Artificial intelligence (AI) is driving a surge in electricity demand worldwide. Now, NVIDIA is taking its AI platform into an unexpected area: geothermal energy.

This week, NVIDIA (NVDA) teamed up with Fervo Energy (FRVO) and the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL). Together, they are creating a new AI-powered digital twin platform named EGS-Twin.

The platform will merge real-time field data, physics-based modeling, and AI forecasting. This will boost the performance of enhanced geothermal systems (EGS).

The goal is to help operators understand underground conditions better. This way, they can improve drilling efficiency, increase power output, and lower project risks. Fervo’s CTO and co-founder, Jack Norbeck, remarked:

“We believe that digital twins will expedite the learning curve for geothermal development as we build and operate our GeoBlock assets. Integrating high-fidelity physics-based models with AI-driven forecasting has the potential to reshape reservoir management, improve heat recovery, and enhance system reliability.”

Why AI Companies Are Looking Beyond Solar and Wind

The announcement shows a strong link between two fast-growing industries: artificial intelligence and clean energy. The rapid growth of AI is creating unprecedented pressure on electricity systems.

According to the U.S. Energy Information Administration (EIA), data centers accounted for about 5% of total U.S. electricity consumption in 2024. That share could rise to between 6.7% and 12% by 2028 as AI adoption accelerates.

Recent research suggests electricity use from major AI companies could more than double by 2030. A study predicts that the six biggest AI companies could boost power use from about 118 terawatt-hours (TWh) in 2024 to between 239 TWh and 295 TWh by 2030.

This growing demand is creating a challenge for technology companies.

Solar and wind power continue to expand rapidly, but they depend on weather conditions. AI data centers, by contrast, require electricity around the clock. That is why interest is growing in “firm” clean energy sources that can operate 24 hours a day.

Geothermal energy fits that profile.

The Department of Energy estimates that geothermal power plants reach capacity factors of about 95%. This allows them to produce electricity nearly all year long. For data center operators, that reliability is becoming increasingly valuable.

Building a Digital Twin 10,000 Feet Underground

The new EGS-Twin platform aims to solve one of geothermal energy’s biggest challenges: understanding what happens deep underground.

Enhanced geothermal systems work by drilling wells into hot rock formations and circulating fluids through engineered reservoirs. The technology can access geothermal resources in many more places than traditional plants. However, subsurface conditions are still hard to predict.

The partnership hopes to change that.

PNNL researchers will use Fervo’s operational data to train AI models on NVIDIA’s accelerated computing platform. The models will join NVIDIA Omniverse libraries. This will create a digital twin that simulates geothermal operations in real time.

The platform is designed to:

• Predict underground reservoir behavior.
• Optimize heat extraction.
• Improve drilling decisions.
• Increase power generation efficiency.
• Reduce operational risks.

The partners think AI can help operators react faster to underground changes. This could shorten development timelines and boost project economics. For geothermal energy, that could be a major breakthrough.

The Startup Leading America’s Next-Generation Geothermal

The project also shines a spotlight on Fervo Energy, one of the fastest-growing geothermal developers in the United States. The company is building Cape Station in Utah, which is expected to become one of the world’s largest enhanced geothermal developments.

Phase I of the project includes approximately 100 MW of capacity and remains on track to begin delivering power in late 2026. A second phase will expand the site to approximately 500 MW.

Fervo recently got over $421 million in project financing for Cape Station. They plan to invest about $1.2 billion between mid-2026 and early 2027 as construction speeds up.

Investor interest has been strong.

The company completed its public listing in 2026 and has attracted significant attention from markets betting on growing demand for clean, reliable electricity. Reuters previously reported that Fervo sought a valuation of up to $6.5 billion during its IPO process.

• SEE MORE: Fervo Energy’s $1.3 Billion IPO Signals a Geothermal Breakthrough

The company has also strengthened ties with major technology firms. Earlier this year, Fervo made a deal with Google. This agreement could lead to up to 3 GW of geothermal capacity by 2033. The first phase includes 1 GW of proposed projects.

Geothermal Is Back in the Spotlight 

For decades, geothermal energy remained a niche part of the renewable energy sector. Today, that is beginning to change.

New drilling techniques adapted from the oil and gas industry are making enhanced geothermal systems more practical and scalable. These advances allow developers to access underground heat in regions previously considered unsuitable for geothermal power.

Governments are also paying closer attention.

The U.S. DOE sees next-generation geothermal as a key technology for supporting grid reliability while reducing emissions. Unlike wind and solar, geothermal can provide constant power without requiring large-scale battery storage.

Interest is also growing among technology companies.

Google helped launch one of the first commercial enhanced geothermal projects with Fervo in Nevada. Microsoft, Meta, and other large technology firms have also explored geothermal opportunities as they seek dependable clean energy supplies for data centers.

As AI expands, geothermal’s value proposition becomes stronger.

NVIDIA’s Sustainability Strategy Extends Beyond Chips

The geothermal partnership aligns with NVIDIA’s broader sustainability goals. The company aims to match 100% of its global electricity use with renewable sources. It reached this goal in the fiscal year 2025.

NVIDIA also emphasizes energy efficiency as a key part of its climate strategy.

The tech giant claims its latest Blackwell AI systems offer over 50 times more energy efficiency than traditional CPU systems. This boost is specifically for large language model inference workloads.

However, efficiency improvements alone may not offset the rapid growth of AI demand.

As data centers continue growing, access to reliable carbon-free electricity is becoming a strategic priority across the technology sector. That makes partnerships like the one with Fervo increasingly important.

However, NVIDIA’s stock showed only a modest reaction to the announcement, as investors remain primarily focused on AI chip demand and data center growth. Still, the partnership highlights NVIDIA’s expanding influence across the broader AI ecosystem.

The company uses AI and digital twin technologies for geothermal energy. This suggests that it’s not just a hardware provider but also aims to be a key player in creating the energy infrastructure for future AI growth.

AI and Clean Energy Are Becoming One Story

The partnership between NVIDIA, Fervo, and PNNL highlights a major shift taking place across the energy industry. Artificial intelligence is no longer just a consumer technology story. It is becoming an energy story as well.

Growing AI workloads require massive amounts of electricity. Meeting that demand while maintaining climate goals will require new sources of reliable clean power.

Geothermal energy offers one possible solution. By combining AI, advanced drilling techniques, and geothermal resources, companies hope to unlock a new generation of carbon-free electricity that can operate around the clock.

For the broader energy transition, it shows how AI and clean energy are becoming increasingly interconnected as the world builds the next generation of digital infrastructure.

• READ MORE: Amazon (AMZN) Stock Rises as It Bets on Geothermal Power with AI Data Centers Triggering a New Energy Supercycle

The post NVIDIA (NVDA Stock) Takes AI Deep Underground: Inside Its Geothermal Energy Push With Fervo and PNNL appeared first on Carbon Credits.

Gevo, Inc. is increasing its focus on the fast-growing carbon removal market, which is now worth about $12 billion. The company is already one of the leading suppliers of carbon removal credits and is working to expand its presence across both voluntary and regulated carbon markets.

According to data provided by CDR.fyi — Carbon Removal Market Data, Leaderboards & Intelligence. Gevo recently ranked among the top five companies worldwide for delivering carbon removal credits to customers.

Many carbon removal companies still face technical and operational challenges that make large-scale delivery difficult. However, Gevo has developed a strong track record of issuing and delivering carbon credits on time, helping it stand out in a competitive market.

New Website Supports Carbon Credit Buyers

The press release highlights that, to make its carbon products easier to access, Gevo has launched a new website, gevocarbon.com. The platform is dedicated to the company’s carbon removal business and highlights its Bioenergy with Carbon Capture and Storage (BECCS) project.

The website will provide:

• buyers with easy access to Gevo’s carbon removal products,
• create a direct connection between the company and potential customers
• explain how the BECCS process removes carbon dioxide from the atmosphere

The launch coincides with Climate Week London, where Gevo executives are participating in discussions on carbon removal standards and the future of carbon markets. This reflects the company’s growing influence within the industry.

Gevo Chief Carbon Officer Alex Clayton said,

“Gevo continues to help the industry set standards and create first-of-a-kind deals in the voluntary space while unlocking additional compliance and voluntary carbon market opportunities through new pathways and programs. We believe this business can exceed $30 million from our existing operations as demand grows for high-quality carbon removal. We see a clear long-term path toward a fungible carbon credit market – one built on trusted standards that can support a global exchange-traded system.”

Carbon Credits Sales Continue to Grow

Demand for Gevo’s carbon credits continues to rise. During the first half of 2026, the company’s carbon removal sales exceeded its total sales for the whole of 2025.

Equally important, Gevo has delivered all of its carbon credits on schedule. In a market where delivery delays can be common, consistent performance helps strengthen buyer confidence.

Several major organizations have purchased and retired carbon removal certificates generated by Gevo’s North Dakota project. These organizations include Nasdaq, Delta Air Lines, Monzo Bank, Bank of Montreal, and Amgen. Their participation demonstrates growing trust in Gevo’s carbon removal solutions and the quality of its credits.

How Gevo’s Carbon Removal Works 

Gevo’s carbon removal program is based at its North Dakota facility and uses Bioenergy with Carbon Capture and Storage technology. This process combines renewable fuel production with permanent carbon storage.

• The process begins with corn supplied by more than 200 local farming families. Most of the corn comes from farms located within 75 miles of the facility, allowing Gevo to maintain a fully traceable supply chain.
• During ethanol production, carbon dioxide is naturally released through fermentation. Instead of allowing this carbon dioxide to enter the atmosphere, Gevo captures and purifies it.
• The captured carbon dioxide is then injected into the Broom Creek Formation, a geological storage site located approximately 1.3 miles beneath the facility.

Because the storage site is located directly below the plant, there is no need for transportation through pipelines or trucks. This reduces potential leakage risks and improves operational efficiency. The carbon dioxide is expected to remain safely stored underground for more than 1,000 years.

Focus on High-Quality Carbon Credits

As carbon markets continue to develop, buyers are increasingly looking for credits that are transparent, reliable, and independently verified. Gevo has made quality a central part of its carbon strategy.

The company’s carbon removal credits are certified through Puro.earth, a leading carbon removal registry. In addition, independent monitoring is provided by Cula Technologies to help verify carbon storage and ensure transparency.

These verification processes help confirm that the carbon credits represent real, measurable, and long-lasting carbon removal. As a result, buyers can have greater confidence in the environmental value of the credits they purchase.

• RECENT: Gevo Stock Surges 65% as Carbon Credits Bring in First-Ever Profits

Carbon Credits to Offset Emissions

Gevo also applies its carbon strategy within its own operations. The company uses its carbon credits to offset emissions generated by corporate travel activities.

By using its own credits, Gevo demonstrates confidence in the quality and integrity of its carbon removal products. This approach also provides a practical example of how businesses can incorporate carbon removal into broader sustainability plans.

North Dakota Facility Reached an Important Milestone

In January, Gevo announced that its North Dakota facility had issued more than 500,000 carbon dioxide removal certificates since carbon capture operations began in June 2022.

This milestone highlights the company’s ability to deliver carbon removal credits at a commercial scale while maintaining high standards of quality and reliability.

Gevo believes that reducing emissions across transportation and agriculture requires collaboration. As a result, the company continues to work closely with farmers, technology providers, fuel producers, and government agencies.

• Climate-Smart Agriculture: Through its USDA-funded Climate-Smart Farm-to-Flight Program, Gevo supports farming practices that reduce the carbon intensity of crop production and improve sustainability.
• Farm-Level Carbon Tracking: Partnered with Farmers Edge to improve carbon measurement and reporting at the farm level, increasing transparency and data accuracy.
• Supply Chain Carbon Accounting: Gevo’s Verity platform tracks carbon emissions across the supply chain. Partnerships with ClearFlame Engine Technologies and Midwest Renewable Energy help strengthen carbon accounting from farm to fuel use.

Supporting Sustainable Aviation Fuel

Beyond carbon removal, Gevo continues to expand its sustainable aviation fuel business. The company is working with several technology and engineering partners to help bring low-carbon aviation fuels to commercial markets.

At the same time, the company is exploring additional opportunities in renewable fuels and renewable chemicals, including motorsports. These efforts support the company’s broader goal of reducing emissions across multiple industries.

Looking Ahead

A recent report from Abatable says that this year is built on “integrity at scale.” The goal is to provide carbon credits that are transparent, reliable, and supported by real-world operations.

Carbon credit buyers are becoming more informed and selective. They increasingly demand credits that deliver measurable climate benefits and meet strict verification standards.

While international frameworks such as CORSIA and Article 6 continue to evolve, voluntary carbon markets remain an important tool for climate action. These markets allow companies to invest in carbon reduction and removal projects today rather than waiting for future regulatory requirements.

With growing demand, a strong delivery record, and an expanding network of partners, Gevo is positioning carbon removal as a major growth area for the future. By focusing on quality, transparency, and scalability, the company aims to play an important role in the continued development of global carbon markets.

• ALSO SEE: Gevo Strikes Carbon Credit Agreement with Future Energy Global to Scale SAF Market 

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The European Central Bank (ECB) is working hard to cut the carbon footprint of its investment portfolios. It aims to support Europe’s green transition. Recent climate disclosures show that by 2025, the ECB and Eurosystem reduced portfolio emissions and increased green bond investments. They also introduced new reporting methods for clearer decarbonization insights.

While emissions are decreasing, future progress depends more on companies reducing their greenhouse gas emissions than on central bank strategies. The ECB is also focusing on nature-related risks alongside climate change.

ECB Portfolio Emissions Continue to Fall

The ECB released its fourth annual climate disclosures, covering various portfolios, including monetary policy and foreign reserves.

• It revealed that emissions from these portfolios fell again in 2025. This decline is partly due to a 13% reduction in the portfolios as bonds matured without full replacements.

A smaller investment portfolio leads to lower financed emissions. However, the ECB stressed that reducing the portfolio is just one part of the story. The central bank will continue pursuing climate-related investment goals where possible.

The Eurosystem is on track to meet its interim emissions reduction targets for corporate bond holdings. These targets use relative carbon intensity, comparing emissions to company revenue, aligning with the Paris Agreement and the EU’s climate neutrality goals.

New Inflation-Adjusted Metrics Show Real Climate Progress

A key change this year is the introduction of inflation-adjusted emissions metrics.

Previously, carbon intensity calculations used nominal revenues. High inflation could make carbon intensity look better, even if emissions stayed the same.

Now, the ECB adjusts revenues for inflation before calculating carbon intensity. This gives a clearer view of decarbonization, showing real emissions declines from operational changes and cleaner practices.

The bank believes these new indicators enhance transparency and help investors understand long-term climate performance.

Scope 3 Emissions Included for the First Time

Another major improvement is the inclusion of Scope 3 emissions for non-sovereign holdings.

Scope 3 emissions are indirect greenhouse gas emissions from a company’s value chain, including those from suppliers and transportation. For many sectors, these emissions account for the largest share of total carbon output.

The ECB noted that improvements in emissions reporting now allow it to share these figures, though some limitations remain due to incomplete company reporting. Adding Scope 3 data gives investors a fuller picture of portfolio impacts and aligns with growing international reporting standards.

• MUST READ: European Central Bank (ECB) Tilts Green: 38% Cut in Portfolio Emissions, Adds Nature Risk to Climate Disclosures 

Green Bond Investments Continue to Expand

In addition to lowering emissions, the ECB is boosting investments that support climate solutions.

• By the end of 2025, the ECB’s own funds portfolio increased its green bond share to 33%, amounting to about €7.6 billion in projects supporting the green transition.

These investments fund renewable energy, energy efficiency, sustainable infrastructure, and clean transportation across Europe.

• The ECB aims to raise the green bond allocation to 35% in 2026, showing its commitment to sustainable finance.

Additionally, the ECB’s staff pension fund also made progress, with its corporate investments’ carbon footprint declining again in 2025, keeping it on track for climate goals.

ECB Puts Nature and Biodiversity Higher on Its Green Agenda

Climate change is no longer the ECB’s only environmental focus. The bank is expanding its assessment of nature-related risks, recognizing links between biodiversity loss, ecosystem degradation, and climate change.

Following last year’s disclosures, the bank again reported on portfolio exposure to industries that significantly impact nature, in line with the Taskforce on Nature-related Financial Disclosures (TNFD).

Nature-related reporting is growing. The ECB expects better data, and global standards will improve disclosure quality. The bank plans to gradually enhance these disclosures in future reports.

More Transparency, Stronger Climate Action

The ECB emphasizes that publishing detailed climate disclosures is key to improving transparency in financial markets.

National central banks in the Eurosystem, such as the Bundesbank, shared their climate reports with the ECB. This shows a united push to improve climate reporting in Europe.

The ECB will continue to include climate change and nature loss in its policies. While portfolio emissions are improving, future progress will depend more on companies, banks, and the broader economy taking faster action to reduce real-world emissions. They can’t just depend on financial portfolio changes.

Banks’ Critical Role in Financing Emissions

The report also emphasizes the crucial role banks have in financing corporate carbon emissions. Banks support businesses mainly through loans and, to a lesser extent, corporate bond investments. Thus, their lending choices heavily impact the financial system’s emissions.

It emphasized that financed emissions linked to euro area banks have generally decreased since 2018. However, progress has been uneven. After a significant drop during the COVID-19 pandemic, financed emissions rose slightly in 2021 as economic activity picked up.

But Future Emissions Cuts Will Become More Difficult

Despite ongoing reductions, the ECB recognizes that cutting emissions will become harder in the coming years.

Previously, the central bank favored reinvesting in companies with strong climate performance when bonds matured. But as monetary policy portfolios shrink, there are fewer opportunities to adjust for lower-emission companies.

Future reductions in financed emissions will rely more on businesses actively lowering their greenhouse gas emissions. Passive portfolio reduction alone won’t drive significant climate gains. Companies need to accelerate decarbonization through cleaner technologies and renewable energy.

Notably, the ECB found that banks have made limited changes to their lending portfolios. Most of the decline in financed emissions came from shifts in corporate emissions, not from banks moving loans to lower-carbon firms.

These findings indicate that European banks have not yet significantly reduced lending to high-emission businesses. Stronger financial sector action is essential for Europe to transition to a low-carbon economy.

• ALSO READ: Climeworks and TD Bank Deal Signals a New Financial Era for Engineered Carbon Removal Credits

The post ECB and Eurosystem Cut Portfolio Carbon Emissions as Green Bond Investments Rise appeared first on Carbon Credits.

Amazon is opening its carbon credit agreements to Climate Pledge signatories and chosen suppliers. This change allows more companies to access high-quality carbon credits, which are often hard to get.

The program allows participating companies to purchase carbon credits from three projects that Amazon has already helped finance, which include:

• a direct air capture (DAC) facility in Texas developed by 1PointFive,
• a methane reduction project for rice farming in India, and
• a landscape restoration initiative in South Africa.

Companies that signed Amazon’s Climate Pledge can join the program. Amazon suppliers and other partners in the value chain are also included.

The tech giant says that buyers can purchase as few as 100 carbon credits, and there’s no need for long-term contracts. This makes it easier for organizations to access high-quality carbon credits.

The Carbon Gold Rush: Why Future Credits Are Being Claimed Today

The move comes at a time when demand for premium carbon credits is rising rapidly. Many companies have set net-zero targets, but the supply of high-quality carbon removals remains limited. By sharing access to its long-term carbon deals, Amazon hopes to help partners reduce emissions while supporting the growth of new climate projects.

The initiative also marks a new phase in corporate climate action. Large companies are no longer just buying carbon credits. They are helping build the markets needed to scale carbon removal technologies.

Carbon credit offtakes have become an important tool for financing climate projects.

Unlike traditional carbon credit purchases, offtake agreements allow companies to commit to buying future credits before they are issued. These early commitments help project developers secure funding and expand operations.

This model has become increasingly popular as competition for carbon removals grows. Major buyers such as Microsoft, Google, Stripe, Shopify, and Amazon have all signed long-term agreements to secure future carbon credit supplies.

The need is growing quickly. According to CDR.fyi, buyers contracted more than 29.6 million metric tons of carbon dioxide removal credits in 2025. However, only a small share of those removals have actually been delivered so far. This gap between demand and supply is pushing companies to lock in future credits years in advance.

Amazon’s new program gives smaller companies access to opportunities that would otherwise be difficult to negotiate on their own.

Too Many Buyers, Not Enough Credits

Amazon’s announcement points out a key challenge in the voluntary carbon market (VCM): there aren’t enough high-quality credits to meet future demand.

Many companies have pledged to reach net-zero emissions between 2040 and 2050. As those deadlines approach, demand for carbon removals is expected to increase sharply.

McKinsey estimates global demand for carbon credits could reach between 1.5 billion and 2 billion metric tons annually by 2030. By 2050, demand could exceed 7 billion metric tons per year.

At the same time, analysts expect the voluntary carbon market to grow significantly. Some forecasts project that the market could be worth more than $50 billion by 2030 if corporate climate commitments continue to grow.

However, buyers are becoming more selective. Many now favor projects that remove carbon from the atmosphere or deliver measurable emissions reductions. This has increased interest in technologies such as direct air capture, biochar, and methane reduction.

As a result, future supplies of high-integrity credits are becoming increasingly valuable.

How the Program Fits Amazon’s Climate Goals

The new initiative supports Amazon’s broader climate strategy. Per Amazon’s Jamey Mulligan,

“Most of what will be left in our footprint in 2040 will be in our Scope 3. And so we need our suppliers to be participating.”

In 2019, Amazon co-founded The Climate Pledge, which commits companies to reach net-zero carbon emissions by 2040. The pledge now includes more than 550 signatories across 46 countries and over 60 industries.

Amazon has also invested heavily in renewable energy and low-carbon technologies. The company’s latest sustainability report shows it matched 100% of its global electricity use with renewable energy for the second year in a row.

The tech firm now supports more than 500 solar and wind projects worldwide. Together, these projects generate enough carbon-free electricity to power millions of homes each year.

The company has rolled out over 31,000 electric delivery vans worldwide. It is also investing in sustainable aviation fuel, carbon removal tech, and supply chain decarbonization.

Amazon reported that its carbon footprint has fallen from its 2021 peak, showing progress toward its long-term climate goals.

• SEE MORE: Amazon Expands Its Carbon Credit Strategy with Lower-Carbon Fuel and Superpollutant Solutions

The Offset Debate Isn’t Over—It’s Evolving

While carbon credits play an important role in many net-zero plans, they remain controversial.

Critics argue that companies should focus first on reducing emissions directly rather than relying on offsets. Concerns about project quality and verification have also led to greater scrutiny across the carbon market.

As a result, many climate standards now emphasize that carbon credits should be used only after companies make deep emissions cuts. The Science-Based Targets initiative requires companies to cut at least 90% of their emissions. They can then neutralize the rest with carbon removals.

This has increased demand for higher-quality credits that can demonstrate measurable climate benefits.

Amazon’s push for projects like direct air capture and methane reduction shows a shift toward stronger carbon market standards.

Big Tech’s New Arms Race: Locking Up Carbon Removal Supply

Amazon is part of a growing group of technology companies investing heavily in carbon removals.

Microsoft is now the largest corporate buyer of carbon removal credits. They have contracted tens of millions of metric tons in recent years. Frontier, a coalition supported by Stripe, Shopify, Google, Meta, and McKinsey, has pledged almost $1 billion. This funding aims to boost new carbon removal technologies.

The competition is being driven by climate science. The Intergovernmental Panel on Climate Change (IPCC) and other researchers say the world has to remove billions of tons of carbon dioxide from the atmosphere each year by mid-century. This is key to meeting global climate goals.

Yet, many removal technologies are still in the early stages of development. Long-term purchase agreements provide the financial certainty needed to build new facilities and expand capacity. By opening its carbon credit pipeline to partners, Amazon is helping more companies to join this fast-growing market.

From Carbon Buyer to Carbon Market Builder

Amazon’s latest move is about more than carbon credits. The company is using its scale to help create demand for climate projects that may otherwise struggle to attract financing.

The giant e-commerce helps spread the risks and opportunities of carbon market participation by giving suppliers and Climate Pledge members access to its offtake agreements.

The strategy could speed up investments in projects that cut methane emissions, restore ecosystems, and directly remove carbon from the air.

Amazon’s new program shows how large companies are evolving from carbon credit buyers into carbon market builders. If more companies adopt this model, it could unlock the funds needed to grow the next generation of climate solutions.

READ MORE: Amazon (AMZN) Stock Slips as It Opens Carbon Credits to UK Firms and Secures $17.5B Loan for AI

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