Gevo Strikes Carbon Credit Agreement with Future Energy Global to Scale SAF Market

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SAF

Gevo and Dublin-based Future Energy Global (FEG) have signed a breakthrough offtake agreement that supports airlines and other companies in slashing their carbon footprints. Under this multi-year deal, FEG will buy Scope 1 and Scope 3 carbon abatement credits tied to 10 million gallons per year of Gevo’s Sustainable Aviation Fuel (SAF) from its upcoming ATJ-60 facility.

This deal also gives FEG the option to expand its SAF purchase volume later. This will help airlines and corporations meet net-zero targets more quickly.

Dr. Patrick R. Gruber, CEO of Gevo said,

“Gevo has always planned to leverage SAF market economics to scale our business, and a Book and Claim market that enables the trading of SAF environmental attributes can accelerate SAF production even faster. Future Energy Global is building just such a market, spanning corporate customers, airlines, and aircraft lessors. Aircraft lessors own about half of all commercial aircraft worldwide, and Book and Claim is a critical enabler to allow them and their airline customers to adopt SAF faster.”

Gevo’s ATJ-60 Plant Set to Take Off with 60M Gallons of Low-Carbon SAF

EIA revealed that at the beginning of 2024, the U.S. SAF production capacity was only around 2,000 b/d.

Now, as per the press release, Gevo’s new ATJ-60 plant in Lake Preston, South Dakota, will produce 60 million gallons of SAF annually, which will significantly suffice the demand.

The cost will be comparable to conventional jet fuel, but the fuel will have much lower emissions. The project received a $1.63 billion conditional loan guarantee from the U.S. Department of Energy, which will help finance the construction of the ATJ-60 plant and speed up operations.

Key highlights of ATJ-60:

gevo SAF plant
Source: Gevo
gevo SAF
Source: Gevo

Gevo’s proprietary tech and “pay-for-performance” model reward emissions reductions. Through its Verity platform, the company ensures full transparency and accountability across the SAF supply chain. Additionally, the company rewards low-carbon practices while delivering real value to local communities.

Paving the Way for a Low-Carbon Future

Gevo is a pioneer of low-carbon fuels and chemicals from renewable sources. Its advanced technology creates Sustainable Aviation Fuel (SAF), motor fuels, and eco-friendly materials that work with existing engines and infrastructure. It ensures an easy switch from fossil fuels.

gevo SAF
Source: Gevo

Thus, cutting carbon emissions through renewable fuels and chemicals is their top priority. The company operates one of the largest dairy-based renewable natural gas facilities in the U.S. and an ethanol plant equipped with carbon capture technology.

gevo carbon emissions
Source: Gevo

Future Energy Global (FEG) Boosts Europe’s Aviation Decarbonization with SAF Credits

FEG’s business model connects investors, suppliers, and buyers to enhance sustainable aviation fuel production worldwide. By monetizing carbon credits tied to SAF, FEG creates extra revenue streams that boost the scale-up.

Natasha Mann, CEO and Co-Founder of FEG, noted,

“FEG’s collaboration with Gevo strongly enhances the portfolio of Book and Claim solutions we can offer our airlines, our lessors, and our corporate customers. It’s crucial to scale SAF production, and our business model lets us unlock the capital to do so. We’re impressed with Gevo’s pipeline, which combines technology ready for today’s market and additional technologies far along in development that could increase production efficiency and accelerate the trajectory of SAF scaling.”

To accelerate Europe’s aviation decarbonization, FEG supports Electro-based Sustainable Aviation Fuel or E-SAF. It’s a scalable, very low carbon, and drop-in fuel option with greater potential than many bio-based alternatives. On April 10, FEG became one of the first signatories of the Bodø Declaration, uniting airlines, tech firms, airports, and policymakers to push for climate-neutral aviation.

The Declaration urges:

  • Long-term SAF regulations through 2050 to unlock investments
  • Market incentives like the EU ETS to encourage fossil fuel shifts
  • Support for long-term offtake deals between producers and users
  • A Europe-wide book & claim system to maximize emission cuts

Last month, FEG signed a deal to supply Microsoft with Scope 3 SAF certificates from airline purchases. This is part of Microsoft’s ambition to be net-zero by 2030.

How SAF Credits Help Airlines and Corporates Cut CO2

The aviation industry is aiming for net-zero carbon emissions by 2050. SAF is expected to deliver two-thirds of the required emission cuts. This means that SAF production has to increase by 400 times. But SAF is not available everywhere. That’s where FEG comes in.

Through this deal, FEG will distribute SAF-derived Scope 1 credits to airlines unable to access physical SAF at their home airports. Corporates can also purchase Scope 3 credits to offset emissions from employee business travel. This “Book and Claim” approach separates fuel from its carbon savings, lowering logistics costs and unlocking access to global SAF markets.

Scope 1 means direct emissions from airline operations, and Scope 3 is indirect emissions from corporate air travel.

Annual SAF demand range over the main and accelerated cases compared with capacity potential, 2020-2026

SAF demand IEA
Source: IEA

This is how FEG amplifies SAF demand by turning carbon credits into revenue. This gives producers like Gevo a steady income and helps buyers attain their climate targets. Though FEG started with aviation, it now offers sustainable fuel credit solutions for land and marine transport as well.

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Microsoft’s Big Bet on Carbon Removal: 3.7 Million Tons with CO280

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Microsoft’s Big Bet on Carbon Removal, 3.7 Million Tons with CO280

Microsoft has made a major move to address climate change by partnering with CO280, a company focused on large-scale carbon dioxide removal (CDR). The tech giant made a big announcement to buy 3.7 million metric tons of carbon removal credits from CO280. This deal is one of the largest for carbon capture so far.

The agreement will help Microsoft move closer to its goal of becoming a carbon-negative company by 2030. But what does this deal mean for the environment, and how does it work? Let’s take a closer look at the deal, the technology behind it, and its potential impact on the fight against climate change.

The CO280-Microsoft Carbon Removal Agreement

Carbon removal means capturing carbon dioxide (CO2) from the air. It stores this gas to stop it from causing global warming. It is different from carbon offsetting. While offsetting reduces emissions in other places, carbon removal lowers the total CO2 in the air.

There are various methods of carbon removal, including planting trees, soil carbon sequestration, and direct air capture. Microsoft’s deal with CO280 aims to capture carbon dioxide from pulp and paper mills. This innovative method uses current infrastructure to take CO2 out of the atmosphere.

The agreement between CO280 and Microsoft will span 12 years. It involves CO280’s first carbon capture project at a pulp and paper mill located on the U.S. Gulf Coast. The project will capture CO2 emitted during the production of paper and other products, storing it in underground geologic formations.

  • CO280 will remove 3.7 million metric tons of CO2, a significant step toward Microsoft’s ambitious carbon-negative goal.
microsoft emissions
Source: Microsoft

How Does the CO280 Carbon Capture Process Work?

CO280’s carbon removal process upgrades current pulp and paper mills with carbon capture technology. The removal partners with SLB Capturi, a joint venture of SLB (formerly Schlumberger) and Aker Carbon Capture, to set up the carbon capture units.

These mills use “recovery boilers” to recycle chemicals during the paper-making process. These boilers also release biogenic carbon dioxide, which was previously absorbed by the trees used in pulp production.

Normally, this carbon would be released into the atmosphere. However, with the new technology, CO280 captures the CO2 emissions before they can escape.

CO280 carbon capture process
Source: CO280

Once captured, the CO2 is transported via pipeline to a storage site, where it is permanently stored underground. In the first phase of the project, CO280 aims to capture about 40% of the biogenic CO2 from the mill. It also plans to capture around 30% of total CO2 emissions, including both biogenic and fossil fuel sources.

CO280’s strategy builds on the U.S. pulp and paper industry to scale CDR efficiently. Key advantages include:

  • Rapid Scalability:
    U.S. pulp and paper mills emit 88 Mt of biogenic CO2 yearly, which the company targets. CO280 reduces cost and risk by retrofitting existing mills with carbon capture, using current infrastructure and biomass supply chains. Standardized designs and financing speed up replication.

  • Sustainable Biomass Use:
    97% of wood goes to SFI-certified mills; 90% to mills certified by both SFI and FSC. Many rely on residual biomass and recycled content. All CO280 projects meet top voluntary carbon market sustainability standards.

  • Energy Efficiency:
    Projects use waste heat and/or waste biomass to run capture systems, lowering emissions and boosting sustainability.

  • Close to Carbon Storage:
    Over 75% of U.S. mills are within 100 miles of CO2 storage sites. A growing U.S. pipeline and storage network supports permanent, safe CO2 sequestration.

How important is this deal for Microsoft?

This deal is a major milestone for Microsoft and the carbon removal industry. Microsoft has been working to reduce its carbon footprint for years, purchasing renewable energy and making other efforts to reduce emissions.

However, some emissions are impossible to eliminate, and this is where carbon removal comes into play. By purchasing carbon removal credits, Microsoft is helping to balance out the emissions it can’t avoid.

This deal also plays a significant role in scaling up carbon removal technologies. The project is one of several CO280 is developing, with the goal of capturing millions of metric tons of CO2 by 2030. The success of this project could help pave the way for more large-scale carbon removal efforts in other industries.

The Pulp and Paper Industry in Net Zero

One of the most interesting aspects of CO280’s approach is that it uses existing infrastructure to capture carbon. The pulp and paper industry is a significant emitter of CO2, releasing around 88 million metric tons of biogenic CO2 annually. 

The U.S. pulp and paper industry could sequester 63 million tonnes of CO2 by 2050 in a net-zero scenario. This is driven by high paper production and widespread biomass combustion. Globally, the industry could sequester 178 million tonnes of CO2 by 2050, making a meaningful contribution to climate goals.

paper industry carbon sequestration net zero
Source: ScienceDirect

And CO280’s technology could help scale carbon removal in the industry. It retrofits mills with carbon capture tech that creates a scalable and cost-effective way to capture emissions.

The Role of CO280 and SLB Capturi

CO280, founded in 2021, focuses on developing large-scale carbon removal projects. The company partners with pulp and paper mills, as well as other businesses, to capture CO2 and create carbon credits that can be sold in the voluntary carbon market.

CO280’s partnership with Microsoft is one of the largest agreements to date and could serve as a model for future projects.

To implement the carbon capture process, CO280 works with SLB Capturi, a leading provider of carbon capture technology. SLB Capturi captures CO2 from industrial emissions using an amine-based process. This method is proven and widely used in the energy sector.

Captured CO2 is transported to storage sites. There, it gets stored permanently in underground formations.

The Broader Picture: Tackling Climate Change

The agreement between Microsoft and CO280 is part of a broader effort to reduce global CO2 emissions. The International Panel on Climate Change (IPCC) says the world must remove 10 billion metric tons of CO2 from the atmosphere every year by 2050. This is key to meeting global climate goals. Microsoft’s carbon removal deal is a significant step in this direction.

The partnership between CO280 and Microsoft is just the beginning. CO280 is working on additional projects with pulp and paper mills, with plans to capture millions of tons of CO2 by 2030. Microsoft’s investment in these projects will boost carbon removal technology and global decarbonization efforts. 

The post Microsoft’s Big Bet on Carbon Removal: 3.7 Million Tons with CO280 appeared first on Carbon Credits.

Patch and Varaha Ink a Multimillion Deal to Boost Carbon Removal

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Patch and Varaha Ink A Multimillion Deal to Boost Carbon Removal

Patch, a climate finance platform, and Varaha, a carbon project developer, have announced a new multimillion-dollar deal. This partnership focuses on supporting carbon removal projects that help small farmers and protect the environment. Together, they aim to remove carbon from the air while creating jobs and improving communities in Asia.

Their partnership is already showing results, and it could become a model for how climate finance can benefit both the planet and people. Let’s unravel how their approach to carbon removal works.

Nature, Farmers, and Finance: A New Way to Tackle Carbon Removal

Patch is a U.S.-based company that helps businesses invest in carbon credit projects. These projects either prevent carbon emissions or remove carbon dioxide (CO₂) from the atmosphere. Patch works with trusted partners around the world to ensure these projects are effective and real.

Patch sample dashboard
A sample snapshot of Patch’s platform Source: Patch

Varaha is one of Asia’s leading companies in developing carbon removal projects. It works with small farmers across countries in South Asia to run nature-based projects such as reforestation, regenerative agriculture, and biochar. These projects capture CO₂ and also help local people and ecosystems.

Now, with support from Patch, Varaha will have more funding to expand these projects across Asia. The deal is backed by more than 35 companies around the world, including Sendle, a shipping company that aims to reach net-zero emissions by 2040.

Brennan Spellacy, CEO and Co-founder of Patch, remarked:

“This partnership demonstrates the real-world impact of high-integrity carbon removal solutions, which are set to play an increasingly critical role in global climate action. Together, Patch and Varaha are helping companies responsibly deploy funds to carbon credit projects – helping to unlock billions in climate finance.” 

What Are the Projects Involved?

The partnership supports a range of nature-based projects that remove CO₂ in ways that also benefit the environment and local people. Some of the key project types include:

  • Reforestation: Planting trees to absorb CO₂ from the atmosphere and rebuild forests.
  • Regenerative agriculture: Farming in ways that protect soil, increase carbon storage, and reduce the need for harmful chemicals.
  • Biochar: Turning plant waste into a form of charcoal that stores carbon and improves soil health.

One of the largest projects is a biochar project that removes invasive species and restores grasslands. It is one of the biggest biochar projects in the world.

The Key Results So Far

Even though this partnership is still growing, it has already made some results:

  • 1.5 million tonnes of CO₂ removed from the atmosphere.
  • 100,000+ smallholder farmers involved in the projects.
  • 4,000 hectares of grassland were restored.
  • 50,000 part-time workdays created for local communities.
  • $2.19 million in carbon revenue has gone directly to small farmers.
  • 100,000 tonnes of illegal logging and biomass burning stopped.
  • 31% increase in grassland vegetation, which means healthier ecosystems.

These figures highlight the reported outcomes of the partnership’s early efforts.

Supporting Small Farmers

A major focus of this partnership is helping smallholder farmers—people who grow crops on small plots of land, often with few resources. In many parts of Asia, these farmers face challenges like poor soil, extreme weather, and low crop prices.

Varaha works directly with these farmers to help them switch to better farming methods that also capture carbon. With the extra income from selling carbon credits, farmers can earn more money and build more secure futures for their families.

Each carbon credit represents a tonne of removed or reduced CO₂ from the atmosphere. 

This approach aligns with the concept of ‘climate justice,’ which refers to including vulnerable communities in climate solutions.

The Patch-Varaha Climate Finance Model

Patch provides a platform that makes it easy for businesses to buy carbon credits. These businesses might want to offset their emissions or support environmental goals. Patch checks all the projects carefully to make sure they are real, effective, and ethical.

Varaha develops and manages the projects on the ground. It uses science, satellite technology, and artificial intelligence (AI) to monitor progress and measure the actual carbon removal. This helps build trust in the carbon market by showing clear, evidence-based results.

Varaha regenerative agriculture technology
Source: Varaha

By working together, Patch and Varaha connect global companies with high-impact local projects. This kind of collaboration could contribute to scaling up climate action.

Madhur Jain, CEO and Co-Founder of Varaha, emphasized this deal, noting:

“At Varaha, we are committed to developing high-quality, scalable carbon projects that drive real climate impact. As our collaboration with Patch grows, we look forward to deepening our efforts in building a more transparent and efficient carbon market.”

So, Why Carbon Removal?

Carbon removal means taking CO₂ out of the air and storing it so it doesn’t cause global warming. Scientists say that in addition to cutting emissions, the world also needs to remove billions of tons of CO₂ to meet climate goals.

According to the IPCC, the world needs to remove about 10 billion tonnes of CO₂ every year by 2050 to stay on track with the Paris Agreement goals. By 2100, that number could rise to 20 billion tonnes per year.

carbon removal pathway to net zero
Source: Patch

Nature-based solutions, like trees, soil, and biochar, are widely used approaches to do this. They can be cost-effective, improve biodiversity, and support local communities. But they need funding—and that’s where climate finance platforms like Patch come in.

The Bigger Picture

The Patch-Varaha partnership shows that carbon markets offer a way to reduce emissions and support people, jobs, and nature. By combining strong technology, local knowledge, and trusted partnerships, they’re providing an example of a potential approach to climate finance.

As demand for carbon removal continues to rise, deals like this will become more common. This partnership shows that reaching net-zero emissions could also mean making climate solutions work through collaboration.

The post Patch and Varaha Ink a Multimillion Deal to Boost Carbon Removal appeared first on Carbon Credits.

Is Trump’s Coal Comeback Derailing America’s Climate Commitments?

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Trump coal US

U.S. President Donald Trump signed an executive order aimed at reviving the coal industry. This move comes as U.S. electricity demand rises for the first time in 20 years, driven by AI data centers, electric vehicles, and cryptocurrency mining.

As per U.S. Energy Information Administration (EIA), coal once powered half the nation’s electricity, but today, it accounts for less than 20%. Cheaper natural gas from fracking and the growth of solar and wind have reduced coal use over time.

us coal 2023

DOE Unveils Five Steps to Support America’s Coal 

Following Trump’s executive order titled “Reinvigorating America’s Beautiful Clean Coal Industry,” Energy Secretary Chris Wright announced new actions from the Department of Energy (DOE). These steps aim to modernize coal technologies, boost critical mineral production, and improve the energy grid.

He said,

“The American people need more energy, and the Department of Energy is helping to meet this demand by unleashing supply of affordable, reliable, secure energy sources– including coal.”

“Coal is essential for generating 24/7 electricity generation that powers American homes and businesses, but misguided policies from previous administrations have stifled this critical American industry. With President Trump’s leadership, we are cutting the red tape and bringing back common sense.”

Here are the DOE’s five main initiatives:

1. Return of the National Coal Council

The DOE is bringing back the National Coal Council, which ended during the Biden administration. The 50-member group will advise on coal’s future and include voices from coal producers, users, suppliers, and local leaders.

2. $200 Billion in Energy Financing

Through the Energy Infrastructure Reinvestment Program, the DOE is offering $200 billion in low-interest loans. These funds will support coal-powered projects—upgrading old plants, restarting closed facilities, or building new ones using existing infrastructure.

3. Steelmaking Coal Named ‘Critical Material’

The DOE and Department of the Interior are recommending that coal used for steelmaking be officially listed as a critical material in the 2025 assessment. This status highlights the importance of maintaining a steady supply for national security and the economy.

4. Extracting Minerals from Coal Ash

The DOE’s National Energy Technology Laboratory has developed new technology to pull valuable minerals from coal ash. These materials are key for defense, manufacturing, and clean energy industries.

5. Commercial Use of Coal Byproducts

The DOE is also working with labs and startups to turn coal ash into useful products. This move supports building a U.S.-based supply chain for materials that are now mostly imported from countries like China.

Energy Security and Job Growth

The Trump administration believes coal still has a major role to play in U.S. energy security. Coal is cost-effective, available in all weather, and still abundant. Reviving the coal industry could lower power costs, stabilize the grid, and bring back high-paying jobs.

The EIA reported that natural gas supplied 43% of U.S. utility-scale electricity in 2023, while coal dropped to 16%. This decline was mainly pushed by phasing out fossil fuels.

coal 2023 usa

With trillions of dollars in untapped coal resources, the U.S. could also export more to help its allies and stay competitive.

The policy statement declares that coal is vital for both economic and national security. It stresses the need to end policies that discourage coal use, promote coal exports, and support coal-powered electricity.

Burning Coal Packs a Toxic Punch

Burning coal for electricity remains one of the most harmful sources of air pollution in the U.S. It releases several major pollutants.

  • Sulfur dioxide (SO₂)
  • Nitrogen oxides (NOₓ)
  • Particulates
  • Carbon dioxide (CO₂)
  • Mercury and heavy metals
  • Fly ash and bottom ash

Some of these toxic substances can cause severe respiratory and lung problems and even hinder neurological development.

Although U.S. regulations now require fly ash emissions to be captured, coal ash storage still poses significant environmental threats. In the past, ruptures at coal ash impoundments have caused severe downstream damage.

Coal’s Role in U.S. Emissions Still Looms Large

As per EIA, in 2022, coal burning for energy contributed around 19% of total U.S. energy-related CO₂ emissions. Coal accounted for a major 55% of CO₂ emissions within the power sector.

Despite a 2.7% drop in coal production in 2023 to 577.9 million short tons (MMst), the electric power sector still consumed 387.2 MMst. It’s roughly 91% of the total U.S. coal use.

But ironically, the number of coal mines slightly increased from 548 to 560, indicating that there’s still a demand despite declining output.

The latest data from Ycharts shows that US Coal Consumption was 38.59M t in last December.

US coal production
Source: Ycharts

Emissions Reduction Goals at Risk

A report by Carbon Brief showed that the U.S. had fallen behind on its climate goals. This means decarbonization had slowed down. By 2035, emissions are expected to be only 24- 40 % lower than 2005 levels.

That was still far from the Paris Agreement’s targets of a 50–52% reduction by 2030 and a 61–66% reduction by 2035.

coal emissions

The study further showed that in 2024, emissions barely changed. It fell just 0.2%, despite coal use dropping to its lowest in nearly 60 years. This stagnation was mainly due to:

  • A rise in electricity demand.
  • Increased transportation emissions.
  • Economic growth of 2.7%.

It also emphasized that rolling back regulations through Trump’s executive orders alone could add between 270 and 470 million metric tons of CO₂ equivalent emissions by 2035. This would account for roughly 25–50% of the total emissions increase expected if all of Biden’s climate policies were repelled.

Coal Comeback vs. Climate Goals: Can America Have Both?

The U.S. is the world’s second-largest emitter and has the highest per-capita emissions. That puts a big responsibility on the country to lead climate action.

But hitting the 2030 climate goal won’t be easy. The Rhodium Group says emissions must fall by 7.6% every year from 2025 to 2030. And undoubtedly, that’s a steep drop.

Coal emissions

At the same time, the Department of Energy is pushing to bring coal back. The focus is on boosting energy reliability, creating jobs, and securing critical materials. Trump supports this move and plans to remove barriers to make coal central to America’s energy mix again.

The EIA further forecasts that U.S. energy-related CO₂ emissions will rise by 2% in 2025 and dip by 1% in 2026. This year’s increase will be driven by:

  • Coal: Emissions are expected to rise due to more coal-fired power generation.
  • Natural gas: Its use will grow, mainly for heating in homes and businesses.
  • Petroleum: Emissions will climb as demand for distillate fuel oil and jet fuel increases.

This shift raises a big question. As coal makes a comeback, is the U.S. falling further behind on climate goals? Well, short-term energy gains may come at the cost of long-term climate progress. Only time will tell!

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Trump’s New EO Sparks A New Battle Over States’ Climate Power

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Trump’s New EO Sparks A New Battle Over States’ Climate Power

On April 8, 2025, U.S. President Donald Trump signed a new executive order called “Protecting American Energy from State Overreach.” The order directs the federal government to stop states from enforcing laws related to climate change, greenhouse gas emissions, and ESG (Environmental, Social, and Governance) policies. This move could change how states fight climate change in the future.

What Does the Executive Order Say?

The new executive order gives power to U.S. Attorney General Pam Bondi. She must identify state laws that focus on:

  • Climate change
  • Carbon and greenhouse gas emissions
  • Environmental justice
  • ESG initiatives
  • Carbon taxes and cap-and-trade programs

If any of these state laws are found to be “illegal” or go against federal law, the attorney general is ordered to take steps to block or stop them. Bondi has 60 days to report back to the President with actions taken and any further recommendations.

Why Did Trump Issue the Order?

According to the order, Trump’s goal is to support “American energy dominance.” This means making it easier to produce oil, gas, coal, critical minerals, nuclear, and other energy sources inside the U.S. Trump believes some state climate policies make energy more expensive and harm national security. 

The order states:

“These state laws and policies weaken our national security and devastate Americans by driving up energy costs for families coast-to-coast, despite some of these families not living or voting in States with these crippling policies.”

Trump further says that states like New York and Vermont have passed laws that unfairly punish fossil fuel companies. These states want companies to pay for their past role in causing climate change. The executive order calls these efforts “extortion” and says they are unconstitutional.

number of cases filed against fossil fuel companies
Source: Zero Carbon Analytics

California’s cap-and-trade system was also named. Under this system, businesses must buy credits if they go over their carbon limit. Trump’s order says this creates extra costs and makes it hard for companies to operate.

How Did States React?

Some states strongly disagreed with Trump’s action. Governors Kathy Hochul (New York) and Michelle Lujan Grisham (New Mexico) responded with a joint statement. Both are leaders of the U.S. Climate Alliance, a group of 24 governors committed to fighting climate change. They said:

“We will keep advancing solutions to the climate crisis that safeguard Americans’ fundamental right to clean air and water, create good-paying jobs, grow the clean energy economy, and make our future healthier and safer.”

In short, they believe states have the right to protect the environment and will continue to do so, even if the federal government tries to stop them.

Support from the Oil and Gas Industry

The American Petroleum Institute (API), a trade group for the oil and gas industry, welcomed Trump’s move. API said the order would stop states from illegally punishing companies that provide energy to American families.

Ryan Meyers, a senior vice president at API, said, “We welcome President Trump’s action to hold states like New York and California accountable.”

What Are the Legal Issues?

The executive order could start new legal fights between states and the federal government. In the U.S., both state and federal governments can pass laws. But the Constitution limits how much states can control things like interstate commerce and foreign trade.

Trump’s order argues that state climate laws break these rules. For example, if New York tries to fine a company for emissions that happened in another state or country, it may be seen as overstepping its power.

Still, legal experts say it’s unclear how far the federal government can go to stop these state laws. Past efforts to block climate lawsuits have had mixed results. For instance:

  • Lawsuits by New Jersey and New York were dismissed this year.
  • Lawsuits in California and Hawaii are still ongoing.
  • The U.S. Supreme Court refused to dismiss climate lawsuits in 2024.

States With Climate Targets Could Be Affected

As of now, 14 states have set net-zero targets to reduce emissions by midcentury. These include large states like California, New York, and Illinois. The new executive order could challenge their ability to enforce those goals.

States like California also require companies to report their climate risks. These climate disclosure rules could also be blocked by Trump’s order.

ESG Policies in the Crosshairs

The order also mentions ESG rules. These are policies that consider environmental and social factors when making business or investment decisions.

Since 2021, at least 41 states have introduced ESG-related laws. Twenty states have passed anti-ESG laws. These laws try to stop the use of ESG factors in investments.

Only 8 states have passed pro-ESG laws, which support clean energy and responsible investing. Trump’s order may be used to block pro-ESG laws or stop investors from avoiding fossil fuel companies.

A Shift in Federal Climate Policy

Trump’s action marks a big change from the previous administration. Under President Biden, the U.S. supported climate action:

  • Biden kept the U.S. in the Paris Climate Agreement.
  • The Securities and Exchange Commission (SEC) defended rules on climate risk reporting.
  • Federal agencies joined global climate networks.

Trump’s administration has done the opposite, and it has:

  • Pulled the U.S. out of the Paris Agreement again.
  • Paused federal funding for many climate programs.
  • Stopped defending the SEC’s climate rules in court.

READ MORE: Donald Trump Exits Paris Agreement, Again: What It Means for the U.S. and the World?

What Happens Next?

It’s still not clear how much power the executive order will have. Attorney General Bondi will likely face legal challenges from other states. Courts will have to decide if the federal government can stop states from enforcing climate rules.

In the meantime, states say they won’t back down. They plan to keep fighting climate change and protecting their rights.

Trump’s new executive order has opened a new chapter in the fight over climate change in the U.S. It could reshape how states create and enforce environmental laws. The oil and gas industry supports the move, but many states and legal experts are ready to push back.

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Microsoft and IAG Extend SAF Deal to Slash 113,000 Tonnes of Scope 3 Emissions

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MICROSOFT

Microsoft and International Airlines Group (IAG), the parent company of British Airways, Iberia, Vueling, Aer Lingus, LEVEL, IAG Loyalty, and IAG Cargo, have extended their groundbreaking Sustainable Aviation Fuel (SAF) deal by five more years. It aims to support Microsoft’s goal to reduce Scope 3 lifecycle emissions from business travel and air freight.

  • Explaining further, Microsoft will co-fund an additional 39,000 tonnes of SAF that will cut 113,000 tonnes of lifecycle emissions.

The renewed agreement is an extension of their 2023 collaboration, when both companies pledged to support low-carbon aviation. For Microsoft, it’s a huge step toward achieving its 2030 carbon-negative goal.

Microsoft Targets Scope 3 Emissions with Major SAF Deal

Microsoft’s Scope 3 emissions rose by 30.9% in 2023 compared to its 2020 baseline. This increase was mainly due to the growth of its data center operations and the hardware needed to support them. Business travel and air freight also remain major contributors.

  • Total greenhouse gas (GHG) emissions were 15.4 MtCO₂e in 2023, a 29.1% rise compared to the 2020 baseline.
  • Currently, over 96% of Microsoft’s total emissions come from Scope 3.
Microsoft emissions
Source: Microsoft

The tech giant is already boosting clean energy use across its supply chain and investing in low-carbon technologies for hard-to-decarbonize industries, such as steel, concrete, and other building materials used in its data centers.

The company’s $1 billion Climate Innovation Fund has already invested in LanzaJet, showing the company’s strong commitment to supporting next-generation fuel solutions and accelerating climate technology.

Thus, this deal is a significant part of Microsoft’s net-zero emissions pathway. It expects SAF use to make a notable impact on its air travel and freight shipments’ emissions.

microsoft emissions
Source: Microsoft

SAF: A Key Step Toward Greener Flights, But Challenges Remain

Sustainable aviation fuel (SAF) is a cleaner alternative to traditional jet fuel. According to the ReFuelEU Aviation Regulation, SAF includes synthetic fuels, biofuels made from plant or waste materials, and recycled carbon fuels and not fossil fuels.

While it doesn’t cut emissions from aircraft engines directly, it lowers overall greenhouse gas (GHG) emissions when considering the full life cycle, i.e., from production to use.

  • SAF reduces carbon emissions (on a greenhouse gas lifecycle basis) typically by 80% or more compared with the fossil jet fuels it replaces.

However, there are still big hurdles. Both IAG and Microsoft have acknowledged that scaling SAF production remains a challenge, largely due to high costs. SAF is still 3 to 4 times more expensive than traditional jet fuel. Notably, a small percentage of airline fuel today is SAF. Its production and availability need to grow much faster to make a real impact.

Consequently, the European Union introduced the ReFuelEU Aviation Regulation. It’s also a part of the Fit for 55 plan that aims to cut emissions by 55% by 2030.

EU SAF

The regulation pushes fuel suppliers at EU airports to gradually mix more SAF into their fuel blends. Eventually, it can make the shift toward more sustainable flying easier.

The SAF will be sourced from two locations:

  • Phillips 66’s refinery in Humberside, UK, using used cooking oil and food waste.
  • LanzaJet’s Freedom Pines Fuels facility in Georgia, USA, using bioethanol.

Both SAF sources are ISCC-certified (International Sustainability & Carbon Certification). Additionally, the SAF used in this deal will not add new fossil carbon to the atmosphere as it recycles existing carbon.

How the Deal Benefits IAG and What are its Future Plans 

However, this SAF deal benefits both Microsoft and IAG. While Microsoft can control its emissions from travel and freight, IAG can boost its SAF investments and lower its direct flight emissions.

IAG airlines follow carbon reduction rules under the EU, UK, and Swiss Emissions Trading Schemes. They also support CORSIA’s global plan to cap net aviation emissions.

Emission Reduction Goals

IAG aims to have net-zero emissions by 2050.

  • By 2025, it plans to cut carbon emissions per passenger kilometer by 10%—from 87.3g in 2020 to 80g.

To reach this, they’re adding 142 new aircraft that burn up to 25% less fuel. This also brings fuel use down to just 3.17 liters per 100 passenger kilometers.

  • By 2030, it intends to bring net emissions down to 22 million tonnes. That would be a 20% drop and will save 160 million tonnes of CO₂ over the decade.
IAG net zero emissions
Source: IAG

Boosting SAF Use

Notably, the sustainable fuel from this agreement will power flights across IAG’s brands, including British Airways. In 2021, it set a target of using one million tonnes of SAF annually by 2030. Currently, the airline uses SAF for 1.9% of its total annual fuel. The right policy support could cut as much carbon as taking one million cars off the road annually.

  • By 2030, IAG aims to increase SAF use 100 times compared to 2022 levels. Its target is to reach 10% SAF by 2030 and 70% by 2050.
SAF IAG
Source: IAG

As of last December, the company had committed over $3.5 billion to SAF offtake deals. This is based on expected energy prices and contract terms.

This deal shows how companies can drive greener skies. By supporting cleaner fuels like SAF and influencing wider supply chains, Microsoft and IAG are taking the right steps to fight climate change.

The post Microsoft and IAG Extend SAF Deal to Slash 113,000 Tonnes of Scope 3 Emissions appeared first on Carbon Credits.

New York Requires Large Emitters to Report Their Greenhouse Gas Emissions

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New York Requires Large Emitting Entities to Report Their Greenhouse Gas Emissions

New York State has proposed a new rule requiring large companies and facilities to report their greenhouse gas (GHG) emissions. This rule is not intended to reduce emissions immediately but to improve data collection to understand where emissions are coming from. That data will help the state take stronger action in the future.

This rule is an early step in the state’s climate plan, especially as it prepares to launch a “cap-and-invest” program in 2025. The reporting rule would start with emissions data from 2026, and companies would have to submit reports in 2027. The New York State Department of Environmental Conservation (DEC) leads this effort.

Who Would Need to Report?

The rule would apply to many types of businesses that emit large amounts of greenhouse gases. This includes not only facilities that directly release pollution into the air but also companies that supply fuels or other products that create emissions later.

  • Any business that emits 10,000 metric tons or more of carbon dioxide equivalent (CO₂e) per year must report. For comparison, that’s about the same as the emissions from 2,200 gas-powered cars in one year.

Types of companies and facilities that may need to report include:

  • Power plants
  • Waste incinerators and landfills
  • Large industrial factories that burn fossil fuels
  • Natural gas compressor stations
  • Heating fuel and gasoline suppliers
  • Fertilizer and lime distributors
  • Anaerobic digesters and other waste treatment systems

According to the DEC, thousands of entities across New York could fall under the rule. These businesses will need to measure their emissions or use standard methods to estimate them. Some may already report this information to federal programs, which they can reuse for state reporting.

NEw York GHG emissions by sector
Source: https://climate.ny.gov/

Refer to this factsheet to know more about the said mandatory reporting.

Why the Rule Matters

The state needs accurate data to meet its climate goals under the Climate Leadership and Community Protection Act (CLCPA). This law, passed in 2019, sets some of the toughest climate targets in the country. New York aims to:

  • Reduce greenhouse gas emissions by 40% below 1990 levels by 2030
  • Reach 85% emissions reductions by 2050
  • Get 100% clean electricity by 2040
New York GHG emissions
Source: New York DEC

Accurate data is needed by the state to understand emissions sources and their scale. Right now, the DEC says data is incomplete for many parts of the state’s economy. Some sectors—like transportation, heating fuels, and industrial processes—have gaps in reporting. This rule will help fill those gaps.

How the Reporting Will Work

Companies will need to submit their emissions through an online reporting system developed by the DEC. The agency is also creating a reporting tool to help companies figure out if they are required to report and how to do it correctly.

For example, companies may be asked to report:

  • Direct emissions from their own facilities
  • Indirect emissions from fuels they sell or transport
  • Activities that lead to other forms of carbon pollution

Some reports may need to be verified by a third party. This is to make sure the data is correct and can be trusted for future climate programs. The rule also allows companies to submit data they already send to federal or state programs, making the process easier and less costly.

The Cap-and-Invest Connection

This reporting rule is tied to New York’s upcoming cap-and-invest program. That program, expected to begin in 2025, will place a cap on total greenhouse gas emissions across the state. Emitting entities have to buy “allowances” for the emissions they produce. The fewer allowances available, the more companies will pay if they go over their limits.

Money raised from this system will go into a Climate Action Fund to pay for clean energy projects, home energy improvements, and transportation upgrades. It will also help protect low- and moderate-income households from higher energy prices.

The reporting rule is a key part of getting that system ready. If the state doesn’t know how much a company is emitting, it won’t be able to manage the cap properly or ensure the rules are fair.

Responding to Federal Rollbacks

The emissions reporting rule also prepares New York to stay on track, even if federal rules change. The U.S. Environmental Protection Agency (EPA) already has a greenhouse gas reporting program. However, some experts have raised concerns that future federal policy changes could affect the reliability of existing programs.

DEC Acting Commissioner Amanda Lefton said the rule will help New York “fill the data gaps left behind by proposed federal rollbacks” and make sure the state has “accurate and reliable data.” She further noted:

“The proposed Reporting Rule will enable us to collect the information necessary to develop effective strategies that reduce harmful air pollution and direct investments where they are most needed, while also protecting New York’s consumers and economic competitiveness.”

Public Input and Next Steps: A Step Toward Climate Action

The proposed rule is now open for public comment. The DEC is collecting comments until July 1, 2025, and is holding public events to explain the rule and get feedback. These include:

  • Two public webinars
  • Three in-person hearings
  • Two virtual hearings

After the comment period, the DEC will review all suggestions and release a final version of the rule. If approved, companies will start collecting data in 2026 and submit their first reports in 2027.

New York GHG emissions reporting timeline
Source: DEC

While this rule doesn’t lower emissions on its own, it is an important foundation for climate action. It will help New York:

  • Measure progress toward its goals
  • Create stronger climate policies
  • Promote compliance with climate regulations
  • Support clean energy investments
  • Protect vulnerable communities

With better data, New York can make smarter decisions about where to spend money, where to reduce pollution, and how to support people affected by climate change.

Governor Kathy Hochul has also proposed a $1 billion “Sustainable Future Fund” that would use money from the cap-and-invest to support job training, home retrofits, public transit, and renewable energy in disadvantaged areas.

In the years ahead, the emissions data gathered under this rule will guide all of these efforts.

New York’s proposed GHG emissions reporting rule is a big step toward building a cleaner, more sustainable future. By requiring large emitters to report their emissions, the state is preparing for bigger programs to reduce pollution and invest in climate solutions. It aims to balance regulatory accountability with support mechanisms for affected businesses.

The post New York Requires Large Emitters to Report Their Greenhouse Gas Emissions appeared first on Carbon Credits.

SolarBank Taps Data Center Expert Jonathan Martone to Power Its Next Big Move

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SolarBank Taps Data Center Expert Jonathan Martone to Power Its Next Big Move

Disseminated on behalf of SolarBank Corporation.

SolarBank Corporation (NASDAQ: SUUN; Cboe CA: SUNN, FSE: GY2) is stepping into the fast-growing data center world, and it’s bringing in one of the best to lead the way. On April 9, 2025, SolarBank announced it had brought in data center expert Jonathan Martone to help guide its plans to enter the data center market. Martone has over 25 years of experience in the field, working with companies big and small across North America.

This move comes as data centers — the buildings that store and power the internet — are becoming more important than ever. With AI, cloud services, and digital tools growing fast, the world needs more places to process data. That also means a lot more energy is needed to power these centers.

SolarBank’s Smart Step into Data Centers

SolarBank is known for developing solar and battery energy storage projects. The company now aims to bring clean energy into the world of data. 

Back in November 2024, the company shared its plans to expand into this new market. Since then, it has been looking at different opportunities to build or partner on new data center projects.

Adding Martone as a strategic advisor is a big step in that direction. Dr. Richard Lu, President and CEO of SolarBank, said, 

“I am honoured that Jonathan Martone has agreed to join SolarBank as an advisor. An industry leader like Jonathan will bring significant value to SolarBank as he will help support SolarBank’s strategic expansion into the rapidly growing data center market. Jonathan has significant contacts and is one of the leaders in North America in understanding site selection and the components to ensure a successful operation. The growth of data hungry artificial intelligence deployments continues and SolarBank is seeking to help support this demand.”

Even though this is a new area, SolarBank has years of experience in renewable energy.

The company has built over 100 megawatts of solar and battery storage systems and has a development pipeline of more than 1 gigawatt. It focuses on community and distributed solar projects across Canada and the United States.

SolarBank projects
Source: SolarBank

These projects provide clean power to homes, businesses, and utilities.

Who is Jonathan Martone?

Jonathan Martone, a seasoned expert in data centers and telecommunications, has helped plan and design hundreds of data centers across North America. He now works as an independent advisor, supporting companies as they build, plan, and grow their digital infrastructure.

He works closely with private equity firms, developers, and operators to find good sites for new data centers. This means looking at things like:

  • Does the land have enough power?
  • Are there strong Internet connections nearby?
  • Can clean energy be used for operations?
  • Are the right transformers and grid systems available?
Jonathan Martone
Source: LinkedIn

Martone also understands how to make sure data centers can serve big tech companies like AWS (Amazon Web Services), Google Cloud, and Microsoft Azure. He’s worked with major clients, including EdgeConnex, Overwatch Capital, and Form8tion Data Centers. His specialties include cloud services, fiber networks, high-voltage systems, and energy-efficient designs.

Why This Deal Matters

Data centers are the heart of the internet. Every time we stream a video, use AI, or save files to the cloud, we’re using data center power. But running these centers takes a huge amount of electricity. Their rapid expansion has led to a significant surge in electricity consumption. 

In the third quarter of 2024, U.S. data centers used 46,000 megawatts (MW) of power. This rise was mainly due to the growing need for AI applications and cryptocurrency mining. 

AI models, particularly large-scale ones like GPT-4, require substantial computational power for training and operation. Training such models can consume up to 1 gigawatt-hour (GWh) of electricity each.

As companies increasingly adopt AI-driven solutions, this energy demand is expected to rise further. ​S&P Global expects this demand to rise to 59,000 megawatts by 2029.

US utility power demand from data centers 2029
Source: S&P Global Commodity Insights

This escalating energy consumption poses challenges for utility companies striving to meet the growing demand. Dominion Energy Virginia, for instance, has 40.2 gigawatts (GW) of contracted capacity waiting to connect to the grid. That’s almost double its capacity from July 2024. 

Similarly, Southern Co. has increased its five-year capital plan by $14 billion to enhance electricity generation and transmission infrastructure.

The environmental impact is also a concern. Tech giants like Microsoft and Google plan to run carbon-free data centers by 2030. However, the fast growth of these centers might outstrip the rise of renewable energy. This could lead to a greater dependence on fossil fuels. ​

That’s where SolarBank comes in. By evaluating the build out of data centers that use solar power and batteries, the company hopes to reduce carbon emissions while still meeting rising energy needs.

This is also a big business opportunity. The data center market is growing quickly, especially with the rise of artificial intelligence. SolarBank’s entry into the space could help provide for cleaner, greener data storage.

By combining its clean energy expertise with data center planning, SolarBank is hoping to build a powerful new business model — one that supports the digital world with less impact on the planet.

What Happens Next?

Right now, SolarBank is still exploring different data center projects. It hasn’t signed any final deals yet, but the company is in talks with several groups. With Martone’s help, SolarBank will be able to:

  • Evaluate potential sites
  • Understand energy and utility  needs
  • Connect with new partners
  • Create smart and scalable designs

While this new direction is exciting, SolarBank also warns that there are risks involved.

Building a data center isn’t easy. It requires finding the right land, getting permits, hiring contractors, and securing enough financing. On top of that, energy rules and government incentives could change, making some future projects harder or more expensive to complete.

SolarBank also reminds investors that they don’t currently own or operate any data centers. These plans are still in the early stages.

As more companies look to reduce their carbon footprint, clean energy data centers are likely to grow in demand. By partnering with Martone, SolarBank is preparing to meet that demand head-on.

This report contains forward-looking information. Please refer to the SolarBank press release entitled “Data Center Expert Jonathan Martone Retained by SolarBank Corporation to Power Strategic Expansion” for details of the information, risks and assumptions.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: None.

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

The post SolarBank Taps Data Center Expert Jonathan Martone to Power Its Next Big Move appeared first on Carbon Credits.

Top 4 Carbon Removal Stocks Set to Suck Up and Cash In

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Top 4 Carbon Removal Stocks Set to Suck Up and Cash In

More companies and governments are investing in carbon removal technologies to help them reach net-zero emissions. With stricter climate rules and companies feeling pressure to reduce carbon footprints, carbon removal stocks are becoming appealing investment options.

Why Carbon Removal Stocks Are Gaining Traction in 2025

Carbon removal companies work to take carbon dioxide (CO₂) from the air. They either store it for good or change it into useful products.

Carbon removal is different from carbon offset initiatives. While offsets balance emissions by reducing them elsewhere, carbon removal actively eliminates CO₂. This makes it essential for industries that struggle to cut emissions.

The carbon removal sector could grow quickly in the next few years. More policymakers, companies, and investors are showing support to scale up the industry. In 2025, here are the top four carbon removal stocks worth watching and keeping on your radar. Let’s break down each one of them, what technology they’re innovating, and other major initiatives. 

1. Net Power Inc. (NYSE: NPWR): Innovating Zero-Emissions Energy

Net Power inc stock
Source: Nasdaq

Net Power Inc. is a U.S.-based clean energy technology company founded in 2010, specializing in generating reliable, on-demand electricity from natural gas with near-zero emissions. The company is revolutionizing the energy sector with its proprietary Allam Cycle technology.

It generates electricity from natural gas while capturing and storing CO₂ emissions. Furthermore, it can capture around 97% of CO₂ emissions during the process. This innovative approach also virtually eliminates other pollutants, including nitrogen oxides (NOₓ) and sulfur oxides (SOₓ).

Net power allam cycle technology
Source: Net Power

Net Power’s modular plant design occupies about 15 acres per facility and offers scalability from 250 megawatts (MW) up to 2 gigawatts (GW). The company is aiming to deploy its first utility-scale power plant by 2028.

Unlike traditional natural gas plants, Net Power’s system prevents emissions from reaching the atmosphere, offering a potential breakthrough for clean energy production.

Operational Developments:

  • La Porte Demonstration Facility: The company completed major plant upgrades and initiated the first phase of the equipment validation program with Baker Hughes. 

  • Project Permian: Located near Midland-Odessa, Texas, this is Net Power’s first utility-scale project. Front-End Engineering and Design (FEED) work continued with Zachry Group and was on track to conclude in Q4 2024. The project aims for initial power generation between the second half of 2027 and the first half of 2028.

  • Air Separation Unit (ASU) Partnership: Net Power announced Air Liquide as the ASU supplier for Project Permian, integrating this component into the overall plant design.

Strategic Initiatives:

Net Power has improved site evaluations for new projects in North America. This includes locations in Alberta, Canada, and several sites in the U.S. These efforts involve collaborations with natural gas producers, carbon sequestration providers, and data center developers.

The company signed a Limited Notice to Proceed (LNTP) with Baker Hughes. This deal is worth about $90 million. It covers the purchase of long-lead materials for the turboexpander and important equipment for the first utility-scale power plant. ​

These developments underscore Net Power’s commitment to advancing its clean energy technology. It is also expanding its project portfolio despite financial challenges.

2. Shell Plc (NYSE: SHEL): Leading in Carbon Capture Initiatives

Shell Plc stock
Source: Nasdaq

Shell Plc, a global energy conglomerate, is making significant strides in carbon removal to align with its net-zero emissions targets. The company has pledged to reduce absolute emissions by 50% by 2030 compared to 2016 levels. Carbon removal, particularly carbon capture and storage (CCS), plays a critical role in achieving this goal.

CCS captures carbon dioxide (CO₂) from industrial processes. It stores the gas underground to stop it from entering the atmosphere.

Shell’s Major CCS Initiatives:

  1. Quest Project (Canada): Since 2015, the Quest facility at Shell’s Scotford complex in Alberta has captured and stored over 8.8 million tonnes of CO₂. Shell is moving forward with the Polaris CCS project at Scotford. This project aims to capture about 750,000 tonnes of CO₂ each year. It will cut emissions from the refinery by up to 40% and from the chemicals complex by 22%. ​

  2. Northern Lights Project (Norway): In collaboration with Equinor and TotalEnergies, Shell is investing $714 million to expand the Northern Lights carbon storage facility. This expansion will boost CO₂ injection capacity from 1.5 million to over 5 million tonnes each year. It will tackle nearly 10% of Norway’s annual emissions.

  3. Gorgon Project (Australia): As a partner in the Gorgon CCS project operated by Chevron, Shell contributes to one of the world’s largest CCS operations. By December 2023, the project had stored more than 10 million tonnes of CO₂.

  4. Daya Bay CCS Hub (China): Shell, along with ExxonMobil and CNOOC, is exploring the development of a large-scale CCS hub in Guangdong Province. The proposed facility aims to capture up to 10 million tonnes of CO₂ annually, supporting China’s goal of carbon neutrality by 2060. ​

These initiatives reflect Shell’s commitment to deploying CCS technologies globally. It works with industry partners and governments to mitigate carbon emissions and support the transition to a low-carbon energy future.

Carbon Credit Market Leadership

Shell showed its commitment to cutting emissions by retiring 14.5 million carbon credits in 2024. Most of these credits backed forestry and land-use projects that aim to protect current carbon stores.

top carbon credit buyers in 2024
Chart from Allied Offsets Report

The company has invested in nature-based solutions. These include reforestation and wetland restoration, which both help enhance carbon sequestration.

3. Delta CleanTech Inc. (CSE: DELT): Specializing in Carbon Capture Solutions

Delta CleanTech stock
Note: Delta CleanTech changed its name to Regenera Insights Source: Marketscreener

​Delta CleanTech Inc., established in 2004 and headquartered in Calgary, Alberta, focuses on clean energy technology. The company specializes in carbon capture, utilization, and storage (CCUS). It also works on solvent and glycol reclamation, as well as carbon credit validation and management.

  • Note: The company has changed its name to Regenera Insights.

Key Business Areas

  1. CO₂ Capture Technology: Delta provides CO₂ capture solutions using its LCDesign® technology. This technology is scalable for facilities that manage 1 to 1,000 tonnes of CO₂ daily.

  2. Solvent and Glycol Reclamation: Through its subsidiary, PurificationRX, Delta provides solvent purification technologies aimed at reducing emissions and promoting material reuse.

  3. Carbon Credit Services: Carbon RX, a subsidiary, focuses on carbon credits. It originates, validates, and streams these credits. The company is expanding from agriculture to many industries that capture and reduce carbon.

delta cleantech carbon capture tech
Delta Carbon Capture Technology Source: Delta Cleantech

Strategic Initiatives and Partnership 

Delta CleanTech has launched several strategic initiatives to expand its carbon capture efforts. In November 2021, it teamed up with the Chenglin Group. They aim to boost CO₂ capture in China. Their focus is on the cement, coal, and natural gas industries.

In June 2022, Delta partnered with Muskowekwan First Nation. They created a blockchain carbon credit system, which boosts security and makes credits from Indigenous lands easier to trade.

In April 2024, the company joined a $1.5 million research grant with the University of Guelph. They aim to develop AI-driven carbon capture technologies. In February 2022, Delta partnered with Aspen Technology to improve CO₂ capture modeling and cost analysis.

These efforts speak of the company’s commitment to carbon removal, making it one of the top stocks to watch out for.

4. Mitsubishi Corporation (TYO: 8058): Advancing Global Carbon Capture Initiatives

Mitsubishi Corporation stock
Source: Nasdaq

Mitsubishi Corporation is working on big carbon capture and storage projects around the world. The company has set a target of achieving net-zero emissions across its global operations by 2050, with CCS playing a key role in this strategy.

Strategic Partnerships and Initiatives:

In January 2023, MC signed a Memorandum of Understanding with Nippon Steel Corporation and ExxonMobil Asia Pacific to study and establish CCS value chains in the Asia-Pacific region. This collaboration aims to capture CO₂ emissions from Nippon Steel’s steelworks in Japan. It also evaluates the infrastructure needed for storage in Malaysia, Indonesia, and Australia. ​

In March 2024, MC teamed up with ENEOS Corporation, JX Nippon Oil & Gas Exploration, and PETRONAS CCS Solutions. They will explore the feasibility of a CCS value chain from Tokyo Bay to Malaysia.

The project plans to capture around 3 million tonnes of CO₂ each year from industries in Tokyo Bay. It could expand to 6 million tonnes annually, with the goal of starting operations by 2030.

Carbon Credit Initiatives:

  • NextGen CDR AG: MC teamed up with South Pole to create NextGen CDR AG. This company buys and sells carbon credits from carbon removal technologies, such as CCUS. This initiative will help implement these technologies on a large scale. It does this by creating new revenue streams through credit sales.

NextGen CDR Facility

  • Australian Integrated Carbon Investment: MC and Nippon Yusen Kabushiki Kaisha (NYK) bought a 40% stake in Australian Integrated Carbon (AIC). AIC aims to capture CO₂ by regenerating Australia’s native forests. The goal is to sequester up to 5 million tonnes of CO₂ each year. By 2050, the total target is 100 million tonnes.​

Through these strategic partnerships and investments, Mitsubishi Corporation shows a strong commitment to advancing carbon capture, storage, and removal technologies. All these help contribute to global decarbonization efforts and the realization of a low-carbon economy.

Conclusion

Investing in companies dedicated to carbon removal and capture, such as Net Power, Shell, Delta CleanTech, and Mitsubishi Corporation, offers potential for financial returns while supporting the transition to a low-carbon economy. These companies lead in creating and using key technologies to meet global climate goals.

What more, the carbon removal sector is expected to grow significantly in the coming decades. This growth is driven by increasing regulatory support, corporate net-zero commitments, and advances in technology.

As countries around the world tighten emissions rules, the need for carbon removal and direct air capture solutions will likely grow. This trend could set these carbon removal companies up for long-term success. Investors looking to join the clean energy shift will find these carbon removal stocks as great chances to be part of the next wave of climate innovation.

The post Top 4 Carbon Removal Stocks Set to Suck Up and Cash In appeared first on Carbon Credits.