Formula E Champion and ABT CUPRA driver Lucas di Grassi partnered with Rubicon Carbon, a leading carbon credit management firm to offset his carbon footprint. This collaboration marks di Grassi as the first Formula E driver to invest in carbon credits to tackle his emissions. 

Di Grassi Shifts Gears to Carbon Offsets

The rapid growth of motorsports has raised environmental concerns, such as high carbon emissions. Initially limited, the industry’s sustainable practices now focus on reducing emissions, conserving energy, and using renewable resources to address climate change and promote greener racing.

RELATED NEWS: Beyond Touchdowns and Trophies: Unveiling the Carbon Footprint of Superbowl LVIII

Formula E shows how a complex, global motorsport industry should race toward achieving net zero emissions. The organization’s champ di Grassi took the first ride to sustainable racing. 

Lucas di Grassi, known for his activism in mobility technology, has become a leading figure in advocating for environmental responsibility within the racing industry. He has publicly distanced himself from industries that do not prioritize sustainability. He’s the first driver to offset all his CO2 emissions from traveling globally starting with his first Formula E race in China. 

Di Grassi has created a Rubicon Carbon Tonne (RCT) portfolio, a diversified and actively managed collection of carbon credits. This portfolio includes various carbon removal, nature-based avoidance, and industrial avoidance projects. The RCTs are designed to reduce risk and provide price certainty for buyers, enhancing their options for carbon offsetting.

Remarking on his collaboration with Rubicon, di Grassi said:

“In line with the values and objectives of Formula E, I drive an electric car and have adapted my lifestyle. But still, credible carbon avoidance and removal is the only way to do the sport we love and be responsible for our environment at the same time. I would be delighted if many other athletes, not only in Formula E, would consider the same path.”

Zero-Emission Race: Formula E’s Sustainability Revolution

Their collaboration illustrates how sports partnerships can drive positive environmental change and raise awareness about sustainability. Tom Montag, CEO of Rubicon Carbon, expressed his enthusiasm for the partnership, stating:

“We are excited to support Lucas and Formula E, who share our values in building a low-carbon future.”

Partnering with personalities like di Grassi is part of Rubicon’s broader strategy to invest in carbon projects worldwide. Recent initiatives include a large-scale ecosystem restoration project in Panama in collaboration with Ponterra, Microsoft, and Carbon Streaming. It’s a 250,000-acre restoration project in South Africa led by Imperative, and a partnership with YvY Capital to scale up carbon investments in Brazil.

Rubicon Carbon’s commitment to sustainability and innovation is reflected in its efforts to create impactful environmental solutions. By partnering with influential figures like Lucas di Grassi, Rubicon aims to inspire broader adoption of carbon offsetting practices within the sports industry and beyond.

Leading the Charge in Net Zero Carbon Racing

With seven days to go before the 2024 Hankook London E-Prix starts, this milestone highlights, once again, the environmental commitment of Formula E.

Motorsport’s carbon footprint primarily comes from transporting teams and vehicles globally and the emissions from fans traveling to races. Formula E tackles this by logically scheduling races worldwide, reducing unnecessary travel. 

In the 2022-23 season, Formula E implemented the ABB Ability OPTIMAX system to monitor race-specific energy usage, enhancing efficiency. Despite these efforts, freight still represents ¾ of the sport’s carbon footprint. 

The championship offsets between 35,000 and 40,000 tons of CO2 equivalent annually, aiming to cut its carbon footprint by 45% by 2030 from a 2018 baseline. Impressively, it has already achieved a 25% reduction.

Working with partners like DHL, Formula E explores sustainable aviation fuels and integrates sustainability across its supply chain. Initiatives include recycling tires and using recycled materials for vehicle chassis. Ultimately, the sports organization’s mission is to showcase how motor racing can thrive without emissions.

Formula E stands as the first sport with a certified net zero carbon footprint since its inception. The organization manages its carbon footprint through a 3-step process as : Measure, Reduce, and Offset.

Measure

Formula E meticulously measures its carbon emissions across the entire championship. Since its inaugural season, the organization has partnered with carbon footprint experts to conduct a Lifecycle Assessment model. This model evaluates all race operations and Formula E’s headquarters, allowing for annual monitoring and calculation of greenhouse gas emissions. 

Source: Formula E website

The motor racing organization’s emissions are categorized into:

Scope 1: Direct emissions (1.3%)
Scope 2: Indirect emissions from energy use (0.7%)
Scope 3: Other indirect emissions, including travel, freight, and car production (98%)

Reduce

The world’s first all-electric FIA World Championship prioritizes reducing its carbon footprint through direct actions. In 2021, the motor racing set emission reduction targets validated by the Science Based Targets initiative (SBTi). The goals include a 60% reduction in Scope 1 and Scope 2 emissions and a 27.5% reduction in Scope 3 emissions by 2030, from a 2019 baseline. These targets aim to limit temperature rise to 1.5°C.

Source: Formula E website Notes: S5 refers to 2019 baseline, while S6-S9 refer to yearly emissions reduction until 2023.

Key emissions reduction initiatives include collaborating with logistics providers to use biofuels for road and sea freight, addressing the largest source of emissions in the championship.

Offset

To address unavoidable emissions, Formula E invests in renewable energy projects in race markets. In Season 6, these investments offset all emissions since the sport’s inception, making them the first motorsport to achieve net zero carbon status. 

Formula E offset an estimated 33,800 tCO2e for Season 8 by purchasing and retiring 33,800 Certified Emission Reductions from two projects in Mexico. 

In Season 9, the electric motorsport advanced its commitment by aligning with PAS 2060, the international specification for demonstrating carbon neutrality, becoming the first global sports organization to do so.

Formula E’s pioneering efforts in measuring, reducing, and offsetting carbon emissions exemplify how even high-impact sports can lead to sustainability. By achieving and maintaining net zero carbon status, Formula E sets a benchmark for other industries to follow in the quest for a greener future.

READ MORE: The Race to Sustainability: Formula 1’s Carbon Footprint and Net Zero Pledge

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The U.S. Department of Energy (DOE) has released a request for proposals (RFP) to buy low-enriched uranium (LEU) from U.S. sources. This move aims to boost domestic uranium enrichment capacity safely and responsibly. The RFP is backed by $2.7B from President Joe Biden’s Investing in America agenda, which was approved in May.

Breaking Free from Russian Influence in Nuclear Fuel With $2.72 Billion Injection

This year on May 13, President Biden signed a historic law, The Prohibiting Russian Uranium Imports Act to strengthen America’s energy and economic security. This law aims to reduce and eventually eliminate the country’s reliance on Russia for nuclear power.

It reestablished U.S. leadership in the nuclear sector, securing America’s energy future. With $2.72 billion in funding, it boosted new enrichment capacity in the U.S. and showed a commitment to long-term nuclear growth. This move would also promote a diverse market and ensure a reliable supply of commercial nuclear fuel.

Additionally, this law supported the country’s international goals. It banned imports of enriched uranium from Russia. Furthermore, last December, the U.S., Canada, France, Japan, and the UK pledged $4.2 billion to expand enrichment and conversion capacity.

source: EIA

US Energy Secretary Jennifer Granholm noted,

“DOE is helping jumpstart uranium enrichment capacity here in the United States, which is critical to strengthening our national security and growing our domestic nuclear industry,”

Ali Zaidi, National climate advisor and assistant to the president, highlighted the significance of transitioning from fossil fuel. He remarked, 

“Under President Biden’s leadership, we have spurred an unprecedented expansion in clean energy production, which is creating good-paying union jobs and putting us on a path to greater energy security.”

Moving on, contracts from this initiative will last up to 10 years, with proposals due by August 26, 2024.

MUST READ: US Targets 200 GW Nuclear Expansion to Meet Soaring Energy Demand 

The Rise of Advanced Nuclear Reactors in the U.S.

These actions align with the DOE’s Pathways to Advanced Nuclear Commercial Liftoff report which wants to advance technologies for net-zero emissions by 2050. Additionally, the DOE’s Advanced Reactor Demonstration Program (ARDP) supports nuclear demonstration and risk reduction projects.

ARDP will accelerate advanced reactor demonstrations through cost-shared partnerships with U.S. industry. The Office of Clean Energy Demonstrations officially stated,

“It supports design, licensing, construction, and operation of two advanced reactor technologies, the TerraPower Natrium and the X-energy Xe-100 reactors. This funding builds on the initial $160 million from DOE’s Office of Nuclear Energy, awarded in 2020.”

These innovative nuclear technologies are designed to offer flexible electricity output and provide process heat for various industrial applications, including desalination and hydrogen production.

Advanced nuclear reactors can power homes and businesses sustainably. They have almost zero GHG, can efficiently use fuel, and are safe. The innovative designs can significantly increase the safety and performance of the existing reactors. Advancing these latest nuclear technologies will expand access to clean energy and open new market opportunities. It will also help preserve essential infrastructure and maintain vital supply chain capabilities.

source: EIA

FURTHER READING: Paladin Energy Offers C$1.14 B to Canada’s Fission Uranium. What does it mean for Uranium Mining?

Biden’s $500M Investment to Transform Nuclear Energy

From a report published by DOE, we discovered that President Biden’s Inflation Reduction Act allocates up to $500 million for high-assay low-enriched uranium (HALEU)—an important material needed to develop and deploy advanced reactors. Simply put, this contract allows uranium conversion into usable fuel forms for advanced reactors. HALEU enhances reactor performance with longer-life cores and better fuel utilization.

Nuclear power is America’s largest clean energy source and this step will enable meeting emissions targets and the US’s pledge to triple global nuclear power by 2050. DOE is expanding the HALEU supply chain for advanced reactors, including recycling spent fuel from government research reactors. Current U.S. reactors use uranium fuel enriched up to 5% with uranium-235. However, most advanced reactors need HALEU, enriched between 5% to 20%, to achieve smaller, versatile designs with high safety and efficiency.

According to DOE, U.S. domestic nuclear capacity has the potential to scale from ~100 GW in 2023 to ~300 GW by 2050—driven by the deployment of advanced nuclear technologies.

Image: New nuclear build-out scenarios and implications for industrial base capacity requirements.

source: DOE

READ MORE: The Atomic Awakening: Fueled by Uranium

The post U.S. DOE Aims to Expand Domestic Uranium Supply with US$2.7B RFP appeared first on Carbon Credits.

Shell Canada’s recent approval of the Polaris carbon capture project marks the beginning of significant investment in emissions-reducing technology, according to federal Natural Resources Minister Jonathan Wilkinson. 

The Minister predicts 20 to 25 carbon capture and storage (CCS) projects will start in Canada within the next decade. This is spurred by a new federal investment tax credit, covering up to 50% of CCS project capital costs.

Wilkinson further noted that the tax credit is crucial for heavy industry companies to make final investment decisions. The Shell Polaris project is a direct result of this incentive.

Pioneering Investment in Emissions Reduction

The CCS project will capture 650,000 tonnes of CO2 annually from the Scotford refinery near Edmonton, Alberta.

Shell’s Polaris carbon capture project will mitigate about 40% of direct CO2 emissions from the Scotford refinery and 22% from its chemicals complex. Although the project’s cost remains undisclosed, it is expected to start operations by the end of 2028.

Additionally, Shell announced the development of the Atlas Carbon Storage Hub in partnership with ATCO EnPower. The first phase of Atlas will be connected to Polaris via a 22-kilometer pipeline, providing permanent underground storage for CO2 captured by Polaris. This CCS project just received a green light. 

RELATED NEWS: Shell to Buy 22,500 Biochar Removal Credits from The Next 150

Polaris is Shell’s second carbon capture and storage (CCS) project in Canada. The first project, Quest, completed in late 2015 at the Scotford complex, cost $1.3 billion. It has captured and stored about 1 million tonnes of CO2 annually since its inception.

All these are part of the energy giant to achieve its 2050 net zero emissions target outlined in the chart.

SHELL NET ZERO GOAL. Chart from Shell’s Report

CCS technology, which captures and compresses CO2 emissions from industrial processes for safe underground storage, is considered one of the most effective ways to decarbonize heavy-polluting industries like oil, gas, and cement production.

Canada considers this carbon management essential for reaching its net zero emissions target.

MUST READ: Canada Reveals $2.6B Carbon Capture Tax Credit, The Biggest Climate Item

How Carbon Capture And Storage Can Support Canada’s Path to Net Zero

Currently, Canada has a few CCS projects operational, storing about 44 million tonnes of CO2 since 2000. The federal plan to cut emissions by 40-45% below 2005 levels by 2030 and reach net zero by 2050 requires tripling national CCS capacity by 2030. This involves adding facilities capable of capturing at least 15 million tonnes of CO2 annually.

The International CCS Knowledge Centre in Regina states that achieving this goal calls for implementing CCS across various heavy industries. These include power generation, cement, steel, fertilizer manufacturing, mining, and petrochemicals.

Apparently, Shell’s industry heavily needs this carbon capture technology to decarbonize. 

Canada aims to achieve significant reductions in the oil and gas sector as outlined in its Emissions Reduction Plan. The goal is to cut emissions from 191 million tonnes in 2019 to 110 million tonnes by 2030.

Under the International Energy Agency’s Updated Roadmap to Net-Zero Emissions by 2050, carbon capture and storage technologies need rapid scaling to capture 1.2 gigatonnes (Gt) globally by 2030 and 6.2 Gt by 2050, accounting for about 15% of total required GHG reductions. 

Recognizing this challenge and opportunity, Canada’s G7 peers like the United States, the United Kingdom, Germany, and the European Union prioritize carbon management technologies through national strategies and significant investments.

According to the Canada Energy Regulator’s (CER) “Canada’s Energy Futures 2023” report, carbon management is crucial for domestic emissions reductions. In the CER’s Global Net-Zero Scenario, CCUS sequesters nearly 60 million tonnes (Mt) annually in Canada by 2050, with 25 Mt from heavy industry. 

In a slower global transition (Canada Net-Zero Scenario), CCUS costs fall more slowly, capturing 80 Mt annually due to greater global fossil fuel demand. 

Decarbonizing Heavy Industries 

Canada boasts vast geological storage resources, presenting opportunities to store both domestic and international CO2, potentially generating revenue and investment from abroad.

Key storage areas include:

Western Canadian Sedimentary Basin (WCSB): Spanning from British Columbia to Manitoba. It includes regions that could store about 4.2 gigatonnes of CO2, equivalent to over 66 years of British Columbia’s emissions.
Williston Basin: Primarily in southern Saskatchewan, offering additional significant storage capacity.
Southern Ontario and Quebec: Contain several sedimentary basins that may also be suitable for CO2 storage.

The estimated capacity of Canada’s saline aquifers within these sedimentary basins exceeds 100 billion tonnes. That would be sufficient for hundreds of years of CO2 storage.

Offshore Storage Potential:

Nova Scotia and Newfoundland and Labrador: These regions have suitable seabed geology for conventional subseabed CO2 storage.

These extensive storage capacities and geological resources position Canada as a potential leader in global carbon capture and storage. There are over 40 proposed CCS projects in Canada, according to the IEA. 

The most prominent CCS proposal comes from the Pathways Alliance, a group of oilsands companies planning a CA$16.5 billion pipeline to transport captured carbon from 14 sites to a storage location near Cold Lake. Although a final investment decision is pending, Minister Wilkinson believes the project will proceed.

Mayor Rod Frank welcomed the news, stating that the addition of Polaris to Alberta’s Industrial Heartland aligns with the county’s economic development and environmental sustainability goals.

“These carbon capture projects will create new jobs, support our economy and enhance investment attractiveness while capturing emissions that would otherwise be released into the atmosphere.”

SEE MORE: Deep Sky and Carbfix Make History with CO2 Mineralization Storage in Canada

The post Shell’s Polaris Project Fuels Canada’s Carbon Capture Revolution appeared first on Carbon Credits.

Shell Nederland Raffinaderij B.V., a subsidiary of Shell, is pausing construction at its massive biofuel facility in Rotterdam. The 820,000tpa capacity site at Shell Energy and Chemicals Park will halt work temporarily to focus on other vital aspects of the company. So, what is the exact reason behind Shell’s massive decision? Will this impact its operations, global market value, and employees by large? Read and discover more…

Why did Shell take this Bold Decision?  

Explaining straightway, Wael Sawan, CEO of Shell wants to prioritize the company’s most profitable ventures, particularly in oil and gas. This approach has resulted in the company pulling out of less profitable renewable and hydrogen projects. The outcome of this decision is the temporary halt of the Rotterdam biofuels project. Shell is also conducting a thorough valuation review of this unit. The 820,000t unit was also set to produce sustainable aviation fuel (SAF), apart from renewable diesel. According to media reports, they aimed to start operations in 2025, but now it has been postponed to the end of the decade.

Another key reason for ceasing the unit is to slow down activities and reduce contractor strength for better cost control. They believe this will help optimize and streamline project sequencing. With this new amendment, Shell aims to reevaluate project delivery and maintain competitiveness in the current economic scenario.

Huibert Vigevano, Shell’s downstream head confirmed that,

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project. We are committed to our target of achieving net-zero emissions by 2050, with low-carbon fuels as a key part of Shell’s strategy.”

UBS analyst Joshua Stone remarked,

“The pause was consistent with Shell’s strategy to focus on returns. The delays further highlight that the advanced biofuels market is not an easy one. The oil majors have dipped their toes and found it challenging.”

READ MORE: Shell Retired 20 Million Carbon Offsets in 2023, Weakens 2030 Climate Goal

Shell Canada Greenlights Major Carbon Emission Cut

As this news came as a shock to many, there is a silver lining for our news readers. Meanwhile, Shell Canada recently achieved the final investment decision (FID) for CCS projects, including the Polaris project and the Atlas Carbon Storage Hub, in partnership with ATCO EnPower. The media release notes that Polaris (100% Shell-owned) can reduce Scope 1 CO2 emissions at Shell’s Scotford refinery by capturing and storing up to 40% and by up to 22% at the chemicals complex. The operations are slated to begin by the end of 2028.

Moving on, Shell Eastern Trading has acquired Pavilion Energy from Carne Investments, gaining 100% control. This is another significant milestone that happened last month. Pavilion Energy, based in Singapore, operates a global LNG trading business with 6.5 mtpa of contracted supply, alongside shipping, and gas supply activities in Asia and Europe. This acquisition manifests Shell’s LNG portfolio. It also provides strategic access to key markets, increasing flexibility to meet energy security needs in Asia and Europe.

Even though it might seem uncanny for companies to halt projects in progress, Shell is not the first company to announce it. Energy giant BP recently announced a pause on two biofuel projects in Germany and the U.S.

Media agencies like the Financial Times have reported that Biofuel prices have been under downward pressure recently. This is because of reduced demand in Europe following Sweden’s biofuel mandate cut, alongside increased supplies from the U.S. However, Shell shares increased by 1.3% at 1106 GMT, showing a rise of over 12.5% this year.

Shell has a market cap or net worth of $235.01 billion. The enterprise value is $277.77 billion. As of the most recent data, Shell’s stock price in the last 5 days was $73.25 per share, as shown in the image below.

source: stockanalysis

NYSE: SHEL · IEX Real-Time Price · USD 73.25

How Shell Uses Carbon Credits to Shape the Future

Shell’s carbon credits play a crucial role in their goal to become a net-zero emissions energy business. These credits help Shell and its customers offset emissions, adhering to the mitigation hierarchy: avoid, reduce, and compensate. Notably, Shell selects projects certified by the Verified Carbon Standard, Gold Standard, and the American Carbon Registry. In the ESG sphere, the company helps generate carbon credits from nature-based projects and technologies. In 2023, Shell’s net carbon intensity (NCI) included 20 m carbon credits, with 4 m linked to energy product sales.

Shell’s Net-zero emissions by 2050 (Scope 1, 2, and 3), reported by Shell’s Energy Transition Strategy, 2024

Emissions from internal operations (Scope 1 and 2)

Halve Scope 1 and 2 emissions by 2030 (2016 baseline).
Eliminate routine flaring from Upstream operations by 2025.
Maintain methane emissions intensity below 0.2% and achieve near-zero methane emissions by 2030.

Emissions from sold products (Scope 3):

Reduce the net carbon intensity (NCI) of the energy products we sell by 9–12% by 2024, 9–13% by 2025, 15–20% by 2030, and 100% by 2050 (2016 baseline).
Ambition to reduce customer emissions from the use of our oil products by 15–20% by 2030 (Scope 3, Category 11) (2021 baseline)

Global Market Insights reports that the European biofuel market size exceeded USD 26.5 B in 2023 and is likely to register a 6.7% CAGR from 2024 to 2032, owing to the rising concerns about climate change and demand for sustainable energy sources. The European government aims to boost renewable fuels to approximately 14% of transport energy by 2030, with substantial demand. With this prediction, we can hope the future of energy giants like Shell is promising, amid the biofuel boom.

MUST READ: Shell to Buy 22,500 Biochar Removal Credits from The Next 150

The post Why Shell Hit the Brakes on New Rotterdam’s Biofuel Plant appeared first on Carbon Credits.