Cryptocurrency has revolutionized the financial world, offering decentralized, secure, and borderless transactions. However, its rise has come with a significant downside—high energy consumption. The world’s most popular cryptocurrency, Bitcoin relies on energy-intensive mining processes to secure its network, emitting lots of carbon dioxide. Meanwhile, other blockchain applications also contribute to this growing energy demand.

As the crypto industry expands, so do concerns about its environmental impact. This article explores how cryptocurrency and blockchain technology affect global energy consumption and carbon emissions. It explores how Green AI enables sustainable blockchain solutions. It also explains how blockchain can help carbon markets address some of its most pressing issues. 

But first, let’s unveil how energy-intensive cryptocurrency mining is and whether Bitcoin can be truly green. 

Can Bitcoin Be Truly Green? The Carbon Footprint of Cryptocurrency Mining

High energy consumption in cryptocurrency mining directly translates to significant carbon emissions, especially when powered by fossil fuels. 

Bitcoin mining is notorious for its immense energy consumption. Here are the facts about crypto mining’s environmental impact:

According to recent data, the Bitcoin network consumes around 127 terawatt-hours (TWh) of electricity annually—more than entire countries like Argentina and the Netherlands. This energy usage stems from the Proof-of-Work (PoW) mechanism, where miners compete to solve complex mathematical puzzles, requiring powerful hardware and vast amounts of electricity.

To put this into perspective, Bitcoin mining accounts for 0.55% of global electricity consumption, equivalent to the energy use of some large industrial sectors. As a result, the environmental cost of mining continues to spark debate, urging the industry to explore more sustainable practices.

Higher energy use translates into more carbon emissions…

• On average, a single Bitcoin transaction is responsible for emitting 300 to 400 kilograms of CO₂, equivalent to the carbon footprint of over 800,000 Visa transactions or 50,000 hours of YouTube streaming.

Globally, Bitcoin mining emits an estimated 69 million metric tons of CO₂ annually, comparable to the emissions of countries like Greece. 

Moreover, cryptocurrency transactions, particularly those on the Bitcoin network, consume far more energy than traditional payment systems. As mentioned above, Bitcoin transactions use a lot more power than Visa processes. 

• A single Bitcoin transaction = 100,000 Visa transactions.

PayPal, another widely used platform, also operates with significantly lower energy consumption, processing thousands of transactions with minimal electricity use. This stark difference underscores the inefficiency of current cryptosystems compared to traditional financial networks. 

The substantial environmental cost underscores the urgent need for cleaner energy sources and innovative solutions to reduce the crypto industry’s carbon footprint.

The Growing Role of Renewable Energy in Bitcoin Mining 

Recent data suggests that over 50% of Bitcoin’s mining network now uses renewable energy sources such as hydroelectric, wind, and solar power. For instance, regions like Iceland and Quebec, known for abundant renewable energy, have become hotspots for mining operations.

This transition is driven by economic and environmental incentives. Renewable energy is often cheaper than fossil fuels, reducing operational costs for miners. Furthermore, as governments introduce stricter regulations on carbon emissions, miners are motivated to adopt greener practices to avoid penalties and maintain their social license to operate.

Proof-of-Stake and Other Energy-Efficient Consensus Mechanisms

Bitcoin operates on a Proof-of-Work consensus mechanism, which is energy-intensive by design. Miners compete to solve complex mathematical problems, consuming significant electricity in the process. 

In contrast, Proof-of-Stake (PoS) systems, like Ethereum’s, the second-largest blockchain, recent transition, eliminate the need for energy-hungry computations. 

• SEE MORE: Ethereum’s Stealth Move to Wipe Out Its Carbon Footprint

Instead of miners, validators are chosen based on the number of tokens they hold and are willing to “stake.” This drastically reduces energy consumption—Ethereum’s shift to PoS has cut its energy use by 99.95%, setting a benchmark for other cryptocurrencies.

Before its transition to Proof-of-Stake in 2022, Ethereum consumed around 78 TWh of electricity annually, comparable to Chile’s total energy use. Even smaller blockchains, such as Litecoin and Dogecoin, utilize PoW, albeit with lower energy requirements.

On the other hand, many altcoins, including Cardano and Solana, have adopted PoS or other less energy-intensive models. These networks drastically reduce energy consumption, making them more sustainable. 

However, the cumulative impact of various blockchains still adds to the global energy demand, highlighting the need for widespread adoption of greener technologies.

Highlighting Innovative Approaches: KlimaDAO’s Tokenized Carbon Credits

Apart from changing consensus mechanisms, innovative solutions like KlimaDAO offer a new way to address crypto’s carbon footprint. 

KlimaDAO allows users, including Bitcoin miners, to purchase tokenized carbon credits, effectively offsetting their emissions. These credits represent verified reductions in greenhouse gases and are retired after purchase to ensure accountability. 

• One carbon credit equals one metric ton of CO₂ reduced or removed from the atmosphere.

Such initiatives align with broader climate goals, enabling the crypto industry to contribute positively to carbon neutrality. Another emerging trend that could help the industry tackle its environmental impact is Green AI (Artificial Intelligence). 

Green AI: Powering Sustainable Blockchain Solutions

The concept of “Green AI” focuses on leveraging artificial intelligence to enhance sustainability and reduce environmental impact, aligning technology with climate action goals. AI can be used to optimize energy usage across various industries, minimizing emissions and maximizing efficiency. 

For instance, AI-powered solutions can streamline energy grids, predict resource consumption, and identify areas for improved sustainability. It also supports the development of AI models and algorithms that optimize energy consumption in data centers, making them more energy-efficient.

Green AI includes using AI tools to track carbon emissions, forecast energy usage, and help industries transition toward renewable energy. For example, AI can optimize electricity demand response, helping utilities manage energy more efficiently while reducing carbon footprints.

By integrating AI with sustainability strategies, organizations can achieve measurable reductions in energy consumption, significantly lowering the carbon footprint of industries like manufacturing, transportation, and data management. 

AI is also revolutionizing how blockchain networks manage energy. By analyzing real-time data, AI algorithms can predict network congestion, optimize transaction processing, and ensure efficient use of computing resources. 

This dynamic allocation of energy minimizes waste and prevents overuse during low-demand periods. For example, predictive models powered by AI can anticipate peak activity times, enabling miners to adjust operations and reduce unnecessary energy expenditure.

AI-Driven Tools to Track and Reduce Crypto Carbon Emissions

AI also plays a critical role in monitoring and mitigating the carbon emissions of blockchain activities. Platforms equipped with AI can measure the carbon output of each transaction, offering insights into the environmental impact of specific operations. These tools provide actionable recommendations for reducing emissions, such as shifting workloads to energy-efficient times or integrating renewable energy sources.

For instance, projects like CryptoCarbonRank leverage AI to provide transparency on carbon emissions across various blockchain networks, empowering users and developers to make greener choices.

Bridging Blockchain and AI for Improved Transparency 

Combining blockchain’s transparency with AI’s analytical capabilities has transformed the carbon credit market. Blockchain ensures the integrity of carbon credits by recording transactions in a tamper-proof ledger, while AI automates the verification process. This synergy prevents issues like double counting and fraud, which have historically plagued carbon markets.

AI-driven platforms also facilitate the issuance and trading of tokenized carbon credits. These innovations streamline the offset process, making it accessible to a broader audience while ensuring credibility and trust in global carbon offset initiatives.

Now, let’s consider specifically Bitcoin mining and how current efforts and innovations are helping the network become more sustainable. 

The Evolution of Bitcoin Mining: Toward Sustainability

Bitcoin mining has historically depended on fossil fuels, contributing to significant carbon emissions. However, the industry is evolving as miners increasingly adopt renewable energy sources. 

For example, China’s 2021 crackdown on crypto mining led many operations to relocate to countries with abundant renewable resources, such as the U.S. and Canada. In Texas, some mining companies use excess wind and solar power, stabilizing the state’s energy grid while reducing reliance on coal and natural gas.

As of 2024, nearly 40% of Bitcoin mining is powered by renewable energy sources, a significant improvement from previous years.

The shift toward renewables not only lowers carbon emissions but also reduces operational costs. Renewable energy, especially in regions with surplus capacity, is often cheaper than fossil fuels, creating a win-win scenario for miners and the environment.

From Proof-of-Work to Proof-of-Stake: Emerging Energy-Efficient Alternatives

Bitcoin’s PoW mechanism is the main culprit behind its high energy use and carbon pollution. By design, PoW requires miners to solve computational puzzles, consuming vast amounts of electricity. This has led to Bitcoin’s annual energy consumption surpassing that of some mid-sized countries.

Emerging alternatives like Proof-of-Stake are changing the game. PoS eliminates the need for energy-intensive computations, relying instead on validators who are selected based on their stake in the network. Ethereum’s switch to PoS has set a precedent, showcasing that major blockchains can significantly reduce energy consumption without compromising security or decentralization.

Cardano and Solana are among the leading PoS blockchains prioritizing energy efficiency. Cardano consumes only about 6 gigawatt-hours (GWh) annually, a fraction of Bitcoin’s energy use. Solana, known for its high-speed transactions, operates on a hybrid model with minimal energy requirements.

These networks demonstrate that advanced blockchain functionalities, such as smart contracts and decentralized applications (dApps), can be achieved without compromising environmental goals. Their energy efficiency also aligns with growing investor demand for greener technologies.

Crypto Projects for Nature-Based Carbon Solutions

Innovative projects like SavePlanetEarth (SPE) are tackling Bitcoin’s environmental challenges through nature-based solutions. SPE leverages blockchain technology to support reforestation and afforestation initiatives. 

By tokenizing carbon credits linked to these projects, SPE provides a transparent and efficient way to offset emissions.

These initiatives not only mitigate the carbon footprint of Bitcoin mining but also contribute to broader environmental goals, such as biodiversity conservation and ecosystem restoration. Such projects demonstrate how blockchain and crypto can play a proactive role in addressing climate change.

Revolutionizing Carbon Markets with Blockchain

Talking about climate, carbon markets offer significant financial instruments that can help fund various emissions reduction initiatives. 

However, traditional carbon credit systems often face challenges such as fraud and lack of transparency. Blockchain technology addresses these issues by providing a decentralized and immutable ledger for tracking and verifying carbon credits. Each credit is tokenized, representing a verified reduction or removal of greenhouse gas emissions.

By using blockchain, every transaction is transparent and traceable, ensuring the authenticity of carbon credits. This enhances accountability, especially for organizations looking to meet sustainability targets. 

The Toucan Protocol is a prime example of how blockchain enhances trust in carbon markets. The platform tokenizes carbon credits, making them accessible to a broader audience. Each credit is verified and traceable, ensuring its integrity.

Toucan also allows users to bundle smaller carbon offsets into larger, more marketable assets. This scalability supports global efforts to reduce emissions and makes it easier for companies and individuals to participate in offsetting programs. By combining blockchain’s transparency with innovative tokenization, Toucan is driving progress in carbon markets.

• READ MORE: Toucan Launches World’s First Liquid Market for Biochar Carbon Credits

Major carbon standards like Verra and Gold Standard are exploring ways to integrate decentralized systems to improve the verification process.

Blockchain in Renewable Energy Grids

Blockchain is also transforming renewable energy grids by enabling peer-to-peer energy trading. In these systems, households, and businesses with solar panels can sell excess energy directly to others. Blockchain ensures secure and transparent transactions without the need for intermediaries.

Projects such as Power Ledger in Australia and LO3 Energy in the U.S. are leveraging blockchain to create localized energy markets. These initiatives promote renewable energy adoption while increasing grid efficiency and resilience.

The Issues of Double Counting, Scalability, and Trust

One of the most significant challenges in carbon offset markets has been double counting, where the same carbon credit is sold multiple times or claimed by different entities. Blockchain technology provides an effective solution by offering a transparent and tamper-proof record of each carbon credit transaction.

With blockchain, each carbon credit is tokenized, and its transaction history is recorded on a decentralized ledger. This ensures that once a credit is sold or retired, it cannot be reused or misrepresented, drastically reducing the risk of double counting. 

Platforms like CarbonX are already implementing blockchain to safeguard the integrity of carbon offset programs. It is a private blockchain ledger designed to capture IoT-based greenhouse gas data for accurate reporting, management, and conversion into carbon commodities. 

As Emission Trading Systems (ETS) and Carbon Tax programs continue to roll out globally, blockchain technology is poised to play a crucial role in ensuring compliance with environmental regulations. It also offers new opportunities for carbon asset trading, enhancing transparency and efficiency in the carbon market.

Not only that. Tokenization is a game-changer for carbon credits, making them easier to trade and track across borders. 

By converting carbon credits into tokens, blockchain allows for fractional ownership, lower transaction costs, and greater liquidity in carbon markets. This scalability is crucial in meeting the global demand for offsets as businesses and governments strive to achieve their net-zero goals.

As mentioned earlier, the transparency of blockchain ensures that tokenized carbon credits are traceable, improving trust among buyers and sellers. 

Blockchain’s Potential for Global Carbon Market Integration

Blockchain has the potential to integrate regional carbon markets into a unified global system, enabling seamless trading of carbon credits across borders. Using blockchain to track credits from multiple countries and regions ensures that the credits are authentic and can be used toward global emissions reduction goals.

This integration not only supports international climate agreements but also fosters collaboration between countries, corporations, and environmental organizations. As such, blockchain could ultimately drive the global carbon market toward greater transparency, efficiency, and scalability. It can then provide a unified approach to tackling climate change.

Final Thoughts

Cryptocurrency and blockchain technology have transformed global finance and data systems, but their environmental impact cannot be ignored. Bitcoin and other crypto networks consume vast amounts of energy, contributing to significant carbon emissions. However, the industry is actively working toward sustainability, with renewable-powered mining, energy-efficient blockchains, and carbon offset initiatives leading the way.

As crypto adoption grows, the balance between innovation and environmental responsibility will be crucial. By embracing greener technologies, the industry can pave the way for a more sustainable digital future.

• FURTHER READING: Carbon Crypto Guide 2024: KlimaDAO, Carbon NFTs, and Carbon Tokens

The post The Energy Debate: How Bitcoin Mining, Blockchain, and Cryptocurrency Shape Our Carbon Future appeared first on Carbon Credits.

Ever since Trump came to power, there have been serious speculations about the future of America from a climate perspective. We saw clean energy stocks tumbling like a pack of cards and Trump’s “drill, baby, drill” policies eventually taking shape. 

Well, at this conjecture Reuters came up with an interesting report explaining that Donald Trump’s energy team is planning an aggressive agenda to reshape U.S. energy policy. He will prioritize expanding liquefied natural gas (LNG) exports, increasing offshore oil drilling, and streamlining permits for federal land projects.

These actions signal a dramatic shift from the Biden administration’s climate-focused pro-renewables policies. Let’s deep dive into what’s on Trump’s agenda…

Fast-Tracking LNG Exports, Restart Oil and Drilling

The report further highlighted that under the Biden administration, several significant LNG projects were delayed. Venture Global’s CP2, Commonwealth LNG, and Energy Transfer’s Lake Charles facility all of them are based in Louisiana. Trump wants to de-freeze and approve these projects which would send a strong message of support for the natural gas sector.

Federal records revealed,

“Five U.S. LNG export projects that have been approved by the Federal Energy Regulatory Commission are still awaiting permit approvals at the Department of Energy (DOE).”

The U.S., as the leading LNG exporter, plays a key role in global energy. With Europe seeking U.S. gas to cut reliance on Russia, Trump aims to seize the opportunity. This means there would be faster approvals, unlocking massive LNG infrastructure investments.

• EIA notes, that in 2023 the U.S. LNG exports averaged 11.9 billion cubic feet per day (Bcf/d)—a 12% increase (1.3 Bcf/d) compared with 2022.

Notably, Trump’s team also aims to accelerate oil and gas drilling off the U.S. coast and on federal lands. Federal lands currently account for a quarter of U.S. oil production and 12% of natural gas output.

During his first term, drilling permits took significantly less time to process compared to the Biden administration. This time he plans to reinstate a concrete long-term drilling plan that would expand offshore lease sales and fast-track all permit approvals to increase energy product. His focus will primarily be on regions having rich oil reserves.

Now taking about the stats, Reuters reported,

“According to federal data, oil output on federal lands and waters hit a record in 2023, while gas production reached its highest level since 2016.”

The report also revealed that Trump is most likely to persuade the IEA on pro-oil decisions. However, his advisors have urged him to suppress funding unless the IEA adopts a more pro-oil stance.

Dan Eberhart, CEO of oilfield service firm Canary said,

“I have pushed Trump in person and his team generally on pressuring the IEA to return to its core mission of energy security and to pivot away from greenwashing.”

A symbolic yet bold move would be Trump’s push to approve the Keystone XL pipeline, a project canceled downrightly by Biden. However, reviving the pipeline has challenges, as land easements have been returned and construction would require starting from scratch. Even so, Trump’s endorsement signals a commitment to fossil fuel infrastructure.

• RELATED: What’s Shaping North America’s Natural Gas in 2024? Insights from Wood Mackenzie 

Trump’s Stance on Inflation Reduction Act: A “Green Scam”?

Prior to his win, we have read and seen all around how he openly criticized the Inflation Reduction Act (IRA), calling it a “green scam”. He also pledged to repeal it if he returned to power once again.

This bold statement has raised questions about the future of the Biden administration’s $369 billion energy transition agenda. While his rhetoric may signal trouble for renewable energy sectors like electric vehicles (EVs) and wind power, Trump’s track record suggests a more nuanced approach to industrial policy and critical mineral supply chains.

But Critical Minerals are Safe in Trump’s Hands…

The IRA has funneled significant resources into renewable energy, but it also supports rebuilding America’s industrial base. For instance, $75 million was allocated to upgrade Constellium’s aluminum rolling mill in West Virginia. Efforts like these align with Trump’s earlier policies emphasizing industrial revitalization and reduced reliance on foreign nations for critical resources.

In 2020, Trump declared the United States’ dependence on foreign critical minerals a national emergency. A second Trump administration is unlikely to abandon this push for metal self-sufficiency. Instead, he may amplify efforts to boost domestic production of key materials like aluminum, nickel, and lithium.

The good news is cross-party consensus on this issue suggests that funding for industrial projects tied to critical minerals may be safe, even under a Republican administration.

America First: China in Scrutiny

Both the Department of Energy (DOE) and the Department of Defense (DOD) have prioritized investments in rebuilding U.S. metals capacity. While the DOE focuses on EV battery metals like lithium, the DOD has diversified its investments toward antimony to zirconium. All these moves align toward reducing dependency on China for critical minerals.

Projects like Talon Metals’ Tamarack nickel initiative in Minnesota have already received federal funding. However, the nickel market faces significant challenges due to Indonesia’s mining boom, which has driven down prices. Most of Indonesia’s nickel production is controlled by Chinese entities, complicating matters for U.S. companies like Ford, which are sourcing Indonesian nickel for EV batteries.

Trump’s “America First” philosophy highlights his strong opposition to critical metal imports from China. His administration will probably scrutinize even joint ventures like Ford’s collaboration with Indonesia’s Vale and Huayou Cobalt. Even if these ventures technically qualify for IRA subsidies, their ties to Chinese supply chains may face new barriers under his administration.

Can America Be Great Again?

Despite Trump’s bitterness about the IRA, his administration may continue supporting parts of it that align with domestic industrial goals. Consequently building U.S. mineral independence will significantly reduce reliance on China and secure advanced technology materials.

Concisely, this means a second Trump presidency might prioritize America’s self-sufficiency while addressing IRA’s initiatives to fit in his “Make America Great Again” agenda.

This report suggests that Trump’s policies could possibly reinforce a robust U.S. oil, gas, and critical minerals industry. While his decision on renewables like EVs and tariffs on imports are still uncertain, he prioritizes critical minerals which is assuring for national security and economic competitiveness.

Sources:

1. Exclusive: Trump prepares wide-ranging energy plan to boost gas exports, oil drilling, sources say | Reuters
2. Trump 2.0 won’t reverse Biden’s critical minerals push | Reuters

• FURTHER READING: Tariff Showdown: Harris and Trump’s Battle Over U.S. Critical Minerals

The post Trump’s Tactic to Make America Great Again: Expanding Domestic Oil, Gas, and Critical Minerals appeared first on Carbon Credits.

Alaska Energy Metals Corporation (AEMC) has unveiled exciting findings from its 2024 inaugural exploration drilling program at the Canwell claim block which is a part of the Nikolai Project in Alaska. The Canwell area hosts three key prospects—Emerick, Odie, and Upper Canwell—located about 30 kilometers northeast of AEMC’s nickel-rich Eureka deposit.

AEMC’s Eureka Deposit: A Foundation for Growth

Exploring deeper, AEMC’s flagship Eureka deposit is a massive polymetallic resource with over 3.9 billion pounds of nickel in the Indicated category and 4.2 billion pounds in the Inferred category. This deposit also includes critical materials such as cobalt, chromium, platinum, and palladium. It also holds copper, iron, and gold which positions AEMC as a significant player in the strategic metals sector.

The advantage doesn’t end here, having such a rich resource potential aligns with U.S. government priorities for securing domestic supplies of strategic metals.

Nikolai Project – Property Location Map

Breaking Ground at Canwell: Promising Results for Nickel and Critical Metals

According to the company’s press release they used one surface diamond drill rig to drill three holes across the Emerick, Odie, and Upper Canwell prospects, covering a total of 1,047.9 meters. Each hole targeted geological, geophysical, and geochemical anomalies, providing valuable data for understanding the region’s mineralized ultramafic systems.

Alaska Energy Metals Chief Geologist Gabe Graf commented,

 “After 20 years of limited exploration on the Canwell property, the information collected from these drill holes will aid our understanding of the mineralized ultramafic systems within the Wrangellia Terrane of interior Alaska. In fact, the blebby sulfides intersected at the Upper Canwell prospect is the first subsurface indication for higher-grade sulfides on the property. Furthermore, the potential for coarser-grained nickel sulfides and additional disseminated sulfide zones on the Nikolai Project is encouraging, and we are excited to continue advancing the geologic understanding of the property. We look forward to getting back into these areas in the next exploration season.”

Source: AEMC

• READ MORE: Nickel Could Be the Key to U.S. Energy Independence: Alaska Energy Metals’ Strategic Role
• READ MORE: The Nickel Market is Changing Big Time: Is a Supply-Demand Shift Underway?

Key Findings from the Drill Sites

1. Emerick Prospect (CAN-24-001)

Drill hole CAN-24-001 started with 16 meters of overburden, followed by serpentinized peridotite containing 0.2–0.5% sulfide minerals. The drilling reached a depth of 72.5 meters before encountering challenging rock conditions. These included intense fracturing, clay alteration, and serpentinization, which made sulfide estimation difficult.

Non-mineralized mafic dikes were also present within the peridotite. Drilling became harder due to poor rock quality, and the hole was abandoned at 74.8 meters due to a large fault. Unfortunately, it did not reach the targeted magnetic anomaly or the base of the ultramafic intrusion.

Rather than retrying, the team decided to postpone further drilling on this target until 2025. The key findings were:

• 56.5 meters @ 0.40% nickel equivalent (NiEq) (0.26% Ni, 0.62% Cr, 7.00% Fe, 0.012% Co, 0.01% Cu, 0.019 ppm Pd, 0.032 ppm Pt & 0.007 ppm Au)

Source: AEMC

2. Odie Prospect (CAN-24-002)

Drill hole CAN-24-002 started with 12.2 meters of overburden, followed by serpentinized dunite containing 0.2–6.0% nickel sulfide and Ni-Fe alloy. This mineralized zone extended to a depth of 245.5 meters. Within the dunite, several non-mineralized gabbroic dikes were found.

At 245.5 meters, the drill hit an unmineralized diorite intrusion, which continued down to 527.0 meters. The targeted DIGHEM magnetic anomaly is believed to mark the contact between the mineralized dunite and the diorite intrusion. This area also showed increased pyrrhotite content, offering valuable clues for further exploration. The team discovered:

• 193.6 meters @ 0.42% NiEq (0.26% Ni, 0.69% Cr, 8.58% Fe, 0.01% Cu, 0.014% Co, 0.035 ppm Pd, 0.041 ppm Pt and 0.007 ppm Au)

Source: AEMC

3. Upper Canwell Prospect (CAN-24-003)

Drill hole CAN-24-003 began with 16.8 meters of overburden, followed by serpentinized and faulted dunitic rocks. These rocks showed 0.5–5.0% nickel sulfide and Ni-Fe alloy mineralization. Several cross-cutting gabbroic dikes with minimal sulfide mineralization were also encountered.

Due to challenging terrain, the drill site was relocated north of the original plan. This adjustment allowed the team to test multiple geophysical targets and resulted in drilling down the dip of the intrusion.

The targeted DIGHEM magnetic anomaly showed higher sulfide content and better nickel grades, confirming its exploration potential. The key findings were:

• 429.3 meters @ 0.39% NiEq (0.24% Ni, 0.64% Cr, 8.12% Fe, 0.01% Cu, 0.013% Co, 0.031 ppm Pd, 0.035 ppm Pt and 0.007 ppm Au), including 1.4 meters @ 0.93 NiEq (0.65% Ni, 0.66% Cr, 8.90% Fe, 0.06% Cu, 0.021% Co, 0.275 ppm Pd, 0.246 ppm Pt and 0.012 ppm Au)

Source: AEMC

Ensuring High Standards for Exploration

AEMC upholds stringent Quality Assurance – Quality Control for its Nikolai Project to ensure the best practices for logging, sampling, and analysis of samples.

As revealed by the company,

“For every 10 core samples, geochemical blanks, coarse reject or pulp duplicates, or Ni-Cu-PGE-Au certified reference material standards (CRMs) were inserted into the sample stream.”

Furthermore, drill cores were flown daily to the McLaren River Lodge in Alaska, where they were meticulously logged, labeled, and cut. Half of each core was archived, while the other half was sent to SGS Laboratories in Burnaby, B.C., for detailed analysis using advanced geochemical methods.

This indicates that the company integrates environmental, social, and governance (ESG) principles into its operations. At the same time focusing on sustainable practices and carbon reduction. With offices in Anchorage and Vancouver, AEMC aims to supply critical materials essential for national security and clean energy.

What’s Next for AEMC?

Significantly, the recent results at Canwell strengthen the vision for district-wide exploration across the Nikolai Project. By confirming nickel mineralization and identifying promising areas for future drilling, AEMC has highlighted the potential for major discoveries in Alaska’s interior.

They plan to revisit the site in the 2025 season, targeting expanded sulfide zones and higher-grade nickel deposits. In addition to the Nikolai Project, AEMC is advancing the Angliers-Belleterre Project in Quebec, which holds potential for high-grade nickel-copper sulfides and white hydrogen.

• CHECK OUT: A Nickel Junior Ready to Power America’s Clean Energy Revolution

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The post Alaska Energy Metals Corporation Unlocks Vast Nickel and Critical Mineral Potential at Canwell Property, Nikolai Project, Alaska appeared first on Carbon Credits.

With 85 million electric vehicles (EVs) expected on the road by 2025, the demand for lithium is skyrocketing. However, traditional lithium extraction methods pose serious environmental risks. They deplete water supplies, contaminate ecosystems with chemicals, and rely heavily on energy-intensive mining processes that expand the carbon footprint.

ElectraLith, a Melbourne-based startup backed by Rio Tinto, is tackling these issues with its Direct Lithium Extraction (DLE) technology. This innovative process bypasses the need for water and chemicals, extracting lithium directly from brine solutions. 

The lithium tech startup is set to conclude a funding round worth A$27.5 million (almost $18 million) next week to support its global growth initiatives. CEO Charlie McGill confirmed the plans, as reported by Reuters.

ElectraLith’s Game-Changing Lithium Technology

Traditional lithium production can take months and devastate water-stressed regions like Chile’s Atacama Desert. ElectraLith’s proprietary DLE-R technology completes the process in hours, drastically cutting production time and environmental costs. 

• RELATED: Is Direct Lithium Extraction the Key to Solving the Lithium Shortage Crisis?

ElectraLith DLE-R Technology

The tech’s advanced filtration membranes convert lithium into lithium hydroxide while reinjecting unused brine into aquifers, ensuring minimal environmental disruption.

According to McGill, this breakthrough is especially critical in areas where water scarcity makes conventional mining untenable. He specifically noted that:

“You can’t get a water permit [referring to water-stressed regions like the Colorado River basin]… So we show up and we are like, ‘We don’t need water.’”

Backed by Rio Tinto, venture capital firm IP Group, and Monash University, ElectraLith is preparing to scale its operations. The company’s upcoming funding round, which has been oversubscribed—is a testament to investor confidence despite a challenging market.

The funds will support the construction of ElectraLith’s first pilot plant at Rio Tinto’s Rincon operations in Argentina, set to be operational within a year. Two additional pilot plants are planned, as the company aims to produce lithium hydroxide at half the cost of competitors.

Transforming the $10 Billion Lithium Industry

Direct Lithium Extraction is expected to drive the lithium industry’s growth to over $10 billion in annual revenue within the next decade. ElectraLith’s energy-efficient process not only accelerates production but also positions the company as a leader in sustainable EV battery material supply.

By addressing the dual challenges of water scarcity and environmental impact, ElectraLith’s technology could redefine lithium production. As McGill emphasizes:

“This isn’t just a better method—it’s a necessary one for the future of EVs and the planet.”

With its revolutionary approach, ElectraLith is paving the way for a greener, more efficient future in lithium extraction and EV battery manufacturing.

Cutting Costs and Carbon, Not Corners: Lithium at Half the Price?

Lithium prices have been a driving force in the EV battery market, with significant fluctuations impacting producers and manufacturers. 

After peaking at nearly $85,000 per metric ton in late 2022, prices have recently cooled, stabilizing around $26,000 per metric ton. While this decline offers some relief to EV makers, it has created challenges for lithium producers, especially those reliant on cost-intensive extraction methods.

High-cost concentrate operations, including Nemaska, Mt Cattlin, and North American Lithium (NAL), are at risk of losses unless spodumene prices rise above $800/ton. 

To stay competitive, Sayona Mining and Piedmont Lithium, the two owners of NAL, announced a merger to streamline costs. This partnership, unlike the large-scale acquisition of Arcadium Lithium by Rio Tinto, focuses on cutting corporate overhead and operational inefficiencies.

• RELATED: Seizing the Lithium Boom: Rio Tinto’s $6.7 Billion Deal for Arcadium Lithium

However, challenges remain. Protectionist trade policies and the potential repeal of the US EV tax credit could dampen demand for Canadian lithium exports, adding further pressure to high-cost producers.

ElectraLith’s Direct Lithium Extraction technology offers a significant cost advantage. By producing lithium hydroxide at nearly half the cost of traditional methods, the company is poised to thrive even in volatile market conditions. This cost efficiency could help buffer against future price fluctuations, ensuring a steady supply of affordable lithium for EV battery production.

The cost of lithium is a critical factor for the industry, per Charlie McGill. However, their technology allows them to maintain competitiveness, even in challenging markets.

Lithium Prices: A Story of Volatility

The lithium market remains dynamic, with prices responding sharply to changes in supply and demand. 

On November 13, the Platts-assessed lithium carbonate DDP China price surged by 6.4% to reach 83,000 yuan/ton, a three-month high. This rally followed production curtailments at key Australian mines and stronger-than-expected battery and cathode demand in China.

• Although prices eased to 79,500 yuan/ton by November 21, they still marked a 6.7% increase from the start of the month.

Spodumene concentrate prices have stayed stable, averaging $820-$830/ton through mid-November, according to S&P Global data. Meanwhile, China’s traction battery production in October demonstrated unusual resilience, declining only 1.3% month-over-month compared to a 10.1% drop a year earlier. 

Data suggests a recovery in battery and cathode output, further boosting demand for lithium.

A wave of supply curtailments, shown in the S&P Global chart below, has also tightened the market. The latest cuts include halting operations at the Bald Hill and Altura mines and reducing 2025 production by 73,000 metric tons of lithium carbonate equivalent (LCE). Meanwhile, Australia’s Kathleen Valley mine has announced plans to delay and trim production.

The tightening supply coincides with lithium carbonate prices hovering just above $10,000/ton (CIF Asia basis), putting high-cost producers under pressure. Some companies, like Mt Cattlin, are already planning to transition into care and maintenance by mid-2025, while others seek strategic mergers to cut costs.

Outlook for 2025 and Beyond

Lithium supply reductions are expected to shrink the market until 2027, driving a deeper deficit by 2028. Prices for 2028 are projected at $15,344 per tonne, a 4.7% increase, per S&P Global forecast. 

Ultimately, lithium prices are expected to remain volatile as demand accelerates. Amid all this, ElectraLith’s revolutionary direct lithium extraction tech could help stabilize supply chains and drive the global energy transition forward.

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