Sibanye-Stillwater, the multinational mining and metals giant entangled in a major legal battle with Appian Capital Advisory. This case stems from a deal worth $1.2 billion that was abruptly terminated in January 2022.

The ongoing proceedings, which are being heard in the High Court of England and Wales, revolve around the acquisition of two Brazilian mines: Santa Rita, a nickel mine, and Serrote, a copper mine. Notably, the former is one of the rare nickel sulfide mines that is still operating. It also produces copper, cobalt, and platinum group metals as by-products.

Sibanye’s decision to withdraw from the deal has led to accusations and legal claims for compensation by Appian. As both sides prepare for the next phase of the case in November 2025, the stakes are high, with claims that could exceed $600 million, as reported by MINING.COM

The Massive $1.2B Deal and Its Collapse

Going back in time, in October 2021, Sibanye-Stillwater struck a $1.2 billion deal with Appian to acquire the Santa Rita and Serrote mines. These assets are owned by Atlantic Nickel and Mineração Vale Verde. Appian’s funds were meant to strengthen Sibanye’s stock of critical metals. The latter was looking to shift its focus from platinum and gold to new opportunities.

Notably, Sibanye-Stillwater had robust plans to expand into battery metals like nickel and copper which are the most essential for the fast-growing electric vehicle (EV) market.

However, just three months later, Sibanye-Stillwater terminated the share purchase agreements (SPAs), citing a “geotechnical event” at the Santa Rita mine as the primary reason. The mining company cited the event as significantly impacting future operations and used it to justify backing out of the deal. Appian, however, claimed that the event was minor and did not justify the termination of the agreements, leading to the start of legal proceedings in 2022.

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

The Legal Battle and Initial Rulings

The first stage of the legal battle began in June 2024 and centered on whether the geotechnical event could be reasonably expected to have a material and adverse impact on Santa Rita’s operations. After a five-week trial, Justice Butcher ruled in October 2024 that Sibanye was not justified in terminating the SPAs.

The press release revealed that, according to the judgment, the geotechnical event at Santa Rita was neither as material nor as adverse as Sibanye claimed, meaning the company had no right to withdraw from the deal based on this event.

However, Sibanye achieved a partial victory in the ruling. The court dismissed Appian’s claim of “wilful misconduct”, with the judge acknowledging that Sibanye’s management genuinely believed they were acting in the company’s best interest. This ruling suggests that while Sibanye’s reasoning was flawed, the company did not act with malicious intent.

MUST READ: Alaska Energy Metals Pioneers A Model of Carbon-Neutral Mining 

Appian’s Compensation Claims and Initiation of the Quantum Trial

Appian is now pursuing compensation for the failed deal. The company initially sought $522 million in damages but has indicated that the total claim could exceed $600 million, including interest and legal costs. These figures represent the difference between the agreed purchase price and the mines’ current market value, alongside expenses incurred during the resale process.

Appian further pressed that Sibanye’s termination caused substantial financial losses, and they aimed to recover the full amount.

The legal battle is far from over, as the case now moves into the second phase—a trial scheduled for November 2025. This trial, known as the Quantum Trial, will determine the exact amount of damages Sibanye will be required to pay, if any. Appian argues that they would have sold the mines to another buyer for a similar price if the deal had not fallen through.

However, Sibanye maintains that Appian received multiple offers for the mines after the deal’s collapse and, therefore, cannot claim that they suffered a significant financial loss.

Sibanye’s position in the Quantum Trial is that Appian failed to mitigate its losses. Under English contract law, a party seeking compensation is required to take reasonable steps to reduce the damages they incur. Sibanye argues that Appian could have, and should have, sold the mines at fair market value soon after the deal was terminated. The company also asserts that Appian’s continuing ownership of the mines may have resulted in profits, which would reduce the overall damages they could claim.

High Stakes for Sibanye-Stillwater, Will Nickel Pay Off?

The legal battle with Appian comes at a difficult time for Sibanye-Stillwater. Leading media agencies reported that CEO Neal Froneman is already grappling with declining prices for platinum group metals, which has put additional pressure on the company’s financial performance.

As Sibanye seeks to diversify its portfolio and reduce its reliance on these traditional metals, the outcome of the trial could have significant implications for the company’s strategic direction.

Sibanye-Stillwater’s expansion into battery metals is a crucial part of its growth strategy. The company has made several moves in recent years to acquire assets in this sector, including its initial attempt to purchase Appian’s Brazilian mines.

However, the collapse of this deal has forced Sibanye to explore other opportunities. Analysts have noted that the prices of nickel, copper, and other battery metals have risen sharply in recent years, making it more challenging to find affordable assets.

Nickel, in particular, is increasingly important for the production of lithium-ion batteries used in electric vehicles. However, miners and market experts predict that the demand for nickel and other critical metals will certainly surge with the EV boom.

This leads to the most inevitable scrutiny- can Sibanye-Stillwater’s ability to secure access to these materials propel its growth in the battery metals market in the future?

Image: Nickel Demand from EV and Other Applications, 2022-2030

Source: IRENA report

Appian vs. Sibanye: The Final Verdict Looms

In the meantime, the Brazilian mines in question continue to operate, with Santa Rita transitioning from open-pit to underground operations. This transition to high-grade nickel can potentially extend the mine’s life by over 20 years. Alternatively, it significantly highlights the ongoing value of these assets and the high stakes involved in this legal battle.

Sources:

Court judgment handed down in legal proceedings commenced by Appian Capital
Sibanye liable for damages to Appian in $1.2 billion claim – MINING.COM

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

The post Sibanye-Stillwater in Legal Limbo: Will a $600M Penalty Follow the Canceled Brazilian Mines Deal? appeared first on Carbon Credits.

Amazon is diving deep into nuclear power as part of its ambitious data-center expansion plan, investing over $52 billion across three U.S. states. The e-commerce giant has inked 3 key deals to explore and develop small modular reactors (SMRs).

SMRs are a new type of nuclear technology that promises more efficient, compact, and clean power generation. AWS CEO Matt Garman noted that SMRs present unique potential to provide scalable and reliable power to meet the ever-growing energy needs of data centers.

Shares of nuclear companies surged following Amazon’s announcement of the agreements. Nano Nuclear Energy and Nuscale Power saw their shares rise nearly 10% in premarket trading, while Oklo experienced an over 11% increase.

RELATED: Are SMRs The Future of Nuclear Energy? Oklo Leads the Charge

Small Reactors, Big Ambitions

SMRs are advanced nuclear reactors designed to be less than 10% of the size of traditional nuclear plants. But they can generate up to about ⅓ of the power output of traditional reactors. As such, they allow for easier deployment and integration into the energy grid. 

Developers aim to have these reactors generating electricity by the early 2030s, contingent on receiving approval from the Nuclear Regulatory Commission (NRC) to build and operate their designs, as well as proving the technology’s viability.

Amazon’s most recent collaboration with Dominion Energy, a $48 billion market-cap utility company, aims to explore the deployment of SMRs in Virginia near Dominion’s North Anna power station in Louisa County. 

Virginia hosts nearly half of all U.S. data centers, with a significant concentration in Northern Virginia, particularly in the Data Center Alley, located in Loudoun County. It is estimated that 70% of the world’s internet traffic passes through Data Center Alley each day.

The region has experienced a doubling of power demand over the last 5 years. It is also projected to see a 4x increase over the next 15 years. The planned SMR could contribute at least 300 megawatts of power, which could support multiple data centers in the region.

AWS has committed to investing $35 billion by 2040 to develop multiple data center campuses across Virginia, as announced by Governor Youngkin last year. 

Nuclear Meets the Cloud: Dominion, X-Energy, and Amazon

Garman emphasized that the push for nuclear is part of Amazon’s broader goal of achieving net-zero emissions by 2040. He noted that:

“We see the need for gigawatts of power in the coming years, and there’s not going to be enough wind and solar projects to be able to meet the needs, and so nuclear is a great opportunity.”

The specific targets for nuclear’s contribution to AWS’s power needs remain undisclosed. But Garman noted that Amazon hopes SMRs will be a “material source of power generation” by 2040.

Alongside the Dominion deal, Amazon announced agreements to develop SMRs in Washington state with Energy Northwest, a public power agency, and to back X-energy, an advanced nuclear startup. 

X-energy is building its first SMR project in Seadrift, Texas, in collaboration with Dow Chemical. Amazon is providing significant financial support to X-energy, anchoring a $500 million investment through its Climate Pledge Fund. This commitment aims to bring 5 gigawatts of SMR-based energy online across the U.S. by 2039.

Why Small Modular Reactors?

The said SMRs could power entire mid-sized cities, but for Amazon, they’re integral to supporting the energy-intensive demands of data centers, especially those driven by artificial intelligence (AI). Data centers require stable and continuous energy supplies, something that SMRs, unlike intermittent renewable sources like wind or solar, can reliably offer.

With capacities of up to 300 megawatts, SMRs can be tailored to meet local energy demands, making them suitable for data centers and other energy-intensive operations. X-energy’s Xe-100 reactor, for example, can produce 80 megawatts of power per unit, with the flexibility to scale up by deploying multiple reactors at a single site.

Another key advantage is the carbon-free nature of nuclear power, aligning with Amazon’s goal of reducing its environmental impact. Unlike fossil fuels, nuclear energy does not produce greenhouse gas emissions during operation. Thus, it offers a reliable solution for tech companies seeking to curb their carbon footprints. 

AWS, like its peers, is committed to cutting emissions, but it has faced challenges. In 2023, Amazon’s carbon footprint was just under 69 million metric tons of CO2, slightly lower than its peak in 2021 but still substantial.

SEE MORE: Is Amazon’s Carbon Goal Enough to Offset Its Financial Hiccups?

Beyond Virginia

Beyond its partnership with Dominion in Virginia, Amazon is also eyeing other regions for SMR projects. In Washington, it is collaborating with Energy Northwest to build an SMR near the Columbia Generating Station in Richland. This project aims to provide up to 960 megawatts of power, with Amazon securing the rights to purchase electricity from the first 320 megawatts produced.

This flexibility makes SMRs appealing for scaling energy projects across different regions. It enables Amazon to replicate its nuclear model wherever energy demand is high. AWS recently acquired a 960-megawatt data center campus in Pennsylvania from Talen Energy, which includes access to fixed-price nuclear power from Talen’s Susquehanna nuclear plant.

Amazon’s Nuclear Bet to Meet Data Center Demand

Amazon’s venture into nuclear power mirrors a broader industry trend. Google recently announced its own SMR project with Kairos Power. Similarly, Constellation Energy is planning to restart operations at the iconic Three Mile Island to power Microsoft’s data centers. Sundar Pichai, Google’s CEO, expressed optimism about the potential of SMRs, highlighting the surge of capital and innovation driving the technology forward.

X-energy CEO Clay Sell sees a significant opportunity in this trend, noting that demand for nuclear energy, especially in the context of AI’s energy requirements, is reshaping how companies think about power in the U.S. 

The Biden administration has invested billions into clean energy initiatives. As part of Amazon Web Services’ recent announcement, U.S. Energy Secretary Jennifer Granholm revealed that an additional $900 million in funding is now available for projects aiming to deploy SMRs. This funding supports the broader push to accelerate clean and reliable energy solutions across the nation.

READ MORE: What Does the U.S. Need to Triple Its Nuclear Capacity by 2050? DOE Explains…

For Amazon, SMRs represent a promising path forward. While the journey to widespread deployment of advanced nuclear technology is fraught with challenges, the potential payoff—a more resilient, sustainable energy future—makes the effort worthwhile. 

The post Amazon Turns to Nuclear and SMRs For Its $52B Data Center Expansion appeared first on Carbon Credits.

Earlier this month, CarbonCredits reported that Sundar Pichai, Google’s CEO, hinted at the possibility of using nuclear energy to help the company reach its ambitious 2030 net-zero emissions target. Confirming those hints, Google officially announced on October 14 a groundbreaking nuclear energy agreement with Kairos Power.

This milestone isn’t just about power. It’s about accelerating a global clean energy transition, ensuring that nuclear becomes a key player in the fight against climate change.

Google Teams Up with Kairos to Tackle Rising Emissions

Google’s push for nuclear power comes at a critical time. In 2023, its greenhouse gas (GHG) emissions rose to 14.3 million metric tons of CO2 equivalent (tCO2e), a 13% increase from the previous year and a 48% jump from 2019. This increase was largely driven by higher energy consumption in data centers, AI, and supply chain emissions. As its energy use grows, emissions reduction is going to be more challenging.

Source: Google

Coming to the main segment, the tech giant has signed the world’s first corporate agreement to purchase nuclear power from small modular reactors (SMRs), designed by Kairos Power.

We unlock the details in the next segment.

RELATED: Google Speaks: Why Nuclear Energy Could be The Big Tech’s Next Bet 

Advancing Through PPAs

Under this agreement, Kairos Power will develop, build, and operate advanced reactor plants, supplying clean energy to Google through Power Purchase Agreements (PPAs).

Michael Terrell, Google’s Senior Director of Energy and Climate, said

“This landmark announcement will accelerate the transition to clean energy as Google and Kairos Power look to add 500 MW of new 24/7 carbon-free power to U.S. electricity grids. This agreement is a key part of our effort to commercialize and scale the advanced energy technologies we need to reach our net zero and 24/7 carbon-free energy goals and ensure that more communities benefit from clean and affordable power in the future.”

These plants will be strategically located to power Google’s data centers, with the first SMR deployment expected by 2030. More reactors will roll out by 2035.

The multi-plant agreement will boost innovation by advancing Kairos Power’s demonstration plan. Each new plant will help refine and improve the technology. Furthermore, the pre-determined milestones will keep Kairos Power accountable and ensure proper progress throughout the partnership. This approach will also speed up commercialization and build trust over time.

Mike Laufer, CEO and co-founder of Kairos Power remarked,

“Our partnership with Google will enable Kairos Power to quickly advance down the learning curve as we drive toward cost and schedule certainty for our commercial product. By coming alongside in the development phase, Google is more than just a customer. They are a partner who deeply understands our innovative approach and the potential it can deliver.”

Economic Benefits

Industry experts have estimated that the U.S. could potentially create over 375,000 new jobs by achieving 200 GW of advanced nuclear capacity by 2050. Google’s deal with Kairos Power supports this vision by creating jobs in nuclear technology, construction, and energy sectors.

For local communities, this means more than just employment. The presence of nuclear energy infrastructure can foster economic growth while also contributing to the reduction of carbon emissions. In a world of rising energy demand, reliable, clean power isn’t just a solution—it’s also a powerful driver of economic growth.

MUST READ: US Targets 200 GW Nuclear Expansion to Meet Soaring Energy Demand 

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Unlocking Kairos Power’s Innovative SMR Technology

Founded in 2016, Kairos Power takes a unique approach to bringing advanced nuclear technology to market. In 2023, the U.S. Nuclear Regulatory Commission granted Kairos Power a construction permit for its Hermes demonstration reactor. This was the first non-water-cooled reactor approved for construction in over 50 years.

By using a rapid, iterative development process and vertical integration, the company is speeding up the deployment of safe and efficient small modular reactors (SMRs). Their reactors feature a molten-salt cooling system and ceramic pebble-type fuel, ensuring better heat transfer to steam turbines for power generation. Operating at low pressure, this system reduces risks and creates safer, more reliable operations.

Additionally, they conduct multiple hardware tests to identify and resolve potential issues before large-scale deployment. Google’s involvement will help speed up this process, leading to quicker and more cost-effective SMR installations across the U.S.

The Kairos Power FHR (KP-FHR): A Novel Advanced Reactor

Source: Kairos

See more details about this reactor here: Technology – Kairos Power

Why Google Chose SMRs for a Clean Energy Future

Well, many consider nuclear energy as complex and slow to develop. However, new reactors, especially like the SMRs from Kairos Power are changing this concept. Their advanced designs are smaller, simpler, and quicker to build, making them easier to deploy in more locations.

The modular design of these reactors allows for scalability. Instead of a one-size-fits-all approach, these smaller units can be added on to match energy demands. And because they are quicker to build and safer to operate, the timeline to achieving carbon-free energy is shortened significantly. Simply put, the tech giant is investing in nuclear energy that is both safer and more economically viable than traditional reactors.

Secondly, SMRs provide a constant supply of clean energy. Thus, Google believes this partnership is about finding a balance between renewable sources like wind and solar and more constant energy like nuclear, which can ensure reliable power every hour.

Overall, one can infer that this partnership would accelerate clean energy by bringing affordable nuclear power to U.S. grids. As a result, Google can effectively meet rising electricity demands, especially for AI, while advancing its goal of going 24/7 carbon-free energy by 2030.

FURTHER READING: Larry Ellison’s $100 Billion Bet: Nuclear Power to Drive Oracle’s AI Revolution 

The post Google and Kairos Power Unveil Groundbreaking 550 MW Nuclear Energy Initiative appeared first on Carbon Credits.

Despite the promising outlook, many hydrogen projects are still in the early stages. Moreover, some face delays or cancellations due to these barriers, including permitting challenges. 

Electrolyzer Expansion: Powering the Future of Green Hydrogen

Analysts from S&P Global Commodity Insights report that 1.2 GW of electrolyzer capacity is operational globally, and 2.1 GW began construction in Q2 2024, with 1.5 GW of this growth happening in China.

The country accounts for over 40% of recent FIDs and is home to 60% of global electrolyzer manufacturing capacity, which currently stands at 25 GW annually.

The IEA projects that by 2030, electrolysis-based hydrogen production in China could be cheaper than hydrogen from coal. This is assuming that the global project pipeline is realized. 

Image from the IEA Report

IEA Executive Director Fatih Birol emphasized the need for stronger demand-side incentives, warning that current demand targets lag far behind government production goals.

The report calls for policies such as carbon contracts for differences and sustainable fuel quotas to stimulate demand. It also warns that the progress made in the hydrogen sector so far is insufficient to meet climate goals, citing stalled cost reductions due to high raw material and energy prices.

Hydrogen production costs could potentially halve to between $2/kg and $9/kg by 2030 under the IEA’s Net-Zero Emissions by 2050 scenario, closing the price gap with “gray” hydrogen. However, under existing policies, the cost is expected to drop by just 30%.

Global hydrogen demand rose to 97 million metric tons in 2023, mostly in refining and chemicals. However, only 1 million metric tons came from low-emission sources. 

The IEA estimates that low-carbon hydrogen production could reach 49 MMt/y by 2030. Yet, achieving this would require an unprecedented annual growth rate of over 90%, a rate even higher than solar power’s fastest growth phase. 

Various challenges like financing, regulatory issues, and permitting delays continue to put the project pipeline at risk. Amid these hydrogen production challenges and projections, a big player in the industry continues to show impressive growth.  

Nikola’s Hydrogen Trucks Hit the Road Amid Industry Challenges

Nikola, a leader in producing zero-emissions hydrogen fuel cell trucks with its HYLA brand, saw a 22% increase in wholesale deliveries of its hydrogen-powered electric trucks during the third quarter. This achievement signals steady demand for the company’s Class 8 hydrogen fuel cell trucks. 

The company delivered 88 trucks to dealers, a record sales quarter, meeting its target of 80 to 100 units. However, it fell short of the 80% surge in deliveries seen in the second quarter. 

The Phoenix, Arizona-based company continues to see demand for its hydrogen-powered trucks. As of the 3rd quarter, Nikola has delivered 200 hydrogen fuel cell trucks in 2024, aiming to meet its full-year target of 300 to 350 trucks. 

Since launching sales in the 4th quarter of 2023, the company has sold a total of 235 trucks. Nikola remains on track to complete the rollout of revamped battery-electric trucks by the end of the year.

RELATED: Nikola’s HYLA Stations Are Supercharging the Hydrogen Revolution

Nikola CEO Steve Girsky highlighted the importance of this achievement, saying:

“Despite overall market headwinds, Nikola remains focused on our mission to pioneer solutions for a zero-emission world, and we’re doing it one truck at a time.”

Economic Setbacks and Project Delays

While the hydrogen fuel cell company strives through market turmoil, some major developers have scaled back or canceled their green hydrogen projects due to economic hurdles. 

Origin Energy, for example, scrapped a hydrogen project in Australia, citing slow market development and high input costs. CEO Frank Calabria explained that technological advancements are still needed to make the investment viable. 

Similarly, Norway’s Nel ASA saw a large U.S. order canceled by Hy Stor Energy, reflecting broader industry hesitation. Michael Liebreich, an industry analyst and investor, sees this as a healthy shift, with unfeasible projects being abandoned to focus on more economically sound ventures. 

Despite the setbacks, clean hydrogen production is expected to grow by over 40% in 2024, though it will still account for just 1% of global hydrogen demand. While the long-term potential remains, the industry is recalibrating expectations as it faces significant financial and technological challenges.

What’s The Road Ahead for Green Hydrogen?

The hesitation around green hydrogen is partly due to uncertainty regarding the U.S. Treasury’s rules for the 45V hydrogen production tax credits. These credits were created under the Inflation Reduction Act (IRA) to incentivize clean hydrogen production. Developers have delayed their commitments to green hydrogen until these rules are finalized. 

Initially, green hydrogen advocates saw the IRA as a significant opportunity, believing that its clean fuel tax credits would make electrolysis-based hydrogen production cheaper than conventional methods. Yet, nearly all of today’s hydrogen supply is derived from natural gas without carbon capture technology, highlighting the slow transition to green hydrogen. 

A study by McKinsey & Co., commissioned by the Hydrogen Council, found that 85% of committed hydrogen production capacity in North America through 2030 is tied to carbon capture projects.

While the 45V tax credit is technology-neutral, analysts have noted that incentives for electrolysis are more attractive than those for carbon capture. However, developers of blue hydrogen projects have benefited from carbon capture tax credits under the expanded 45Q program. It offers up to $85 per metric ton of CO2 captured.

While blue hydrogen is gaining ground, the global pipeline for green hydrogen is also expanding, particularly outside the U.S. 

Companies like Air Products and CF Industries have proposed green hydrogen projects in the U.S. but have yet to make final investment decisions. Interestingly, Air Products supports the Biden administration’s proposed tax credit requirements, which mandate that hydrogen plants source electricity from new zero-carbon generation facilities. Nonetheless, the company has delayed its $4 billion green hydrogen project in Texas pending the final tax credit rules.

Despite the promising growth in electrolyzer capacity and hydrogen production, significant challenges like regulatory uncertainty and economic hurdles persist. While companies like Nikola are making progress, the road to large-scale green hydrogen adoption remains complex and uncertain. The future will depend on clearer policies and more competitive technologies.

SEE MORE: Microsoft and ESB Launch Groundbreaking Green Hydrogen Pilot to Decarbonize Dublin Data Centers

The post Hydrogen’s Big Leap: Can Electrolyzers and Tax Credits Fuel the Green Revolution? appeared first on Carbon Credits.