BHP reported strong financial results for the half-year ending December 31, 2024. Demand for copper is rising due to renewables and electric vehicles (EVs). Thus, the company is focused on boosting copper production. Notably, BHP aims for sustainable mining that balances growth with environmental care and low emissions.
BHP Reports Strong Half-Year Financial Results
The financial report showcased strong margins and steady cash flow led to an interim dividend of 50 US cents per share, totaling $2.5 billion.
BHP Chief Executive Officer, Mike Henry explained,
“BHP reported a strong financial performance for the half-year, underpinned by safe and reliable operations and rigorous cost control. The Group’s industry-leading margins and robust cash flow enabled the Board to determine an interim dividend of 50 US cents per share – a total of US$2.5 billion. The strength of the result demonstrates BHP’s operational resilience and its ability to perform through the cycle, with standout production performances in the half from Escondida, WAIO and BMA. WAIO has maintained its lead as the lowest-cost iron ore producer globally, a testament to our ongoing work to drive productivity at our operations.”
Production Performance:Escondida, Western Australia Iron Ore (WAIO), and BHP Mitsubishi Alliance (BMA) achieved high outputs. WAIO remains the world’s lowest-cost iron ore producer.
Growth Investments: BHP invested $3.2 billion in potash and copper. It completed a $2.0 billion joint venture with Lundin Mining in Argentina.
Financial Strength: Attributable profit reached $4.4 billion. Copper production rose by 10%. Revenue dropped by $2.0 billion due to lower iron ore and steelmaking coal prices.
Capital and Exploration: Total spending reached $5.2 billion. This aimed at potash and copper for medium-term growth.
Source: BHP
Market Outlook
Global commodity demand is strong despite economic uncertainties. China shows early signs of recovery, while the US and India continue to drive growth. BHP expects demand to grow due to several factors. These include population growth, urbanization, and the energy transition. Also, more AI and data center projects will boost demand for copper.
Global seaborne demand for iron ore fell slightly. China’s steel production stayed steady due to infrastructure and energy projects. This increased supply has raised stocks at Chinese ports.
Commodity Analysis
Copper
Production increased by 10% to 987 kt. The mean achieved rates rose by 9%. The market is tight due to supply issues. BHP expects annual copper demand to grow from 32 Mtpa to over 50 Mtpa by 2050. This growth is driven by infrastructure, renewable energy, and digital expansion.
Attractive internal options to grow in copper for value: organic projects benchmark well vs. current market valuations of listed copper producers
Source: BHP
Iron Ore
Produced 131 Mt of while WAIO’s output remained strong at 128 Mt. The company retains its position as the lowest-cost major producer. Developing regions that are increasing steel production will drive long-term demand, requiring more investment to maintain supply.
BHP focuses on disciplined capital allocation and sustainable growth. Capital expenditure is set at $10 billion for FY25, rising to $11 billion annually in the medium term. Key growth projects include Jansen, Escondida, Copper South Australia, and WAIO.
Capital spent by commodity: Increasing growth spend with continued flexibility to adjust spend for value
Source: BHP
BHP’s Roadmap to Cutting Carbon Emissions and Achieving Net Zero
The company has always aimed for better efficiency and invests in important commodities for the future. It also aims to cut greenhouse gas (GHG) emissions and has a clear strategy forward. Let’s see what its sustainability report reveals about its net zero plans.
Emissions Reductions
Aims to cut Scopes 1 and 2 GHG emissions by at least 30% by 2030 from the 2020 baseline and become net zero by 2050.
In 2024, operational emissions dropped by 32%, reaching 9.2 MtCO₂-e from the 2020 baseline. However, Scope 3 emissions, mainly from customer product use, were 377.0 MtCO₂-e.
Source: BHP
Non-Reliance on Carbon Credits
BHP has a clear plan to cut emissions by 2030. They aim for real reductions instead of relying on carbon credits. The company commits to reducing operational GHG emissions through direct actions. Voluntary credits may be used for unexpected shortfalls.
They prioritize low-carbon infrastructure to cut emissions like new facilities and projects with cleaner technologies. The company also reviews acquisitions for their environmental impact, ensuring they stay on track with carbon reduction goals and long-term sustainability plans. Furthermore, they have a strict carbon budget for emissions reductions.
Roadmap to Net Zero by 2050
Beyond 2030, BHP’s net zero strategy includes:
Electrifying Mining Equipment: Diesel-powered vehicles will be replaced with electric alternatives.
Expanding Renewable Energy: The company plans to switch all grid-connected sites to 100% renewable electricity by FY2030, if possible.
Cutting Methane Emissions: This involves better monitoring and new gas drainage tech for coal mines.
Addressing Scope 3 Emissions
BHP knows that Scope 3 emissions come from suppliers and customers. This makes them harder to manage. However, the company works with partners to reduce these emissions. In steelmaking, BHP supports technologies that lower carbon output. It encourages suppliers to follow net zero plans.
BHP supports cleaner shipping options. This includes using fuels with lower GHG emissions and enhancing vessel efficiency. These steps help lower transport emissions. The goal is to create a more sustainable industry.
Source BHP
Advancing Carbon Capture in Steel Production
A major step toward reducing steel industry emissions is the installation of a carbon capture unit at the Ghent blast furnace. In collaboration with ArcelorMittal, Mitsubishi Heavy Industries, and Mitsubishi Development, this initiative marks progress toward carbon-free steel production.
BHP aims to lead in sustainable mining. It sets clear targets, invests wisely, and forms industry partnerships. Additionally, they are prepared to face market challenges and promote long-term growth in a low-carbon future.
https://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.png00carbonfundhttps://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.pngcarbonfund2025-02-19 11:04:032025-02-19 11:04:03BHP Bets on Copper Boom for Profits, Also Cuts Emissions
As climate change intensifies, nations and industries are seeking innovative ways to cut carbon footprints. Carbon credits have emerged as a key tool in this effort. Planting new trees also generates carbon credits. Apart from this, trees reduce carbon dioxide, restore ecosystems and biodiversity, and combat desertification.
MIT’s Climate Portal studied that in 2021, the U.S. released 5.6 billion tons of CO2. To absorb that, over 30 million hectares of trees—about the size of New Mexico are need. It estimated:
A hectare of trees can absorb 50 tons of carbon, which equals about 180 tons of CO2 in the atmosphere.
But not all trees are the same. Some forests store as little as 10 tons of carbon per hectare, while others store over 1,000. So, planting trees to offset emissions or generate carbon credits is more complicated than it seems.
In this article, we will discuss everything you need to know about planting trees for carbon credits. Let’s study in depth.
How Carbon Credits Are Generated Through Tree Planting
Carbon credits help balance or offset emissions by funding projects that reduce or remove greenhouse gases. Each credit equals one metric ton of CO₂ either captured or avoided.
Tree planting is a popular way to generate carbon credits. When trees are grown specifically to absorb carbon, the project can be certified, and the credits can be sold. Companies and individuals buy these credits to offset their emissions, support sustainability goals, or meet regulations.
This system creates a financial incentive for reforestation, encouraging tree planting worldwide. Beyond carbon storage, forests also clean the air, protect the soil, support wildlife, and regulate water cycles. These extra benefits make tree-based carbon credits even more valuable for the environment and communities.
How Trees Absorb Carbon: The Science of Sequestration
Trees absorb and store carbon through photosynthesis. They take in carbon dioxide, use sunlight for energy, and store that energy as carbohydrates in their trunks, branches, leaves, and roots. As they grow, they lock away more carbon in their biomass.
Mature forests hold large amounts of carbon, but young forests absorb it more quickly as they grow. That’s why afforestation projects often plant fast-growing species to maximize carbon capture in the early years.
Source: weatherintelligence.global
Trees also help store carbon in the soil. Their roots improve soil health, increasing organic matter and trapping even more carbon. This combination of tree growth and soil storage makes afforestation a powerful way to fight climate change.
In the first ten years, trees grow quickly and absorb a lot of CO₂. Young trees need plenty of energy to develop strong roots, trunks, and branches. This early growth stage is crucial for their health and long-term strength.
Image adapted from and used courtesy of N. Scott and M. Ernst, Woods Hole Research Center, whrc.org Source: U.S. Department of Energy Office of Biological and Environmental Research
Afforestation vs. Reforestation: What’s the Difference?
While afforestation and reforestation both involve planting trees, they address different environmental challenges and have distinct definitions:
Afforestation
Afforestation means planting forests in areas that have never had them. This process creates new ecosystems, often in degraded or dry lands. These projects work well in places where desertification or land damage has left the land barren. By adding trees, afforestation boosts land productivity and offers new homes for wildlife.
Reforestation
Reforestation is about restoring forests that have been cut down or damaged. This process aims to bring back the ecological balance in areas that once had forests. These areas may have lost trees due to logging, farming, or urban growth. Reforestation projects help rebuild ecosystems, enhance biodiversity, and reduce the impact of deforestation.
Afforestation and reforestation help with carbon sequestration. Afforestation is special because it increases global forest cover in new areas. Reforestation focuses on recovery and restoration, tackling the damage from deforestation.
Carbon credits are generated from afforestation and reforestation projects. These projects track how much CO2 the new trees absorb. Strict monitoring and verification confirm these claims. Once verified, the sequestered carbon turns into carbon credits, which can be sold in carbon markets.
The Role of Afforestation in Carbon Credits Market
Afforestation is vital for the carbon credit market. Tree-planting projects in barren areas capture carbon effectively. Independent organizations verify and certify this process.
Companies buy certified credits to offset their emissions. The revenue from these credits supports more afforestation projects. This creates a self-sustaining cycle that benefits both the environment and project developers.
Afforestation projects align with global climate goals, such as the Paris Agreement. These goals emphasize nature-based solutions for net-zero emissions. By increasing forest cover, countries can meet their NDCs and promote global carbon neutrality.
Challenges and Opportunities of Reducing CO2 Emissions with Trees
Afforestation has many benefits, but it also has challenges. Ensuring the long-term survival of planted forests is crucial, as trees take decades to mature and require consistent care. Poor site selection, lack of maintenance, and climate change can hinder the success of these projects.
An MIT Report revealed that while planting trees could reduce CO2 emissions in about 10 years, deforestation continues at a rapid pace. It also highlighted that from 2015 to 2020, around 10 million hectares of forest were lost each year, with only 4 million hectares being restored.
This is because land is often used for farming, livestock, and mining, making it expensive to plant trees. As a result, not enough trees were planted to significantly reduce CO2 emissions.
Choosing the right tree species is important. Planting non-native or fast-growing trees can harm local ecosystems and reduce biodiversity. To get the best environmental results, afforestation projects should use native species. They should also follow sustainable practices.
Despite these challenges, tree planting projects offer great opportunities:
New technology like remote sensing and AI makes tracking carbon storage more accurate and transparent.
Partnerships between governments, businesses, and local communities help expand and sustain afforestation efforts.
Financial incentives support large-scale tree planting, balancing economic growth with environmental benefits.
To combat rising CO2 emissions, afforestation and reforestation both offer solutions. However, we need to carefully consider where and how to plant trees to make a real difference in reducing CO2 levels.
The United Nations Strategic Plan for Forests
The United Nations Strategic Plan for Forests 2017–2030 was agreed upon in January 2017 and adopted by the UN in April 2017. It sets out six Global Forest Goals and 26 targets to be achieved by 2030.
The plan aims to increase global forest area by 3%, adding 120 million hectares—over twice the size of France. It emphasizes the need for collective action within and outside the UN System to drive meaningful change and support sustainable forest management.
Calculating the Value of a Tree in Carbon Credits
The carbon sequestration capacity of a tree depends on factors such as species, age, growth conditions, and geographic location.
Accurately quantifying this capacity is essential for determining the corresponding carbon credits. Recent research has focused on developing methodologies to estimate CO₂ absorption by urban tree planting projects.
Scientists have also developed formulas to measure carbon absorption from urban greening projects. This shows that carbon credits are needed to support these initiatives for improved environmental results.
The Tree Carbon Calculator uses a formula that estimates the amount of carbon stored in a tree based on its diameter at breast height (DBH), species, and growth conditions. Here’s a simple technique snapshot for calculation.
Source: Treeier
Funding and Investment: Who Pays for Tree Planting?
Funding for tree planting initiatives comes from various sources, including government programs, private investments, non-governmental organizations, and carbon markets. The voluntary carbon market has seen substantial growth, driven by corporate commitments to sustainability.
In 2021, the market was valued at $2 billion, with projections suggesting it could reach $100 billion by 2030 and $250 billion by 2050.
Companies are increasingly investing in reforestation projects to offset their emissions. For instance, in early 2025, Microsoft announced a significant deal to restore parts of the Brazilian Amazon and Atlantic forests by purchasing 3.5 million carbon credits over 25 years from Re.green, a Brazilian start-up. This initiative, valued at approximately $200 million, is part of Microsoft’s strategy to become carbon-negative by 2030.
Market Trends: The Demand for Carbon Credits from Tree Planting
The demand for carbon credits from tree planting is growing as more companies and governments focus on tackling climate change.
Last year a study from Nature.com found that well-planned reforestation projects could remove up to ten times more carbon at a lower cost than previously thought.
Projects costing less than $20 per ton of CO₂ are considered affordable, making them an attractive option for businesses looking to offset emissions.
However, not all forest carbon offsets are reliable. Research shows that many projects fail to deliver the promised carbon removal, raising concerns about credibility.
Tree planting has strong economic potential, but success depends on accurate carbon valuation, diverse funding, and a solid understanding of the market. Ensuring strict monitoring and verification is key to maintaining trust and maximizing both environmental and financial benefits.
Cost of Planting Trees for CO2 Removal
The same MIT study further revealed how much it costs to remove CO2 by planting trees, considering South America as a case study. They created a “supply curve” to show the cost of removing one ton of CO2 based on how many trees are planted.
This helps us figure out the best places to plant trees, how many we can plant, and the cost involved.
Point A (South America): Lowest cost: $23 per ton. Plentiful rainfall, low tree planting, and land opportunity costs
Point B (Amazon Forest, Para, Brazil): Cost: $30 per ton. Plentiful rainfall, but higher tree planting costs
Point C (Amazon Forest, Mato Grosso, Brazil): Cost: $40 per ton. Higher land opportunity costs
Point D (Brazilian Cerrado): Highest cost: $90 per ton. Lower forestation potential, higher land opportunity costs
Key takeaway: Regional variations in forestation costs are significant, with costs rising as land opportunity and forestation potential decrease.
Practical Guide to Starting a Carbon Credit Tree Planting Project
Embarking on a carbon credit tree planting project involves careful planning, adherence to legal frameworks, and consideration of social and environmental impacts. This guide provides a comprehensive overview to assist in successfully initiating such a project.
Choosing the Right Location: Soil, Climate, and Biodiversity Considerations
Choosing the right site is key to a successful tree-planting project. The soil should be fertile and well-drained to support healthy growth. Climate factors like temperature and rainfall need to match the trees’ needs. Plus, choosing native species helps maintain biodiversity, keeping the ecosystem balanced and connected.
Selecting Tree Species for Maximum Carbon Sequestration
Choosing the right tree species is crucial for carbon storage. Fast-growing trees, like poplars and willows, absorb carbon quickly, while hardwoods, such as oaks and maples, store it longer. Additionally, selecting native species helps ensure resilience and sustainability. A diverse mix not only improves soil health but also supports wildlife habitats, making the ecosystem stronger.
Long-Term Maintenance and Monitoring of Tree Planting Projects
Keeping a tree planting project successful takes ongoing care and monitoring. Regular tasks like watering, mulching, pruning, and pest control keep trees healthy. Tracking growth and survival rates helps measure carbon storage. A strong monitoring plan ensures the project meets its goals and provides reliable data for verification.
Legal and Certification Framework for Tree-Based Carbon Credits
Navigating Through Carbon Credit Certification Processes
Getting certified for tree carbon credits requires recognition from the following standards. The Verified Carbon Standard (VCS) by Verra is the most widely used, providing frameworks for validation and verification. Verra’s VCS Program supports carbon reduction in Agriculture, Forestry, and Other Land Use (AFOLU), which includes:
Afforestation, Reforestation, and Revegetation (ARR)
Avoided Conversion of Grasslands and Shrublands (ACoGS)
Wetlands Restoration and Conservation (WRC)
Other reliable international carbon credit standards include The Gold Standard, The Climate Action Reserve, and The American Carbon Registry.
The certification process involves documenting the project, validating it with an auditor, and verifying carbon sequestration. This ensures the carbon credits are credible and marketable.
Current trends in forest-based carbon offset markets
Source: Frontiers
The upper panel shows the breakdown of credits issued by project type for forest and non-forest carbon offset projects.
The lower panel shows the trend in IFM credit issuances by program/registry.
Understanding International Standards and Compliance
International standards, like the International Carbon Reduction and Offset Alliance (ICROA), support community-based reforestation and conservation projects that offer both social and environmental benefits.
Projects must show they are sustainable, can measure carbon capture, and provide benefits to local communities to meet these standards. They should also help improve biodiversity. This increases a project’s credibility and opens doors to global carbon markets
The Role of Third-Party Verification in Carbon Credit Projects
Third-party verification ensures carbon credit projects are credible and transparent. Independent verifiers check if projects meet the required standards, confirm carbon storage claims, and make sure social and environmental protections are in place.
This process builds trust with stakeholders and buyers, proving that the credits reflect real emission reductions.
Social and Environmental Impacts of Tree Planting Projects
Community Engagement and Local Benefits
Involving local communities in tree-planting projects helps them succeed. When locals help plan and carry out the work, they get job opportunities and improve their lives. These projects also raise environmental awareness. By focusing on local involvement, projects create a sense of ownership, build stronger communities, and last longer.
Biodiversity and Ecosystem Advantages
Afforestation helps capture carbon and improves biodiversity. New forests provide homes for animals and increase species variety. They also fix damaged ecosystems. Other benefits include cleaner water, better soils, and natural services like pollination and climate control. Focusing on healthy ecosystems boosts these benefits.
Addressing Potential Risks and Criticisms of Tree-Based Carbon Credits
Tree-based carbon credits face challenges. These include permanence, additionality, and social impacts. To store carbon long-term, we must protect forests from deforestation and disasters. Additionality means proving the project wouldn’t occur without carbon credit funding.
Therefore, social issues like displacement and unfair land use should be addressed to benefit the local communities. Notably, transparency and best practices help build trust and credibility.
Starting a carbon credit tree planting project needs careful planning concerning ecological, legal, and social factors. As these projects help combat climate change they follow specific guidelines and involve stakeholders. Additionally, they offer lasting benefits for the environment and local communities.
Future Outlook and Trends in Tree Planting for Carbon Credits
Technological Advancements in Monitoring Tree Growth and Carbon Sequestration
New technologies like satellite imagery and AI-powered tools are transforming how tree growth and carbon capture are tracked. These innovations improve accuracy, lower costs, and enhance transparency, making it easier to verify carbon credits.
For example: Planet Labs PBC a leading provider of global, daily satellite imagery and geospatial solutions announced that they have signed a multi-year, seven-figure deal with Laconic, a company leading a global shift in climate finance, empowering governments to monetize natural carbon assets through its Sovereign Carbon securitization platform.
In this deal, Laconic can use Planet’s 3-meter Forest Carbon Monitoring product and 30-meter Forest Carbon product for the next three years.
The Evolving Market: Predictions for Tree-Based Carbon Credits
As companies and governments push toward net-zero goals, demand for carbon credits is expected to rise. Tree-based credits will stay in demand due to their added ecological and social benefits. However, stricter regulations and increased scrutiny will require stronger verification standards.
LATEST DEVELOPMENTS:
Companies like Microsoft and Meta are investing in forest carbon credits to reach their sustainability goals. Some recent developments include:
The Role of Policy Changes in Shaping the Future of Carbon Credits
Government policies and international agreements will play a major role in shaping the future of tree-based carbon credits. Incentives like subsidies and tax breaks will encourage reforestation, while stricter regulations will ensure higher credibility in carbon credit markets.
For example, by the end of 2024, REDD+ forest reference emission level/forest reference level submissions cover approximately 1.7 billion hectares. This is over 90% of tropical forests and more than 75% of forests in developing countries. The submissions feature different ecosystems. These include Mongolia’s boreal forests, Malawi’s dry forests, and tropical rainforests.
For over 10 years, the UN Climate Change Secretariat has assessed REDD+ activities. So far, 63 developing countries have reported their efforts. Because of these activities, 23 countries have cut nearly 14 billion tons of CO2. That’s about 2.5 times the total greenhouse gas emissions of the U.S. in 2022. These countries are now eligible for results-based finance.
Tree Planting for Carbon Credits: Key Takeaways & Conclusion
Key Takeaways
How It Works: Carbon credits offset emissions (1 ton CO₂ per credit); trees absorb CO₂, storing it in trunks, roots, and soil.
Afforestation vs. Reforestation: Afforestation involves planting trees in non-forested areas, while reforestation restores lost forests; both generate carbon credits.
Market & Investment: The voluntary carbon market was $2B in 2021 and is projected to reach $100B by 2030; Microsoft committed $200M for Amazon reforestation by 2025.
Challenges & Opportunities: Challenges include deforestation risks, climate change, and verification issues, while opportunities lie in AI monitoring, corporate funding, and government incentives.
Project Essentials: Success depends on site and tree selection, certification (e.g., Verified Carbon Standard), and ongoing maintenance.
Future Trends: AI & satellites enhance tracking, stricter verification boosts trust, and corporate demand for high-quality carbon credits rises.
Conclusion
Tree planting for carbon credits offers a dual advantage: combating climate change and fostering environmental and social benefits. Adhering to certification standards, leveraging technological advancements, and engaging communities ensure project success and credibility.
As market demand grows and policies evolve, tree-based carbon credits will play a vital role in global decarbonization efforts. By addressing potential risks and embracing innovation, these projects can deliver impactful and lasting contributions to the planet’s future.
https://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.png00carbonfundhttps://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.pngcarbonfund2025-02-19 11:04:032025-02-19 11:04:03Planting Trees for Carbon Credits: Everything You Need to Know
Gevo and Axens are joining forces to speed up the development of Sustainable Aviation Fuel (SAF) using the ethanol-to-jet (ETJ) pathway. This partnership aims to improve efficiency, reduce costs, and lower risks by leveraging Axens’ Jetanol™ technology.
They are also enhancing Gevo’s patented ethanol-to-olefins (ETO) technology. This technology converts ethanol into light olefins, which are key ingredients for fuels and chemicals.
Dr. Pat Gruber, Chief Executive Officer of Gevo
“We believe that continuing to reduce production costs and capital costs for drop-in hydrocarbon fuels and chemicals has the potential to create large numbers of jobs, spur rural economic development, and create clear, market-based incentives for regenerative agriculture. It adds up to a practical approach for increased energy production and better energy security. This is a real way forward: it drives costs lower, uses the same, established fuel infrastructure, has proven and auditable improvements in sustainability, including how land is used, and offers large benefits to our society, and, in particular, strengthens our rural communities. We see this can be done, and we are pursuing it. It’s the right thing to do.”
Gevo’s Breakthrough in Ethanol-to-Olefins (ETO)
Last September, the U.S. Patent and Trademark Office granted Gevo a patent (U.S. Patent No. 12,043,587 B2) for its ETO process. This patent boosts Gevo’s role in renewable fuels. It protects their advanced catalyst technology that turns ethanol into olefins efficiently.
Gevo and LG Chem have teamed up to scale this process for chemical use. They aim to optimize the technology for commercial purposes. This will create a sustainable alternative to traditional petrochemical olefins.
How the ETO Process Works
Gevo’s ETO process turns ethanol into light olefins. These are key building blocks for fuels and chemicals. Traditional methods first make ethylene. Then, they need extra steps to produce three- and four-carbon olefins like propylene and butenes.
The purpose is to simplify fuel production by making the larger olefins directly from ethanol in a single step. These olefins can then be converted into transportation fuels using proven refining methods.
This innovation improves efficiency, reduces energy use, and lowers costs. Most importantly, it helps achieve zero or even negative carbon emissions, making biofuels more sustainable.
Paving the Way for a Low-Carbon Future
Gevo is committed to cutting carbon emissions through renewable fuels and chemicals. The company operates one of the largest dairy-based renewable natural gas facilities in the U.S. and an ethanol plant equipped with carbon capture technology. It also owns the first production site for specialty alcohol-to-jet fuels.
Gevo’s SAF Technology
Source: Gevo
Through its Verity subsidiary, Gevo ensures transparency in sustainability tracking. As global jet fuel demand continues to rise, SAF offers a major opportunity to cut emissions and build a cleaner future.
Axens has introduced Jetanol™, a cutting-edge Alcohol-to-Jet (ATJ) technology, to accelerate SAF production. With a project pipeline approaching 3 million tons (1 billion gallons) per year, this innovation helps fuel producers transition to cleaner, low-carbon energy.
Quentin Debuisschert, CEO of Axens noted,
“The immense potential for both our companies to lead the future of air-travel decarbonization is an obvious way forward. The combination of Gevo market know-how and capacity of project development with Axens’ best-in-class technology, Jetanol™, is expected to allow a fast acceptance and adoption of the ETJ Pathway. The future ETO technology commercialization will keep Axens and Gevo on the cutting edge of the ETJ pathway by offering end-users and project developers the possibility to select the most attractive technology for their situation.”
Jetanol™
Global Partnerships to Scale SAF
Axens has partnered with Gevo since 2021 through the Strategic ETJ Alliance. Together, they are advancing SAF production with Gevo’s net-zero technology to cut emissions and Verity Tracking for accurate carbon accounting
This collaboration strengthens the supply chain for low-carbon aviation fuels, bringing the industry closer to its decarbonization goals.
A Game-Changer for the Aviation Industry
Airlines are under pressure to cut emissions and reduce dependence on fossil fuels. Axens is addressing this with SAF technology that turns diverse biomass feedstocks into jet fuel, including:
Renewable oils and fats
Agricultural and forestry waste
Energy crops and woody biomass
First- and second-generation ethanol and bio-olefins
Jetanol™ converts ethanol or iso-butanol into SAF, offering a scalable alternative to fossil-based jet fuel. It is already used in five major projects, producing over 1.4 million tons (460 million gallons) annually.
Axens is expanding Jetanol™ globally through strategic partnerships, backed by expert engineers and advanced manufacturing. This ensures smooth implementation and long-term support.
By making SAF more accessible and cost-effective the company is helping the aviation industry move toward a cleaner future.
2030 Climate Strategy
Axens plans to reduce its Scope 1 and 2 emissions by 30% from 2019 levels by 2030. The goal is to remove 87.4 thousand tons of CO2 equivalent. The company is investing in cleaner technologies and improving operations for a sustainable future.
Check out its long-term climate goals below.
Source: Axens
The press release further highlights that Gevo, Axens, and IFPEN are working together to commercialize Gevo’s ETO process. Gevo is leading deployment in North America, bringing economic benefits to rural communities.
Axens will help with global commercialization by offering licensing, catalysts, and engineering services. This support ensures the widespread use of this innovative technology. All in all, this partnership will hugely boost sustainable aviation fuels and decarbonize the aviation sector at large.
https://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.png00carbonfundhttps://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.pngcarbonfund2025-02-19 09:11:192025-02-19 09:11:19Gevo and Axens Boost SAF with Innovative Ethanol-to-Jet Technology
Sylvera, a carbon data company in London, has teamed up with BlueLayer, a digital infrastructure provider. Their groundbreaking partnership seeks to change the carbon credit market. The partnership brings the first live carbon project and inventory data set. This aims to improve transparency, efficiency, and market access.
The initiative seeks to close the gap between supply and demand. It will also direct billions to finance essential carbon credit projects.
Bridging the Gap Between Carbon Credit Buyers and Suppliers
Projections show that the carbon credit market will grow tremendously. By 2030, it could grow to $7–$35 billion, according to MSCI. Several factors are driving this expansion.
Demand for carbon removal credits is rising. Many view them as more credible, even though they cost more. Companies with ambitious climate goals for 2030 will likely rely on carbon credits to offset emissions. Buyers now focus on high-quality credits. They prefer projects with strong standards and clear transparency.
Looking further ahead, MSCI projects the market could reach $45–$250 billion by 2050. This growth will be driven by urgent corporate demand, as many companies approach their net-zero deadlines.
The market will also shift toward removal credits, which could make up two-thirds of its value. These trends highlight the increasing importance of carbon credits in global climate strategies.
However, carbon market have long been hindered by inefficiencies and lack of transparency. Buyers face challenges in finding high-quality credits that align with their sustainability goals. Project developers face slow processes when responding to buyer requests and getting funding.
Sylvera and BlueLayer’s partnership tackles these problems. It streamlines data exchange and boosts market access for buyers and developers.
This partnership uses BlueLayer’s digital tools and Sylvera’s carbon ratings skills. Project developers can show their carbon projects to buyers. Buyers also get real-time access to inventory, pricing, and project details. This helps them make better procurement decisions.
This is all done in a standard format for verified buyers. Buyers get real-time data with Sylvera’s Connect to Supply solution. This tool helps them easily evaluate and buy quality carbon credits.
Source: Sylvera Connect to Supply platform
What are the Advantages for Project Developers?
This initiative helps project developers make money while keeping control of their data. By joining BlueLayer, developers connect with a large buyer network looking for quality credits. Some of the core benefits include:
Increased Visibility: Developers can connect with a wide range of buyers, boosting carbon credit sales for both pipeline and issuing projects.
Simplified Data Management: The platform lets developers manage carbon operations in one spot. This makes it easy to share data with potential buyers.
Efficiency in Data Exchange: Using standardized templates and automation speeds up responses to buyer requests. This reduces manual work in sales and due diligence.
Data Control: Developers choose what info to share, who to share it with, and when. This keeps their project data private and helps transactions go more smoothly.
How Do Buyers Benefit from It?
Buyers in the carbon credit market struggle to find reliable project information. But with Sylvera and BlueLayer’s partnership, they can now access real-time data. This includes key details from more than 200 developers. They focus on projects that reduce carbon through nature-based and engineering efforts.
The key advantages for buyers include:
Real-Time Data Access: Live inventory, pricing, and project details let buyers decide quickly and wisely.
Expanded Project Opportunities: Buyers can source credits from pre-issuance and issued projects. This gives them a wider range of investment options.
Trusted Due Diligence: Sylvera’s carbon ratings and monitoring tools help buyers check project quality. This way, they can reduce risks before buying.
Unlocking Billions for Real Climate Action
The partnership aims to unlock more than $2 billion for carbon projects. Already, over 80 projects have been introduced to buyers. These projects cover a total demand of 4 million carbon credits.
The collaboration aims to boost market liquidity. It will also drive more investment in climate solutions and speed up progress toward global net-zero targets.
BlueLayer Co-founder and CEO Alexander Argyros provides exclusive insights on this significant market development, highlighting these key points:
Solving Industry Challenges with Innovation
Argyros pointed out that the carbon market has great potential. However, it is held back by slow, manual processes. Developers have a hard time reaching buyers. Buyers, in turn, don’t have the data they need to invest confidently.
In fact, verification delays could cost project developers up to $2.6 billion, per a report by Thallo. These delays may also prevent the deployment of 4.8 gigatonnes of carbon credits by 2030. This shortfall is equivalent to not offsetting the annual emissions of 37 million U.S. citizens by the end of the decade.
Argyros notably commented that:
“This partnership is providing much-needed digital infrastructure, powered by BlueLayer’s API, for both suppliers and buyers, creating a faster, more connected, and more efficient market. Together, we’re leading the way when it comes to data standardisation and technology inoperability, enabling a seamless exchange of information to match buyers with high-quality project developers able to meet their specific investment criteria.”
Driving Market Growth and Investment
With over $2 billion in potential capital mobilization, Argyros emphasized BlueLayer’s role in shaping the future of carbon credit trading. As the first end-to-end operating platform for project developers, BlueLayer provides the necessary tools to scale businesses, maximize revenues, and streamline certification.
A snapshot of BlueLayer’s platform
The partnership with Sylvera boosts visibility by connecting developers to a large buyer network. This way, their high-quality projects get the investments they need to grow.
Ensuring Data Security and Transparency
Transparency and trust are critical to the success of carbon markets. According to Argyros, BlueLayer’s platform standardizes data while maintaining security and auditability through an end-to-end ledger system.
With this, developers keep full control of their information. This ensures data integrity and helps buyers make informed and confident decisions.
Echoing Argyros points, Sylvera’s Co-founder and CEO Allister Furey noted:
“A successful global carbon market demands high-quality data to ensure that every credit traded reflects a real, measurable reduction in emissions. Partnering with Bluelayer enables us to remove barriers, simplify processes, and facilitate stronger connections between buyers and developers – on the foundation of end-to-end carbon data. It’s another big step in driving meaningful climate action and real progress as we continue to mature these markets.”
A New Era for Carbon Markets
The Sylvera-BlueLayer partnership sets a new standard for carbon market efficiency. It aims to speed up the shift to a clearer, larger, and better carbon credit market. A market that supports real climate action while making carbon trading more accessible and reliable for all stakeholders.
https://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.png00carbonfundhttps://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.pngcarbonfund2025-02-19 09:11:192025-02-19 09:11:19Sylvera and BlueLayer Launch World’s First Live Carbon Data to Unlock $2B Investment
The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising, can we scale Carbon Dioxide Removal (CDR) fast enough to make a real impact?
What Is CDR? Understanding Carbon Dioxide Removal Credits
Carbon dioxide removal includes technologies and natural methods that capture and store CO₂ from the air. CDR is crucial for achieving global climate goals, as reducing emissions alone is not enough to limit global warming.
The Intergovernmental Panel on Climate Change (IPCC) says that to keep global warming under 1.5°C, we need to remove 5–16 billion metric tons of CO₂ each year by 2050.
CDR credits let companies and governments balance their emissions. They do this by funding projects that actively remove CO₂. CDR credits are different from traditional carbon offsets.
While carbon offsets aim to reduce or avoid emissions, like stopping deforestation, CDR credits guarantee that CO₂ is pulled out of the air and stored for a long time. The voluntary carbon market (VCM) is expected to grow from $2 billion in 2023 to over $50 billion by 2030, with CDR credits playing a significant role.
How Does CDR Work? The Science Behind Carbon Removal
CDR captures CO₂ from the air. It then stores it permanently in geological formations, biomass, or other stable places. There are two main types of CDR methods:
Natural CDR: Includes afforestation, soil carbon sequestration, and ocean-based methods.
Technological CDR: Includes Direct Air Capture (DAC), biochar, and enhanced mineralization.
Permanence is key in carbon dioxide removal. High-quality CDR credits must keep CO₂ stored for centuries or even millennia. This prevents it from being released back into the atmosphere.
Recent research shows that engineered carbon removal solutions like DAC can store carbon for over 1,000 years. This makes them very effective for long-term carbon management.
Several global projects are currently implementing these solutions. In Iceland, the Orca plant by Climeworks is the largest DAC facility, capturing 4,000 metric tons of CO₂ per year, with plans to scale to 1 million tons annually by 2030.
In the U.S., the Department of Energy has committed over $3.5 billion to support DAC projects under the Regional DAC Hubs initiative.
The CDR Market: Who Buys Carbon Removal Credits and Why?
The CDR market is growing fast. Corporate buyers, governments, and voluntary markets are boosting demand.
In 2024, purchases of high-durability CDR credits reached almost 8 million metric tons, compared to 2.4 million metric tons in 2023. This represents an increase of approximately 233% year-over-year.
Key players in the market include:
Microsoft accounted for 63% of total CDR purchase volume in 2024 to achieve carbon negativity by 2030. The tech giant secured around 5.1 million metric tons of durable CDR credits.
Google purchased about 501 thousand tons of CDR credits, making it second to Microsoft.
Frontier buyers—including Stripe, Shopify, and Watershed—continued to support promising carbon removal projects, collectively purchasing 667.4K tonnes of CDR credits.
Market trends show that demand will keep rising. More companies are setting science-based climate targets. However, the supply of high-quality CDR credits remains limited, leading to a significant price premium. High-durability CDR credits cost between $100 and $600 per ton. The price varies based on the technology used.
Companies in hard-to-abate industries, such as aviation, cement, and steel production, are becoming major buyers. The aviation sector is predicted to need 300 million tons of carbon removals each year by 2050. This is to meet the net-zero goals of CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
Several companies and organizations are at the forefront of scaling carbon dioxide removal solutions. These suppliers are focused on cutting costs. They also aim to boost efficiency and make high-quality carbon removal credits more available.
Top CDR credit suppliers in 2024 include:
Stockholm Exergi leads in BECCS (Bioenergy with Carbon Capture and Storage), securing large offtake deals, including a 3.3 million-tonne sale to Microsoft, the largest CDR transaction to date.
Ørsted, another Scandinavian utility, expanded its presence by adding a 1 million-tonne deal with Microsoft and a 330K-tonne sale to Equinor, strengthening its position in large-scale carbon removal.
1PointFive, backed by Occidental Petroleum, remains the largest supplier in DAC, securing a 500K-tonne sale to Microsoft through its Stratos project.
New startups are on the rise. In 2024, venture capital investments in CDR totaled $836 million, a 30% decline from 2023’s $1.2 billion. Despite this, the number of investments and average deal sizes increased when excluding large outlier transactions from previous years.
The new suppliers are important in tackling some of the major challenges faced by the market.
Challenges of CDR: Cost, Scalability, and Greenwashing Risks
Like other markets, CDR has to deal with various issues to keep growing. Here are the major challenges it is currently facing:
High Costs
DAC and other engineered solutions remain expensive, with costs ranging from $100 to $600 per ton of CO₂ removed. However, with economies of scale and technological advancements, costs are projected to decrease by 40% by 2035.
The U.S. Department of Energy has set a target of reducing DAC costs to below $100 per ton by 2050 through increased investment and innovation.
Climeworks and Carbon Engineering are focused on improving energy efficiency. This helps reduce costs quickly.
Additionally, new funding models, such as advanced market commitments (AMCs) like Frontier, are being explored to help scale CDR. These commitments are like those for vaccines. Big companies and governments promise to buy CDR credits in the future at fixed prices. This method helps developers gain financial stability. It also encourages more investment in carbon removal technologies.
Scalability
The current supply of high-quality CDR credits is much lower than demand. In 2023, only 2.4 million metric tons of CO₂ were removed, a fraction of the estimated 5–10 billion metric tons per year needed by 2050.
To scale to gigaton levels, we need more than just tech upgrades. We also need to expand our infrastructure a lot. The land, energy, and storage requirements for engineered solutions like DAC remain a major challenge. For example, capturing 1 billion tons of CO₂ annually using DAC would require approximately 50 terawatt-hours (TWh) of energy, equivalent to the yearly electricity consumption of Spain.
Nature-based solutions, while more cost-effective, also face scalability issues. Afforestation and soil carbon storage need millions of acres. This can compete with farming and protecting biodiversity. Moreover, measuring and verifying long-term storage remains an ongoing challenge.
Greenwashing Risks
Some companies buy cheap CDR credits. They claim these help the climate but they don’t actually reduce emissions. This issue is particularly concerning in the voluntary carbon market, where transparency and accountability vary across different registries.
Investigations revealed that up to 30% of voluntary carbon offsets might not provide the promised reductions. This can happen because of overestimation or lack of permanence.
To combat greenwashing, organizations like Verra, Gold Standard, and the Integrity Council for the Voluntary Carbon Market (IC-VCM) are introducing stricter guidelines for credit verification. Third-party audits and blockchain tracking systems are being created. They aim to boost transparency and trust in the market.
CDR Policies and Regulations: What You Need to Know
Governments are increasing support for carbon dioxide removal through funding, tax incentives, and regulations. The U.S. Inflation Reduction Act (IRA) provides up to $180 per ton for DAC projects, making the U.S. one of the leading funders of carbon removal technologies.
The Department of Energy’s Carbon Negative Shot program also aims to reduce the cost of CDR to under $100 per ton. It plans to deploy scalable solutions by 2035.
The EU is developing the Carbon Removal Certification Framework (CRCF) in Europe. This framework will set quality standards for CDR projects. It will ensure that carbon removals are measurable, additional, and durable. With this, the European Commission launched a €1 billion fund for carbon removal. This will help support new and innovative projects.
Beyond the U.S. and EU, other countries are exploring similar regulatory approaches:
Canada has integrated carbon removal into its Clean Fuel Regulations, encouraging industries to invest in verifiable CDR solutions.
Japan has launched a Carbon Credit Market, with an emphasis on nature-based removals and early-stage DAC investments.
Australia is expanding its Carbon Farming Initiative to include engineered removals, providing subsidies for companies investing in long-term carbon storage.
Organizations such as Verra, Gold Standard, andPuro.earth are working to improve verification and ensure credibility in the CDR market. The Science Based Targets Initiative (SBTi) has also begun including engineered CDR in net-zero pathways, signaling further institutional support for scaling the industry.
As these policies and regulations develop, they will play a crucial role in shaping the future of CDR by ensuring market integrity, funding innovation, and supporting large-scale deployment.
The Future of CDR: Can It Scale to Meet Net-Zero Goals?
Analysts expect the CDR market to grow a lot. They predict it could reach gigaton-scale removal by 2050. Key drivers of growth include:
Technological advancements reduce costs and improve efficiency.
Corporate and government commitments increasing demand.
Regulatory developments ensure market integrity.
By 2050, DAC could remove up to 1 billion metric tons of CO₂ each year. Nature-based solutions might add another 3 to 5 billion metric tons annually. The overall CDR market could be worth over $100 billion by 2035 as more companies and governments integrate carbon removal into their climate strategies.
While challenges remain, carbon dioxide removal is set to play a crucial role in achieving global net-zero targets. Continued innovation, strong policy support, and increasing corporate investment will determine how quickly and effectively the sector can scale to meet climate goals.
https://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.png00carbonfundhttps://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.pngcarbonfund2025-02-19 09:11:182025-02-19 09:11:18What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024
Xpansiv has launched a new data series for North America’s Renewable Energy Certificate (REC) markets. This product merges data from Xpansiv’s CBL spot exchange, Xpansiv Connect™ portfolio system, and OTC prices from Evolution Markets.
This combination offers a clearer view of the market. Users can track individual RECs in both spot and forward markets. They can access key details like RPS status, state, price type, vintage, and registry. This helps users better understand REC trends and market movements.
Source: Xpansiv
Why Renewable Energy Certificates (RECs) Matter in Clean Energy
Renewable Energy Certificates (RECs) track clean energy from sources like wind and solar. Since renewable electricity mixes with other sources on the grid, RECs help verify and claim renewable energy usage. Many businesses use International Renewable Energy Certificates (I-RECs) to meet their sustainability goals and offset carbon emissions.
Technically, “An I-REC is a tradable certificate representing the environmental attributes of one megawatt-hour (MWh) of renewable energy generation. They are recognized by the GHG Protocol, CDP, and RE100 for reporting Scope 2 emission.”
Xpansiv: Enhancing Market Insights with Reliable Data
Nathan Rockliff, Xpansiv’s Chief Strategy Officer, highlighted the importance of this launch. He noted,
“Xpansiv’s new consolidated REC data product harnesses our comprehensive market infrastructure to provide an unmatched, detailed view of the REC markets. This offering is the first of our enterprise-wide initiatives to enhance the utility, integrity, and coverage of environmental commodity data, accelerating the global energy transition and driving real impact.”
The platform offers daily insights into more than 120 REC types across seven ISOs. It includes executed trade data, firm orders from CBL, and indicative prices from Evolution Markets. Historical data dating back to 2019 adds depth and accuracy. With Xpansiv Connect, users can track both spot and forward REC instruments in real-time, improving market visibility.
CBL Overview
Source: Xpansiv
Record-Breaking REC Trading Volumes
This launch comes at a time of peak REC trading activity. In 2024, more than three million RECs were exchanged on CBL—an 18% jump from the previous year. January alone saw transactions exceed $27 million, setting a new record.
Xpansiv’s REC data is now available through its API, web platform, and third-party data partners, making it easier than ever for market participants to access critical insights.
The CarbonCredits team connected with Xpansiv to explore their REC data product in greater detail. An Xpansiv spokesperson provided valuable insights worth noting.
CC: What makes Xpansiv’s consolidated REC data product a game-changer for market participants?
Xpansiv: We designed the new consolidated data product to bring a new level of robustness and utility to REC data by combining spot and forward market data, with unique instrument identifier reference data. Integrated unique identifiers enable multi-sourced trade, order, and indicative spot and forward prices to be mapped to a single instrument.
With that improvement, RECs can be modeled precisely by spot/forward price, vintage, RPS, registry, and other attributes, which is difficult to do with legacy data formats.
CC: How is Xpansiv leveraging Evolution Markets’ spot and forward prices to enhance REC market insights?
Xpansiv: Spot and forward prices are essential inputs into a REC data series. Sourcing that data from recognized market leader- Evolution Markets ensures that the prices are the product of a rigorous assessment process over a broad range of RECs. Further ensures continuity for the new product’s five-year historical data series.
The new product includes Evolution Markets data as well as firm order and trade prices from the CBL spot exchange.
In 2024, CBL’s REC market traded a total of 3.15 million MWh, an 18% increase. The notional value traded was $158 million, a 41% jump.
Lastly, but importantly, the new data series is built using unique instrument identifiers from the Xpansiv Connect portfolio management system. Xpansiv Connect is integrated with 14 REC and carbon registries and has issued more than a billion instrument identifiers since launch.
The careful consolidation of those three diversified market and reference data sources is what makes the new data product so powerful and useful.
CC: Why are CBL REC trading volumes surging, and what does it mean for the future of renewable energy markets?
Xpansiv: CBL REC volumes are growing because the exchange and its post-trade Xpansiv Connect portfolio management system provide real credit, liquidity, and operational benefits to market participants.
Xpansiv’s CBL spot exchange provides direct access live, firm bids and offers, instant execution, and automated, T+0 settlement, through direct integrations with leading REC registries.
OTC market participants settle trades via the exchange for two primary reasons.
The first is trades can be settled between CBL participants without bilateral trading or credit counterparty agreements.
The second is, as with exchange-matched trades, CBL’s post-trade infrastructure provides automated settlement for OTC trades, speeding settlement cycles and reducing errors and failures.
CC: If the US REC market hits $40 billion by 2033, how will Xpansiv’s data innovation fit into this growth?
Xpansiv: The US REC markets, and, in fact, REC markets globally, are projected to grow sharply from both traditional sectors as well as significant demand to support the proliferation of new data centers being driven by the artificial intelligence boom.
High-integrity markets and reference data are integral parts of successful commodity and financial markets. Our institutional-grade infrastructure is built to enable environmental commodity markets to scale, which we think is essential to attain a timely energy transition.
The new consolidated REC data product is the first of our enterprise-wide initiatives to enhance the utility, integrity, and coverage of environmental commodity data, accelerating the global energy transition and driving real impact.
That goes for established REC and carbon markets, as well as nascent markets in sustainable aviation fuel, or SAF, energy, and recycled plastics, to name a few that we’re working on.
Xpansiv’s Role in the Energy Transition
Xpansiv operates a leading market infrastructure for environmental commodities, including carbon credits and RECs. It also manages registry systems for energy and environmental markets and oversees North America’s largest independent solar renewable energy credit trading platform.
Xpansiv provides advisory and transaction support in carbon, renewable energy, and energy transition markets through its Carbon Financial Services and Evolution Markets divisions. Xpansiv Connect™, its multi-asset environmental portfolio management system, further enhances data transparency, supporting the industry’s push for accountability in sustainability efforts.
Strong Investor Support
Xpansiv’s investor base includes Blackstone Group, Bank of America, Goldman Sachs, Aramco Ventures, Macquarie Group Ltd., S&P Global Ventures, Aware Super, BP Ventures, Commonwealth Bank, and the Australian Clean Energy Finance Corporation.
U.S. Renewable Energy Certificate Market Set to Hit $50 Billion by 2033
The U.S. Renewable Energy Certificate (REC) market is on track for major growth. According to S&P Global, REC generation is expected to rise from over 950 million MWh in 2024 to nearly 2.7 billion MWh by 2033.
Wind and solar will lead the way, with their combined share increasing from 81.7% to 92.5% over this period. The sharp rise in renewable energy output is the key driver behind market growth.
The U.S. REC market is projected to approach $40 billion by 2033 in the base case. However, in an optimistic scenario, it could reach nearly $50 billion—$10 billion higher than the base estimate.
https://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.png00carbonfundhttps://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.pngcarbonfund2025-02-19 09:11:182025-02-19 09:11:18Xpansiv Boosts Transparency in North America’s Renewable Energy Certificate Market. EXCLUSIVE Interview Inside
SolarBank Corporation (NASDAQ: SUUN; Cboe CA: SUNN, FSE: GY2) recently announced the development of two community solar projects in Skaneateles, New York. These ground-mount solar projects, located in Onondaga County within the Finger Lakes Region, will generate 14.4 MW DC, enough to power 2,100 homes.
SolarBank Secures Key Approval to Expand Community Solar in New York
The press release revealed that the projects have successfully completed the Coordinated Electric System Interconnection Review (CESIR). This positive interconnection result is a major step forward to make the project successful. With interconnection approval in hand, the company can now focus on the ongoing permitting process.
These projects will have to qualify for New York State Energy Research and Development Authority’s (NYSERDA) NY-Sun Program incentives. Such incentives are vital for promoting solar initiatives and making renewable energy more accessible in New York.
Next, SolarBank will secure the permit, finalize financing, and then begin construction. Once underway, both projects will serve as community solar installations, supplying clean energy to the local power grid.
North American Growth Strategy
Source: SolarBank
Risks and Considerations
Despite progress, the projects face several risks. Solar development relies on three key factors: getting permits, finalizing community solar contracts, and securing third-party financing. Changes in government policies or cuts to renewable energy incentives can impact the long-term success of these projects.
The company understands these risks and remains dedicated to expanding its clean energy footprint. Notably, it is actively monitoring policy changes and market conditions to ensure project feasibility.
Community Solar: Affordable Clean Energy for Everyone
Community solar is a shared renewable energy model. It allows multiple users to benefit from a single solar project. Instead of installing panels on their own property, participants subscribe to an off-site solar farm and earn credits on their electricity bills. This model makes clean energy more affordable for homeowners, renters, businesses, and communities.
Who Benefits?
Homeowners, renters, and apartment dwellers without suitable rooftops
Businesses, nonprofits, and government entities acting as “anchor tenants”
Low- to moderate-income households unable to afford rooftop solar
Source: NREL
2028 Forecast
A 2024 NREL study found that 42% of U.S. households and 44% of businesses lack access to rooftop solar. This makes community solar a crucial alternative for stabilizing electricity costs, strengthening the power grid, and creating local jobs.
As of June 2024, the U.S. had about 7.87 GW of community solar in 44 states and D.C. Yet, around 73% of this capacity is in just four states: Florida, New York, Massachusetts, and Minnesota.
Florida tops the list with 2,085 MW-AC. New York follows with 1,764 MW-AC, then Massachusetts with 1,014 MW-AC, and Minnesota with 910 MW-AC.
Wood Mackenzie and the Coalition for Community Solar Access (CCSA) predict the national market will surpass 10 GWdc by 2026 and reach 14 GWdc by 2028.
Annual installations have stayed steady at around 1 GWdc for three years, with an average growth rate of 8% projected through 2028. This indicates that this segment is one of the fastest-growing in the U.S. solar market.
SolarBank Fuels Community Solar Growth in America’s Clean Energy Shift
SolarBank has been key in expanding community solar with large renewable energy projects. The company has a development pipeline exceeding one gigawatt and over 100 MW of completed projects. This makes SolarBank a top clean energy provider in North America.
Going back in 2018, SolarBank started four community solar projects that operated commercially with a total capacity of 10.2 MW, DC
In 2023, it sold 21 MW of community solar sites in Upstate New York to Honeywell International for US$41 million. SolarBank created these projects through an EPC agreement. This ensured they will construct them to commercial operation and meet the requirements for NYSERDA incentives.
As reported by Business Insider, the North American solar PV market, valued at $25.02 billion in 2019, was projected to reach $120.74 billion by 2027, growing at a CAGR of 21.7%.
SolarBank boosts growth through solar projects, Battery Energy Storage Systems (BESS), and EV charging. The company delivers clean energy to utilities, businesses, municipalities, and homes. This shows its commitment to a sustainable energy future.
Source: SolarBank
Community solar is growing fast. It helps more people save on energy bills and supports a cleaner power grid. SolarBank’s latest project boosts this trend. Each project pushes renewable energy ahead, making solar easier to access across North America.
Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: SUUN.
Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.
Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.
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Chestnut Carbon, a nature-based carbon removal company, has raised $160 million in Series B financing. This funding will help expand its afforestation projects across the United States.
With strong investor backing, the funds will accelerate Chestnut’s mission to deliver large-scale carbon removal, setting a new standard in the voluntary carbon market (VCM).
Nature-Based Carbon Removal: A Booming Market
Nature-based carbon removal solutions are key to fighting climate change. Afforestation and reforestation play a big role in this effort. The global market for nature-based carbon credits could grow a lot soon.
McKinsey reports that by 2030, demand for voluntary carbon credits may hit 1.5 to 2 gigatons each year. Nature-based solutions will likely play a big role in this growth.
Analysts estimate that the global carbon credit market could reach $100 billion by 2030 and $250 billion by 2050. Nature-based solutions could contribute a major share.
As companies aim for net-zero targets, the need for verified carbon credits is growing. This trend highlights the role of Chestnut Carbon. The company commits to creating large, nature-based carbon removal projects.
Chestnut Carbon’s $160M Funding: A Game Changer
The $160 million funding round has existing investors, like Canada Pension Plan Investment Board. It also includes new investors, Cloverlay and DBL Partners. Additional support came from limited partners of Kimmeridge, Chestnut’s founding firm. These partners include university endowments, family offices, and institutional investors.
This funding will help Chestnut Carbon grow its Sustainable Restoration Project. The goal is to sequester 100 million metric tons of carbon over time.
Chestnut promotes biodiversity and supports ecosystem health by turning degraded farmland into forests. This work also makes a big difference in the VCM.
Chestnut’s Approach to Carbon Removal: Turning Land Into a Carbon Goldmine
Chestnut Carbon started in 2022 and focuses on afforestation. This means planting trees on unused farmland and pasture with the goal of capturing and storing carbon. The company distinguishes itself with these:
Land Acquisition: Chestnut has acquired more than 35,000 acres in six U.S. states. These include Arkansas, Louisiana, Alabama, Mississippi, Oklahoma, and Texas.
Gold Standard® Verified Carbon Credits: These credits meet strict quality and integrity standards. This makes them appealing to companies focused on sustainability.
Chestnut uses special data tools and growth models. These help improve forest development and capture carbon effectively.
Long-Term Sustainability: The company aims to create lasting, strong forests. These forests do more than store carbon. They also help restore soil, retain water, and protect biodiversity.
How the funding will be used
With the new $160 million, Chestnut Carbon will speed up its growth in three main areas:
Land Purchases: More land acquisitions will enable rapid expansion and project execution.
Technology Investment: Chestnut uses advanced data modeling and their own tech to track tree growth. This helps predict carbon sequestration rates and makes project development easier.
Talent Growth: The company will grow its team of experts in forestry, environmental science, carbon finance, and land management. This will help scale operations effectively.
Examples of Chestnut Carbon afforestation projects
Investors see Chestnut Carbon as a leader in the emerging nature-based carbon removal sector. Nancy Pfund, Founder and Managing Partner at DBL Partners, highlighted the promise of Chestnut’s model, saying:
“With our investment in Chestnut, we see the potential to raise the bar by helping to create the industry leader in providing high-quality carbon offsets at scale.”
Remarking on this massive fundraising, Ben Dell, CEO of Chestnut and Founder and Managing Partner of Kimmeridge noted:
“The Series B financing allows us to continue to build out our platform to meet the growing needs of sustainability-conscious organizations and advance our position as a leading provider in the international carbon markets.”
The Corporate Shift Toward Carbon Offsets
Chestnut Carbon is growing because more companies need high-quality carbon credits for their increasing corporate commitment to sustainability.
Companies in technology, manufacturing, and finance are investing in carbon offsets. They want to reduce their environmental impact and reach net-zero emissions.
In 2023, carbon pricing revenues hit a record $104 billion. This shows that more companies are using carbon credits for sustainability.
Source: World Bank report
Microsoft leads the way by buying over 3.3 million tons of carbon removal credits. This is part of its goal to be carbon-negative by 2030. The tech giant recently signed a deal to buy 7 million carbon credits from Chestnut.
Microsoft announced a big deal to help restore parts of the Brazilian Amazon and Atlantic forests. They will buy 3.5 million carbon credits from Re.green, a Brazilian start-up, over the next 25 years. This initiative seeks to reduce greenhouse gas emissions. These emissions are rising because AI and data centers need more energy.
Other major corporations are also making substantial investments in carbon credits. Delta Air Lines has bought millions of carbon credits. This helps offset its emissions. It shows the airline industry’s commitment to sustainability.
Also, companies like Alphabet (Google’s parent) and Disney are big buyers of carbon credits. Shell topped the list, followed by Microsoft last year.
In 2024, the voluntary carbon market was very active. Corporations used credits valued at $1.4 billion. This is just below 2022’s peak of $1.7 billion. It shows that companies are still committed to carbon-offsetting efforts.
These investments help companies reach their sustainability goals. They also aid global efforts against climate change. By backing projects that cut greenhouse gas emissions, corporations are key players in moving toward a sustainable future.
The Challenges Ahead—Can Chestnut Fix It?
Big afforestation efforts could help. However, challenges still exist in expanding nature-based carbon removal solutions, including:
Land Availability: Securing large tracts of suitable land remains a key hurdle.
Verification Delays: The carbon market often has slow verification processes. This can delay credit issuance and affect project financing.
Market Maturity: The voluntary carbon market is still growing. It needs clearer standards and stronger buyer trust in credit quality.
Chestnut focuses on careful checks, quality credits, and sustainable practices. This helps them face challenges effectively. This approach sets a standard for future nature-based carbon removal projects.
Chestnut Carbon’s $160 million fundraising is a big milestone for the voluntary carbon credit market. As companies aim for net-zero goals, they will need more trusted, high-quality carbon credits. Chestnut’s approach sets a new standard in the carbon market, opening doors for large, sustainable solutions to remove emissions.
Albemarle Corporation (NYSE: ALB) the world’s top lithium and specialty chemicals producer posted its financial results for Q4 and the full year of 2024. Despite lower lithium prices, the company reduced costs and improved operations to remain competitive.
Strong efficiency measures helped in profitability but adjusted earnings did not meet analyst expectations. Like many other lithium players, Albemarle also faced a lithium supply glut mainly due to overproduction in China.
Kent Masters, chairman and CEO of Albemarle, expressed himself by saying,
“We are taking decisive actions to reduce costs, optimize our conversion network, and increase efficiencies to preserve our long-term competitive position. As we look ahead, we expect dynamic market conditions to persist but remain confident in our ability to deliver value to stakeholders by increasing our financial flexibility, strengthening our core capabilities, and positioning Albemarle for future growth.”
Albemarle Reports Loss and Challenges for Q4
Albemarle ended Q4 2024 with $1.2 billion in revenue and a net income of $75 million, or $0.29 per diluted share. However, the adjusted diluted loss per share was $1.09.
Source: Albermarle
Energy Storage Hit by Lower Lithium Prices
Energy Storage, Albemarle’s largest segment, saw Q4 sales of $617 million, a 63% drop from the previous year. This decline came from a sharp 53% drop in lithium prices. Sales volumes also fell by 10%. Plant outages and the timing of spodumene sales played a role in this situation.
However, adjusted EBITDA rose $290 million to $134 million, supported by lower spodumene costs and the absence of a $604 million charge recorded in Q4 2023.
Specialties and Ketjen Disappoint
Albemarle’s Specialties segment reported sales of $333 million, down 2% from last year. Adjusted EBITDA increased by $43 million to $73 million. This rise came from cost-saving measures and higher market demand. In contrast, the Ketjen business, which makes catalysts, saw a 17% drop in sales to $282 million, mainly due to lower volumes.
Full-Year Performance
For the entire 2024, Albemarle made $5.4 billion in revenue. Energy Storage volumes grew by 26%. However, restructuring costs resulted in a net loss of $1.2 billion, or $11.20 per diluted share.
As the company aimed for efficiency, it achieved $1.1 billion in adjusted EBITDA and generated $702 million in operating cash flow. This success came from strong cost controls and effective working capital management.
Albemarle is taking proactive steps to manage changes in the lithium market. They are tightening spending and improving efficiency. The energy storage sector relies heavily on lithium prices. Net sales and profits in the sector may be affected when lithium prices fall.
The company adapts to falling lithium prices by cutting spending and boosting efficiency. It has reached over 50% of its $300-400 million cost reduction goal. Additionally, it improved lithium conversion efficiency at La Negra and Meishan. By mid-2025, the Chengdu site will enter care and maintenance. Meanwhile, Qinzhou will shift some production to lithium carbonate.
It also aims for better financial management and cost savings. This will help ensure resilience in a tough market.
Source: Albemarle
Albemarle’s Net Zero Goals: Leading Lithium Innovation for a Sustainable Future
Albemarle’s advanced processing site in Kings Mountain, North Carolina is crucial for lithium development. It uses cutting-edge technology to refine and convert lithium for energy storage. It also has a top-notch research and development center that focuses on improving battery materials.
The company focuses on producing high-quality lithium. This matters because demand is growing for lithium in EVs, renewable energy storage, and digital technology. It’s constantly improving its processes to make energy storage safer and more efficient. This strategy supports the energy transition and emphasizes Albermarle’s commitment to sustainability.
Energy Storage Product Portfolio
Source: Albemarle
Building a Greener Lithium Industry
As a founding member of the International Lithium Association (ILiA), the company sets global standards for carbon footprint measurement. This covers brine, hard rock, and clay sources. Their work promotes responsible resource management and transparency in the lithium supply chain.
By taking the lead in sustainable lithium production, Albemarle is ensuring that the industry grows in an environmentally responsible way, supporting cleaner energy solutions for years to come.
2030 Carbon Neutral Goals:
Albermarle wants to achieve carbon neutrality across its scope emissions by 2030.
The company aimed to collect primary data from suppliers for 75% of its raw material carbon footprint by 2023, increasing to 90% by 2024, to achieve its Scope 3 reduction target.
Energy Storage: In 2023, Albemarle cut Scope 2 emissions by using renewable electricity at La Negra and Xinyu. Equipment upgrades at Xinyu improved efficiency, reducing Scope 1 emissions. Amsterdam secured 50% renewable electricity for 2024-2026.
Specialties & Ketjen: Lower production kept total emissions on track, but intensity rose as plants operated below capacity. Efficiency optimization remains a priority.
Bromine Sustainability: Completed ISO-compliant product carbon footprint study for Magnolia, Arkansas, verified by EcovaMed, reinforcing sustainable bromine production efforts.
We hope with a strong strategy in place, Albermarle can rebound and hold its ground in terms of both revenue and sustainability for this year.
https://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.png00carbonfundhttps://globalcarbonfund.com/wp-content/uploads/2018/10/GCF_header_logo_340x156.pngcarbonfund2025-02-19 09:11:182025-02-19 09:11:18Albemarle’s Q4 Loss Reflects Lithium Slump, Yet Net Zero and Sustainability Stay on Track
Source: Xpansiv
