policy if he returns to office. Trump’s platform centers on a deregulatory approach to energy, focusing on “energy dominance” by supporting traditional fossil fuels such as coal, oil, and natural gas. 

Key aspects of Trump’s proposed agenda include:

Dismantling Biden-Era Regulations: Trump aims to roll back many of the climate regulations implemented by the Biden administration. This includes repealing emissions-cutting rules and undoing incentives for clean energy.
Re-Exit from the Paris Agreement: Trump has indicated a desire to withdraw the US from the Paris Agreement on climate change, reversing the Biden administration’s commitment to international climate goals.
Boosting Oil and Gas Leasing: Trump plans to expand oil and gas leasing on public lands and offshore areas, which could increase fossil fuel production and emissions.

Trump’s approach would likely involve issuing executive orders on his first day in office to reverse Biden-era climate policies. According to legal experts, this could include revoking environmental regulations related to carbon emissions, fuel economy, and clean energy. It may also involve restarting or accelerating fossil fuel projects, such as oil drilling in Alaska and expanding natural gas exports. 

Trump’s team has signaled that he would act swiftly to implement these changes. David Bernhardt, former Interior Secretary under Trump, has stated that:

“On Day One, President Trump will rescind every one of Joe Biden’s industry-killing, job-killing, pro-China and anti-American electricity regulations.”

The Impact on U.S. Emissions Reduction Goal

The statement aligns with recommendations in Project 2025, a 900-page deregulatory policy blueprint released by the conservative Heritage Foundation. The plan anticipates a future Republican administration and outlines strategies to dismantle current climate policies. Although Trump has tried to distance himself from the plan, its recommendations reflect his campaign’s direction.

Energy Innovation, a nonpartisan energy and climate policy firm, estimated that fully implementing Project 2025 would cause the US to fall 27% points short of its Paris Agreement goal. 

The latest update from S&P Global Commodity Insights’ North American Power Market Outlook Planning Case anticipates a 52% reduction in US power-sector carbon emissions from 2005 levels by 2030. This projection is driven by clean energy tax credits in the Inflation Reduction Act. However, the planning case does not factor in the EPA’s recently finalized GHG regulations, which face legal vulnerabilities.

Some Biden administration rules may be at risk of early Congressional Review Act disapproval if Republicans gain control of the White House and Congress. The Congressional Research Service estimates that rules finalized on or after August 1 could be subject to disapproval resolutions. 

Industry and Environmental Reactions

The energy sector is bracing for potential upheaval, with regulatory uncertainty high. Industry groups are preparing for the possibility of regulatory changes depending on the election outcome. 

Environmental advocates are also mobilizing to defend Biden-era policies if Trump wins. Chris Espinosa of Earthjustice has emphasized the commitment to defending progress on climate regulations against any rollback attempts. 

Remarkably, several climate-focused organizations have united to launch a $55 million advertising campaign in support of Vice President Kamala Harris. The coalition aims to highlight how green initiatives, championed by the Biden-Harris administration, offer long-term economic growth, job creation, and innovation opportunities.

The 2024 presidential election represents a crucial moment for US climate and energy policy. The outcome will determine whether the ambitious goals set by the Biden administration continue or if a shift towards deregulation and increased fossil fuel production takes place. 

READ MORE: Kamala Harris Surges Ahead of Trump on Climate and Energy Policies, Survey Shows

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