Microsoft’s $9 Billion Power Move: Revolutionizing U.S. Clean Energy and Communities

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Microsoft’s $9 Billion Power Move: Revolutionizing U.S. Clean Energy and Communities

Microsoft has taken a significant step in the global renewable energy transition by partnering with Acadia Infrastructure Capital to launch the Climate and Communities Investment Coalition (CCIC). This ambitious $9 billion initiative aims to develop 5 gigawatts (GW) of renewable energy projects across the United States over the next five years. 

The move underscores Microsoft’s commitment to sustainability and highlights corporations’ growing role in accelerating clean energy development.

Sparking a Green Revolution: How Microsoft and Acadia are Powering Up the Future

Acadia Infrastructure Capital specializes in driving investments into North America’s proven energy transition infrastructure. The company strategically deploys tax credits and structured/common equity into mid-market, real asset-based opportunities. By focusing on bespoke product structuring, Acadia goes beyond conventional investment approaches to adapt seamlessly to the dynamic energy market landscape.

The CCIC is designed to address the dual challenges of: 

  1. Expanding clean energy capacity, and 
  2. Ensuring that communities benefit from the renewable energy transition. 

The coalition’s projects are expected to generate enough power for nearly 1 million homes. It can also prevent about 15 billion pounds of carbon emissions annually.

These efforts align with Microsoft’s long-standing commitment to reducing its carbon footprint and achieving sustainability goals.

The coalition’s first project is a 210-megawatt (MW) solar farm in Texas. It is financed in collaboration with Matrix Renewables and supported by the Sustain Our Future Foundation. The project serves as a model for how corporate investment can drive the renewable energy sector forward while providing tangible benefits to local communities.

Corporate-Led Climate Action

Dr. Brian O’Callaghan, Vice President at Acadia Infrastructure Capital, emphasized the coalition’s mission to fast-track corporate-led renewable energy financing. He stated that:

“The CCIC’s reason for being is to accelerate corporate-led renewable energy financing with real tangible benefits to local communities.”

This approach not only aids in achieving environmental goals but also delivers economic and social benefits.

The CCIC initiative is strategically designed to assist businesses in accessing Renewable Energy Certificates (RECs). Also known as renewable energy credits, RECs are essential for offsetting carbon emissions and greening supply chains. These certificates will enable participating corporations to meet sustainability targets while supporting the U.S. energy transition.

Just a few days ago, Meta also announced a similar move of purchasing green credits from 4 big solar energy projects in the U.S. The deal will produce 760 megawatts of solar power that the big tech can use to negate its carbon emissions.

Tech Meets Climate: Microsoft’s Role in a Global Green Shift

Microsoft’s role as an anchor member of the CCIC reflects its broader sustainability vision. The tech giant has been a leader in climate action, with initiatives ranging from reducing its carbon emissions to designing zero-water data centers.

Unlike other recent renewable energy announcements, Microsoft has not tied the CCIC projects to specific data centers. Instead, the RECs generated are expected to flow into Microsoft’s general sustainability efforts, supporting its commitment to becoming carbon-negative by 2030, which means removing more carbon than it emits.

Microsoft’s Path to Carbon Negativity by 2030

The tech giant aims to remove all emissions since 1975 by 2050. However, achieving this ambitious goal involves tackling complex challenges, particularly the reduction of Scope 3 emissions, comprising over 96% of its carbon footprint. These emissions largely stem from purchased goods, capital goods, and the use of sold products.

Microsoft scope 3 emissions
Chart from Microsoft 2024 Environmental Sustainability Report

Despite progress, Microsoft’s total emissions rose by 29.1% in FY23 compared to 2020, driven by infrastructure investments. Still, the company has reduced Scope 1 and 2 emissions by 6% through clean energy procurement and efficiency initiatives.

Microsoft 2030 carbon negative target
Chart from Microsoft 2024 Environmental Sustainability Report
  • To scale clean energy, Microsoft expanded its renewable energy portfolio to 19.8 GW across 21 countries by 2023.

It signed power purchase agreements in countries like Brazil, Poland, and New Zealand. The tech company became the first major entity to use 24×7 clean energy services for its Washington data center.

Microsoft also focuses on data center efficiency, achieving a PUE of 1.12 and reducing hardware needs for Azure by 1.5%, cutting embodied carbon. The company is electrifying its fleet, with plans to achieve a 100% electric fleet by 2030.

To address unavoidable emissions, Microsoft is investing in carbon dioxide removal (CDR) projects, contracting over 5 million metric tons annually starting in 2030. In 2023, it secured landmark deals, including reforestation in the Amazon and bioenergy with carbon capture. These efforts highlight Microsoft’s commitment to driving sustainability and global decarbonization.

The CCIC further strengthens Microsoft’s renewable energy portfolio, which includes diverse projects across the globe. Danielle Decatur, Director of Environmental Justice at Microsoft, highlighted the coalition’s significance:

“The CCIC program provides us opportunities to meet our goals through high-quality renewable energy procurement.”

A Triple Win for Corporate Climate Leaders

The CCIC’s success relies on its ability to attract additional corporate members. With Microsoft’s leadership and Acadia’s expertise, the coalition is actively recruiting other companies to amplify its impact.

Tim Short, Managing Partner at Acadia, described the coalition as offering a “triple win” for corporations with these aspects: 

  1. clean energy, 
  2. improved earnings, and 
  3. meaningful community impact.

One of the standout features of the CCIC is its focus on community benefits. The coalition aims to:

  • Expand access to affordable clean energy for low-income households.
  • Create local jobs and promote economic inclusion.
  • Support diverse contractors and suppliers, ensuring equitable growth.

With these goals, the CCIC emphasizes environmental justice, ensuring that renewable energy projects contribute positively to underserved communities. By involving more corporations, the CCIC aims to scale its impact significantly, accelerating the transition to a sustainable energy future.

Microsoft and Acadia’s partnership set a benchmark for how businesses can lead in the renewable energy space while delivering tangible benefits to local communities. By combining financial resources, technological innovation, and a commitment to social equity, the coalition can help shape the U.S. clean energy landscape over the next five years.

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Boosting Aviation Carbon Credits: ICAO Greenlights Verra’s VCS Program for CORSIA Carbon Market

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verra corsia aviation

On December 12, Verra mentioned in its press release that The United Nations International Civil Aviation Organization (ICAO) has approved using the Verified Carbon Standard (VCS) Program during the first phase (2024–2026) of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

This decision marks a significant milestone for the emerging CORSIA carbon market. Subsequently, airlines with a vital new source of carbon credits can meet their aviation emissions mitigation mandates.

Additionally, ICAO released an updated Eligible Emissions Units document, outlining specific VCS credit categories and vintages approved for use in CORSIA’s initial phase.

Aviation’s Carbon Footprint Set to Soar by 2050

Air travel has become a major contributor to global carbon emissions. Climate experts predict it will be one of those toughest sectors to decarbonize in the coming decades. North America is expected to remain the top emitter, while Asia’s aviation market, driven by China and India, is projected to grow the fastest. The Asia-Pacific region overall is likely to reduce its gap with North America, solidifying its position as the second-largest emitter.

Statista has presented Bloomberg BNEF data showcasing aviation-related carbon emissions which are set for a sharp rise across all regions over the next 30 years. In 2019, North America generated an estimated 293 million metric tons of CO₂ from aviation, but it can exceed 440 million metric tons by 2050. The Asia-Pacific region trailed at 230 million metric tons in 2019 but is forecasted to reach 418 million metric tons by 2050.

  • Globally, aviation emissions could reach nearly 2 billion metric tons by mid-century—almost 2X the pre-pandemic levels of 2019 and nearly 4X the emissions recorded in the 1990s.

Addressing this steep rise will require bold, innovative strategies to decarbonize air travel and mitigate its impact on climate change.

aviation carbon footprint

CORSIA’s First Phase: Expanded VCS Eligibility

With this approval, the number of Verified Carbon Units (VCUs) that may become eligible for CORSIA labels will get a significant boost. While most VCUs are covered under this decision, ICAO has excluded specific project types and methodologies.

What’s Included?

Here’s what remains eligible for Agriculture, Forestry, and Other Land Use (AFOLU) projects in REDD+ countries:

  1. Small-scale projects: Those generating less than 7,000 tCO2e of reductions and removals annually.
  2. Projects using specific methodologies: These include VM0012, VM0017, VM0021, VM0022, VM0024, VM0026 (and VMD0040), VM0032, VM0033, VM0036, VM0041, and VM0042.
  3. “Nested” projects: Projects integrated into jurisdictional REDD+ accounting under Scenario 2a or Scenario 3 of Verra’s Jurisdictional and Nested REDD+ (JNR) Framework.

Additionally, Verra’s new REDD methodology (VM0048) has been made eligible for CORSIA’s first phase under these guidelines.

What’s Excluded?

Verra has raised concerns about certain exclusions in CORSIA’s first phase (2024–2026) eligibility rules, highlighting inconsistencies in how they’ve been applied across crediting programs. The organization is actively working with ICAO to address these issues in future eligibility decisions.

So, the key exclusions that are under review are:

1. Cookstove Methodologies

Credits from methodologies AMS-II.G. and VMR006 were excluded from the VCS Program but remain eligible under other programs using similar methods. Verra questions this inconsistency and urges ICAO to reassess these exclusions.

2. Carbon Capture and Storage (CCS)

Methodologies under sectoral scope 16, which includes CCS projects, have been excluded. While ICAO is still evaluating if carbon dioxide removal (CDR) activities meet CORSIA requirements, Verra emphasizes that CCS extends beyond CDR and plays a critical role in limiting global warming. Verra believes CCS projects meet CORSIA criteria and should be fully eligible, particularly in countries with ICAO-approved greenhouse gas programs covering these activities.

3. Certain AFOLU Projects

AFOLU (Agriculture, Forestry and Other Land Uses) projects not “nested” into jurisdictional REDD+ frameworks were excluded despite using advanced methodologies. Verra argues for stronger recognition of these projects’ high-quality accounting, particularly under methodologies like:

  • VM0045 Methodology for Improved Forest Management Using Dynamic Matched Baselines from National Forest Inventories
  • VCS Methodology VM0047 Afforestation, Reforestation, and Revegetation,
  • VCS Methodology VM0048 Reducing Emissions from Deforestation and Forest Degradation.

Furthermore, Verra stresses the importance of fair and consistent eligibility criteria for CORSIA. By addressing these exclusions, ICAO can ensure better access to high-quality carbon credits and support impactful climate action in the aviation sector.

Mandy Rambharos, CEO, Verra noted,

“VM0047 provides a scientifically robust approach for projects removing carbon from the atmosphere through tree planting or the restoration of ecosystems. The ICVCM’s approval of VM0047 is a testament to the methodology’s rigor and credibility and an important milestone in driving global investment to high-integrity ARR projects—a critical nature-based approach to carbon removals.”

icao verraSource: ICAO

Article 6 Authorization and Updates for CORSIA

Verified Carbon Units (VCUs) from 2021 onward must have an “Article 6 Authorized – International Mitigation Purposes” label to qualify for use under CORSIA. This requirement aligns with the Paris Agreement’s mitigation framework. Verra’s Article 6 Label Guidance provides detailed information on these labels, and an updated version, reflecting decisions from COP29, will be released early next year.

Moving on, Verra is also finalizing additional assurance requirements. This will ensure there is no double claiming of mitigation outcomes for VCUs with vintages from 2021. These requirements will soon be published to guide project proponents in meeting the necessary standards.

Next Steps for Verra

Verra plans to release a new CORSIA Label Guidance document in the coming weeks. This document will provide details on several key updates, including:

  • The VCS Program’s revised CORSIA eligibility.
  • New labels differentiating between the pilot phase (2021–2023) and the first phase (2024–2026).
  • Instructions for project proponents to request CORSIA labels for VCUs generated by their projects.

Additionally, the press release highlighted that the Verra Registry has already been updated to show these changes. This means VCUs with CORSIA labels from the pilot phase will be automatically updated to display the new label designations, ensuring consistency with the latest eligibility decisions. These steps aim to streamline the process and enhance clarity for stakeholders as CORSIA’s first phase progresses.

This approach offers more flexibility to airlines to meet CORSIA requirements and supports the global aviation industry’s efforts to carbon neutrality. Moreover, the expanded eligibility is expected to create more demand for VCUs while supporting credible emissions reduction efforts worldwide.

LATEST: Verra Unveils Guidance for ICVCM CCP Label on Carbon Credits

In another scenario, on December 13, Verra published a detailed guide to help project proponents apply the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles (CCP) label to Verified Carbon Units (VCUs).

Verra mentioned,

The release of ICVCM CCP Label Guidance, v1.0 follows the ICVCM’s recent approvals of the Verified Carbon Standard (VCS) Program (May 2024), VCS Methodology VM0048 Reducing Emissions from Deforestation and Forest Degradation (November 2024), and VCS Methodology VM0047 Afforestation, Reforestation, and Revegetation (December 2024).

Automatic Labeling for Approved Projects

When the ICVCM approves a methodology, projects using it automatically receive the CCP label on their issued VCUs provided they meet all additional criteria. However, there are situations where projects may need to manually request the CCP label.

This includes cases where VCUs were not automatically labeled but still qualify for the label, or when a project updates its methodology to an ICVCM-approved version for past verification periods. To facilitate this process, Verra will launch a digital form for CCP label requests in 2025, accompanied by detailed instructions to guide users through the application process.

Updating to ICVCM-Approved Methodologies

Verra has released two guidance documents to streamline methodology updates:

  • Methodology Change and Requantification Procedure, v4.0 allows projects to update their methodology or version for past verification periods.
  • Procedure to Change Methodology through a Project Description Deviation, v4.0 helps projects transition to a different methodology or version for current and future monitoring periods.

With these updates, Verra aims to make it easier for projects to meet ICVCM standards, ensuring high-quality carbon credits while supporting global climate action. The new guidance provides the tools needed for projects to align with evolving standards in the voluntary carbon market.

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US-China Trade War: Can the US Beat China’s Critical Minerals Grip?

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US-China Trade War: Can the US Beat China’s Critical Minerals Grip?

The escalating trade war between the United States and China is reshaping the global energy transition. As the two largest economies exchange restrictions and tariffs, the impact on clean energy technologies—especially those reliant on critical minerals and international supply chains—is becoming increasingly apparent.

These geopolitical tensions could stall renewable energy adoption or accelerate innovations and diversification strategies to reduce dependence on China’s dominance.

China’s Critical Minerals Ban: A Strategic Signal

In December 2024, China escalated tensions by banning exports of key minerals to the United States. The targeted minerals—essential for technologies in semiconductors, defense, and renewable energy—are gallium, germanium, antimony, and graphite. 

China exports of critical minerals

This marks a new phase in the trade war, with China signaling its readiness to leverage its dominance in these materials as a geopolitical tool.

Combs and Trivium China co-founder Andrew Polk noted that those restrictions suggest that the largest Asian economy is “ready to counter the US moves much more aggressively”. 

While the immediate effects are muted, given prior restrictions on these minerals, the potential for broader economic pain looms large. For example, graphite, a vital material for lithium-ion battery anodes, is critical for electric vehicle manufacturing and grid storage systems. 

  • China controls 80% of global graphite output and processes 70% of it, making its dominance a significant bottleneck in the clean energy supply chain.

Here are the other critical minerals that China has a substantial grip on as per the Grantham Research Institute on Climate Change and the Environment analysis:

China's control of critical minerals mining and refining

As seen above, China also controls over half of the global processing capacity for aluminum, indium, lithium, silicon, and rare earth elements (REEs), while also leading in REE extraction.

So, how can this control impact the most needed transition to clean energy, particularly for the U.S.? 

Rising Costs for Key Technologies:

The price of EV batteries, solar panels, and other clean technologies could rise as supply chain disruptions drive costs. Batteries, which already represent a significant portion of an EV’s cost, require vast quantities of graphite.

Any further restrictions could exacerbate pricing pressures, slowing consumer adoption of EVs and renewable energy solutions. EVs’ high price tags are one of the biggest hurdles for buyers. 

Diversification Challenges:

While the U.S. and its allies are pursuing alternatives, building domestic supply chains or sourcing from other nations takes time. Recent investments include a $150 million loan to accelerate graphite mining in Mozambique and a proposal to reopen a gold mine in Idaho to extract antimony for military applications.

These efforts, while promising, are years away from meeting current demand. For instance, the proposed reopening of the Yellow Pine mine in Idaho could bolster domestic antimony supply, but full-scale operations are unlikely before 2027.

Economic Ripple Effects:

A U.S. Geological Survey found that a complete ban on gallium and germanium exports could reduce U.S. GDP by $3.4 billion. While niche applications dominate these materials, their use in semiconductors, LEDs, and military components underscores their strategic importance.

U.S. Strikes Back: Tariffs and Supply Chain Resilience

President Donald Trump’s administration has pledged to impose steep tariffs on Chinese imports, ranging from 10% to potentially 100%. These measures aim to curb dependence on Chinese goods but risk further inflating costs for clean energy technologies.

Efforts to counter China’s influence include bolstering domestic production and securing new trade agreements. However, the U.S. relies heavily on Chinese manufacturing for components like solar panels and wind turbine parts. This highlights the challenges of quickly achieving supply chain independence.

Global Ripple Effects: Beyond the US and China

The trade war is not only impacting U.S.-China relations; it is reverberating across the globe. 

Europe, Japan, and other nations reliant on Chinese-made clean energy components face similar vulnerabilities. For instance, Europe has ambitious offshore wind targets but remains dependent on Chinese supply chains for cost-effective production.

China’s dominance in solar panel and wind turbine manufacturing gives it leverage over global renewable energy development. However, disruptions in its supply chain could also hurt its economy, as nations shift toward alternative suppliers and technologies.

China renewable growth, wind and solar Q3 2024

China’s Paradox: Leading with a Dominant Grip on Supply Chains

China’s position in the clean energy sector is paradoxical. On one hand, it dominates the production of critical materials and components. On the other, it is also a leader in renewable energy deployment, accounting for more than half of global offshore wind installations in 2023.

  • China also produced over 80% of the world’s solar panel supply in 2023, making any disruption in trade a significant challenge for global renewable energy targets.

This dual role creates mutual dependencies. While China can disrupt global supply chains, its economy benefits from being the world’s primary supplier of clean energy components. This tension underscores the complexity of the trade war’s impact on both nations.

The US-China trade war, while disruptive, presents opportunities to accelerate innovation and diversification in the energy sector. Here’s how:

  • Innovation in Battery Materials:
    Researchers are exploring alternative chemistries that reduce reliance on graphite and other materials dominated by China. Advancements in solid-state batteries and recycling technologies could lessen dependence on traditional supply chains.
  • Strengthening Domestic Supply Chains:
    The U.S. and its allies are increasing investments in mining and processing critical materials domestically or through friendly nations. Check out how this energy metals company is doing just that, strengthening U.S. energy independence. Moreover, diversifying supply sources not only reduces reliance on China but also enhances energy security.

The Bigger Picture: Trade Wars and Climate Goals

Global clean energy goals depend on the rapid deployment of renewable technologies. The International Renewable Energy Agency (IRENA) estimates that renewable energy capacity must triple by 2030 to meet climate targets. 

renewable power triple pledge 2030 wind energy

Trade wars and supply chain disruptions threaten to derail these efforts, particularly in regions heavily dependent on Chinese imports. Even more solar and wind energy together take up over 80% (8,991 GW) of the 2030 renewable tripling pledge.

At the same time, the conflict could drive nations to prioritize long-term energy independence and sustainability. Balancing these competing dynamics will require strategic planning, investment, and international cooperation. The stakes are high—not just for the U.S. and China but for the entire planet.

The US-China trade war highlights the delicate balance between geopolitical rivalry and global cooperation in the clean energy transition. It serves as a stark reminder of the interconnectedness of global supply chains and the need for collective action to secure a sustainable future.

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Carbfix and CarbonQuest Unite to Revolutionize Carbon Capture in North America

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CarbonQuest, the U.S.-based carbon capture and storage (CCS) provider, and Carbfix, Europe’s leading CO2 mineral storage operator have announced a groundbreaking partnership to tackle emissions from “hard-to-abate” industries in North America.

Both companies will deploy Distributed Carbon Capture and Storage (DCCS) solutions, making decarbonization more accessible and efficient for medium-scale emitters in the United States and Canada.

Unlocking the MOU between Carbfix and CarbonQuest

Under the Memorandum of Understanding (MOU), CarbonQuest and Carbfix will combine their expertise to address carbon emissions and mineralization at point sources. Their joint efforts will focus on industries such as manufacturing and utilities that face unique challenges in reducing emissions.

Subsequently, by locating emitters near mineralization-ready sites, the partnership will streamline the creation of onsite CCS projects for both new and existing facilities.

Innovative Technology at the Core

CarbonQuest’s modular DCCS technology features compact solid sorbents that can capture CO2 in space-constrained settings. This system works seamlessly in industrial facilities, utility infrastructure, and campus power generation setups such as Combined Heat and Power (CHP) systems and fuel cells. The captured CO2 is then liquefied for easy transport to mineralization sites or local businesses.

On the other side, Carbfix offers a transformative solution by dissolving CO2 in water and injecting it into porous basaltic rock formations. Within two years, the CO2 transforms into stable carbonate minerals, effectively turning it into stone.

Carbfix’s technology is already commercially established across Europe. However, through this partnership Carbfix can expand to new locations for CO2 mineralization, thereby pushing commercial growth across North America.

Edda Aradóttir, CEO of Carbfix noted,

“Carbfix is excited to partner with CarbonQuest to advance our interest in North America. We see tremendous potential for carbon mineralization in a variety of business scenarios from co-location or mineralization hubs, and this MOU will ensure that, together, we can bring meaningful projects to reality in the U.S. and Canada,”

Shane Johnson, CEO of CarbonQuest said,

“Our partnership with Carbfix will accelerate the adoption of carbon capture throughout North America,”. “Together we see numerous opportunities in both new and existing applications. Carbfix’s solution is a cost-effective and permanent way to mineralize captured CO2 even for emitters located far from a mineralization hub. This aligns with our goals to make the end-to-end CO2 capture and mineralization as local as possible.”

CarbonQuest: Capturing CO2 Through Modular Solutions

CarbonQuest offers a modular solution to capture CO2 emissions from small- and medium-scale emitters before they reach the atmosphere. Their broader goal is to help businesses achieve their GHG Protocol requirements and Science-Based Targets (SBTi) while significantly lowering their carbon footprint. One such way is to reduce their Scope 1 emissions.

Furthermore, they integrate their innovative carbon capture system with other sustainable solutions to accelerate emissions reductions and improve energy savings. For example, they connect with renewable energy sources like solar power, energy efficiency systems, and partial electrification to boost the decarbonization efforts of companies.

Image: Building Carbon Capture™: Explore how the integrated four-step process works for carbon capture.

carbonQuest carbon captureSource: CarbonQuest

The company’s patented carbon capture system is scalable and adaptable under various environments, making it ideal for owners and operators of facilities or onsite distributed power systems.

This is how CarbonQuest’s Sustainable CO2™ solution supports the circular economy by turning captured carbon into a resource for other industries.

Carbfix: Leveraging a Decade of Expertise in CO2 Mineral Storage

Carbfix provides a natural and permanent CO2 storage solution by transforming CO2 into stone underground in under two years. The company partners with businesses worldwide to promote safe, scalable carbon mineral storage through feasibility studies, pilot programs, facility construction, and full-scale commercial operations.

Permanent carbon mineralizationcarbfix carbon captureSource: Carbfix

Some of their key projects are:

Silverstone Project

Project Silverstone is a cutting-edge initiative funded by the EU to implement full-scale CO2 capture, injection, and mineral storage at Iceland’s Hellisheði ON Power plant. This project will transform the plant into one of the world’s first geothermal power facilities with a near-zero carbon footprint. By 2030, Silverstone is expected to deliver 10% of Iceland’s Climate Action Plan targets for energy and industrial sectors not covered by the EU ETS.

Nesjavellir Pilot Plant

In 2023, Carbfix launched a pilot carbon capture and storage (CCS) plant at the Nesjavellir geothermal site in Iceland. Developed under the H2020 Geothermal Emission Control project, the plant started injecting CO2 and H2S into the ground. This pilot optimized Carbfix’s capture technology and laid the foundation for future large-scale projects.

Thus, Carbfix’s innovative approach ensures permanent and safe underground CO2 storage, contributing to global climate recovery efforts.

By combining innovative solutions and expertise, CarbonQuest and Carbfix are paving the way for a sustainable future while helping businesses achieve net-zero emissions. All in all, this collaboration marks a crucial milestone for North America’s journey toward decarbonization.

Source: Carbfix and CarbonQuest announce a Memorandum of Understanding to Pursue distributed Carbon Capture and mineralization Projects in North America  – Carbfix

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ExxonMobil’s First-of-its-Kind Carbon Capture Solution for U.S. Data Centers

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exxonmobil

ExxonMobil, a pioneer in carbon capture and storage (CCS) helps U.S. industries, mainly steel, ammonia, and hydrogen reduce their carbon emissions while meeting growing demand for lower-carbon products. But this time they are targeting the power-hungry U.S. data centers, as mentioned in their press release.

The oil giant is developing a groundbreaking plan to provide low-carbon power to U.S. data centers which are vital hubs for the booming artificial intelligence (AI) sector. The proposal outlines a first-of-its-kind facility that would produce electricity with natural gas while capturing over 90% of associated CO2 emissions. The captured emissions would then be safely stored deep underground.

Dan Ammann, president of Exxon’s Low Carbon Solutions Business said,

“We’re in a unique position to provide low-carbon power at large scale on a very competitive and accelerated timeline.”

ExxonMobil’s Natural Gas Equipped Carbon Capture for Data Centers

ExxonMobil’s CCS technology supports key industries like steel, ammonia, and hydrogen. The company has already secured agreements to transport and store up to 6.7 million tons of CO2 annually for these sectors. They proudly claim this scale is more than any other competitor.

But with data centers tapping into CCS, Exxon has a different plan to decarbonize them.

So, here’s what makes the project stand out:

  • Low-carbon fuel: The facility plans to use low-carbon-intensity natural gas, like what ExxonMobil produces in the Permian Basin.
  • Grid independence: Operating off-grid allows for faster deployment, unlike traditional grid-dependent systems or slower alternatives like nuclear power.
  • Accelerated timelines: ExxonMobil’s expertise and scale enable swift action to meet the urgent demands of AI growth, which could account for 20% of the CCS market by 2050.

This innovative solution highlights how CCS can support industries beyond heavy manufacturing and create a sustainable pathway to decarbonize emerging sectors like AI.

As new solutions are urgently needed to support AI growth, Exxon wants to move fast. They are leveraging their strengths in integration, operational scale, and project expertise. Significantly, the front-end engineering design (FEED) for this project is already in progress, and currently, the company is engaging with potential customers.

ExxonMobil carbon captureSource: Exxon

Permian Basin: A Key Pillar in ExxonMobil’s Net-Zero Vision

Exxon has a strong focus on expanding energy supplies from the Permian Basin to meet the global demand for reliable energy. This vast region, covering southwest Texas and southeast New Mexico, plays a critical role in the company’s operations and Exxon is one of the most active operators in this area.

In 2021, ExxonMobil became the first integrated energy company to join a program that certifies natural gas production. The pilot program is based in Poker Lake, New Mexico, a key area of its Permian Basin operations. There they use MiQ’s standards—set by a nonprofit organization focused on verifying and mitigating methane emissions.

This certification program is part of Exxon’s broader strategy to reduce emissions and achieve Scope 1 and 2 net-zero goals as a certified natural gas supplier.

Empowering U.S. Industry with CCS Technology

Exxon bets on the U.S. Gulf Coast for its CCS projects. This is because that particular region offers some unique advantages like a dense industrial base, existing CO2 pipeline infrastructure, and proximity to large storage sites.

The company further disclosed that Texas, Louisiana, and Mississippi are the key states for their CCS portfolio. They also drive U.S. exports, which hit a record $1.6 trillion in 2023. By integrating CCS, industries like steel and ammonia production Exxon expects to gain a competitive edge in global markets.

For instance, Exxon signed its fourth carbon capture and storage agreement with a major customer, CF Industries just a few months back. The deal will involve transporting and permanently storing up to 500,000 metric tons of CO2 annually from CF’s nitrogen production complex in Yazoo City, Mississippi. They expect to roll on by 2028 and cut CO2 emissions by about 50%.

With this new agreement, the company can now store a total of 5.5 million metric tons of CO2 annually for customers. Well, this is equivalent to removing about 2 million gasoline-powered cars from the road.

Exxon Sets a Major Milestone in Emissions Reduction

Carbon capture and storage is crucial for the energy transition. Both the UN and the IEA agree that CCS is one of the most cost-effective ways to reduce emissions in industries like heavy emitters like chemicals, refining, cement, and steel.

It’s also one of the few technologies capable of achieving negative CO2 emissions, especially when paired with bio-energy or direct air capture.

The Center for Climate and Energy Solutions says that CCS can capture over 90% of emissions from power plants and industrial facilities.

Keeping all these facts intact in its net zero goals, ExxonMobil’s investments in CCS highlight its commitment to emissions reduction and sustainability. Additionally, supporting U.S. economic growth.

Greenhouse Gas and Performance DataExxonMobil

Source: Exxon’s sustainability report

By expanding into AI and data centers, ExxonMobil is proving that carbon capture is crucial to decarbonizing vital sectors and securing America’s leadership in innovation.

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Gone with the Wind: Is This the End for Wind Energy?

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Gone with the Wind: Is This the End for Wind Energy?

For years, wind energy has symbolized the clean energy transition. Towering turbines onshore and offshore have driven significant progress in reducing carbon emissions. However, recent setbacks in the global offshore wind industry have raised concerns about its future. 

Rising costs, delayed projects, and shifting investment priorities force governments and companies to reassess their ambitious wind energy targets. While countries like China continue dominating the sector, others, including the United States and European nations, struggle to keep pace.

Profit vs. Progress: Why Energy Giants Are Scaling Back Offshore Ambitions

The offshore wind sector faces mounting challenges, with profitability concerns leading to significant withdrawals. Most recently, five energy companies, including Shell and Lyse, pulled out of Norway’s first large-scale floating offshore wind tender. The project, slated for 1.5 GW of capacity, has been deemed too risky due to profitability, timelines, and industrial maturity concerns.

Norway’s government capped state support at NOK 35 billion (EUR 3 billion), which critics argue is insufficient to attract large-scale investments. Energy Minister Terje Aasland defended the cap, stating it would be enough to launch 500 MW of floating wind capacity. 

However, energy companies like Fred. Olsen Seawind and Hafslund have opted out, citing Norway’s restriction on mainland-only connections, which limits the profitability of exporting energy to other countries.

This follows a pattern seen elsewhere in Europe, where rising costs and regulatory constraints are driving companies to reconsider offshore wind projects. Denmark’s Ørsted, a global leader in renewables, has also exited several offshore wind opportunities, highlighting broader challenges within the sector.

Skyrocketing Costs Blow Offshore Wind Goals Off-Course

Globally, the offshore wind industry is grappling with escalating costs.

  • Over the past two years, the average cost of offshore wind projects has risen by 30% to 40%, reaching $230 per megawatt-hour (MWh). This is more than 3x the cost of onshore wind, placing significant pressure on developers.

cost of capital for renewables, wind energy

Inflation, supply chain disruptions, and high interest rates have further exacerbated the financial strain.

Equinor, a leading player in renewable energy, recently withdrew from offshore wind projects in Vietnam, Spain, and Portugal, citing unsustainable costs. Paal Eitrheim, Equinor’s head of renewables, noted that:

“It’s getting more expensive, and we think things are going to take more time.” 

Similarly, Shell, another energy giant, is scaling back its offshore wind ambitions. Shell sold its stakes in projects across Massachusetts, South Korea, Ireland, and France, signaling a strategic retreat from leading offshore developments. A company’s spokesperson stated in an email to S&P Global:

“While we will not lead new offshore wind developments, we remain interested in offtakes where commercial terms are acceptable and are cautiously open to equity positions if there is a compelling investment case.”

Shell CEO Wael Sawan admitted that the company lacks the competitive advantage to generate material returns in renewable generation. This sentiment is echoed by other oil majors like BP.

The withdrawal of these energy giants underscores a fundamental shift in priorities, with many companies now favoring onshore renewables like solar and wind, which are less affected by rising costs and regulatory hurdles. These challenges come at a time when global governments have set lofty targets for offshore wind energy.

Global Shortfalls and Missed Targets

Governments around the world have pinned their hopes on offshore wind as a key driver of the clean energy transition. The International Renewable Energy Agency (IRENA) initially projected a need to increase global offshore wind capacity from 73 GW to 494 GW by 2030 to meet climate goals. 

renewable power triple pledge 2030 wind energy
Chart from IRENA
  • However, revised estimates now suggest the industry will fall short by one-third, delaying this milestone until after 2035.

The U.S. Offshore Wind Dilemma

The U.S. offshore wind industry, for instance, is at a crossroads. The country aimed to install 30 GW of offshore wind by 2030 but has less than 200 MW operational as of mid-2024.

Despite federal support through tax credits and lease auctions, the sector faces significant challenges. The outgoing administration of President Joe Biden issued permits for 15 GW of projects and held six lease sales. However, the recent election of President-elect Donald Trump raises concerns about future policy support, as his campaign promised to dismantle the industry’s progress.

Carl Fleming, a renewable energy policy advisor, noted that market conditions alone make it unlikely for the U.S. to meet its 2030 goals, regardless of political leadership. Delays in project approvals and a lack of supply chain investment have hindered progress. Analysts predict the country will achieve less than half of its target due to these challenges. 

The European Wind Shortfall

Europe, which currently accounts for 40% of global offshore wind capacity, is also falling behind. Rising costs and lengthy approval processes have slowed progress.

Nations like the UK, Germany, and the Netherlands are projected to meet only 60% to 70% of their 2030 targets. Even Norway, a country with abundant wind resources, is struggling to attract developers due to perceived risks and limited support mechanisms.

Future auctions will require far larger investments to meet the targets, putting additional pressure on developers and governments alike.

Rebecca Williams, deputy CEO of the Global Wind Energy Council, expressed cautious optimism, stating that with the right policies, targets remain achievable. However, delays and financial constraints make it increasingly unlikely that Europe will meet its goals within the set timelines.

China’s Offshore Wind Boom

While Western markets struggle, China continues to dominate the offshore wind sector.

  • In 2023, China accounted for more than half of the world’s new offshore wind installations, adding 6.3 GW of capacity. 
new wind capacity by region 2023
Chart from DIGITIMES Asia

The country’s state-owned enterprises benefit from low financing costs, subsidies, and locally produced components, enabling rapid deployment.

China’s dominance is expected to grow further, with annual installations projected to reach 16 GW over the next few years. However, the country’s closed market limits opportunities for international developers to participate or benefit from its advancements.

The Winds of Change: Adapting to a Shifting Energy Landscape

Remarkably, a recent market development suggests renewed enthusiasm. Energy giants BP and JERA have partnered to create JERA Nex BP, a $6 billion joint venture aimed at becoming one of the world’s largest offshore wind developers. Combining their existing assets, the venture boasts a potential net generating capacity of 13 GW. 

BP CEO Murray Auchincloss emphasized the company’s “capital-light” growth approach, while JERA CEO Yukio Kani highlighted offshore wind’s critical role in the energy transition.

With 1 GW of current capacity, 7.5 GW in development, and 4.5 GW of secured leases, this collaboration seems to bring back confidence in offshore wind’s role in the energy transition. 

Ultimately, the offshore wind industry is facing significant headwinds, but it remains a vital part of the clean energy transition. The current challenges highlight the need for governments and developers to adapt, innovate, and collaborate to ensure wind energy remains viable.

China’s rapid progress offers valuable lessons on the benefits of state support and localized manufacturing, while the struggles in Western markets underscore the importance of addressing financial and regulatory barriers.

The question is not whether offshore wind will survive but how it can evolve to meet the demands of a rapidly changing energy landscape.

The post Gone with the Wind: Is This the End for Wind Energy? appeared first on Carbon Credits.

Google’s $20B Deal with Intersect Power and TPG Rise: How Can It Transform Data Centers?

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Google’s $20B Deal with Intersect Power and TPG Rise: How Can It Transform Data Centers?

The expansion of data centers, driven by the rise of artificial intelligence (AI), cloud computing, and data storage, is one of the largest contributors to increased electricity demand. To address this issue, Google has teamed up with Intersect Power, a clean energy developer, and TPG Rise Climate, a private equity firm, to launch a $20 billion partnership that promises to transform the way data centers are powered.

This collaboration aims to co-locate renewable energy sources with Google’s data centers, ensuring that new facilities are powered by clean energy. The deal, which involves the development of massive energy parks, will integrate renewable energy generation—such as solar power—with energy storage solutions in industrial parks that house data centers. 

The first phase of the project is expected to be operational by 2026, with full completion anticipated in 2027.

What Are Energy Parks and Why Are They Important?

The core idea behind Google and Intersect Power’s collaboration is the development of energy parks. They are large-scale, co-located renewable energy facilities designed to serve the dual purpose of powering data centers and contributing to the broader power grid. 

These energy parks will combine solar power generation with storage solutions, enabling Google’s data centers to operate on clean energy. More importantly, the energy parks can also feed excess electricity into the grid, helping to stabilize the energy supply and provide power for other needs.

what is an energy park
Image from Energy Innovation

Energy parks offer several significant benefits over traditional energy-sourcing models:

  1. They reduce the reliance on external, non-renewable energy grids, which are often fueled by fossil fuels and can contribute to environmental degradation. 
  2. They provide financial benefits, such as cost savings from bulk energy purchases, leveraging tax credits, and creating local economic development opportunities.
  3. They will also help speed up the integration of renewable energy into the energy market. 

As these facilities are developed to serve large, energy-intensive loads like data centers, they can quickly connect to the grid. As such, they provide a faster alternative to waiting for new grid-connected resources to come online.

Google’s Commitment to Sustainability and Clean Energy

The tech giant’s partnership with Intersect Power aligns with Google’s longstanding commitment to sustainability. Over the years, the tech company has made significant progress in reducing its carbon footprint and increasing the use of renewable energy in its operations. 

However, as the demand for data and computing power increases—especially with the proliferation of AI and machine learning—Google has found it increasingly difficult to keep pace with its energy needs using traditional renewable energy sources alone. 

In 2023, Google reported a 13% increase in emissions, due to the growing energy consumption of its expanding data centers. This prompted the company to seek innovative solutions, such as the creation of energy parks, which integrate renewable energy production directly into the data center ecosystem.

Google carbon emission reductions 2023 progress

The $20 billion partnership with Intersect Power is an ambitious effort to meet Google’s energy needs as well as help reduce the environmental impact of the tech industry’s rapid growth. 

The Role of TPG Rise Climate and Intersect Power in Scaling the Effort

TPG Rise Climate, part of the private equity firm TPG, plays a key role in this collaboration by providing funding to help scale the renewable energy infrastructure. It led the $800 million funding round for Intersect Power.

With its focus on climate solutions, TPG Rise Climate is committed to driving investments that reduce carbon emissions and support the global transition to clean energy.

Intersect Power also brings valuable experience to the table, having developed and managed renewable energy assets across North America. The company has over 2.2 gigawatts (GW) of solar energy and 2.4 gigawatt-hours (GWh) of battery storage already in operation or under construction. With this, the company has demonstrated its ability to deliver large-scale energy solutions. 

The partnership with Google is set to further expand its renewable energy footprint, as it looks to break ground on 4 GW of solar and 10 GWh of battery storage in the near future.

Meeting the Soaring Energy Demands of Data Centers: Challenges and Solutions

The rapidly growing demand for data centers is not unique to Google’s operations. In Virginia, for example, the state faces a daunting challenge in meeting the energy needs of its data center industry. 

According to a recent study by the Joint Legislative Audit and Review Commission (JLARC), the state’s energy demand, which had remained relatively flat for years, is projected to double over the next decade. This is driven primarily by the expansion of data centers. 

Virginia’s largest data center market, located in Northern Virginia, is home to about 13% of global data center capacity. This creates a massive strain on the state’s power grid.

The JLARC report highlighted the need for significant investments in new infrastructure, including solar and wind generation, natural gas plants, and upgraded transmission capacity. 

Virginia has set ambitious goals to achieve 100% renewable energy by 2045. However, the state’s existing infrastructure is struggling to keep pace with demand. 

On the national level, data centers in the U.S. will continue to require more power with new data center load needing most energy by 2029, per S&P Global analysis.  

US data centers electricity demand

A Sustainable Model for the Future

As Google and other tech giants like Meta expand their operations, solutions like energy parks could become essential for alleviating this pressure while ensuring that data centers are powered by clean, reliable energy.

Speaking of, the world’s largest AI data center will be built in Alberta, Canada, with an estimated $70 billion investment. Known as Wonder Valley, this data center will be powered by 7.5 GW of low-cost, renewable energy, with an emphasis on scalability to meet the growing demand of hyperscalers—large-scale data centers that can dynamically adjust to varying workloads. 

The project, led by O’Leary Ventures, is to be located in a heavy eco-industrial district in the Greenview area. It will begin generating 1.4 GW of power in its first phase by 2026. Then it aims to add another 1 GW each subsequent year.

Wonder Valley’s integration of renewable energy sources and its focus on AI-driven computing make it a key player in the future of sustainable data infrastructure. This massive project will also position Alberta to be a major hub for clean energy and data processing.

All in all, the partnership between Google, Intersect Power, and TPG Rise Climate represents a new frontier in the intersection of digital infrastructure and clean, renewable energy. By combining the scale of data center growth with renewable energy generation, this collaboration sets a precedent for how large tech companies can address their environmental impact while meeting the energy demands of the digital age.

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Unlocking ASEAN’s $3 Trillion Carbon Market Potential

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Unlocking ASEAN’s $3 Trillion Carbon Market Potential

ASEAN’s (Association of Southeast Asian Nations) emerging carbon markets present a unique opportunity for addressing climate change while fostering economic development. Comprising 10 dynamic economies, the region’s natural resources and strategic position offer great potential to lead in global decarbonization efforts. 

Abatable’s new report, The Opportunity for Carbon Markets in ASEAN, launched in Jakarta, explores ASEAN’s carbon market landscape, its challenges, and the roadmap for harnessing its vast potential. 

The report highlights how ASEAN’s carbon markets could generate $3 trillion in cumulative revenue by 2050. This would come from reducing or removing emissions equivalent to 1.1 gigatonnes of CO2 annually, presenting a significant opportunity for the region. 

The trillion-market potential includes the following values for each of the three types of carbon projects:

  • $27 billion from REDD+ (Reducing Emissions from Deforestation and Forest Degradation), 
  • $96 billion from blue carbon, and 
  • $144 billion from biochar markets. 
potential ASEAN carbon market revenue
Chart from Abatable Report

This growth could create 13.7 million green jobs in the ASEAN, highlighting a transformative economic and environmental opportunity.

Decarbonizing ASEAN: Turning Emissions into Economic Gold

Carbon markets operate by assigning a monetary value to carbon emissions, incentivizing industries to reduce their greenhouse gas outputs. These markets fall into two categories:

  • Compliance Markets: Mandated by governments, these include mechanisms like carbon taxes and emissions trading systems (ETS).
  • Voluntary Carbon Markets (VCMs): Businesses voluntarily offset emissions by purchasing carbon credits from certified projects.

In ASEAN, carbon markets hold dual promise—environmental benefits through emissions reductions and economic gains through market-driven investments.

The ASEAN’s Climate Context

The region, with its combined GDP of $3.4 trillion, is a growing economic powerhouse. However, its reliance on fossil fuels and deforestation has made it a significant emitter, contributing around 6% of global emissions in 2023. 

The key contributors to this carbon pollution include these major areas:

  • Energy Sector: Accounts for 50% of emissions due to coal dependence.
  • Land Use and Forestry: Responsible for 30%, linked to deforestation and agricultural expansion.
  • Agriculture: Produces 450 million tonnes of CO2 equivalent annually.

Despite these challenges, ASEAN’s tropical forests, mangroves, and agricultural landscapes offer untapped potential for carbon sequestration and sustainable practices. 

The region has already made strides in carbon credit generation, producing 233 million tonnes of credits from 2009 to 2024. This represents about 7% of global issuances. Indonesia and Cambodia have been leading suppliers, primarily through forestry projects like REDD+.

Here’s how the member states in the region approach various carbon markets as stated in Abatable’s report:

ASEAN member states carbon markets engagement
A breakdown of how each ASEAN country is engaging with different types of carbon markets.

Several ASEAN countries, such as Thailand and Vietnam, are also advancing renewable energy and efficiency projects. However, the lack of regional coordination and regulatory clarity hampers market growth.

How Can ASEAN Unlock Its Carbon Opportunities

ASEAN’s carbon market could generate up to $3 trillion in cumulative revenue by 2050 as shown below. 

cumulative revenue from carbon markets in ASEAN
Chart from Abatable Report

The region can achieve this potential with three key strategies. First is through nature-based solutions like afforestation, reforestation, and mangrove restoration to capture carbon while preserving biodiversity. 

The second is with energy transitions through early coal plant retirements. And third is through renewable investments, along with innovative projects like biochar and blue carbon. They offer sustainable approaches for agriculture and marine ecosystems. 

These initiatives could also deliver socio-economic benefits, including millions of green jobs by 2050. 

However, ASEAN must overcome significant challenges to fully unlock this potential. Regulatory uncertainty, characterized by inconsistent policies and unclear frameworks, deters investments. Market fragmentation limits cross-border carbon trading opportunities due to weak regional collaboration. 

Additionally, integrity issues such as concerns over greenwashing and the quality of carbon credits undermine market credibility, highlighting the need for robust systems and transparent practices.

A Roadmap for Unleashing ASEAN’s Carbon Market Potential

The following policy recommendations can help ASEAN overcome these challenges and establish itself as a global carbon market leader:

  1. Establish Clear Regulations

Transparent, standardized frameworks are essential for attracting investments and scaling carbon markets. Governments should define project approval processes, fee structures, and benefit-sharing rules.

  1. Build Institutional Capacity

Dedicated carbon market offices, regional training programs, and collaboration platforms can equip ASEAN countries with the expertise needed to manage carbon projects effectively.

  1. Align with International Standards

ASEAN must harmonize its methodologies with global best practices to enhance the credibility of its carbon credits. Developing localized standards while ensuring international recognition can expand market access.

  1. Develop Domestic Compliance Markets

Implementing carbon taxes and ETS can drive domestic demand for carbon credits, incentivizing industries to adopt greener practices.

  1. Promote Regional Cooperation

ASEAN can leverage Article 6 of the Paris Agreement to foster intra-regional carbon trading. A unified framework can facilitate partnerships and attract global buyers.

  1. Enhance Public Awareness

Regional campaigns and recognition programs can encourage corporate participation in voluntary markets and boost demand for high-quality carbon credits.

By implementing these strategies, ASEAN can position itself as a hub for carbon market innovation. The region’s abundant natural resources, coupled with a commitment to sustainable development, make it uniquely qualified to lead global decarbonization efforts.

The post Unlocking ASEAN’s $3 Trillion Carbon Market Potential appeared first on Carbon Credits.

Stellantis and CATL Plan for €4.1 Billion Mega LFP Battery Plant in Spain

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stellantis CATL

Stellantis and Contemporary Amperex Technology Co., Limited (CATL) have announced an ambitious €4.1 billion joint venture to build an exceptional lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. This facility will be setting a milestone for Europe’s EV ecosystem and will simultaneously support Stellantis’ Dare Forward 2030 strategy and CATL’s mission to advance global e-mobility.

Let’s deep dive into their plans…

Stellantis and CATL Join Forces for EV Affordability

This JV is an extension of the non-binding memorandum of understanding (MOU) signed by Stellantis and CATL in November 2023. The document outlined a roadmap for integrating Stellantis’ advanced battery electric vehicles (BEV) and exploring opportunities to bolster their battery value chain. It also gave a push to the local production of LFP battery cells and modules for EVs in Europe.

Significantly, Spanish and European Union authorities are supporting this project while recognizing its potential to boost Europe’s energy independence and drive economic growth.

The companies revealed that the planned facility will have a production capacity of up to 50 GWh, with operations expected to commence by the end of 2026. By leveraging advanced LFP technology, Stellantis aims to deliver more affordable and durable electric vehicles across Europe, catering to B and C-segment passenger cars, crossovers, and SUVs.

Notably, the transaction is expected to close by 2025 and is pending regulatory approvals.

Stellantis Dual-Chemistry Strategy: NMC and LFP

This move aligns with Stellantis’ dual-chemistry strategy, which includes both lithium-ion nickel manganese cobalt (NMC) and LFP batteries.

Stellantis will incorporate a dual-chemistry strategy which means both lithium-ion nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) will be available to customers. This gives more choices to customers for their battery cell and pack technologies.

Commitment to Decarbonization

Stellantis has pledged to achieve carbon net zero by 2038 across all operations, with minimal residual emissions offset by single-digit percentage compensation.

The Zaragoza plant will be fully carbon neutral, reinforcing Stellantis’ and CATL’s dedication to global climate goals. CATL’s experience in battery manufacturing, demonstrated by its operational plants in Germany and Hungary, will ensure the new facility delivers top-tier products while supporting a sustainable energy transition in Europe.

A Holistic Approach to Climate Change

Stellantis net zero

Stellantis Chairman John Elkann said,

“Stellantis is committed to a decarbonized future, embracing all available advanced battery technologies to bring competitive electric vehicle products to our customers. This important joint venture with our partner CATL will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy, helping drive a 360-degree sustainable approach. I want to thank all stakeholders involved in making today’s announcement a reality, including the Spanish authorities for their continued support.”

Advancing E-Mobility: CATL’s Commitment to Innovation

Robin Zeng, Chairman and CEO of CATL said,

“The joint venture has taken our cooperation with Stellantis to new heights, and I believe our cutting-edge battery technology and outstanding operation knowhow combined with Stellantis’ decades-long experience in running business locally in Zaragoza will ensure a major success story in the industry. CATL’s goal is to make zero-carbon technology accessible across the globe, and we look forward to cooperating with our partners globally through more innovative cooperation models.”

CATL’s upcoming battery plant in Spain will be an add-on to its existing facilities in Germany and Hungary. These operations have made CATL a global leader in battery innovation, with the company consistently topping in EV battery usage and energy storage shipments worldwide.

By extending its cutting-edge manufacturing expertise in Spain, CATL is once again showcasing its dedication to advancing e-mobility and supporting the energy transition across Europe and globally.

Furthermore, the newly launched affordable EVs will also help customers achieve their climate targets.

Net-Zero Commitment

CATL’s strategic goals include achieving carbon neutrality in core operations by 2025 and across its supply chain by 2035. Subsequently, the Zaragoza plant will play a key role in these objectives with its advanced solutions to meet the growing demand for sustainable energy storage.

              Greenhouse Gas Emissions within the Organizational Boundary in 2023CATL emissionsSource: CATL

By 2026, this landmark project will mark a new era in Europe’s sluggish EV market. Stellantis and CATL both are confident in delivering cost-effective battery solutions and supporting the continent’s automotive and energy industries.

Source: Stellantis and CATL to Invest Up to €4.1 Billion in Joint Venture for Large-Scale LFP Battery Plant in Spain

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