Energy Transition in Motion (Week of June 6, 2025)

Clean energy investments are on pace to hit a record $2.2 trillion this year, more than double the investments in oil, natural gas and coal, according to the International Energy Agency (IEA).

The trend reflects continued ambitions to lower emissions and the “growing influence of industrial policy, energy security concerns and the cost competitiveness of electricity-based solutions,” the IEA said June 5.

Solar investments continued to drive the clean energy growth streak. The report showed global investment in utility-scale and rooftop solar combined could reach $450 billion this year.

Another fast mover for investments is battery storage, which is expected to surpass $65 billion in investment this year. Battery energy storage systems are often paired with renewable energy projects to help alleviate intermittency issues.

The report also highlighted rising capital flows to nuclear power, which grew 50% in the last five years with investment expected to reach about $75 billion.

Growing electricity demand is behind the global surge.

However, “In a worrying sign for electricity security, investment in grids, now at $400 billion per year, is failing to keep pace with spending on generation and electrification,” the IEA said. “Maintaining electricity security would require investment in grids to rise towards parity with generation spending by the early 2030s. However, this is being held back by lengthy permitting procedures and tight supply chains for transformers and cables.”

Investments in oil are also expected to fall, dropping 6% in 2025 on lower oil prices and demand expectations along with less spending on U.S. tight oil, according to the IEA. It would mark the first decline in upstream oil investment since the COVID-19 pandemic in 2020.

The story is not the same for LNG, which the IEA forecasts will see more investment for new LNG facilities in the Canada, Qatar and the U.S.

Here’s a roundup of this week’s renewable energy news.

Biofuels

LanzaJet, ATOBA Partner to Expand Access to SAF Market

Sustainable fuels producer LanzaJet and ATOBA Energy will work together to develop new commercial models to accelerate deployment of sustainable aviation fuel (SAF), according to a June 3 news release.

As part of a memorandum of understanding, the two companies plan to develop new pricing and offtake structures that balance the needs of SAF producers and buyers, SAF aggregator ATOBA Energy said in the release. Commercial models that support SAF procurement and offtake that uses production processes such as the alcohol-to-jet fuel pathway pioneered by LanzaJet will be evaluated.

“Scaling SAF requires flexible, forward-thinking commercial models that work for both producers and consumers,” said LanzaJet CEO Jimmy Samartzis. “This collaboration with ATOBA Energy is about building the kind of aligned ecosystem we need to drive innovation, catalyze investment and accelerate SAF deployment globally.”

Aggreko Lowers Emissions with Switch to Biofuels

Power generation equipment provider Aggreko said it has lowered CO₂ emissions by up to an estimated 60% at its North American headquarters by replacing diesel with biofuel.

The company on June 4 said it transitioned its North American headquarters in Pearland, Texas, and facilities in New Iberia, Louisiana and California’s San Francisco and Los Angeles to hydrotreated vegetable oil (HVO) for onsite operations. This includes the maintenance and testing of generators and fuel for forklifts and service vehicles.

“One of the great benefits of our diesel power solutions is how all of them can run on biofuels like HVO, and our service centers provide a great opportunity to demonstrate this for our customers,” said Todd Aston, regional vice president of sustainability at Aggreko.

The company said it is now finalizing the replacement of diesel with HVO for internal use at additional facilities across the U.S.

Bayer: Airlines Must Ink Long-Term Deals on Greener Fuels to Boost Volumes

Airlines need to reach long-term agreements to buy bigger quantities of SAF if they want to boost global volumes of the lower-emission fuel required for industry climate targets, a Bayer executive said June 3.

Airline members of the International Air Transport Association are sticking to a target of net zero emissions by 2050, despite warnings that carriers will struggle to meet such sustainability goals due to low production of SAF, which is more expensive than conventional jet fuel.

IATA, which wrapped up a summit in India on June 2, expects the amount of SAF produced to double in 2025 to reach 2 million tonnes, representing 0.7% of airlines’ fuel consumption.

While airlines have called for greater action by energy companies and other partners to boost SAF volumes, Matthias Berninger, a Bayer executive vice president and sustainability head, said in Montreal there needs to be more long-term purchases of the fuel, similar to some commitments in the renewable energy sector.

Bayer, which acquired Monsanto in 2018, said its crop science unit sells seeds and pesticides to farmers who produce crops for biomass-based feedstocks used to develop biofuels.

“If they (airlines) commit to buy a certain amount over a certain period of time, we can guarantee that farmers will grow it and processors will process it,” Berninger told Reuters on the sidelines of the International Civil Aviation Organization's aviation climate week.

“And the question whether or not that supply meets the market (demand) depends on long-term purchasing contracts of the airline industry sending a very clear demand signal comparable to what we have in the renewable space.”

SAF can be produced from plants, used cooking oil or wastes, among other products. ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation, seeks to cap emissions from international flights at 85% of 2019 levels.

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Energy storage

EU Picks 13 New Critical Material Projects, Including in Greenland

The EU on June 4 announced 13 new raw material projects outside the bloc to increase its supplies of metals and minerals essential for it to stay competitive in the energy transition as well as defense and aerospace.

The announcement follows China’s decision in April to impose export curbs on rare earth magnets until new licenses are obtained, leaving diplomats, carmakers and other companies from Europe and elsewhere scrambling to secure meetings with Beijing officials and avert factory shutdowns.

“We must reduce our dependencies on all countries, particularly on a number of countries like China. ... The export bans increase our will to diversify," European Commissioner for Industry Stephane Sejourne told reporters.

China controls more than 90% of global processing capacity for the magnets, used in everything from vehicles and fighter jets to home appliances. It is also the main supplier of many key inputs for renewable energy, especially rare earth minerals, batteries and solar panels, a situation Brussels is keen to change.

The EU list is part of the implementation of the Critical Raw Material Act agreed in 2023 under which the bloc aims to mine 10%, process 40% and recycle 25% of its needs by 2030.

Ten of the new projects will be focused on materials essential for electric vehicle batteries and battery storage, including lithium, cobalt, manganese and graphite. Two projects for rare earths are located in Malawi and South Africa.

Other projects are located in Britain, Canada, Greenland, Kazakhstan, Madagascar, Norway, Serbia, Ukraine, Zambia, Brazil and the French territory of New Caledonia.

The British project is to extract tungsten and the ones in Ukraine and Greenland will be for graphite. The project in Greenland run by GreenRoc Strategic Materials Tungsten is key for the defense industry.

Standard Lithium, Telescope Successfully Convert Battery Materials

Standard Lithium and partner Telescope Innovations have successfully used a new conversion process to convert lithium hydroxide into battery-quality lithium sulfide, according to a June 3 news release.

Lithium sulfide is a key material for making solid-state batteries; however, it is produced commercially in small quantities and at high costs, according to Standard.

“This recent work led by Telescope demonstrates that we are able to take lithium chemicals produced from the Smackover Formation in southern Arkansas, and then transform them into the feedstocks required by the next generation of batteries,” said Andy Robinson, president and COO of Standard Lithium.

The novel low-temperature patented process has feedstock flexibility, allowing lithium hydroxide and lithium carbonate as inputs; impurity tolerance; and lower processing temperatures of below 100 C, the company said. The process also aims to avoid high temperature conditions and associated thermal risks.

The lithium hydroxide was produced by Standard at its southern Arkansas Demonstration Plant. Samples of the lithium sulfide were shipped to solid-state battery companies in Asia and North America for ongoing testing and validation purposes, Standard said.

Working with joint venture partner Equinor, Standard Lithium continues to advance a direct lithium extraction project called South West Arkansas. The project will produce battery-grade lithium carbonate from lithium-rich brine in southwestern Arkansas’ Smackover Formation. It is expected to begin full production by 2028.

Energy Vault, Jupiter Power Seal Battery Energy Storage Deal

Jupiter Power has tapped Energy Vault for another 100-megawatt (MW) battery energy storage system, aimed at bolstering grid resiliency in the Electric Reliability Council of Texas region, according to a June 4 news release.

Project construction is underway with commercial operations expected to start by the end of the summer. Energy Vault’s B-Vault and VaultOS Energy Management System are being used for the project.

“As one of the largest battery storage developers and operators in the U.S., we look for partners who can keep pace with our ambition and scale,” said Jupiter Power CTO Michael Geier. “With more than 2,500 MWh in operation or construction, we’re excited to continue building with Energy Vault at this critical site and appreciate their ability to deliver solutions tailored to our needs.”

The agreement for additional battery storage followed the July 2024 completion of an initial 100-MW system.

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Hydrogen

Axpo, HydroFleet Seal Energy Supply Agreement for H2 Fuel Stations

Axpo on June 5 said it has agreed to be the energy supplier for HydroFleet’s hydrogen production and fueling stations across the U.S.

The energy producer also agreed to supply all energy required for HydroFleet and Hyundai’s hydrogen production and refueling station at the HTWO Energy Savannah site in Pooler, Georgia, according to a news release. Hydrogen fuel cell powered trucks, which will be used during construction of Hyundai’s EV and battery Metaplant America manufacturing plant, will be refueled at the site.

“Our expertise in energy supply and risk management will ensure a reliable and efficient delivery of feedstock, contributing to the success of this environmentally friendly initiative,” Axpo US Origination Director Seth Greengrass said.

Thyssenkrupp Nucera Signs FEED Study for Hydrogen Project in Europe

Thyssenkrupp Nucera on June 3 said it was selected to carry out a FEED study for a large-scale hydrogen project in Europe.

The electrolysis plant is expected to have a capacity of about 600 MW, according to a news release. The customer, who Thyssenkrupp Nucera said wants to remain anonymous, plans to lower CO₂ emissions from hard-to-abate sectors.

“Large-scale projects like this demonstrate that industry plays a central role in scaling up the hydrogen economy and that the business case in Europe is viable under the right conditions—particularly the alignment of affordable green electricity and reliable off-takers,” said Thyssenkrupp Nucera CEO Werner Ponikwar.

The project is pending a final investment decision, which could happen in 2026, according to the release.

Solar

Avangrid Begins Operations at Solar Project in Ohio

Iberdrola Group’s Avangrid has started commercial operations at the 202-MW Powell Creek Solar project in Ohio.

The project, which has more than 300,000 solar panels, generates enough electricity to power the equivalent of 30,000 homes annually, Avangrid said June 3 in a news release.

“Putting this critical project into service demonstrates Avangrid’s unique ability to deliver on the energy needs of communities across the country,” Avangrid CEO Pedro Azagra said.

The project is Avangird’s second power facility in Ohio. It follows the 304-MW Blue Creek project that began operations in 2012.

Enbridge Flips Switch On Texas Solar Farm

Enbridge’s first solar facility in Texas has started operations and delivered electrons to the grid, the company said June 4.

Located near Corpus Christi, Texas, the 130-MW Orange Grove Solar project generates electricity from about 300,000 solar panels sitting on 920 acres. The startup of operations for the project, which has a virtual power purchase agreement in place with AT&T, was recognized recently with a ribbon-cutting event that brought together nearby landowners and Enbridge team members. 

“We are pleased to be able to deliver additional zero-emission electricity into the grid in support of local and Texas statewide economic growth and energy demand,” said Matthew Akman, Enbridge’s executive vice president of corporate strategy and president of the company’s power business. “Enbridge is proud to operate a wide range of critical energy infrastructure across the Gulf Coast area, including liquids pipelines and export facilities, natural gas pipelines and storage, as well as wind and now solar power.”

Construction is already underway for Enbridge’s second solar facility in Texas. The 815-MW Sequoia Solar project in Callahan County is expected to begin commercial operations in 2026.

Total Energies Grows UK Solar, Battery Portfolio with Acquisition

TotalEnergies on June 3 said it has acquired eight solar projects with a combined capacity of 350 MW in the U.K. from renewable energy company Low Carbon.

The acquisition also includes two battery storage projects with a total capacity of 85 MW.

“The acquisition of these solar and battery projects located in the south of England will complement our integrated electricity portfolio in the U.K., which includes 1.1 GW [gigawatts] of gross installed offshore wind, 1.3 GW of gross combined cycle gas turbine, and more than 600 MW of solar projects under development,” said Olivier Jouny, senior vice president of renewables at TotalEnergies.

The advanced stage projects could begin operations by 2028, the company said. They are expected to produce more than 350 gigawatt-hours per year of renewable electricity, which TotalEnergies said is equivalent to the electricity consumption of about 100,000 U.K. households.

NextEra Brings Its First Louisiana Utility-Scale Solar Facility Online

NextEra Energy Resources, the renewable energy unit of utility NextEra Energy, has started operations at Amite Solar, the company’s first utility-scale solar facility in Louisiana.

The company on June 2 said the 100-MW Amite Solar is capable of generating enough energy to power thousands of Louisiana homes and businesses.

“This is a monumental moment for our team, and we are proud to work with DEMCO to bring low-cost solar energy to their co-op members,” said Stuart McCurdy, vice president of development at NextEra Energy Resources.

The solar facility is located in Tangipahoa Parish and is operated by a subsidiary of NextEra Energy Resources. NextEra said commercial operations started in March.

Wind

Siemens: Britain Needs Record Offshore Wind Auction to Meet Targets

Britain’s next renewable energy auction must secure a record amount of new offshore wind capacity if the country is to meet its 2030 clean power targets, Darren Davidson, vice president of turbine maker Siemens Energy UK&I, told Reuters.

The country has put offshore wind at the heart of its plans to decarbonize its electricity sector by 2030. It aims to boost capacity to 43 GW to 50 GW by the end of the decade, from around 15 GW at present, although a government report in November said it would be a challenge to reach that goal.

Britain holds annual auctions for renewable subsidies, offering a guaranteed minimum price for the electricity produced to help spur investment in new projects. Last year’s auction, AR6, offered 1.5 billion pounds (US$2.03 billion) in funding, with just over 5 GW of offshore wind capacity winning contracts.

“To keep on track with (clean power 2030) targets, we estimate AR7 will need to clear a record 6 GW of offshore wind capacity,” Davidson said.

The largest amount of offshore wind capacity awarded contracts in auctions to-date was 5.46 GW in AR3 in 2019.

Davidson was talking at Siemens Gamesa’s turbine factory in Hull, northeast England, last week. Siemens Gamesa, which is Siemens Energy’s ENR1n.DE wind power business, has installed 10 GW of offshore wind turbines round the coast of Britain.

The Hull factory opened in 2016 and employs over 1,400 people, with 600 new employees recruited over the past 12 months as the site more than doubled its manufacturing capacity.

“The last five years have really proven that when we've got that visible pipeline of projects it allows us a greater ability to invest,” Davidson said.

It is currently manufacturing 300 blades, each one longer than a football pitch at 108 m (354 ft) long, for 100 turbines at RWE’s Sofia wind farm off the coast of Britain. It will start producing blades for Scottish Power’s East Anglia Three project this summer.

Hart Energy Staff and Reuters contributed to this report.