TSMC Dominates AI Chip Market with Record Sales—But Can It Its Tackle Rising Emissions?

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TSMC

Taiwan Semiconductor Manufacturing Company (TSMC), the largest semiconductor foundry in the world, reported strong revenue growth in the first two months of 2025. The company earned NT$553.3 billion (US$16.81 billion), a 39.2% increase from last year. This growth is driven by the high demand for AI chips, especially from NVIDIA.

AI Demand Fuels TSMC Revenue Growth

In February 2025, TSMC’s revenue hit NT$260.01 billion, up 43.1% compared to last February. This marks the highest sales for February ever. However, it was an 11.3% drop from January 2025. Analysts expect revenue to rise in March, possibly exceeding NT$266.7 billion. This aligns with TSMC’s first-quarter sales goal of NT$820 billion to NT$846.24 billion.

tsmc revenue
Source: TSMC

As the main manufacturer of AI chips globally, TSMC is key to the tech industry. Its major clients include AMD, Apple, ARM, Broadcom, MediaTek, Qualcomm, and Nvidia. The growth of AI applications has increased chip demand, boosting TSMC’s expansion.

Massive U.S. Expansion Plans

The chip giant recently revealed it is expanding its U.S. operations with a $100 billion investment. This builds on its earlier $65 billion promise in Phoenix, Arizona. Now, the total is $165 billion. The expansion adds three new semiconductor plants, two packaging facilities, and a big R&D center. This marks the largest foreign direct investment in U.S. history.

The expansion can potentially create tens of thousands of high-tech jobs. It aims to generate over $200 billion in economic output in the next decade. Furthermore, the company can also strengthen its ties with top U.S. AI and tech firms like Apple, Nvidia, AMD, Broadcom, and Qualcomm.

However, a major challenge for TSMC in 2025 is the potential for U.S. tariffs on chip imports. Making news, TSMC’s CEO, C.C. Wei, met with former President Donald Trump at the White House. They talked about the investment and possibly addressed tariff concerns.

TSMC’s Path to Net Zero 

TSMC has a clear roadmap to reach net-zero emissions by 2050. It launched Taiwan’s first Renewable Energy Joint Procurement Model. This model encourages suppliers to adopt low-carbon practices.

To support these efforts, TSMC released its first Climate and Nature Report in 2024. The company focuses on tech growth and caring for the environment. This way, it helps create a greener future.

TSMC prioritizes sustainability through eco-efficiency initiatives. In 2023, it reported a 31% rise in unit GHG emissions per wafer but is committed to cutting overall emissions.

Rising Emissions

  • Scope 1 and 2 emissions rose from 11,558,554 tonnes CO₂e in 2022 to 11,783,418 tonnes CO₂e in 2023, marking a 1.9% increase year-over-year.
  • Scope 3 emissions increased from 7,429,158 tonnes CO₂e in 2022 to 7,616,655 tonnes CO₂e in 2023.
  • Unit GHG emissions per 12-inch wafer mask layer grew by 31%, exceeding the 9% target set from the 2020 baseline.
scope emissions TSMC
Source: TSMC

Global Energy Conservation with Advanced Technologies

In 2023, TSMC implemented 822 energy-saving measures, saving 830 GWh of electricity and cutting NT$590 million in carbon costs through internal pricing.

Additionally, Taiwan’s Industrial Technology Research Institute (ITRI) estimates that TSMC’s innovations will boost global energy savings from 16.9 billion kWh in 2020 to 235.4 billion kWh by 2030.

More significantly, the company leads in energy-efficient semiconductor technology. Smaller, more efficient chips help devices use less power. With such innovations, TSMC leads in smarter manufacturing and industry-wide efficiency.

TSMC
Source: TSMC

Sustainability Goals and Achievements

  • Purchased 2,592 GWh of renewable energy, covering all overseas operations (11.2% of total use).
  • Promotes closed-loop systems to recycle chemicals and packaging, making manufacturing more sustainable and energy-efficient.
  • Increasing renewable energy usage in new 3nm fabs to over 20% and aiming to reach 60% across all operations by 2030.
  • Replacing coal with cleaner natural gas and adopting carbon capture technologies to cut emissions. Lowering transportation emissions through greener logistics.
  • Targeting 100% renewable energy globally by 2040—10 years ahead of schedule. It’s using low-carbon energy sources like wind and solar power while optimizing power consumption for greater efficiency.
  • Reducing unit water consumption by 30% while boosting reclaimed water use by 60%.
tsmc sustainability
Source: TSMC

Protecting Biodiversity

TSMC is committed to protecting biodiversity. The company seeks zero deforestation and no net loss, aiming for a positive environmental impact by 2050. It’s creating action plans as per the Science-Based Targets Network (SBTN) to protect nature and reach net-zero emissions.

In 2024, it launched the Eco-Plus program in Taichung and continues to assess environmental risks and opportunities.

TSMC’s strong financial performance in early 2025 shows the rising demand for AI chips and its significance in the semiconductor industry. Despite a slight rise in emissions, it remains focused on emissions reduction and renewable energy adoption as part of its long-term sustainability strategy.

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Trump’s EPA Cancels $20 Billion in Climate Funding: What It Means for Clean Energy

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Trump's EPA Cancels $20 Billion in Climate Funding: What It Means for Clean Energy

The Environmental Protection Agency (EPA), under the Trump administration, canceled $20 billion in climate grants that were part of the Greenhouse Gas Reduction Fund (GGRF). This program was created under a previous administration’s climate law to support clean energy projects. The money was meant for community organizations, nonprofits, credit unions, housing agencies, and solar energy initiatives across the country.

How does this cancellation impact clean energy projects, emission reductions, and economic growth in affected areas? Let’s find out.

What Was the Greenhouse Gas Reduction Fund?

The GGRF was set up in 2022 as part of the Inflation Reduction Act. It was made to be a national green bank. It allocated $27 billion to the EPA for clean energy projects. These projects aim to lower greenhouse gas emissions.

The goal was to bring together public and private money to invest in clean energy, especially in low-income areas that are most affected by climate change.

The fund aimed to reduce pollution, boost energy efficiency, and create jobs. It focused on building clean energy infrastructure. It supported projects like installing residential heat pumps, improving home energy efficiency, setting up electric vehicle charging stations, and creating cooling centers in communities.

Greenhouse Gas Reduction Fund
Source: Evergreen Action

The “Solar for All” program aims to help over 900,000 low-income households access solar energy. This could save these families about $350 million each year on energy bills. 

EPA Pulls the Plug—But Why?

EPA Administrator Lee Zeldin announced the decision to cancel the grants, saying there were concerns about fraud, waste, and misuse of funds. He said the money went to nonprofits linked to politics. There wasn’t enough oversight, which raised questions about the program’s management.

Zeldin said in a video:

“This termination is based on substantial concerns regarding program integrity, objections to the award process, programmatic fraud, waste and abuse and misalignment with the agency’s priorities, which collectively undermine the fundamental goals and statutory objectives of the awards.”

The EPA had already put a freeze on the funds due to these concerns. After a review, the agency said it found “serious problems” that made it too risky to continue with the grants, so they decided to cancel them entirely.

Legal and Political Firestorms

The decision has led to legal action and political controversy. Three nonprofit groups, including the Climate United Fund, have sued the EPA and Citibank. They claim that stopping the payments breaks legal agreements.

Democrats have pushed back against the move, saying the EPA does not have the legal authority to cancel funding that was approved by Congress. Senator Sheldon Whitehouse said there was no real evidence of fraud and accused Zeldin of blocking money that was meant to help lower energy costs, create jobs, and reduce pollution.

The Justice Department and FBI are also looking into the program. A federal investigation into possible fraud has added to the debate over whether the EPA was justified in canceling the grants.

Impact on Emission Reductions and Net-Zero Goals: A Setback for Climate Progress?

Canceling these grants could slow down efforts to cut pollution and meet net-zero goals. The GGRF was supposed to help fund projects that reduce greenhouse gas emissions. Without this money, some of those projects may not happen, making it harder for the U.S. to move toward a cleaner energy future.

Who Loses the Most?

The GGRF aimed to support disadvantaged communities. These areas often face high pollution levels and lack resources for clean energy. Many areas will get funding for projects. This includes solar panel installations, home energy upgrades, and new transportation options. Without this money, these communities might find it hard to cut emissions and lower energy costs.

Clean Energy Takes a Hit

Withdrawing $20 billion in funding could slow the growth of clean energy infrastructure. Many projects, such as expanding electric vehicle charging networks and installing energy-efficient systems in homes and businesses, depend on federal support. 

In 2025, global cleantech energy supply spending could hit $670 billion, according to S&P Global analysis. This investment will grow further by 2030, widening the gap between clean energy and oil and gas funding.

clean energy tech investment 2025

Solar PV will dominate, making up half of the total investment and two-thirds of the newly installed capacity. This shift highlights the accelerating move toward renewable energy sources.

Losing the EPA grants will slow down the adoption of these clean energy technologies. These technologies are vital for reducing emissions and reaching national climate goals.

Billions Lost, Jobs at Risk

Beyond environmental concerns, canceling the grants could have economic effects. The GGRF-backed clean energy projects aimed to create jobs, boost local economies, and lower energy costs for consumers.

Without funding, some benefits might vanish. This could harm jobs and slow economic growth in communities that needed support.

Pulling back these grants could also make investors hesitant to put money into clean energy projects. Private companies often get government help to lower risks in big infrastructure projects.

The sudden policy change might make investors uncertain about future government commitments, which could reduce financial backing for renewable energy projects.

Judge to EPA: Show the Receipts

A U.S. judge has demanded that the Trump administration provide evidence of fraud, waste, and abuse to justify terminating the $20 billion in climate grants from the Greenhouse Gas Reduction Fund.

U.S. District Judge Tanya Chutkan ordered the administration to submit a sworn statement by Monday detailing the alleged wrongdoing. During a hearing, she criticized government lawyers for failing to present any proof of misconduct.

The Climate United Fund seeks an emergency order to release the funds, warning that it may run out of money by Friday. EPA Administrator Lee Zeldin has defended the decision, stating that the program did not align with the agency’s priorities.

In a separate move, the EPA announced plans to shut down its Office of Environmental Justice and Civil Rights, which advocates say could harm minority and low-income communities affected by pollution.

What’s Next?

The EPA’s decision to cancel $20 billion in climate grants from the Greenhouse Gas Reduction Fund has major consequences. It disrupts funding for key clean energy projects, especially in low-income areas. This could slow progress in cutting pollution and achieving net-zero emissions.

The legal battles, economic effects, and delays in clean energy projects highlight the challenges of this decision. As the situation unfolds, both government and private organizations will have to find ways to move forward and ensure that clean energy goals remain a priority if the country seeks to achieve its climate goals. 

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Orano Secures €400M EIB Loan to Expand Uranium Enrichment and Boost Europe’s Energy Independence

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orano

Orano, a leader in uranium enrichment, is expanding its Georges Besse II plant in Tricastin, France. This expansion will provide a steady supply of enriched uranium for European utility companies. To support this, Orano signed a €400 million loan agreement with the European Investment Bank (EIB). The funding will increase the plant’s capacity and enhance Europe’s energy security.

EIB: Driving Innovation and Energy Security in Europe

The EIB is the EU’s lending arm. It funds projects focused on climate action, innovation, infrastructure, and energy security. In 2024, the EIB Group invested in:

  • ~€89 billion (with the European Investment Fund) for over 900 major projects. France received the most, securing €12.6 billion.

  • €31 billion for energy security projects will support €100 billion in renewables, grids, interconnections, and energy storage.

The EIB supports the Paris Climate Agreement. About 60% of its annual funding goes to climate-focused projects. More than two-thirds of these projects help environmental initiatives in France. This shows that energy security is a top priority for the EIB.

It also supports REPowerEU to support the energy transition and cut down reliance on foreign energy sources.

Similarly, EIB’s investment in Orano is crucial for cutting fossil fuel imports and boosting Europe’s low-carbon future.

Eu
Source: World Energy Outlook

Orano’s Uranium Hubs: Fueling the Future of Nuclear Energy

Orano Tricastin plays a vital role in uranium conversion, enrichment, and fluorine chemistry. Located in Drôme and Vaucluse, it is one of Europe’s largest industrial sites.

Orano has invested over €5 billion to modernize its facilities. Orano Malvési is in Narbonne. The Philippe Coste plant is at Tricastin. Georges Besse II is also included. The Philippe Coste conversion plant opened in 2018, while Georges Besse II has been operating since 2010.

These facilities set high standards in nuclear safety, environmental performance, and competitiveness. By providing a steady supply of enriched uranium, they support reliable electricity generation for the next 40 years.

Georges Besse II: The Uranium Enrichment Plant

Philippe Coste’s uranium is turned into uranium hexafluoride (UF6) at Georges Besse II (BNI No.168). This facility uses centrifuge technology, which has been in use in Europe for over 30 years. The site includes two enrichment plants: North and South. It also has REC II, a workshop for receiving, inspecting, and quality-checking materials.

  • The plant currently produces 7.5 million Separative Work Units (SWU) annually. Orano’s expansion will raise this capacity by 30%, adding 2.5 million SWU.

Four new enrichment modules will be built with the same technology as the existing fourteen. This upgrade improves safety, efficiency, and competitiveness while reducing environmental impact.

Here’s a picture of the plant.

orano uranium plant
Source: orano

EU Greenlights Orano’s Expansion for Energy Security

The press release highlighted that on October 9, 2024, the European Commission approved Orano’s expansion under Article 41 of the Euratom Treaty. This confirms that the project aligns with Europe’s nuclear strategy and strengthens uranium supply security.

Furthermore, with the EIB loan, Orano is investing in high-tech equipment using European technology and partnering with French companies. The total investment is nearly 1.7 billion euros. The project began with a groundbreaking ceremony on October 10, 2024.

Production will start in 2028, with full operations expected by 2030.

Orano’s Commitment to Safety and Sustainability

Safety and environmental responsibility are central to Orano’s operations. Its Nuclear Safety-Environment Policy focuses on eight priorities, including facility safety, operational efficiency, and environmental performance. These priorities guide efforts to minimize risks while ensuring sustainability.

Reducing Carbon Footprint

Orano is cutting emissions and improving energy efficiency to tackle climate challenges. It works with suppliers to cut Scope 3 emissions. This helps create a sustainable supply chain.

  • In 2023, Orano’s total emissions were 2,084 ktCO₂e, with 339 ktCO₂e from scopes 1 and 2. This represents a 29% reduction in Scope 1 and 2 emissions since 2019.

Orano plans to reduce its direct and indirect GHG emissions by 25% by 2025, based on 2019 levels. This goal aligns with the 1.5°C climate trajectory.

Orano emissions
Source: Orano

Conservation Efforts

Another focus is on protecting and boosting biodiversity. This is done by preserving natural ecosystems near its sites. Orano has cut water use and boosted recycling. Since 2019, it has achieved a 39% drop in water consumption, exceeding its goal.

The company minimizes waste and maximizes reuse to promote a circular economy. Orano also creates sustainable projects that match its long-term environmental goals.

Orano’s expansion, supported by the EIB, boosts Europe’s nuclear energy supply. It also helps build a low-carbon future. This project contributes to a more sustainable, competitive, and self-sufficient energy system.

The post Orano Secures €400M EIB Loan to Expand Uranium Enrichment and Boost Europe’s Energy Independence appeared first on Carbon Credits.

Chevron’s Power Play: Fueling AI Growth with Natural Gas & Carbon Capture

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chevron

Chevron Corporation is stepping into data center power generation. The company is focusing on locations with easy access to natural gas and lower carbon intensity. Chevron CEO Mike Wirth revealed and discussed these plans at the CERAWeek energy conference by S&P Global in Houston.

Hyperscale companies want off-grid power sources to speed up their market entry. This makes Chevron’s proposed facilities very crucial. Wirth highlighted,

“One of the criteria in site selection will be access to gas. It will also be proximity to carbon capture and storage capacity, access to renewables, potentially off the grid, access to geothermal or potentially hydrogen, so we’re looking for ways to reduce the carbon intensity over time.”

Chevron aims to develop these facilities in key U.S. regions like the Southeast, Midwest, and West. The company plans to place power plants near data centers. This will help ensure reliable energy and lessen reliance on the grid.

Chevron, Engine No. 1, and GE Vernova To Power U.S. Data Centers

In January, Chevron announced a partnership with Engine No. 1 LP. Together, they will develop gas-fired power plants designed for U.S. data centers.

These “power foundries” will use GE Vernova’s 550-MW 7HA gas turbines and will deliver up to four gigawatts of power, equivalent to powering 3-3.5 million U.S. homes. Deliveries will start in 2026, and Chevron expects power generation to begin by late 2027.

Chris James, founder of Engine No. 1, stressed the importance of energy in AI growth.

 “Energy is the key to America’s AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy and restore America’s standing as an industrial superpower. This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.”

These gigawatt-scale power solutions will help data centers that need quick setup and dependability. The initial design keeps these plants off the grid but can be integrated in the future. Consequently, this will reduce strain on the grid and lower consumer electricity price risks. Future expansions could increase capacity, providing reliable power for U.S. AI data centers.

The press release further revealed that a key part of Chevron’s initiative is integrating lower-carbon solutions over time. The power plants will use carbon capture and storage (CCS) technology that can potentially remove 90% of CO2 emissions from gas turbines. Notably, these facilities might use renewable energy sources such as solar, wind, and hydrogen. This will help reduce carbon intensity even more.

carbon capture ccu
Sourced from Chevron Sustainability Report

Natural Gas and CCUS: Future Outlook

The Net Zero Emissions (NZE) Scenario predicts gas demand will peak soon and drop 30% by 2030 to 3,300 bcm.

By 2050, demand could fall 70% from 2021 levels to 1,200 bcm, with 40% used for hydrogen production with CCUS. Despite falling demand, continued investment is needed to sustain supply. The NZE Scenario estimates $200 billion per year until 2030, then $85 billion annually.

The NZE Scenario promotes policies for CCUS investment.

  • By 2050, CCUS could capture 6.2 Gt of CO₂, helping cut emissions in industries like cement and data centers.
natural gas CCU energy
Sourced from Chevron Sustainability Report

AI Boom Fuels Natural Gas Surge

AI and cloud computing are increasing energy use. So, securing stable power sources is now essential. Traditional grid systems can’t keep up, so companies look for direct energy solutions.

S&P Global further noted that analysts predict U.S. data centers could demand an extra 3-6 Bcf/d of gas by 2030. However, the exact role of gas in this growth is unclear and could be due to an increase in renewable energy investments.

Chevron’s natural gas production is already increasing. In Q4 2024, the company averaged 2.74 Bcf/d, with full-year production reaching 2.68 Bcf/d—up 27% from 2023.

The Permian Basin remains a major source, producing 20.5 Bcf/d in 2024, an 80% increase over five years. By 2028, production could exceed 24 Bcf/d, solidifying the region’s role in the energy landscape.

natural gas Chevron

Fluctuating Permian gas prices have also shaped Chevron’s strategy. According to data from Platts (a part of Commodity Insights), in 2024, Waha Hub prices in West Texas often fell below zero due to pipeline issues, averaging just 2 cents/MMBtu.

gas prices EIA

Chevron plans to redirect excess gas to power foundries. This approach captures value and supports AI growth.

Chevron’s Power Shift: Merging Energy, AI, and Sustainability

Chevron is transforming energy infrastructure with its move to behind-the-meter power generation. This shift goes beyond AI and data centers, driving a broader push toward localized power production.

The joint venture will create thousands of jobs and boost U.S. reindustrialization. Chevron’s power plants will also sell excess electricity back to the grid that will further boost stability. This model balances immediate AI-driven power needs with long-term grid support.

The oil giant’s endeavors don’t end here. As per its sustainability report, the company is investing $8 billion in lower-carbon energy projects from 2021 to 2028, focusing on renewable fuels, carbon capture, hydrogen, and offsets. It is also committing an additional $2 billion to cut 4 million metric tons of emissions annually within its operations.

chevron

Chevron’s entry into the data center brings energy and technology together. The company wants to keep up with the rising demand for AI while also strengthening U.S. energy security. The big investments and partnerships are helping it lead in the rapidly evolving energy landscape.

The post Chevron’s Power Play: Fueling AI Growth with Natural Gas & Carbon Capture appeared first on Carbon Credits.

Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025

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Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025

Oracle’s Q3 2025 results showed mixed performance, with revenue and earnings missing expectations. However, the company saw strong cloud growth, securing major AI-driven deals with OpenAI, Meta, and Nvidia. At the same time, Oracle is making strides in sustainability, aiming for net-zero emissions by 2050.

Despite a recent stock dip, Oracle’s cloud expansion and green initiatives position it as a long-term tech leader.

Oracle’s Cloud Growth and Financial Hurdles

In its fiscal third quarter of 2025, Oracle reported a revenue of $14.13 billion. This was slightly below analysts’ expectations of $14.38 billion. The company’s adjusted earnings per share were $1.47, missing the anticipated $1.49.

Despite these misses, Oracle’s cloud services and license support revenue grew by 10%, reaching $11 billion. However, this was still under the expected $11.21 billion.

  • The company announced a 25% increase in its quarterly dividend, raising it to 50 cents per share.
Oracle Corporation Q3 2025 financial results
Source: AlphaStreet

Oracle also secured significant cloud agreements with major tech firms, including OpenAI, Meta Platforms, and Nvidia. These deals are expected to boost Oracle’s cloud infrastructure and AI initiatives.

The company’s remaining performance obligations (RPOs) increased by 62%. They now total $130 billion. This exceeded analysts’ expectations and indicates strong future demand.

Oracle projects a 15% revenue growth for the next fiscal year, driven by its cloud infrastructure and AI initiatives. However, the cloud giant’s stock experienced a decline in pre-market trading following these results.

Oracle stock has dropped 4.1% amid broader market selloffs and is down 11% this year. Nevertheless, it has gained 30% over the last 12 months.

Amid its financial hits and misses, Oracle continues to push forward with its sustainability and net-zero promises.

Oracle’s Sustainability Initiatives and Path to Net Zero 

Oracle Corporation has established itself as a leader in integrating sustainable practices into its operations, aiming to minimize environmental impact and promote a circular economy. The company’s sustainability strategy includes:

  • Setting ambitious goals,
  • Creative cloud solutions, and
  • Teamwork with suppliers and customers.

Ambitious Sustainability Goals

Oracle has set clear targets to guide its sustainability initiatives. The company aims to achieve net-zero greenhouse gas (GHG) emissions across its operations and supply chain by 2050. 

As an intermediate goal, Oracle plans to halve its GHG emissions by 2030, relative to a 2020 baseline. It has pledged to use 100% renewable energy for all its global operations, including cloud data centers, by 2025. 

Oracle 2025 sustainability goals
Source: Oracle

The IT company wants all its key suppliers to have environmental programs. It also aims for 80% of them to set emissions reduction targets by 2025.

The company aims for a 33% cut in both drinking water use and landfill waste per square foot. It also targets a 25% reduction in employee air travel emissions by 2025. Oracle shows its commitment to the environment by aligning its operations with these goals for a greener future.

Greener Data Centers, Smarter AI

Oracle is making great strides in lessening the environmental impact of its cloud services. The company has put a lot of money into energy-efficient data centers. It uses advanced cooling tech and AI for better power management. 

Oracle Cloud Infrastructure (OCI) aims to deliver high-performance computing. It does this while using less energy than traditional on-premises systems. In 2023, OCI sourced 86% of its energy from renewables. Data centers in Europe and Latin America reached 100% renewable energy use.

Also, Oracle helps businesses track and manage their carbon footprint. Their cloud solutions guide customers in making smart sustainability choices. The company is setting the standard for responsible computing by making sustainability a key part of its cloud services.

Innovative Sustainability Solutions and Supply Chain Management

Oracle has introduced solutions to help organizations manage and report on their sustainability initiatives:

  • Oracle Fusion Cloud Sustainability: Launched in September 2024, this app helps organizations capture and analyze key sustainability data. It streamlines reporting and boosts decision-making, all at no extra cost.
  • Oracle Cloud EPM for Sustainability: Launched in March 2024, this tool helps organizations track and manage sustainability efforts. It links data, plans, and goals, making it easier to comply with new reporting standards.

The tech company emphasizes sustainability throughout its supply chain:

  • Design and Sourcing: The company creates eco-friendly products. It also sources materials responsibly to lessen environmental impacts.
  • Manufacturing and Transportation: Oracle focuses on making and moving products in a sustainable way. They aim to save costs while also providing better service.

Oracle’s Green Milestones: Progress, Wins, and What’s Next

Oracle has made significant strides toward its sustainability goals. The company has already transitioned all European cloud regions to 100% renewable energy, setting a precedent for other regions to follow. 

More than 50 facilities worldwide now run on renewable energy. This shift helps cut corporate emissions. The company has cut total emissions by 47% since 2020. This shows strong progress toward its targets for 2030 and 2050.

Oracle energy and GHG emissions 2024
Source: Oracle Report

Oracle also has a strong hardware recycling program. They collect and repurpose millions of pounds of old IT assets. Nearly all of these items are reused or recycled. 

The tech company also partners with its suppliers to promote sustainability. It aims for all key suppliers to have environmental programs by 2025. It reports that 80% of its key suppliers have emissions reduction targets in place, aligning with the company’s sustainability objectives.

The company cut potable water use and waste to landfills by 33% per square foot. It also reduced employee air travel emissions by 25%. These achievements will meet the 2025 targets early.

These efforts highlight Oracle’s proactive approach to reducing its environmental footprint. The company’s steps in renewable energy, cutting emissions, and saving resources show its commitment to a sustainable future. 

With a push toward 100% renewable energy and net-zero emissions by 2050, Oracle is balancing innovation with environmental responsibility. As the company expands its cloud infrastructure and green initiatives, it remains a key player in both the tech and sustainability space.

The post Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025 appeared first on Carbon Credits.

Rio Tinto’s $6.7B Arcadium Deal—Is It a Smart Move Amid Falling Lithium Prices?

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rio tinto

Rio Tinto has completed its $6.7 billion acquisition of Arcadium Lithium in the U.S. The Royal Court of Jersey approved the deal on March 5, officially making Arcadium Lithium a part of Rio Tinto Lithium. This acquisition also brings the Rincon lithium project into Rio Tinto’s growing portfolio.

Rio Tinto’s Big Bet on Arcadium Lithium

  • With this acquisition, Rio Tinto aims to grow the capacity of its Tier 1 assets to over 200 thousand tonnes per year of lithium carbonate equivalent (LCE) by 2028.

Furthermore, it expects strong growth, higher EBITDA, and improved cash flow in the coming years. It will deploy advanced technologies and its strong global hold to boost its market presence in the lithium sector.

Explaining more, Rio Tinto Chief Executive Officer Jakob Stausholm said,

“Today we are delighted to welcome the employees of Arcadium to Rio Tinto. Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations. We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on.”

As part of the agreement, Arcadium Lithium shareholders will receive $5.85 per share. To fund the purchase, Rio Tinto is using a bridge loan facility, which it plans to replace with long-term debt financing.

Following the acquisition, Arcadium Lithium’s shares and CHESS Depositary Receipts (CDIs) will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).

Lithium: The Power Player in Rio Tinto’s Future

The global shift toward electric vehicles (EVs) is fueling demand for lithium and other battery minerals. Rio Tinto expects lithium to become a crucial part of its portfolio, contributing more than 10% of its earnings (EBITDA) by 2033.

Other than Acradium Lithium, Rio Tinto invested $2.5 billion in the Rincon project in Argentina, which was approved last year in December 2024.

This expansion will increase the site’s annual capacity to 60,000 tonnes of battery-grade lithium carbonate. Additionally, it also includes a 3,000-tonne starter plant and a larger 57,000-tonne facility.

Construction is set to begin in mid-2025, after all permit approvals. After a three-year ramp-up, full production is expected by 2028. The Rincon mine will operate for 40 years while maintaining a low-cost position in the industry.

Rio tinto
Source: Rio Tinto

Navigating the Lithium Storm

The ongoing decline in lithium prices has sparked strong industry reactions. Some mining companies are delaying new projects, while others are cutting costs to stay profitable. Smaller lithium miners are feeling the most pressure. Without strong financial backing, many are struggling to survive. Some have even halted operations or are seeking mergers to stay afloat.

Notably, major producers like Albemarle and SQM plan to cut production, hoping to prevent further price drops and stabilize the market.

However, with these two massive lithium deals, Rio Tinto is consolidating its position in the global lithium market. Notably, the Acardium acquisition occurred amid an excess supply and significantly lower prices since their peak in 2022.

Despite battery advancements, lithium remains crucial, especially in China and Europe, where EV adoption is rising. Long-duration storage may boost demand, but alternative technologies could compete.

Rio Tinto’s lithium expansion plans support its sustainable mining strategy. Let’s discover how the mining giant is mitigating mining emissions.

lithium

Rio Tinto’s Net Zero Goals 

Rio Tinto has set ambitious targets to cut Scope 1 and 2 emissions by 50% by 2030 (compared to 2018 levels) and to achieve net-zero emissions by 2050. Its latest sustainability report revealed:

  • 2024 gross Scope 1 and 2 emissions: 30.7 Mt CO2e
  • 2024 emissions reduction: 3.2 million tonnes of CO2e through renewable energy contracts
  • Projected additional reductions by 2030: 3.6 million tonnes per year

To reach these goals, Rio Tinto has signed major renewable power purchase agreements and invested in solar and wind energy projects.

Additionally, the company is committing $143 million in Western Australia to develop BioIron™, an innovative ironmaking process that could slash CO2 emissions by up to 95% compared to traditional blast furnace methods.

rio tinto emissions
Source: Rio Tinto

Roadmap to a Greener Future

Rio Tinto’s comprehensive strategy to achieve its 2030 emissions target includes transitioning to renewable electricity and reducing process heat emissions at its alumina refineries. A key priority is cutting emissions at its Pacific Aluminium operations, particularly at the Boyne and Tomago smelters.

The company is also advancing other sustainability initiatives:

  • Richards Bay Minerals: Expanding renewable energy contracts
  • Queensland Alumina Limited (QAL): Improving alumina processing efficiency

Expanding the Use of Carbon Credits

To meet its 2030 net emissions target, Rio Tinto plans to use high-quality carbon credits from nature-based solutions. These credits will be capped at 10% of the company’s 2018 baseline emissions.

Most of these credits will come from Australian Carbon Credit Units (ACCUs), supporting compliance with the country’s Safeguard Mechanism. Rio Tinto remains committed to transparency in its emissions reporting. The company will clearly distinguish between its gross operational emissions and net emissions while also disclosing the volume and type of carbon credits used.

Advancing Carbon Capture and Mineralization Technologies

Rio Tinto is actively developing innovative ways to capture and store carbon emissions from fossil fuel use. In 2024, the company focused on identifying the most effective methods to capture low-concentration CO2 from aluminum smelters’ flue gas.

This effort includes adapting direct air capture for higher CO2 levels and modifying point-source technologies for lower concentrations, though both approaches remain in early development stages.

In early 2025, Rio Tinto partnered with Hydro to evaluate carbon capture technologies for aluminum emissions. Additionally, its collaboration with Carbfix is in the pipeline. They plan to begin CO2 mineralization at the ISAL site by 2028.

Meanwhile, at the Tamarack project in Minnesota, Rio Tinto recently completed a 1,137-meter exploratory well to assess the mineralization potential of local rock formations.

rio tint net zero
Source: Rio Tinto

By investing in sustainable solutions and advanced technologies, the company is paving the way for a low-carbon future. Lastly, when the market rebounds, Rio Tinto will be ready to meet rising demand with a stronger and more diverse lithium portfolio.

The post Rio Tinto’s $6.7B Arcadium Deal—Is It a Smart Move Amid Falling Lithium Prices? appeared first on Carbon Credits.

Top 4 Green AI Stocks You Shouldn’t Ignore in 2025 and Beyond

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Top 4 Green AI Stocks You Can't Ignore in 2025 and Beyond

Green artificial intelligence (AI) has a crucial role in accelerating the transition to clean energy and achieving net-zero emissions. AI solutions boost energy efficiency, improve power grids, and cut carbon footprints in various industries.

Machine learning algorithms predict energy demand. This helps integrate renewable sources, such as solar and wind, more effectively. Additionally, AI improves battery storage management, ensuring more effective use of sustainable energy.

Some important statistics on AI-powered energy transition:

  • AI-driven energy efficiency could cut global electricity demand, says the International Energy Agency (IEA). It can deliver more than 40% of the emissions reductions needed by 2040

  • AI smart grids cut energy waste by 30%. This makes electricity distribution more efficient.

  • AI could add $5.2 trillion to the global economy by 2030. A big part will come from applications that focus on sustainability.

Apparently, AI is changing industries. Companies that combine AI with sustainable practices are becoming market leaders. Companies investing in AI for sustainability not only contribute to environmental goals but also position themselves for long-term profitability as the world moves toward cleaner energy solutions.

By 2025, AI, cloud computing, and clean energy will create big investment chances. Among these, four companies stand out for their innovation, robust financials, and commitment to a greener future.

Let’s delve into why these top 4 Green AI stocks are drawing investors’ attention in 2025 and beyond.

Amazon (AMZN): Leading AI in Cloud and Logistics

Amazon has been at the forefront of AI development, leveraging it across various facets of its business—from Amazon Web Services (AWS) to AI-driven logistics and automation. The AI recommendation engine boosts e-commerce sales. Also, AWS AI tools are now used in many industries worldwide.

AI is also key to Amazon’s supply chain. It helps cut inefficiencies, reduce emissions, and speed up deliveries.

Financial Performance. For the fourth quarter of 2024, Amazon reported:

  • Revenue: $187.8 billion, a 10% increase from the previous year.

  • Operating Income: $21.2 billion, a significant increase from the previous year.

  • Net Income: $20.0 billion, nearly doubling from the previous year.

  • AWS Revenue: Grew 19% to $28.8 billion, contributing significantly to profitability.

These figures underscore Amazon’s robust financial health and strategic positioning in the AI and cloud computing sectors.

Amazon’s stock experienced an increase of 1.78% on March 10, 2025, at market close, but dipped the next day. Despite the slight uptick, the broader tech sector has faced significant challenges, with major companies experiencing substantial losses due to escalating trade tensions and recession concerns.

Amazon stock
Source: TradingView

Regardless, the e-commerce giant continues to push for sustainable growth.

Key Sustainability Initiatives

Amazon has set ambitious sustainability goals, including a commitment to reach 100% renewable energy by 2025, which it achieved in 2023. The company uses AI systems to cut energy use in data centers. This helps reduce waste and lower costs.

Amazon carbon free energy
Source: Amazon report

The company’s AI logistics network optimizes routes. This cuts fuel use and emissions a lot. Amazon is also deploying 100,000 electric delivery vans worldwide, aiming to reduce its carbon footprint in logistics operations.

AWS AI tools also help customers cut their environmental impact. They do this by optimizing workloads and boosting energy efficiency in cloud operations. These initiatives highlight Amazon’s dedication to integrating sustainability with technological innovation.

Alphabet (GOOGL): Pioneering AI with Google DeepMind

Alphabet’s subsidiaries, Google DeepMind and Gemini AI (formerly Bard), are at the cutting edge of artificial intelligence research and application. Google uses AI to boost search algorithms, make ads work better, and lead in cloud computing.

DeepMind’s AI models have played a key role in energy management, significantly improving the efficiency of Google’s data centers. DeepMind’s AI uses reinforcement learning to adjust cooling systems on its own. This leads to a 40% cut in energy use.

Financial Performance. In the fourth quarter of 2024, Alphabet announced the following results:

  • Revenue: $86.31 billion, a 13% increase from the previous year.

  • Ad Revenue: $65.52 billion, slightly below analysts’ estimates of $65.94 billion.

  • Google Cloud Revenue: $9.19 billion, showing a 26% growth.

These results reflect Alphabet’s effective integration of AI across its operations, enhancing both performance and efficiency. However, the tech giant’s stock saw a slight decrease of 0.73% on March 11, 2025, closing at $164.02.

Google stock
Source: TradingView

The company has not been immune to the broader tech selloff, with significant market value losses reported recently. Yet, Google is moving forward with its green promise.

Major Sustainability Achievements

Alphabet has made significant strides in sustainability. Google is working toward achieving 24/7 carbon-free energy by 2030, a goal that will make all of its operations run on clean energy at all times. AI plays a major role in this transition, as DeepMind’s models optimize energy consumption in data centers, leading to a 30% reduction in power usage.

Google carbon-free energy map with data center operations
Source: Google

Google has also invested over $5 billion in renewable energy projects worldwide, including solar, wind, and battery storage. These investments help Google reach its sustainability goals. They also boost the use of clean energy technologies in the industry.

These efforts make Alphabet a leader in blending tech progress with caring for the environment, making it one of the green AI stocks to watch for.

Meta (META): AI-Driven Metaverse with Green Data Centers

Meta leverages AI to enhance user experiences across its platforms—Facebook, Instagram, and WhatsApp—while leading advancements in AI-driven virtual reality (VR) and the metaverse.

AI is crucial for Meta. It optimizes ad-targeting algorithms. This cuts down on wasted ad spending and boosts efficiency.

Additionally, AI-driven automation in data centers has improved server utilization, decreasing energy consumption across its infrastructure.

Financial Results. Meta reported the following performance for the fourth quarter of 2024:

  • Revenue: $48.39 billion, surpassing expectations of $47.04 billion.

  • Earnings Per Share (EPS): $8.02, exceeding the anticipated $6.77.

  • Net Income: $20.8 billion, up 49% year-over-year from $14 billion.

  • Daily Active People (DAP): 3.35 billion, a 5% increase year-over-year.

These numbers highlight Meta’s strong financial results and successful AI use on its platforms. With this, the company’s stock experienced a 1.93% increase on March 10, 2025, at market close.

Meta stock
Source: TradingView

Despite this gain, the company has faced notable declines recently, reflecting broader market challenges. Still, it strives harder toward sustainable and clean digital solutions.

Sustainability Commitment Highlights: 

Meta has set and achieved several sustainability goals. The company aims to achieve net-zero emissions by 2030, decarbonizing its operations through investments in renewable energy and energy-efficient AI applications.

AI models help optimize power use in Meta’s data centers. They boost efficiency by 40% and cut overall electricity demand.

Additionally, Meta invests in carbon removal projects to offset its residual emissions, supporting global reforestation and clean energy initiatives. The tech giant’s green data centers aim for energy efficiency. They use advanced cooling systems to lower water and power use.

meta GHG emissions 2023
Source: Meta report

These initiatives reflect Meta’s dedication to integrating sustainability into its technological advancements.

Tesla (TSLA): AI-Powered EVs and Energy Solutions

Tesla is not just an electric vehicle (EV) manufacturer but a leader in AI-driven automation and energy efficiency. From self-driving AI technology to sustainable energy solutions, Tesla continues to push the boundaries of innovation.

AI is at the core of Tesla’s Full Self-Driving (FSD) system, improving safety and efficiency by optimizing traffic flow and reducing energy waste. Tesla’s AI battery management systems boost energy storage. This makes renewable energy easier to use on a larger scale.

Financial Results. In the fourth quarter of 2024, Tesla reported:

  • Revenue: $25.17 billion, a 3% increase year-over-year.

  • Net Income: $7.9 billion, up from $4.1 billion the previous year.

  • Earnings Per Share (EPS): $2.27, surpassing estimates.

  • Energy Storage Deployments: Reached 9.5 GWh, a record high, driven by demand for Tesla’s Megapacks and Powerwalls.

Despite economic challenges, Tesla’s strong financial performance and continued AI advancements make it a solid investment choice among green stocks.

Tesla’s stock rose by 4.56% on March 10, 2025, closing at $232.29. Despite this increase, the company recently experienced a significant drop of 15.4%, driven by escalating recession fears and CEO Elon Musk’s controversial political engagements.

Tesla stock
Source: TradingView

But how does the company move forward with its green and sustainability promises?

Sustainability and AI Integration

Tesla is committed to sustainability through its AI-powered solutions. The company’s Full Self-Driving AI cuts emissions. It does this by making EVs more efficient and reducing wasted energy.

The EV giant uses AI to manage its energy battery storage and solar solutions. This helps optimize energy storage and distribution. As a result, grid reliability improves, and renewable energy adoption increases.

Tesla energy storage deployment
Source: Tesla

Tesla’s Gigafactories focus on sustainability. They reduce waste and mainly use renewable energy sources. These initiatives solidify Tesla’s position as a leader in green AI and sustainable transportation.

Why These 4 Stocks Could Shape the Future of Green AI

As AI and sustainability become key investment themes, Amazon, Alphabet, Meta, and Tesla stand out as top choices for 2025. Each company uses advanced AI and is committed to the environment. This makes them appealing to forward-thinking investors.

Whether it’s Amazon’s cloud dominance, Alphabet’s AI research, Meta’s metaverse expansion, or Tesla’s EV and energy solutions, these stocks represent the future of green AI innovation. Investors looking for long-term growth with a focus on sustainability should keep an eye on these four industry leaders in 2025 and beyond.

The post Top 4 Green AI Stocks You Shouldn’t Ignore in 2025 and Beyond appeared first on Carbon Credits.

Power Surge: Can Carbon Capture Keep Up with AI’s Energy Demand?

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Power Surge: Can Carbon Capture Keep Up with AI’s Energy Demand?

Electricity demand in the United States is rising faster than it has in decades. For years, power use remained steady due to efficiency improvements and shifts in industrial activity. However, recent changes have increased demand significantly. 

More people are using electric vehicles (EVs), new factories are opening, and artificial intelligence (AI) is expanding. These factors require more electricity, putting pressure on the U.S. power grid.

One of the biggest drivers of power demand is the rapid growth of data centers. These facilities store and process massive amounts of digital information. Cloud computing, AI, and streaming services all rely on data centers, which require a steady and reliable power supply.

Many power companies have raised their peak electricity demand forecasts by over 50% in just three years, according to a paper by Carbon Direct.

power demand for US data centers forecast
Source: Carbon Direct

Natural Gas and the Challenge of Lowering Emissions

Currently, natural gas supplies about 40% of the electricity in the U.S. It is the largest energy source for power generation. While renewable energy like wind and solar is expanding, natural gas remains important because it provides steady power, unlike solar panels or wind turbines, which depend on weather conditions.

The downside of natural gas is that burning it releases carbon dioxide (CO₂), a greenhouse gas that contributes to climate change. To meet energy needs while reducing emissions, power companies are looking at carbon capture and storage (CCS). This technology captures CO₂ before it enters the atmosphere and stores it underground.

  • CCS can reduce carbon emissions from natural gas plants by 90-95%.

How Carbon Capture Works

Carbon capture technology uses chemical reactions to separate CO₂ from power plant emissions. The captured CO₂ is then compressed and transported to a storage site. It is injected deep underground into rock formations, where it stays permanently. If a storage site is not nearby, the CO₂ must be transported by pipeline, truck, or rail.

Not all power plants are suitable for carbon capture. The technology works best on large power plants that operate continuously. Smaller or backup plants that only run occasionally are not good candidates for CCS because the capture process is expensive and requires steady operation.

The Cost of Carbon Capture

Adding CCS to a power plant increases costs. The price of electricity from a natural gas plant without CCS is estimated at $40–$70 per megawatt-hour (MWh). With CCS, the cost rises to $65–$100 per MWh. These costs come from the capture equipment, extra fuel needed for the process, and the expense of transporting and storing CO₂.

However, tax credits can help reduce the cost. In the U.S., a program called 45Q offers financial incentives for capturing and storing carbon. These incentives make CCS more affordable and encourage companies to invest in clean energy solutions.

Capturing the advantages of natural gas plant with CCS, the Carbon Direct paper noted:

“Natural gas-fired power generation can be built in locations that do not have enough land area available for renewable forms of power generation like wind and solar. They can often be sited conveniently close to electricity transmission infrastructure and end users. Natural gas-fired power generation with CCS is competitive with both geothermal and nuclear electricity in terms of providing enough baseload power. Further, it offers cost advantages and is speedier to bring to market.”

Tech Giants in Trouble: How Carbon Capture and Carbon Credits Can help

Tech companies like Google and Microsoft are under pressure to reduce emissions from their data centers. AI computing requires huge amounts of power, and companies need clean energy solutions. Many large tech firms have set goals to cut their carbon footprints, but their emissions are rising due to energy demand.

For example, Google’s emissions increased by 13% in 2023 because of higher energy use in data centers. Microsoft has also highlighted the need to clean up its supply chains.

Since data centers need constant power, natural gas plants with CCS could be a solution for providing clean, reliable electricity.

The Role of Carbon Credits

Carbon credits are an important part of reducing emissions. A carbon credit represents one metric ton of CO₂ that is either reduced or removed from the atmosphere. Companies that emit CO₂ can buy carbon credits to offset their emissions.

With CCS, power plants can earn carbon credits by capturing and storing emissions. These credits can be sold to companies needing to meet their climate goals. This system helps create a financial incentive for reducing carbon pollution.

By combining CCS with carbon credits, power producers can reduce costs while helping businesses achieve net-zero targets.

Future Outlook: The Need for More Investment

Experts agree that carbon capture must expand if the U.S. wants to lower emissions while maintaining a reliable power supply. The International Energy Agency (IEA) warns that current investments in CCS are not enough. 

CCS current and planned projects IEA
Source: IEA

Without new projects, carbon emissions from power generation will remain high. The supply gap could reach 1.2 billion metric tons of CO₂ per year by 2050, making it much harder for industries like power generation to reduce their emissions.

Companies planning new power plants should consider making them “capture-ready.” This means designing them so CCS can be added later. However, delaying CCS for too long could increase emissions and make it harder to meet climate goals.

This shortfall highlights the urgent need for increased investment in CCS technology and infrastructure to ensure a significant reduction in carbon emissions from natural gas power plants and other high-emission sectors​.

According to the IEA, achieving net-zero greenhouse gas emissions by 2050 requires scaling up CO₂ capture capacity to 1.7 gigatons annually by 2030. This ambitious target requires a substantial financial commitment. 

Estimates indicate that capital investments ranging from $665 billion to $1.28 trillion are required by 2050 to scale CCUS. Per McKinsey & Company, annual investment in this technology will hit up to $150 billion after 2035. 

CCUS investment Mckinsey forecast

Challenges of Carbon Capture

While CCS has benefits, it also faces challenges:

  • High Costs: The technology is still expensive, although tax incentives help.
  • Infrastructure Needs: Transporting CO₂ requires pipelines, which can take years to build.
  • Public Concerns: Some communities worry about storing CO₂ underground.
  • Energy Use: CCS requires extra energy, which slightly reduces power plant efficiency.

Despite these challenges, many experts believe that CCS is necessary for reducing emissions in industries that cannot fully switch to renewables, such as steel, cement, and natural gas power.

The demand for electricity is growing, especially due to AI and data centers. While renewable energy is expanding, natural gas remains essential for providing steady power. To reduce emissions, carbon capture technology can be used to trap and store CO₂ from power plants.

CCS can cut emissions by up to 95% and provide low-carbon electricity. Although it is expensive, tax credits and carbon credits can help make it more affordable. As businesses and governments work toward cleaner energy, investing in CCS will be crucial for balancing energy demand with climate goals.

The post Power Surge: Can Carbon Capture Keep Up with AI’s Energy Demand? appeared first on Carbon Credits.

Canada’s Nuclear Boom: Big Investments in CANDU and SMRs

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CANADA

Canada is making bold moves in nuclear energy. It is investing heavily in next-generation technology to boost its clean power supply. As demand for low-emission electricity grows, the government is modernizing its flagship CANDU reactors along with developing the small modular reactors (SMRs).

On March 5, 2025, Canada’s Energy Minister, Jonathan Wilkinson, announced a deal with AtkinsRéalis to develop the MONARK reactor, a new CANDU design. Under this agreement, Canada will provide up to $304 million over four years to cover 50% of the project’s design costs.

AtkinsRéalis CEO Ian L. Edwards,

“We are honoured to have the full faith and confidence of the Government of Canada in continuing our development of proven home-grown CANDU technology.” 

AtkinsRéalis Leads CANDU Innovation

AtkinsRéalis, a global engineering and nuclear company, has been operating since 1911. It focuses on building a sustainable future by connecting people, data, and technology. The company provides end-to-end services to key sectors such as engineering, nuclear, and capital projects.

They have pioneered CANDU technology for over a decade and have contributed majorly to global low-carbon energy solutions.

CEO Ian L. Edwards further added,

“The federal government’s decision today to invest in the further development of CANDU technology, an evolution of the proven Darlington reactor model, will enable us to continue this important work already underway with our utility partners. Advancing CANDU technology creates economic value for the country and Canadians, ensures energy security at this critical time, improves health outcomes through the creation of more cancer-fighting isotopes, builds stronger and more resilient relationships with Indigenous peoples, workers and communities, and above all, maintains Canada’s status as a Tier-1 nuclear nation.”

This initiative involves Atomic Energy of Canada Limited (AECL), Canadian suppliers, and reactor operators. Together, they will modernize a technology that has powered Canada for decades.

candu canada nuclear
Source: AtkinsRéalis

Canada’s CANDU Advantage: A Homegrown Powerhouse

CANDU (CANada Deuterium Uranium) reactors have a major plus. They use natural uranium sourced from Saskatchewan. This means no enriched uranium is needed. Most of the uranium is used to produce fuel for nuclear plants (over 99%). The rest (less than 1%) is used for research reactors and medical isotopes.

In 2022, Canada produced 7.4 kilotonnes of uranium from mines in Saskatchewan. This was worth around $1.1 billion. This makes uranium a secure energy source for Canada and an easily available fuel for CANDU reactors.

  • Currently, Canada has 17 CANDU reactors—16 in Ontario and one in New Brunswick.
  • Net Zero Integration: can eliminate over 17 million tonnes of CO₂ emissions annually when replacing coal.

Internationally, CANDU technology is used in South Korea, China, Argentina, and Romania. Demand for CANDU reactors is rising. In late 2024, Romania said it would buy two more units for its Cernavoda nuclear site. This move strengthens Canada’s reputation in global nuclear energy.

The CANDU supply chain drives economic growth as the industry sources 85% of its components from domestic companies. This supports 89,000 high-quality jobs in manufacturing and engineering. In 2024, AtkinsRéalis hired over 750 new employees for Candu Energy Inc. and placed more than $1 billion in orders with Canadian suppliers.

Minister Wilkinson hailed the potential of CANDU reactors by explaining,

“CANDU reactors maintain an almost entirely Canadian-made, Canadian-designed supply chain through a consortium of Canadian companies, and they provide good-paying, long-lasting, and sustainable jobs in manufacturing for Canadians. They are also fuelled by uranium mined in Saskatchewan without the need for enrichment. As countries look to secure safe sources of clean energy, demand for Canadian nuclear is growing. The Government of Canada is acting now to modernize Canadian-owned CANDU technology, which will provide a viable, cost-effective design in support of the expansion of nuclear energy capacity in Canada and internationally.”

canada uranium
Source: Government of Canada

SMRs: The Future of Flexible Nuclear Power

Canada is also investing in small modular reactors to diversify its nuclear energy options.

The Government’s press release also highlighted,

Minister Wilkinson, on behalf of the Honourable Steven Guilbeault, Minister of Environment and Climate Change, also announced $55 million in funding from Environment and Climate Change Canada’s Future Electricity Fund (FEF) to support Ontario Power Generation’s Darlington New Nuclear Project.

This project will install three GE Hitachi BWRX-300 SMRs at Darlington. Each unit will produce 300 megawatts, which can power 900,000 homes.

Saskatchewan is moving forward with SMR deployment. The federal government increased funding for SaskPower’s pre-development work. It went up from $24 million to $80 million. This support helps with engineering studies, environmental assessments, regulatory planning, and collaboration with indigenous communities. These are all essential steps before construction begins.

More Nuclear Investments, Less Carbon

Moving on, Minister Wilkinson announced a $52.4 million investment to push SMRs and CANDU reactors. This investment also includes decarbonization strategies in Saskatchewan, Alberta, and Ontario.

  • The investment includes $11.4 million from the Enabling SMRs Program for three projects and $41 million under NRCan’s Electricity Predevelopment Program for four projects.

This investment reflects Canada’s dedication to partnering with businesses, utilities, and system operators to grow clean energy. By backing both proven CANDU technology and new SMR projects, the government aims to fortify its nuclear policy and establish Canada as a leading global energy provider.

nuclear capacity Canada
Source: Statista

Economic and Environmental Wins

Investing in nuclear power offers major economic advantages. The Conference Board of Canada says a four-reactor CANDU project could boost Canada’s GDP by $50 billion. It might also generate $29 billion in tax revenue. Additionally, building these four CANDU reactors could create over 20,000 full-time jobs and ~ 3,500 permanent jobs for more than 70 years.

Nuclear energy is also crucial for Canada’s goal of net-zero emissions by 2050. Unlike fossil fuels, CANDU reactors and SMRs produce zero emissions. Thus, expanding the nuclear capacity will bring direct environmental benefits like:

  • They provide a clean and reliable power source.
  • Help replace coal and natural gas plants.
  • Cut greenhouse gas emissions and ensure a stable electricity supply.

With strong government support and growing investment, nuclear energy has a bright future in Canada. It will also play a key role in cutting emissions by 45–50% below 2005 levels by 2035.

The post Canada’s Nuclear Boom: Big Investments in CANDU and SMRs appeared first on Carbon Credits.