Google to Buy 50,000 MTs of Nature-Based Carbon Credits from Brazil Startup Mombak

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Google has taken a significant step in its sustainability efforts with a forest carbon removal deal from a Brazilian startup Mombak. The tech giant aims to buy 50,000 metric tons of carbon credits by 2030 to bolster its fight against climate change.

Google Embraces Reforestation: A New Step in Carbon Removal Strategy

Last year, Microsoft committed to buying up to 1.5 million credits from Mombak, highlighting a growing trend of companies incorporating nature-based carbon removal into their sustainability strategies.

Dan Harburg, Mombak’s Chief Technology Officer, remarked,

“As we scale our operations, this collaboration with Google is a major milestone in our mission to become the world’s largest and most impactful carbon removal project developer. We look forward to working with Google and other leading organizations to further develop the field of nature-based carbon removal, ensuring that our projects continue to meet the highest standards for climate impact, transparency, and community engagement.”

Notably, Google, Microsoft, Meta, and Salesforce are co-founders of the Symbiosis Coalition. This collective has committed to buying 20 million tons of nature-based carbon removal credits by 2030.

Previously, Google had invested in carbon capture and storage (CCS) carbon credits. However, this new deal signals a shift toward nature-based solutions like reforestation thereby joining other biggies Microsoft and Meta to meet their climate goals. Earlier this week, Meta also announced purchasing up to 3.9 million carbon offset credits from Brazilian bank BTG Pactual’s forestry division.

Randy Spock, Google’s Carbon Removal Lead, said:

“We’re pleased to partner with Mombak on our first purchase of forestry-based carbon removal credits, with an eye to solving a central challenge of this field: ensuring certainty of climate impact. Looking ahead, we’re excited to build on this deal via our participation in the Symbiosis Coalition.”

MUST READ: Microsoft’s 234,000 Carbon Credit Purchase Restores Mexican Rainforest

Aiming for Net-Zero by 2030

To achieve its goal, the company aims to cut 50% of its combined Scope 1, Scope 2 (market-based), and Scope 3 absolute emissions by 2030, using 2019 as the baseline. To offset remaining emissions, it plans to invest in both nature-based and technology-driven carbon removal solutions.

Google’s sustainability report highlights its commitment to the Science Based Targets initiative (SBTi) to validate this highly ambitious emissions reduction target. The company’s 2023 progress indicates:

Emissions Reductions: Total GHG emissions reached 14.3 million tCO₂e, reflecting a 48% increase compared to 2019.
Residual Emissions: The company signed offtake agreements for approximately 62,500 tCO₂e of removal credits.

Source: Google

Can Mombak Solve Google’s Carbon Problem?

Mombak is on a mission to become the world’s largest carbon removal company, focusing on large-scale reforestation and carbon sequestration from the atmosphere. The company mainly focuses on native, biodiverse reforestation projects in the Amazon rainforest.

They restore degraded pastureland with native trees and assist regeneration to reduce carbon, boost biodiversity, and improve ecosystems. Apart from environmental benefits, their projects impact local communities by improving water resources, creating jobs, and uplifting their social standards.

Private-sector involvement in carbon reduction drives Mombak’s high-impact reforestation. Significantly, the startup’s innovative approach has caught the attention of global corporations like Microsoft and now of course Google. They use advanced technology and data to guarantee the highest quality carbon removal credits in the market while minimizing carbon leakage.

Thus, it’s pretty much evident that Mombak’s robust plan can potentially help Google achieve its carbon removal goals while restoring the vital ecosystem of the planet.

This is why Harburg noted that Google’s involvement sends a strong vote of confidence for both Mombak and the carbon removal sector as a whole, describing it as a very positive signal. He also hopes that the growing market for nature-based carbon removal will trigger more deals in the future.

Although Mombak and Google did not disclose the financial details of the agreement, Mombak’s credits sold for more than $50 per ton when McLaren Racing purchased in 2023. This pricing sets a potential benchmark for the future value of nature-based credits, especially as demand grows among companies eager to offset their emissions.

The Growing Demand for Nature-Based Carbon Credits

Carbon offsets help companies reduce their environmental impact by funding projects that remove greenhouse gases. Each carbon credit represents one ton of CO2 removed from the atmosphere. By purchasing these credits, companies like Google, Microsoft, and Meta aim to offset their emissions while supporting global sustainability initiatives.

Speaking about Amazon rainforests, they absorb vast amounts of carbon and are crucial to global climate efforts. Google’s investment in nature-based solutions or forest carbon credits through reforestation efforts in the Amazon with startups like Mombak, offers immediate benefits. By supporting Mombak, Google not only offsets emissions but also aids in preserving this essential ecosystem.

However, there’s a catch. As more companies enter the carbon credit market, transparency and accountability will be key to ensuring these projects deliver measurable results. Many environmentalists and sustainability experts predict that the future of carbon offsets may shift towards more personalized, localized solutions.

On the flip side, the rising demand for carbon offsets is subjected to substantial criticism. Groups like Greenpeace argue that offsets can allow companies to delay direct actions like adopting renewable energy. Critics claim relying on credits could slow the transition to cleaner technologies and energy efficiency.

Google’s Strategy to Strengthen its Carbon Markets

Source: Google

Google boats of investing over $6 million to enhance carbon markets, digitize infrastructure, and establish standards for high-quality carbon credits. Recently, they committed $35 million to carbon removal credits, becoming the first major company to support the US DOE’s push to build a robust and credible carbon removal market.

Google’s partnership with Mombak marks a critical step in advancing carbon removal strategies while showcasing trust in nature-based carbon credits.

LATEST: Google Strikes $100/ton Deal with US DAC Startup Holocene 

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Can the U.S. Break China’s Grip on Rare Earths?

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The United States’ goal to break China’s grip on the global supply of rare earth minerals faces numerous hurdles. In a remote field outside Houston, Texas, plans are in place for a rare earth processing plant by Lynas Rare Earths, an Australian company. 

Despite its potential significance, this plant is just one step in the US’s larger, multibillion-dollar effort to challenge China’s monopoly, which controls roughly 70% of the world’s rare earth output and over 90% of its refining capacity.

US Investment: Slow Progress in a High-Stakes Race

Rare earth elements are essential components in various high-tech applications like smartphones, wind turbines, and military equipment.

The Texas plant, set to be built by Lynas, is part of a growing US initiative to reduce reliance on China for rare earths. For the 149-acre (60 hectares) site, Lynas has secured more than $300 million in contracts from the Pentagon. If all goes according to plan, this facility will be operational within 2 years, contributing significantly to the US’s rare earth processing capacity.

This plant represents just a fraction of the billions of dollars in subsidies and loans pledged by the US and its allies to foster domestic rare earth production. The American government has increasingly viewed the development of a domestic rare earths supply chain as a matter of national security. It aims to break China’s near-total control over refining and production.

RELATED STORY: China’s Grip On Rare Earth Elements Loosens

However, while the intention is clear, market conditions present a significant challenge. Since 2022, the global prices for rare earth elements have slumped. This is primarily due to an increase in supply from China and a slowdown in its domestic economy. 

This decline has raised doubts about the long-term financial viability of many new projects outside China. Thus, the prospect of establishing a robust, independent supply chain remains uncertain.

Market Volatility Threatens New Rare Earth Ventures

Despite global demand for rare earth elements, their extraction and processing remain fraught with economic and environmental challenges. Rare earths are not truly “rare” but are seldom found in concentrations high enough to justify environmentally intensive mining operations. 

There are 17 chemically related elements in this category, each with properties critical to manufacturing electronics, renewable energy components, and defense technology.

Current market conditions pose a threat to new entrants. According to MP Materials Corp., which operates the only rare earth mine in the US and is building a factory to manufacture magnets in Texas, CEO James Litinsky:

“These market conditions have now destroyed most of the hoped-for projects from just a couple of years back.” 

However, even with domestic mining in place, refining and processing are still predominantly under Chinese control, underscoring the dominance of China’s supply chain.

In the face of these market challenges, Laura Taylor-Kale, the US Assistant Secretary of Defense for Industrial Base Policy, promised earlier this year that the US would establish a “sustainable mine-to-magnet supply chain capable of supporting all US defense requirements by 2027.” 

She further highlighted that the Lynas project in Texas could produce around 25% of the world’s supply of rare earth oxides once operational.

China’s Dominance: Strategic Price Manipulation at Play

China’s control over the rare earth market stems from its aggressive mining and refining activities, supported by government policies. Per Katusa Research report, the country merged its 5 largest producers into a single entity, further tightening its grip on the world’s rare earth supply.

The Chinese Ministry of Natural Resources, along with its industry ministry, raised mining quotas for rare earths in 2023 and 2024, driving down global prices and applying further pressure on competing projects. The result has been a market environment in which many rare earth mines struggle to break even, forcing early-stage projects into delays and funding shortfalls.

The current situation has echoes of past geopolitical maneuvers. In 2011, China temporarily cut off rare earth supplies to Japan over a territorial dispute. This move pushed Japan to seek diversification in its rare earths supply chain, eventually investing in Lynas. The event shows how geopolitics and market control can intersect in ways that significantly impact global supply chains.

Despite securing substantial investments, some rare earth projects outside China are already encountering setbacks. Arafura Rare Earths is one such company. It received an A$840 million (approximately $560 million) loan from the Australian government and signed agreements with two Korean auto firms in 2022 to supply rare earths from its Nolans project in Australia. 

However, construction has yet to begin, largely due to funding gaps. CEO Darryl Cuzzubbo mentioned that while debt and approvals are in place, the “one missing piece is the equity.” The company aims to secure half of the required equity from cornerstone investors before turning to the broader market for the remaining funds. Cuzzubbo hopes to finalize the equity by the end of the year to start construction in early 2025.

The Key to Rare Earth Supply Chain Independence

Japan’s experience offers critical insights into the complexities of establishing an independent rare earth supply chain. Following China’s 2011 export restrictions, Japan invested $250 million in Lynas, allowing the company to start trial production two years later. 

However, it took Lynas until 2018 to become profitable, highlighting the extended timeline and considerable financial backing required for such projects.

Lynas CEO Amanda Lacaze emphasized the need for “patient capital” when venturing into the rare earths market. This is particularly true for projects breaking new ground. Recent delays with the Texas facility due to issues with wastewater permits highlights the obstacles facing new rare earth projects in the West.

The US’s push to build a competitive rare earths supply chain faces headwinds in both market conditions and geopolitical maneuvering. As the global rare earth prices slump and China’s strategic control persist, the development of a robust, independent supply chain remains an uncertain endeavor. The Western world’s goal of building a competitive supply chain will require not just investment but strategic patience and international cooperation.

READ MORE: Magnate Gina Rinehart Moves into Rare Earth Metals

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Microsoft, BlackRock, Global Infrastructure Partners, and MGX Form $100B AI Infrastructure Partnership

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A groundbreaking initiative is set to reshape the AI landscape with huge funding to develop the infrastructure needed for the industry’s rapid growth. Finance and technology behemoths Microsoft, BlackRock, Global Infrastructure Partners (GIP), and MGX are forming the Global AI Infrastructure Investment Partnership (GAIIP) to unlock up to $100 billion in investments to propel AI infrastructure, mainly in the U.S.

Unlocking the $100B Global AI Infrastructure Investment Partnership

Elaborately speaking, the joint venture aims to address the growing demand for AI by expanding data centers and creating new energy sources. The press release explains that initially, they will unlock $30 billion in private equity capital, eventually mobilizing up to $100 billion with the inclusion of debt financing.

Most of these infrastructure projects will focus on the U.S. but a fraction of investment might also extend to U.S. partner countries. This is because AI is not just confined to the U.S., it’s everywhere worldwide.

Notably, the chip giant NVIDIA will also play a significant role in this JV. They will contribute their expertise in AI data centers and factories, helping GAIIP optimize AI supply chains and improve energy sourcing for industry and customers alike.

Source: McKinsey

As said before this collaboration between BlackRock, GIP, MGX, and Microsoft is a perfect combination of financial strength with technological expertise. By integrating investments in infrastructure, technology, and energy, GAIIP plans to scale AI facilities efficiently while promoting decarbonization.

Furthermore, the partnership will be an open platform where a wide variety of companies can collaborate freely. With no restrictions, it invites businesses from different sectors to join in and contribute, making it easier for everyone to be part of this initiative.

Larry Fink, Chairman and CEO of BlackRock.

“Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity. Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation.”

Microsoft’s AI Ambitions: A Major Win for the Joint Venture

The entire world is aware of Microsoft’s AI endeavors. It’s just last year, the company announced the massive multibillion-dollar investment in ChatGPT creator OpenAI. Consequently, this investment in the GAIIP yet again proves their motive to revolutionize businesses and products with AI-driven platforms and tools. However, on a broader scale, they are committed to using AI responsibly and empowering people and organizations worldwide to achieve more with technology.

Satya Nadella, Chairman and CEO of Microsoft remarked,

“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy. The Global AI Infrastructure Investment Partnership will help us deliver on this vision, as we bring together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way.”

READ MORE: Microsoft’s 234,000 Carbon Credit Purchase Restores Mexican Rainforest

Abu Dhabi’s MGX Set to Transform AI and Tech Industries Globally

Abu Dhabi-based MGX is a new tech investment firm that boosts growth and use of AI-driven technologies and semiconductors. Created by the Artificial Intelligence and Advanced Technology Council (AIATC), MGX aims to become one of the largest global funds dedicated entirely to AI, with plans to manage over $100 billion in assets. This move empowers Abu Dhabi’s strong history of investing in data centers, computing power, and essential infrastructure, marking a significant step in the region’s push toward AI leadership.

Ahmed Yahia Al Idrissi, CEO of MGX expressed himself on the significance of AI in this promising partnership. He said,

“Building the necessary infrastructure required to advance and accelerate the adoption of AI will reshape and revitalize almost every aspect of how we live,” said  “Similar to our transportation infrastructure, new data centers and power sources will enable growth and commerce in the future innovation economy.”

Source: hai.stanford.edu

BlackRock’s Acquisition of GIP Set to Revolutionize AI and Data Center Investments

One of the biggest asset managers and most trusted leaders in financial technology, BlackRock makes investing simpler and more affordable. GIP is also a top investor focused on infrastructure. They have expertise in owning and managing large assets in energy, transportation, digital infrastructure, and water management.

On September 13, BlackRock announced plans to finalize its acquisition of GIP by October 1, 2024, whose regulatory approvals are still pending. This news comes along as the global economy undergoes shifts, creating opportunities for private capital to partner with governments and businesses on infrastructure projects. BlackRock would leverage its corporate relationships, while GIP would bring infrastructure expertise to drive investments in AI and data centers.

Bayo Ogunlesi, Chairman and CEO of Global Infrastructure Partners assured that,

“There is a clear need to mobilize significant amounts of private capital to fund investments in essential infrastructure. One manifestation of this is the capital required to support the development of AI. We are highly confident that the combined capabilities of our partnership will help accelerate the pace of investments in AI-related infrastructure.”

All in all, this joint venture stands as one of the most significant AI infrastructure funding efforts to date.

FURTHER READING: Altman-Backed Startup Reveals Solar-Powered Solution for AI and Data Centers 

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What’s the Worth of Meta’s Massive Carbon Credit Deal with BTG Pactual?

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Meta, the owner of Facebook and Instagram, has entered a significant carbon offset agreement with Brazilian investment bank BTG Pactual’s forestry arm, Timberland Investment Group (TIG). The contract involves the purchase of up to 3.9 million carbon credits through 2038. 

The deal is Meta’s largest carbon removal initiative from a single project. Though the financial terms of the deal were not disclosed, the scope suggests a considerable investment. 

Meta’s Mega Move: Investing in Carbon Offsets

According to Allied Offsets, the average price of forestry carbon offsets was $4.22 per credit last week. Based on this pricing, the deal could be valued at around $16 million. The agreement allows Meta to purchase 1.3 million carbon credits initially, with options for an additional 2.6 million credits over the contract’s duration.

Each carbon credit represents a reduction of one metric ton of carbon dioxide emissions, offering companies a way to offset their carbon footprint. For Meta, this move aligns with its commitment to achieve net-zero emissions across its entire value chain by 2030. This poses a major challenge, as 99% of the company’s carbon footprint in 2022 came from Scope 3 emissions.

The tech giant’s Scope 3 emissions, also known as value chain emissions, are rising due to the growing global demand for its services. And one of the key strategies that Meta employs to tackle this emissions source is carbon removal solutions. 

Meta has supported various nature-based carbon removal projects worldwide since 2021. These initiatives include boosting forest carbon stock in community ejido forests in Oaxaca and safeguarding forests in California.

Now the company is investing millions of dollars again to protect forestland in Latin America through forest carbon offset projects.

How BTG Pactual’s Reforestation Powers Meta’s Carbon Goals

BTG Pactual TIG’s forest restoration projects across Latin America will generate the carbon credits that Meta will purchase. TIG has planted more than 7 million seedlings as part of its reforestation efforts, contributing to carbon capture and emission reduction in the region. This deal underscores the growing focus on forestry-based carbon offsets as a method for mitigating climate change.  

Another big tech company, Microsoft, has also signed a carbon removal credit agreement with BTG Pactual TIG in June. Under their deal, Microsoft will receive up to 8 million carbon credits from TIG, making it the biggest carbon removal transaction ever. 

RELATED: Microsoft Strikes 2 Record-Breaking Carbon Credit Deals

These deals highlight a trend of major tech companies investing in large-scale carbon offset projects despite skepticism in the market.

Demand for Carbon Offsets: Challenges and Market Skepticism

While Meta’s and Microsoft’s significant offset purchases illustrate ongoing investment in climate mitigation efforts, the overall demand for carbon offsets has faced hurdles. 

Last year, demand stalled as companies like Nestlé and Gucci reduced their credit purchases. This downturn is partially attributed to concerns over the effectiveness of offsets in genuinely reducing emissions. 

Critics argue that offsetting can sometimes serve as a loophole. This allows companies to continue emitting while relying on external projects for carbon reduction.

In 2023, entities retired approximately 180 million MtCO2e in carbon offsets to counterbalance their emissions as shown below.

The debate over carbon offsets has intensified as efforts grow to normalize their use in climate finance. Recently, the Science Based Targets initiative (SBTi) endorsed the use of credits for offsetting supply chain emissions, sparking criticism. 

READ MORE: Will This Be The End of Carbon Offsets?

Opponents argue that this move undermines emission reduction goals by allowing companies to offset their largest emissions sources instead of directly eliminating them.

Despite these market challenges, Meta’s long-term agreement with BTG Pactual reflects its strategy to support credible offset projects that contribute to meaningful carbon removal. 

Tech Giants Commitment to Forest Carbon Credits

On the other side of the debate, industry reports indicate that companies, especially large ones using carbon credits, are more effective in reducing their emissions. Data from Ecosystem Marketplace research reveals several key findings about the use of voluntary carbon credits. The results show that companies supporting carbon credits are:

1.8 times more likely to actively decarbonize year-over-year,
1.3 times more likely to have supplier engagement strategies and involve employees and customers in climate action, 
3.4 times more likely to have approved science-based climate targets, 
1.2 times more likely to have board oversight of their climate transition plans,
3 times more likely to include Scope 3 emissions in their climate targets, despite the control challenges, and
Investing 3 times more in emission reduction within their value chain.

Meta’s 3.9 million carbon credit deal with BTG Pactual signals confidence in forestry-based carbon offset projects. It shows how large companies are still willing to support this carbon market initiative to help mitigate climate change.

SEE MORE: Meta’s Bold Bet on Geothermal Energy and Carbon Footprint Reduction

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Study: Fortune 500 Companies Using Carbon Credits Are Reducing Their Emissions Faster

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Companies are key players in achieving global net zero goals by reducing emissions and adopting sustainable practices. With increasing pressure to lower their environmental impact, businesses are setting bold carbon reduction targets with the help of carbon credits, science-based targets, and innovative technologies.

Growth in Net Zero Targets

According to Climate Impact Partners annual report, net zero commitments among Fortune Global 500 companies have grown by 6%. This marks a resurgence after stagnation between 2022 and 2023, where only 2% of growth was recorded. 

Currently, almost half of the Fortune 500 companies have set net zero goals, a significant leap from 2020, when only 8% of companies had such targets.

The Science Based Target Initiative’s (SBTi) Net Zero Standard has gained popularity among companies aiming to make credible net zero claims. However, its stringent requirements present challenges for many. 

RELATED: How Effective Are Carbon Credits in Corporate Net Zero? SBTi Speaks

Notably, only 17% of Fortune Global 500 companies are using the SBTi framework, down from 18% the previous year. This dip suggests that while frameworks are available to guide companies, compliance with these standards can be difficult.

Last year, 15% of companies committed to setting SBTi-aligned net zero targets. Since then, 4% have had their targets approved, while 3% were removed. The rest are still in the process of getting their targets validated, which must be done within 24 months after committing.

About 35% of companies have established near-term Science-Based Targets (SBTs), a figure that has remained flat compared to the previous year. However, regional differences are evident. 

In Europe, the percentage of companies with near-term targets decreased from 64% to 60%, while in North America, the figure rose from 38% to 43%. New SBT commitments from Fortune Global 500 companies in Europe and Asia have been recorded since 2024. Of them, 11 and 6 companies, respectively, commit to these targets.

Carbon Credits in Climate Action Plans

Carbon credits are playing an increasingly central role in climate action plans, per the report findings. Only 2% of companies have explicitly ruled out the use of carbon credits. 

Interestingly, companies that embrace carbon credits are 2x as likely to have near-term Science-Based Targets and 3x as likely to set net zero targets covering their entire value chain.

Contrary to criticism that carbon credits allow companies to delay internal emission reductions, research shows that companies purchasing credits are actually reducing their emissions faster. 

Companies that have already achieved or plan to achieve carbon neutrality by 2030 are nearly twice as likely to have near-term Science-Based commitments.

Carbon Neutrality Progress and Regional Differences

The percentage of companies achieving carbon neutrality or planning to do so by 2030 has remained stable. Currently, 8% of companies are carbon neutral, while 9% aim for neutrality by 2030, and 17% by 2050. 

In total, 34% of companies mention some form of carbon footprint compensation, with terms like “carbon neutral,” “climate neutral,” and “100% offset” frequently used.

There are notable regional differences in carbon neutrality targets as highlighted in the study. North American companies with targets set for 2050 increased from 30% to 32%. Conversely, European companies’ targets decreased from 59% to 51%. 

Despite these targets, companies seem to be toning down their communication around carbon neutrality, with only 7% of companies mentioning their carbon-neutral achievements in their latest sustainability reports. This shift may be in response to rising regulatory scrutiny, particularly in the European Union, where carbon-neutral claims on consumer-facing products may be banned by 2026 as part of the Green Claims Directive.

Challenges in Reducing Scope 3 Emissions

Scope 3 emissions, which account for about 90% of most companies’ total emissions, remain one of the most challenging aspects of corporate climate action. These emissions are typically beyond a company’s direct control, making it difficult to meet value chain reduction targets. 

New initiatives, such as the Voluntary Carbon Markets Integrity Initiative’s (VCMI) Scope 3 Flexibility Claim, have emerged to address these challenges. At the same time, the SBTi is considering revising its Scope 3 abatement rules. However, its recent update clarified that carbon credits cannot be used to meet the 90% Scope 3 reduction requirement.

The debate around Scope 3 emissions has also led to discussions about Beyond Value Chain Mitigation (BVCM), which encourages companies to purchase carbon credits for emissions beyond their immediate control.

The Future of Corporate Climate Action

As corporate climate action evolves, companies are balancing internal reductions with the use of carbon credits to meet both short- and long-term net zero targets. By purchasing carbon credits and taking responsibility for their emissions annually, companies can maintain clearer communication with stakeholders and foster internal buy-in for sustained climate efforts.

However, the increasing regulatory scrutiny, especially in Europe, could force companies to refine their climate messaging and strategies. These companies have to ensure that their actions align with credible frameworks to avoid greenwashing accusations. 

SEE MORE: Climate Clash: SEC’s Climate Disclosure Rule Faces Legal Showdown

The path to net zero remains complex, with regional, regulatory, and operational challenges. But by maintaining transparent and consistent climate action, companies can ensure long-term success in their carbon reduction and sustainability goals.

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The Clean Energy Powerhouses: US Lithium Imports Soar 49% and Argentina’s Copper Ambitions

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As countries ramp up decarbonization efforts, the demand for critical minerals like lithium and copper continues to surge. Recent developments in the U.S. and Argentina, two major players in the critical minerals space, highlight the strategic importance of securing reliable supplies to meet the rising global demand for clean energy solutions.

A MESSAGE FROM Li-FT POWER LTD.

This content was reviewed and approved by Li-FT Power Ltd. and is being disseminated on behalf of CarbonCredits.com.

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A Lithium Boom in Q2 2024 

The US has seen a significant increase in the import of lithium and critical minerals during the second quarter of 2024, according to S&P Global Market Intelligence. These materials are crucial for electric vehicles (EVs) and other clean energy applications. 

Processed lithium materials, including lithium carbonate and lithium hydroxide, rose 8.7% year-over-year, totaling 3,709 metric tons. Moreover, the import of refined lithium compounds, essential for creating cathode materials and electrolyte solutions for batteries, saw a sharp 49.2% rise to 17,122 metric tons.

Chart from S&P Global data

Despite a slowdown in plug-in electric vehicle (PEV) sales this year, the US market continues to grow, with an expected long-term demand for lithium. Alice Yu, a senior metals analyst at S&P Global Commodity Insights, noted that passenger PEVs will account for 88.2% of lithium demand growth from 2023 to 2028. Additionally, government policies worldwide continue to push for the onshoring of PEV supply chains, reflecting strong optimism for the sector.

South American nations, particularly Chile and Argentina, were major suppliers of processed lithium to the US in Q2. Chile, a US free trade agreement (FTA) partner, supplied 61.7% of the total lithium imports, while Argentina accounted for 35%.

RELATED: US Imports of Lithium and Critical Minerals Drop Amidst Shifting EV Market

Argentina lacks an FTA with the U.S. but the two countries signed an agreement to strengthen critical mineral supply chains. Meanwhile Canada, as an FTA partner, supplied 9,588 metric tons of refined lithium compounds, representing 56% of US imports, with China contributing around 28%.

Argentina’s Ambitions: Lithium & Copper Giants in the Making

Argentina is rapidly positioning itself as a major player in the global lithium and copper markets. The South American nation aims to more than double mining exports by $10 billion by 2027. 

Currently, the world’s 4th-largest lithium producer, Argentina holds the world’s largest lithium reserves. It also ranks 8th in copper exploration spending, according to S&P Global Market Intelligence. 

The Argentine government focuses on improving energy infrastructure and road connectivity to enhance metals exports. However, key lithium projects require over $8 billion in investments, while major copper initiatives need about $20 billion. 

In an interview, Luis Lucero, Argentina’s Mining Secretary, emphasized the need for a skilled workforce to manage these large-scale projects.

Argentina’s lithium production is projected to soar from 43,719 metric tons in 2023 to over 261,000 metric tons by 2027. By 2028, the country is expected to surpass Chile as the largest lithium producer in South America, capturing 13.1% of global lithium production, up from 4.4% in 2023.

Lithium mine production in the country hit a record high for the same year. The same goes for its lithium reserves as shown below. 

Alice Yu noted that Argentina’s favorable regulatory environment and investment opportunities attract significant interest from companies worldwide, including those in the US, China, and India.

Why Lithium Demand Isn’t Slowing Down

David Dickson, CEO of Lake Resources NL, a lithium explorer in Argentina, pointed to rising investor interest in lithium assets. For example, in April, CNGR Netherlands New Energy Technology BV acquired the Solaroz project from Lithium Energy. 

Argentina’s competitive mining regulations and lower taxes compared to its neighbors in the Lithium Triangle—Chile and Bolivia—are seen as key advantages for attracting foreign investment. Argentine President Javier Milei has also introduced a tax and customs incentives package to boost the country’s domestic mining sector.

Argentina’s push to ramp up lithium production is further bolstered by recent international agreements. In August, Jose Fernandez, the US undersecretary of state for economic growth, and Argentina’s Diana Mondino signed a memorandum of understanding to strengthen cooperation on critical minerals. This deal reflects Argentina’s growing importance as a key supplier of lithium to global markets.

In the near term, Rio Tinto Group’s Rincon project is expected to be a significant contributor to Argentina’s lithium output. The company’s lithium carbonate plant, with a capacity of 3,000 metric tons of battery-grade product per year, is slated to start operations by the end of 2024. 

Although Rio Tinto’s CEO, Jakob Stausholm, acknowledges risks in Argentina, he expressed optimism about opportunities in Latin America. This view is driven by the region’s robust resources and favorable regulatory environment.

How Argentina Aims to Be a Global Copper Giant

Argentina is also producing a small amount of mined copper and does not export copper ore. However, new projects could change this by 2027. 

Two significant copper projects—Josemaria and Taca Taca—could start operations, with a combined capacity of over 400,000 tons/year. If these projects come online as expected, Argentina could become a major player in global copper markets.

The BHP Group and Lundin Mining are leading the charge in the Latin American nation’s copper exploration efforts. Mike Henry, CEO of BHP, highlighted the country’s potential in an August 27 call, pointing out that Argentina’s proximity to Chile—a global copper powerhouse—makes it an attractive region for copper discoveries.

“This is a rare opportunity to grow our pipeline of long-term copper options by securing access to what we consider to be one of the most significant copper discoveries globally in recent decades.”

As the country continues to develop its lithium and copper resources, Argentina could play a crucial role in meeting the world’s growing demand for clean energy materials. With global interest in these critical minerals rising, the country’s mining sector could become a key driver of international trade.

READ MORE: Lithium Prices Hit New Lows: Can the Market Survive the EV Slowdown and Price Plunge?

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Top Solar Titans and How They Power the Green Energy Transition

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Governments, businesses, and consumers are increasingly seeking sustainable energy sources as climate change concerns grow. While solar and other alternatives can be more costly or complex to produce compared to fossil fuels, they offer the key benefit of a much smaller environmental impact. 

Solar energy continues to make significant strides as a cornerstone of global renewable energy efforts. According to the IEA’s 2023 report, solar photovoltaic (PV) capacity has seen unprecedented growth. It reached over 1,000 gigawatts (GW) globally by the end of 2023. This remarkable expansion underscores solar energy’s pivotal role in decarbonizing the power sector.

In 2023 alone, solar PV installations increased by approximately 200 GW, with China leading the charge as the largest market, contributing nearly 50% of the new capacity. The United States and the European Union also reported substantial growth, reflecting a global shift towards sustainable energy solutions.

Solar companies are currently thriving, thanks to the Inflation Reduction Act of 2022, which allows taxpayers to deduct 30% of solar power costs from their taxes through 2032. Here are the top 3 solar companies that are making names in the industry. 

1. NextEra Energy: Leading the Clean Energy Revolution

Market Capitalization: $151.19 billion
Location: Florida, United States

NextEra Energy, a Florida-based clean energy provider, claims to be the “world’s largest producer of wind and solar energy.” It operates 33 solar projects across the U.S. and boasts over 30,000 net megawatts (MW) of generating capacity in the U.S. and Canada. Specifically, its presence extends to 49 states and four Canadian provinces, as seen below. 

NextEra Energy reported revenues of around $25 billion in 2022, with a market capitalization of over $150 billion, making it one of the most valuable energy companies in the world.

As one of the largest utility companies in the U.S., NextEra is committed to driving the transition to clean energy by developing innovative renewable energy solutions. The company focuses on generating electricity through wind, solar, and nuclear power, positioning itself at the forefront of the renewable energy sector.

NextEra Energy in numbers

NextEra Energy has achieved significant milestones in advancing renewable energy. The company operates more than 72,000 megawatts of generating capacity. A key milestone was becoming the first energy company to reach a $100 billion market capitalization in 2020. 

The company’s subsidiary, NextEra Energy Resources, is leading solar energy projects across the U.S. and beyond, contributing to the company’s growth in clean energy production. It is working on some of the largest solar and battery storage projects in the U.S. These include the Manatee Energy Storage Center, which will be the world’s largest solar-powered battery system.

Investing Billions Toward Its Real Zero Goal

The energy company pledges to reduce its carbon footprint with planned investments of up to $95 billion in solar and wind energy projects. These include the expansion of its solar energy portfolio to over 11,000 megawatts. 

Tackling its own footprint, NextEra’s goal is to achieve a 67% reduction in CO2 emissions from 2005 levels by 2025. Additionally, it plans to eliminate all carbon emissions from its operations by 2045 through innovative projects such as hydrogen energy storage and zero-emission power generation.

Through these ambitious initiatives, NextEra Energy is making substantial progress toward a sustainable energy future.

2. First Solar: Revolutionizing Solar Energy with Innovation 

Market Capitalization: $31.20 billion
Location: Tempe, Arizona

First Solar, headquartered in Tempe, Arizona, is a global leader in solar technology, specializing in the development and manufacturing of solar modules. 

Unlike most companies in the solar industry, First Solar designs and produces thin-film photovoltaic (PV) solar panels. This thin-film semiconductor technology boosts efficiency and sustainability of solar modules, with a total global production capacity of over 8 GW annually. 

These panels are known for their durability, lower carbon footprint, and ability to perform efficiently in extreme conditions. Hence, they are ideal for utility-scale solar projects. They can generate up to 465 watts per module, making them one of the most powerful options in the market.

The Arizona-based company has established itself as a trailblazer in the solar industry, with over 25 gigawatts (GW) of installed solar capacity worldwide. Its expansion aims to increase their annual production capacity to 16 GW by 2025.

The company achieved a major milestone in 2022 by becoming the largest solar manufacturer in the U.S. Moreover, First Solar’s new Series 6 PV module has set industry benchmarks for cost-effectiveness and sustainability, boosting efficiency in large-scale solar installations.

The solar innovator’s modules power some of the world’s largest solar farms, including the Desert Sunlight Solar Farm in California and the Topaz Solar Farm, which have a combined capacity of nearly 1 GW.

Displacing Fossil Fuels for Net Zero

First Solar is deeply committed to sustainability and clean energy. Its thin-film solar panels are manufactured using processes that reduce greenhouse gas emissions by up to 90% compared to conventional solar technologies. Below is the company’s path to net zero by 2050. 

First Solar Net Zero Pathway

The company has taken significant strides in reducing its own carbon footprint by implementing a closed-loop panel recycling process. By doing that, the solar company is reclaiming up to 95% of semiconductor materials and glass. 

First Solar’s investments in research and development are geared toward scaling up renewable energy projects, contributing to global efforts to combat climate change by displacing fossil fuels.

3. SolarBank Corporation: Building a Sustainable Future with Solar

Market Capitalization: $200.54 million
Location: Toronto, Canada

SolarBank Corporation, a fast-growing solar energy developer, focuses on designing, building, and operating solar power projects across North America. The Toronto-based company is actively engaged in renewable energy development, supporting local communities and helping reduce reliance on fossil fuels.

Specializing in utility-scale, commercial, and community solar solutions, SolarBank is dedicated to accelerating the adoption of clean energy by providing efficient and cost-effective solar installations. 

SolarBank has made significant progress in expanding its solar energy portfolio. One notable achievement is the successful development of over 600 MW of solar projects across the U.S. and Canada. This milestone showcases the company’s commitment to increasing the availability of solar energy. 

The solar company has recently expanded its operations into new markets, including New York and Ontario, Canada. Its financial performance also shows how the company is growing exponentially. 

Moreover, SolarBank’s strategic partnerships with local governments and private entities have led to the construction of multiple community solar farms. This initiative allowed residents and businesses to access clean energy without installing individual systems. 

The Canadian company’s rapid growth reflects its ability to deliver high-quality solar projects that contribute to the energy transition. 

Offsetting Carbon Emissions With Solar

SolarBank’s mission centers on reducing carbon emissions by expanding the availability of solar power. Their projects generate clean electricity for homes and businesses, significantly lowering greenhouse gas emissions. 

By displacing conventional energy sources, SolarBank’s installations help offset thousands of tons of CO2 emissions annually. The company also invests in energy storage technologies to optimize solar energy usage, further enhancing its sustainability efforts. 

These companies are contributing to the renewable energy landscape through innovation, investments, and commitment to reducing carbon emissions. 

Solar Energy’s Future is Bright

Looking ahead, the IEA projects that solar energy will continue to grow robustly. By 2028, global solar capacity is expected to nearly double, driven by advancements in technology, falling costs, and supportive policies. This growth will be crucial for achieving climate targets and reducing reliance on fossil fuels.

Moreover, the report highlights the trend of integrating solar with energy storage solutions and grid modernization, enhancing solar power’s reliability and efficiency. As technological innovations and supportive policies continue to evolve, solar energy is poised to play a key role in shaping a sustainable and resilient energy future.

Overall, solar energy is on an upward trajectory, with substantial growth expected in the coming years. Its expanding role will be instrumental in transitioning to a cleaner energy landscape and so the innovations of those companies in making the industry’s future bright. 

The post Top Solar Titans and How They Power the Green Energy Transition appeared first on Carbon Credits.

Li-FT Quadruples Cali Property Through Staking, Boosts Lithium Prospects

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DISCLAIMER: This content was reviewed and approved by Li-FT Power Ltd. and is being disseminated on behalf of CarbonCredits.com.

Li-FT Power Ltd. (LIFT) has quadrupled its land position at the Cali Project in the Northwest Territories, staking an additional 9,681 hectares. This expansion comes after recent amendments to the Sahtú Land Use Plan, allowing LIFT to secure new claims in the area, thereby boosting the project’s overall lithium potential.

New Claims with Spodumene Pegmatites

LIFT’s newly staked land includes outcropping spodumene pegmatites, which extend the Cali dyke swarm.

CEO Francis MacDonald highlighted,

 “Acquiring new areas through staking is the most cost-effective way to increase a company’s land position. The newly staked ground has outcropping spodumene deposits that are continuations of our existing deposits and increase the overall size potential of the Cali Project”.

source: LiFT – https://carboncredits.com/liftpower-lift/

Figure 1: Location of LIFT’s Cali Lithium Project (CLP). The CLP is located in the Mackenzie Mountains along the Northwest Territories–Yukon border. The area is accessible by road and is located ~850 kilometers from rail in Fort Nelson, British Columbia.

source: LiFT

Figure 2 – Location of the newly staked claims to the northwest of LIFT’s existing outcropping lithium pegmatites on the Cali Project.

MUST READ: Global Lithium and Battery Trends: Top Stories You Need to Know! 

Key Acquisition Update

LIFT also announced the termination of its Shorty West Lithium mineral claim agreement with Infinity Stone Ventures Corp, signed on July 17, 2024. Ownership of the claim was transferred to an independent entity, with whom LIFT has since entered a new purchase agreement. The deal, pending TSX approval, involves the issuance of 12,000 common shares, with no finder’s fees involved.

The company has granted 7,544 DSUs to independent directors instead of cash payments. The DSUs, valued at $2.65 per unit, will vest in August 2025. Each unit entitles the holder to one common share, according to LIFT’s Share Incentive Plan.

LIFT’s 2023 Exploration Uncovers Massive Lithium Potential

The lithium miner made major strides in 2023 at its Cali Project in the Little Nahanni Pegmatite Group, home to over 275 rare-element pegmatites. Originally held by CSEL in the 1970s and acquired by LIFT in 1983, the Cali pegmatite remains a critical focus.

A June 2023 field visit confirmed the site’s spodumene pegmatite dyke swarm, concentrated within a 150-meter-wide corridor. By August 2023, LIFT began surface exploration to assess lithium grades across the 300-meter vertical strike and prospect for new dykes.

The summer 2023 exploration, including soil sampling, mapping, and rock sampling, revealed a larger-than-expected dyke system. Out of 163 samples, 124 returned lithium grades above 1.0% Li2O. Subsequently, LIFT started gearing up for drilling to further explore the project’s lithium potential after securing the Land Use Permit.

Li-FT’s Expanding Lithium Footprint Across Canada

Li-FT, a mineral exploration company, is advancing five key projects; all located in the extremely safe and friendly mining jurisdiction of Canada. Their flagship Yellowknife Lithium Project, 100% owned, is located near the capital city in the Northwest Territories.

The company is dedicated to acquiring, exploring, and developing lithium-rich pegmatite deposits. Beyond Yellowknife, Li-FT also manages three early-stage exploration sites in Quebec with strong potential for lithium discovery, along with the Cali Project in the Little Nahanni Pegmatite Group of the Northwest Territories.

All these projects have strong potential for lithium market strategic value and growth.

MUST READ: The Fastest Developing North American Lithium Junior

The post Li-FT Quadruples Cali Property Through Staking, Boosts Lithium Prospects appeared first on Carbon Credits.

Gevo’s $210M Acquisition to Boost Net-Zero Fuel Production

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Gevo, a developer of net-zero hydrocarbon fuels, has inked a deal to acquire Red Trail Energy’s ethanol production plant and carbon capture and sequestration (CCS) assets for $210 million. This strategic purchase aligns with Gevo’s mission to expand its sustainable fuel production capabilities. The move could play a crucial role in making the company’s earnings to be positive by 2025 and produce more renewable fuels.

Strengthening the Path to Net Zero

Gevo seeks to transform renewable energy and biogenic carbon into sustainable fuels and chemicals with a net-zero carbon footprint. Its technology produces various products, including sustainable aviation fuel (SAF), motor fuels, chemicals, and other materials. 

SAF refers to various biofuels and synthetic fuels proposed as jet fuel alternatives. While SAF still produces tailpipe emissions, these are offset by a carbon-negative production process.

The Colorado-based company currently operates one of the largest dairy-based renewable natural gas (RNG) facilities in the U.S. and owns the world’s first alcohol-to-jet (ATJ) fuels and chemicals production facility. Through its Verity subsidiary, Gevo tracks and verifies the carbon footprint of its operations to ensure sustainability.

The acquisition includes Red Trail Energy’s ethanol production and CCS assets, which, when combined with Gevo’s renewable natural gas (RNG) business and other ventures like Verity, are projected to turn Gevo’s earnings positive in 2025. 

Gevo CEO Patrick Gruber remarked on this achievement, saying that:

“This acquisition of Red Trail puts on the path of profitability, we believe, in advance of our Net-Zero 1 project’s commercial operation.”

This purchase marks a significant step for Gevo in boosting its revenue streams and enhancing shareholder value. The integration of carbon abatement with advanced liquid fuel production could strengthen Gevo’s market position in the renewable energy sector.

Expanding Sustainable Aviation Fuel (SAF) Production

Gevo aims to leverage this acquisition to support its Net-Zero 1 SAF project in Lake Preston, South Dakota. The Red Trail Energy facility offers a “Net-Zero” site that will facilitate future production of sustainable aviation fuel (SAF) with a low-carbon footprint. 

The site is strategically located to serve both the U.S. and Canadian markets. It provides Gevo with a wholly-owned CCS asset and additional supply of low-carbon intensity (CI) ethanol.

Gevo plans to use the site’s existing infrastructure to expand into alcohol-to-jet (ATJ) SAF production, capitalizing on the available low-carbon ethanol and defossilized energy. The ethanol plant has a production capacity of 65 million gallons per year. Thus, it strengthens Gevo’s supply chain, enabling the company to meet growing demands for renewable fuels.

According to the International Energy Agency, renewable or biofuel demand will grow by 38 billion liters from 2023 to 2028. That’s almost a 30% increase from the previous five years. 

Global biofuel demand, historical, main and accelerated case, 2016-2028

Chart from IEA

By 2028, total biofuel demand will reach 200 billion liters. Renewable diesel and ethanol will drive ⅔ of this growth, while biodiesel and biojet fuel account for the rest.

RELATED NEWS: Can Biden-Harris Investment Backup Spark a Biofuel Boom in the U.S.?

SAF demand growth is mainly driven by the U.S. and Europe. In the U.S., this is fueled by strong supply-side ambitions and financial incentives. Meanwhile in Europe, proposed mandates for SAF blending at all EU airports are accelerating demand.

Chart from Gevo website

CCS Site: A Game-Changer for Gevo’s Carbon Strategy

One of Gevo acquisition’s key features is the Red Trail Energy’s CCS site. It has been operational since 2022 and currently captures 160,000 metric tons of carbon annually. 

The site has the potential to sequester up to 1 million metric tons per year, offering considerable expansion opportunities for Gevo’s future net zero projects. The CCS facility generates monetizable tax credits under Section 45Q of the tax code, contributing additional revenue streams for Gevo. Currently, the plant uses less than 20% of its capacity, allowing room for future projects. 

Gevo has also enlisted Summit Carbon Solutions to transport CO2 from the Lake Preston plant to another storage site in North Dakota. However, Summit faces challenges in obtaining state permits for its carbon capture and storage hub, which involves multiple biofuel plants across five Midwestern states.

Many carbon capture projects have been stuck for years in the U.S. Environmental Protection Agency’s permitting queue for Class VI wells, used to inject CO2 underground. However, the process is faster in North Dakota, one of only three states authorized by the EPA to manage carbon storage independently.

Situated on 5,800 acres in the Broom Creek formation, the Red Trail Energy site provides ample pore space for long-term carbon storage. This large capacity allows Gevo to produce defossilized energy and steam, essential components for net-zero fuels and chemicals.

The ethanol producer not only sells low-carbon fuel but also generates carbon offsets by growing corn to capture CO2 and then capturing and burying emissions from the refining process.

Clearing the Path to Completion

Gevo expects the acquisition to close by the first quarter of 2025, subject to regulatory approvals and approval from Red Trail Energy’s equity holders. To finance the transaction, the company plans to use a mix of asset-level debt and cash from its balance sheet. 

Most recently, the American renewables company announced that the U.S. Patent and Trademark Office has granted a patent for its ethanol-to-olefins (ETO) process. This patent strengthens Gevo’s position as a leader in intellectual property for bio-based renewable fuel and chemical production from alcohols.

This milestone is vital for the company’s mission to make the transition from fossil-based to renewable fuels and chemicals practical. The ETO process technology covered by this patent represents a significant improvement in capital cost and energy efficiency for producing biofuels like SAF.

FURTHER READING: Google Signs Up Shell’s SAF Program to Cut Business Travel Emissions

Acquiring Red Trail Energy is a critical step in Gevo’s strategy to expand its renewable fuel portfolio, providing both immediate financial benefits and long-term growth potential in the low-carbon energy market.

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