In the dynamic landscape of energy transition, US corporations have embarked on a remarkable journey, ramping up renewable energy initiatives. Since March 2023, corporate initiatives have actively pursued renewables procurement, adding 17 GW of carbon-free generation capacity, per S&P Global Commodity Insights.  

The Rise of Renewable Giants

Renewable capacity additions accounted for 9.1 GW of the total added capacity since March 2023. Texas led the market, representing 43% of the added capacity. Solar energy dominated the signed capacity, comprising 81% of the capacity added in the US.

RELATED: Harnessing the Sun: America’s Solar Snapshot in April 2024

Domestic renewable capacity contracted by US-based corporations reached 67.8 GW by February 2024, with Amazon leading the pack. The tech giant accounts for a quarter of the contracted renewable capacity. 

On a global scale, US corporations continued to make deals across five continents, with Europe leading in deal activity. Spain emerged as the most popular destination, adding over 2.1 GW of additional corporate capacity in the past 12 months. Half of this is attributed to Amazon, primarily in solar energy projects. 

The trend continues to favor utility-scale solar growth, supported by low-cost solar equipment and federal tax credits. Utility-scale solar capacity in development surged by 24% since March 2023, reaching 286 GW, and solar now comprises over 62% of US capacity contracted to American corporations.

Moreover, grid-scale battery storage capacity in development doubled over the last year, reaching nearly 140 GW. Of that, over 50 GW is colocated with wind or solar projects. This integration of battery storage enhances grid flexibility and revenue streams, particularly for intermittent generation sources like solar. 

Over 6 GW of battery capacity is currently paired with wind and solar projects that have contracted with non-utility off-takers.

Fueling Renewables Growth Worldwide

Corporate procurement initiatives expanded to encompass 43 US states, with Texas maintaining its dominance as the leading market, constituting 57% of the aggregate corporate renewable capacity tracked by S&P Global Commodity Insights. 

Notably, six deals of 200 MW or more were inked with Texas projects since March 2023. Among these, Amazon’s 250-MW agreement with Hecate Energy for the 514-MW Outpost Solar Project stands out. The partnership will potentially include 508 MW of paired battery storage capacity. 

California ranked second to Texas in corporate renewable capacity added. Again, this is primarily driven by Amazon’s contracts with AES Corp. for two 500-MW solar projects, totaling 1 GW. 

According to a White House report, there’s an announcements of >100 gigawatts (GW) of solar module manufacturing capacity. This can potentially generate enough solar panels to power about 10% of homes in the U.S., representing over $13 billion in investments.

Solar Capacity Projections Over Time

Outside the US, the technology breakout between wind and solar splits more evenly. Solar accounts for over 50% of the clean energy deals signed internationally.

RELATED: Transforming the American Clean Energy Landscape Under Biden’s Era

About three-quarters of the tracked corporate renewable capacity contracted internationally by US businesses was concentrated in Europe. Northern Europe particularly stands out due to its top offshore wind speeds, per S&P Global analysis. 

In this region, spanning from the British Isles to the Nordics, US companies accumulated 7.8 GW of corporate-tied renewable energy capacity, with wind accounting for 76% of this total.

Meanwhile, the African continent experienced the second largest year-over-year jump, increasing by 180%. This is primarily driven by an additional 18 MW of tracked capacity subscribed to by US commercial entities in South Africa. 

Australasia, boasting abundant solar and wind resources, rounded out the top three in terms of year-over-year growth, expanding by almost 125%. Despite the substantial growth, the region’s cumulative capacity approached the 2-GW mark as of February 2024.

Amazon’s Renewable Energy Leadership

Among the renewable contracts signed worldwide, Amazon takes the top spot. The tech giant is the world’s largest corporate purchaser of renewable energy for the 4th year in a row.

In 2023, Amazon made significant strides in its commitment to renewable energy by investing in over 100 new solar and wind energy projects. 

With over 500 wind and solar projects globally, Amazon could generate more than 77,000 gigawatt-hours (GWh) of clean energy annually once these projects become operational. This translates to enough clean energy to power around 7.2 million U.S. homes every year.

These projects are propelling Amazon closer to its goal of sourcing 100% of the electricity for its operations from renewable energy sources by 2025. The renewable energy generated by these projects is already being utilized to power various Amazon facilities, including data centers, fulfillment centers, physical stores, and corporate offices. Moreover, these projects contribute to providing clean power to local communities where they operate.

The impact of Amazon’s solar and wind farms extends beyond environmental benefits. They have also catalyzed over $12 billion in estimated economic investment globally from 2014 through 2022. 

Amazon Net Zero Roadmap

Source: Amazon 2022 Sustainability Report

All these renewables initiatives are part of the retailer’s decarbonization strategy. The company also founded the The Climate Pledge in 2019, which lays out its net zero commitments. Amazon aims to reach net zero by 2040, 10 years ahead of the 2050 goal set by the Paris Agreement.

As the world marches towards a sustainable future, US corporations stand at the forefront, driving change through ambitious renewable energy procurement initiatives. Under Amazon’s renewable leadership, they continue to shape the energy landscape and inspire a global shift towards a sustainable future.

READ MORE: Amazon’s Carbon Emissions Take a Green Turn with Renewables

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As investors and environmental enthusiasts scout for tangible opportunities in the green revolution, silver emerges not merely as a precious metal but as a pivotal element in the quest for a net-zero future. 

With its price on a notable ascent touching $27 per ounce, silver’s inherent value is being redefined, transcending its traditional allure to become a cornerstone in sustainable technology.

Chart from Trading View

Silver, with its dual role as an industrial workhorse and a financial asset, deserves a closer look from investors, policymakers, and industry stakeholders

Silver’s Ascending Value in the Green Era

Silver’s price trajectory is more than a market anomaly; it’s a reflection of its significant role in modern technology and sustainable initiatives. As industries pivot towards eco-friendly solutions, silver’s conductive and reflective properties are in unprecedented demand, especially in sectors crucial for reducing carbon footprints. 

This metal, once confined to jewelry and currency, is now a linchpin in solar panels and electric vehicles, illustrating a direct correlation between its market value and its environmental significance.

Over 50% of silver serves industrial needs, powering sectors from electronics to metalworking.

More than half of silver’s demand is driven by sectors critical to the low-carbon transition. It’s a testament to silver’s versatility and indispensability, echoing its historical role as a currency foundation but now reimagined as a cornerstone of modern technology.

The legacy of silver, from ancient empires to contemporary economies, underscores a metal that has continually adapted and thrived.

The Metal Driving Us Toward Net Zero

The surge in solar installations and electric vehicle production is not just a trend; it’s also a strong call for increased silver demand. The metal’s unmatched conductivity and application in photovoltaic cells position it as a key player in the transition to renewable energy. 

Solar panels that harness the sun’s power heavily rely on silver’s conductivity, making it a key player in renewable energy’s expansion. Silver holds a unique position in the realm of metals due to its exceptionally low electrical resistance at standard temperatures. This characteristic makes it unrivaled by substitutes, as they cannot match its energy output per panel.

Similarly, as the automotive industry accelerates toward electric vehicles, silver’s role in electrical contacts and conductors becomes increasingly critical.

RELATED: New Monthly EV Sales Record to Kickstart 2024

This intrinsic link between silver and green technology underscores not just an environmental imperative but a burgeoning market trend. Others consider silver to be the new oil, only if the world has enough of it. 

Supply Chain Scrutiny: The Geopolitical Dance of Silver Production

The spotlight on Latin America’s Silver CAMP—Chile, Argentina, Mexico, and Peru—reveals a narrative rich in opportunity and fraught with challenges. These nations, pivotal to silver’s global supply, explore a complex geopolitical landscape where policy shifts and operational risks are huge.

The impending start-up of Guatemala’s Escobal mine adds another layer to this intricate story. It promises to reshape the supply dynamics and spotlight the importance of sustainable mining practices.

According to Katusa Research, Mexico is the largest producer of silver in the world by a comfortable margin, thanks to its generous healthy reserves and low costs of production.

China is also a major player in this space, having maintained steady production of roughly 3,500 tonnes a year for the past decade.

University College London (UCL) researchers are exploring the use of silver in carbon capture and storage (CCS) technologies, aiming to make CCS more cost-effective by utilizing silver’s high-temperature stability in innovative membranes that separate carbon dioxide from other gases. This approach could be crucial for industries like steel and cement, which are slower to transition to renewable energy.

However, the reliance on CCS and its potential to delay immediate emission reduction efforts raises concerns, with some experts cautioning against viewing CCS as a definitive solution to climate change. UCL’s commitment to net-zero targets by 2030 highlights the urgency of reducing emissions alongside developing removal technologies.

Mining for a Greener Tomorrow

While we champion silver’s role in sustainability, it’s crucial to scrutinize its source. 

Silver mining, like any extractive industry, poses environmental challenges. However, the industry is on a transformative journey, adopting more sustainable and less invasive mining techniques. 

Understanding where and how silver is extracted is vital, as responsible sourcing becomes synonymous with environmental stewardship. 

Latin American silver miners are advancing in decarbonizing their operations, aligning with net zero commitments by 2050. However, emissions per ounce are increasing due to lower ore grades. 

For example, despite a temporary rise in emissions in 2020, attributed to COVID-19 impacts, the industry is adopting automation and alternative energy to reduce its carbon pollution.

Political factors and energy reforms, particularly in Mexico, pose challenges to these efforts. While larger firms lead in emission reductions, smaller silver miners are also making significant strides, adapting to their unique operational scales and contexts.

A Sterling Opportunity?

Investors are increasingly aligning their portfolios with their values, and silver could offer a compelling narrative that marries financial growth with ecological responsibility. 

By investing in silver, one is not just betting on a metal’s value but could be supporting the infrastructural backbone of the net zero movement. 

Silver’s story is evolving, from a symbol of wealth to a beacon of sustainability. Its rising demand and price are representative of a broader narrative, where financial markets and environmental goals are increasingly intertwined.

For investors, industry stakeholders, and environmental advocates, silver represents a multifaceted opportunity: a chance to drive and benefit from the monumental shift towards a cleaner, greener, and more sustainable world. 

Silver’s journey from a symbol of wealth to a driver of sustainability underscores its evolving role in shaping our net zero future. 

The post Silver’s Crucial Role in Achieving a Net Zero World appeared first on Carbon Credits.

The global demand for lithium metal batteries is surging, yet production falls short of meeting the need, hindering industry growth. According to Benchmark’s Solid-State and Lithium Metal Forecast, the sector faces challenges in sourcing adequate lithium metal for battery production, despite its high capacity potential.

In 2024, if all suitable lithium metal produced were used for batteries, it could support 5 to 10 gigawatt-hours (GWh) of cell production. However, much of the lithium metal is diverted to other industries, leading to a supply deficit this year. From almost 10 GWh in deficit in 2024, jumping to around 60 GWh by 2026.

Chinese Dominance and Global Ambitions

China dominates global lithium metal production, accounting for over 90% of capacity in 2023. This dominance is poised to continue, with China aiming to double its capacity within the next 3 to 5 years.

Currently, some companies worldwide are scaling back output and spending due to improved supply prospects and slowing demand from EVs. Yet, Chinese firms are taking a different approach. 

RELATED: Lithium Prices and The Insights into the EV Market’s Pulse

China’s leading lithium companies, Tianqi Lithium Corp. and Ganfeng Lithium Group Co., are undeterred by recent profit declines and aim to expand their market presence. Despite sharp drops in net income in 2023 due to plummeting prices, both companies are focused on acquiring global lithium reserves and increasing production capacity. They believe in the long-term potential of rising demand for lithium, looking beyond current challenges.

Tianqi seeks partners to explore high-quality lithium sources, accelerating work at its Yajiang mining project in Sichuan province. Meanwhile, Ganfeng plans to develop low-cost resources like lithium derived from brine and expand processing facilities in China and Argentina.

These companies’ optimism aligns with other Chinese miners like CMOC Group Ltd. and Zijin Mining Group Co. They are also eyeing opportunities in battery materials amid signs of a potential price recovery.

However, this total capacity may not meet the requirements of next-generation battery technologies.

Growing Demand Amid Technical Hurdles

The deficit arises as demand for lithium metal batteries grows rapidly, exceeding 10 GWh by 2026. Developers are transitioning from cell development to pilot production, driving up demand for lithium metal.

RELEVANT: Lithium’s Dynamic Future: Accelerating Demand and Construction Surge in US and Canada

The precursor to lithium metal, lithium chloride, is sourced directly from brine or converted from lithium carbonate. However, most brine resources have unsuitable impurity profiles, and converting lithium carbonate incurs significant capital expense.

Next-generation lithium metal batteries require thinner lithium metal foils for the anode, challenging traditional production processes. Overcoming this technical barrier is crucial for industry growth, with companies exploring novel approaches to address this challenge.

Nevertheless, trading of the metal in CME Group Inc. is experiencing a significant surge, drawing increased attention from funds amid declining battery metal prices.

The contract has seen open interest reach a record high of 24,328 contracts in the first quarter, extending to September 2025. This uptick in open interest indicates a notable increase in liquidity within the contract. This further suggests a maturing market for the lithium industry.

Trading Surge Reveals Market Resilience

The growth in open interest follows a robust year in 2023, primarily driven by arbitrage trading between China and the US. Notably, China introduced its lithium carbonate contract on the Guangzhou Futures Exchange in July last year. In turn, this further contributes to the trading activity. 

This development underscores the growing importance of lithium derivatives markets as key tools for industry participants to manage price risks.

The rise in liquidity in CME’s lithium hydroxide contract is a positive sign for an industry grappling with challenges. Prices of lithium have declined by over 80% from their record high in November 2022. This drastic drop in prices has been attributed to shifting market dynamics, swaying between fears of shortages and the emergence of surplus inventories.

 

Despite the challenges facing the industry, the surge in open interest offers assurance to funds and financial participants. It provides them with the confidence that they can easily trade the contract, enabling them to enter and exit positions as needed, even in the face of adverse price movements. 

Additionally, more Asia-based funds are showing interest in trading the CME contract this year, reflecting the growing appeal of lithium as an investment opportunity.

Moreover, the current market conditions, with lithium prices in contango (futures prices higher than spot prices), present lucrative opportunities for funds. 

READ MORE: Why Lithium Prices are Plunging and What to Expect

The contango structure allows traders to profit by buying futures contracts and selling them at a higher price in the future. This has attracted the attention of funds looking to diversify their portfolios and capitalize on the volatility in commodity markets.

The increasing liquidity and trading activity in CME’s lithium hydroxide futures contract signal a growing interest in lithium derivatives. With trading volume on pace to surpass last year’s record, lithium futures are attracting the attention of investors seeking exposure to the rapidly evolving battery materials sector. 

The post Key Challenges and Opportunities in Global Lithium Metal Market appeared first on Carbon Credits.

The US Environmental Protection Agency (EPA) announced a significant investment of $20 billion to community lenders to finance climate and clean energy projects. It is a key initiative under the agency’s Greenhouse Gas Reduction Fund, established by the 2022 climate law.

The funding is under President Biden’s Investing in America agenda that’s distributed through the National Clean Investment Fund ($14 billion) and the Clean Communities Investment Accelerator ($6 billion). 

Vice President Kamala Harris, EPA Administrator Michael Regan, and other officials made the announcement in North Carolina. The grants were awarded through two of the three programs overseen by the “green bank” established under the Inflation Reduction Act of 2022.

Serving the Underserved 

The funding aims to create a national financing network for clean energy and climate solutions, particularly in underserved communities. It could mobilize an additional $130 billion in private capital.

The recipients committed to leveraging private sector funding, with $7 in private investment for every $1 from the federal government. The aim is to reduce or avoid 40 million metric tons of carbon dioxide annually.

Seventy percent of the funding is earmarked for disadvantaged and low-income communities disproportionately affected by climate change. This makes the Greenhouse Gas Reduction Fund the single biggest non-tax investment under the IRA to foster a transition to a clean energy economy while prioritizing communities historically left behind.

Eight nonprofits have been selected by the EPA to administer the loans. The programs will provide financing for various projects aimed at energy efficiency and reducing greenhouse gas emissions. 

Eligible projects include residential heat pumps, solar panel installations, energy-efficient home improvements, electric vehicle charging stations, and community cooling centers. 

The National Clean Investment Fund (NCIF) will be split among 3 applicants, including the following: 

Climate United Fund ($6.97 billion), 
Coalition for Green Capital ($5 billion), and 
Power Forward Communities ($2 billion). 

These organizations will establish national financing institutions to provide capital for clean energy projects.

RELATED: Transforming the American Clean Energy Landscape Under Biden’s Era

The Clean Communities Investment Accelerator (CCIA) will support 5 applicants in establishing hubs to distribute funding and technical assistance to lenders, prioritizing low-income and disadvantaged communities. This includes significant grants for rural areas and tribal communities. CCIA grant awardees are: 

Opportunity Finance Network ($2.29 billion)
Inclusiv ($1.87 billion)
Justice Climate Fund ($940 million)
Appalachian Community Capital ($500 million)
Native CDFI Network ($400 million)

The IRA also spurred massive investments in clean energy manufacturing and power in the country. For instance, clean energy manufacturing investments have increased by over 170% in the past year because of the initiatives created by the law, per the National Economic Council data.

A separate database also showed that a total of $213 billion was poured in clean technologies that reduce carbon emissions. The chart below shows that clean energy investments are rising rapidly from 2018 to 2023.

Chart from CIM

Driving the Clean Energy Revolution 

With this $20 billion climate and clean energy government funding, another massive private capital would be unlocked. Collectively, the 8 selected applicants have committed to: 

Emissions Reduction: The projects will collectively reduce or avoid GHG emissions by up to 40 million metric tons of CO2 equivalent per year. This reduction is significant, equivalent to emissions from 9 million typical passenger vehicles.
Community Benefits: Over $14 billion of the funds will be dedicated to low-income and disadvantaged communities, with $4 billion for rural areas and nearly $1.5 billion for Tribal communities. This ensures equitable distribution of benefits and supports the President’s Justice40 Initiative.
Private Capital Mobilization: The goal is to leverage public funds to mobilize private capital, aiming for a ratio of nearly 7:1 over seven years. This means that for every dollar of grant funds, almost 7 dollars of private investment will be secured.

While this initiative has been praised for its potential impact on reducing greenhouse gas emissions and engaging communities in the clean energy revolution, it has also faced opposition, particularly from Republicans in Congress. They introduced a bill in 2023 to repeal the funding. 

Despite challenges, supporters believe that this initiative is a crucial part of the national strategy to combat climate change and transition to clean energy sources.

The EPA expects to finalize the awards in July, pending the resolution of all administrative disputes related to the competitions. By prioritizing underserved communities and leveraging private sector funding, this investment represents a significant step towards addressing the climate crisis and promoting a clean economy for Americans.

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