Energy Transition in Motion (Week of May 9, 2025)

Japan-based trading company Marubeni signed a long-term offtake agreement with Exxon Mobil to supply 250,000 metric tons (mt) of low-carbon ammonia annually, the U.S. oil company said May 7.

The ammonia will be produced using hydrogen from what is expected to become the world’s largest low-carbon hydrogen facility. The facility, however, is awaiting a final investment decision by Exxon, which has said its decision is contingent on favorable government policy and necessary regulatory permits. Exxon aims to produce up to 1 Bcf/d of hydrogen and more than 1 million tons of low-carbon ammonia from the Baytown, Texas site.

The deal with Marubeni signals another positive step in global efforts to reduce emissions.

“By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home,” Barry Engle, president of Exxon Mobil Low Carbon Solutions, said in a May 7 news release. “Our strong relationship with Marubeni sets the stage for delivering low-carbon ammonia from the U.S. to Japan for years to come.”

The low-carbon hydrogen can be converted into ammonia, enabling it to be shipped in liquid form. Hydrogen is used mainly today in petroleum refining and ammonia production to make fertilizer, but efforts are underway to broaden hydrogen applications. As a low-emissions energy carrier, hydrogen is an option to replace higher-emissions fossil fuel sources where feasible in chemical and industrial processes, for energy storage or for transportation.

Most of the ammonia produced by Exxon as part of the Marubeni deal will go to the coal-fired Kobe Power Plant in Japan, where the fuel will be co-fired with existing power sources. The Kobe Steel-owned plant is on a mission to lower its CO2 emissions by pursuing such efforts and using the power plant’s waste heat to supply steam.

“Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia,” said Yoshiaki Yokota, senior managing executive officer at Marubeni Corp. “We hope to continue to actively cooperate with ExxonMobil, with a view of utilizing this experience and relationship we have built to strategically decarbonize our power projects in Japan and Southeast Asia in the near future.”

Exxon said Marubeni also agreed to acquire a stake in its hydrogen and ammonia facility.

Here’s a roundup of some other renewable energy news.

Biofuels

EIA: US SAF, Biofuels Output Nearly Doubled in Three Months

U.S. production of sustainable aviation fuel (SAF) and other biofuels grew substantially from the end of 2024 into early 2025, U.S. Energy Information Administration (EIA) data show, and is forecast to more than double by year-end.

SAF production capacity was only about 2,000 bbl/d at the beginning of 2024, but that jumped to about 25,000 bbl/d in late 2024 as new projects came online with more capacity added in 2025, according to the EIA. SAF production capacity was at about 30,000 bbl/d in May.

The “other biofuels” production category, which includes SAF, tracked by the EIA was comprised mostly of production capacity from renewable naphtha and renewable propane prior to 2025. However, the EIA said SAF will likely drive significant growth and make up the bulk of production in that category.

The output of the “other biofuels” category, including SAF, nearly doubled from December 2024 to February 2025, EIA data show. New projects fueled the rising production.

Phillips 66’s SAF project at its refinery in Rodeo, California, came online in third-quarter 2024 and added 10,000 bbl/d of capacity. In Port Arthur, Texas, Diamond Green Diesel completed a 15,000 bbl/d SAF project in fourth-quarter 2024.

New Rise Renewable’s SAF plant in Reno, Nevada, came online in February, adding 3,000 bbl/d. Par Pacific plans to start production from its SAF plant in Kapolei, Hawaii, in the second half of the year, adding 2,000 bbl/d.

EIA forecasts that production of “other biofuels,” including SAF, will more than double by the end of 2025 and increase another 20% next year. However, SAF adoption remains limited. SAF is expected to still make up less than 2% of the 1.7 MMbbl/d of U.S. jet fuel consumption this year.

Assessment Shows HutanBio’s Microalgal Biofuel Achieves Net-Negative Emissions

U.K.-based climate tech company HutanBio said May 8 a lifecycle assessment confirmed its proprietary HBx microalgal biofuel achieved net-negative carbon emissions during production.

The assessment, conducted by Schneider Electric Sustainability Business subsidiary EcoAct, showed HBx microalgal biofuel production removed up to 1.48 tonnes of CO₂e per tonne of biofuel produced at production sides in Morocco, the Middle East and Western Australia, HutanBio said in a news release. It also showed that HutanBio’s HBx technology achieved a net uptake of negative 5.78 tCO₂e/mt of HBx produced.

“HBx is derived from a newly discovered marine microalgae cultivated in seawater on non-arable land using HutanBio’s proprietary enclosed photobioreactor technology,” the release stated. “It does not compete with food crops or freshwater resources and is designed to power hard-to-abate transport sectors.”

The company said the study also found that switching to renewable electricity in HBx production could reduce production emissions by up to 5.6 times compared to fossil-based energy. The assessment covered raw material inputs, inbound transport, production and refinery processes, and waste handling.

“The biofuels industry has long struggled with inconsistent reporting and opaque sustainability claims,” said HutanBio CEO Paul Beastall. “By following ISO standards and publishing these results, we are not only validating our own process but helping to set a new benchmark for industry transparency. These results mark a significant milestone in the development of science-backed, scalable low-carbon alternatives to fossil fuels.”

Chinese Biofuel Refiner Zhejiang Jiaao Exports First SAF Shipment

China’s Zhejiang Jiaao Enprotech said on May 7 its east China-based subsidiary biofuel plant exported its first cargo of SAF—13,400 mt.

The export came shortly after the company won an export license for the low-carbon aviation fuel for 2025, Jiaao said in a stock filing.

The company did not say what was the cargo’s destination, but multiple trade sources have said it was bought by a Western trader and will be heading to Europe.

The cargo was likely loaded on to vessel Solar Cheryl, two trade sources said, with one adding that it was loaded on May 1-2.

Solar Cheryl’s end destination is Spain for now, data from tracker Vortexa and one shipbroking source showed.

Energy storage

YPF, XtraLit Partner to Develop DLE Projects in Argentina

Argentina’s YPF Tecnología (Y-TEC) has teamed up with Israel-based XtraLit to develop direct lithium extraction (DLE) projects in Argentina, according to a May 5 news release.

XtraLit’s DLE Technology utilizes an eco-friendly ion-exchange process to extract lithium from brines. The company has used the technology to extract lithium in projects in the Middle East and in North America. The partnership will explore optimization of XtraLit’s resin to be applied for Argentina’s salt flat brines, the release said.

“Partnering with XtraLit enables us to advance sustainable technologies that align with new global standards and enhance Argentina’s role in the lithium segment in partnership with an experienced team that developed a cutting-edge solution for the industry,” said Eduardo Vallejo, general manager of Y-TEC.

XtraLit said the initiative is expected to attract investment and enhance Argentine lithium’s market appeal.

“This partnership with Y-TEC is a leap forward for XtraLit in scaling our technology in Argentina,” said Gerardo Tyszberowicz, director of XtraLit in Latin America. “YPF’s leadership and local presence will accelerate the growth of our DLE technology, ensuring impactful deployment in the region.”

China’s BYD, Tsingshan Scrap Plans for Chile Lithium Plants

Chinese automaker BYD and metals group Tsingshan are backing out of multi-million dollar plans to build lithium cathode plants in Chile, the country’s economic development agency said May 7.

The retreat by the two huge Chinese companies is a blow to Chile’s aim to develop more domestic processing of lithium, a key metal for electric vehicle batteries. Chile is the world’s No. 2 lithium producer.

Both projects were hit by plunging lithium prices, said government economic development agency Corfo, which in 2023 had tapped BYD and Tsingshan for a preferential lithium price deal as part of its efforts to spur investment in Chile.

“The companies selected by Corfo have been affected in their investment decisions by the global market conditions, which have shown a sharp drop in prices,” Corfo said in a statement.

Tsingshan told Reuters it has withdrawn plans for a $233 million project to produce 120,000 mt of lithium iron phosphate (LFP). Chile’s national assets ministry told Reuters that BYD filed an intent to withdraw its plans in January.

BYD, the world’s biggest maker of electric cars, declined to comment. BYD last year flagged delays to a planned $290 million plant, which was expected to produce 50,000 mt per year of LFP for cathodes.

Chilean newspaper Diario Financiero first reported the scrapped investments.

Geothermal

GreenFire Launches Commercial Next-Gen Demonstration Geothermal System

GreenFire Energy has launched a next-generation, geothermal pilot project at The Geysers in California. Initial results show a near-idle well returned to operational status with higher-than-expected temperatures, the company said May 8.

“The demonstration project’s early performance marks a meaningful leap in geothermal recovery efficiency, highlighting GreenFire Energy’s ability to boost output in mature fields like The Geysers,” GreenFire Energy said in a news release. “By matching technology to geology and combining patented systems with field-optimized practices, the project demonstrates a proven path to accelerate geothermal development using next-gen solutions.”

The company’s technology enhances heat recovery by leveraging natural convection, optimizing saturation pressure in the reservoir and maintaining a closed-loop flow in the liquid phase to bring heat to the surface. Initial results of the system showed sustained flow rates between 300 gallons per minute (gpm) and 350 gpm with output temperatures at 310 F, according to the release.

“This is a breakthrough—not just for our team, but for the future of geothermal,” said GreenFire Energy President Rob Klenner. “The ability to demonstrate a successful test at The Geysers is one of the biggest impacts the industry needs right now to scale new geothermal energy to the grid. We’re bringing real innovative solutions to the market. We’re delivering on our promises to show how next-gen technology can provide high-performance power with real commercial applications.”

The demonstration project, which is funded by the California Energy Commission, is expected to be completed in June, according to the release. The project is taking place at a site operated by Geysers Power Co. The Geysers, the world’s largest geothermal field, is located in Northern California’s Mayacamas Mountains.

Hydrogen

TotalEnergies Seeks Permit for $16B Green Hydrogen Project in Chile

Subsidiaries of energy major TotalEnergies have applied for an environmental permit for a $16 billion green hydrogen and ammonia project in southern Chile, a regulatory filing showed on May 5.

The project, run by the Chilean subsidiary TEC H2 MAG, is expected to begin operations in 2030 and includes a wind farm, seven electrolysis centers for green hydrogen, a desalination plant, an ammonia plant and maritime infrastructure for shipping.

The Andean nation has been promoting the development of clean hydrogen projects, but some companies say lengthy permitting and a lack of infrastructure has led the country to the head start it had in green hydrogen.

According to the project's website, the environmental permit process is expected to take two years, with construction to begin in 2027.

The ammonia plant, which will be commissioned in stages, will produce up to 10,800 mt/d.

Norwegian Utility Statkraft Halts New Green Hydrogen Developments

Norway’s biggest utility, state-owned Statkraft, on May 8 said it has stopped developing new green hydrogen projects citing higher costs and uncertain demand, while reporting a drop in first quarter earnings amid lower power prices.

Statkraft scaled back its hydrogen ambition last year, but since then uncertainty in the market has increased even more, while costs have risen, CEO Birgitte Ringstad Vartdal told reporters. In addition, there was also a lack of regulatory clarity and uncertain customer demand, she added.

“Therefore, we have chosen to stop the activity in order to prioritize existing activity in mature renewable technologies and our market activity,” the CEO said.

The company is predominantly active in hydropower, operates wind and solar power projects and invests into solar battery systems.

Statkraft has 13 green hydrogen projects across six markets at different stages of development. While some will be stopped, others may still move forward to a more mature stage to get other investors on board, Vartdal said.

In April, Statkraft cancelled an order for an electrolyzer, with Norwegian supplier NEL for a project in northern Norway citing the lack of commercial viability.

Solar

EDPR-NA Brings Solar, Energy Storage Project Online in California

EDP Renewables North America inaugurated its 200-megawatt (MW) Scarlet II Solar Energy Park in Fresno County, California, the company said May 6.

The solar park, which includes a 150-MW/600-megawatt hour battery energy storage system, will generate enough energy to power the equivalent of 68,000 California homes annually, EDPR said.

“The full output of the 200 MW of solar energy is contracted through a 15-year virtual power purchase agreement (VPPA), with resource adequacy associated with the 150 MW BESS contracted under long-term Resource Adequacy (RA) agreements with Ava Community Energy and San José Clean Energy,” the company said in a news release. “California’s Resource Adequacy Program ensures that load-serving entities (LSEs) have sufficient capacity to meet their customers' demand and maintain grid reliability.”

Scarlet II follows EDPR’s 200-MW Scarlet I Solar Energy Park, which began commercial operations in 2024.

Cypress Creek Renewables Lands $150MM in Financing, Starts Solar Project

California-based Cypress Creek Renewables has secured $150 million in financing and started construction of its 104-MW solar project in Washington, the company said May 5.

Called Ostrea Solar, the project is expected to generate enough electricity to power up to 16,000 Washington homes annually when it is complete, Cypress Creek said in the news release. Construction of the project, located in Washington’s Yakima County, began in February. Commercial operations are scheduled to begin by mid-2026.

MUFG Bank acted as coordinating lead arranger for the construction financing with BNP Paribas, DNB Bank ASA and Santander, the release stated. U.S. Bank is the project’s tax equity investor.

“Cypress Creek Renewables has demonstrated strong execution capabilities and a robust pipeline,” said Takaki Sakai, managing director at MUFG Bank, “and we’re pleased to support their continued growth with a tailored financing solution that aligns with our strategic focus on sustainable infrastructure and energy transition investments.”

Wind

Democratic-Led States Sue to Block Trump’s Halting of Wind Projects

A coalition of Democratic state attorneys general filed suit sued May 5 in a bid to block President Donald Trump’s move to suspend leasing and permitting of new wind projects, saying it threatens to cripple the wind industry and a key source of clean energy.

Seventeen states and the District of Columbia in a lawsuit filed in federal court in Boston argued that the decision by the Republican president’s administration to indefinitely pause all federal wind-energy approvals is unlawful and must be blocked.

Trump announced the pause on his first day back in office on Jan. 20 when he directed his administration to halt offshore wind lease sales and stop the issuance of permits, leases and loans for both onshore and offshore wind projects.

“This administration is devastating one of our nation’s fastest-growing sources of clean, reliable and affordable energy,” New York Attorney General Letitia James, a Democrat, said in a statement.

The lawsuit seeks a court order declaring the indefinite pause unlawful and barring the agencies including the U.S. Departments of Commerce and Interior and the Environmental Protection Agency from implementing Trump’s directive.

The White House did not immediately respond to a request for comment.

UK’s Crown Estate Gives Green Light to Expand Capacity at Offshore Wind Sites

King Charles III’s Crown Estate, which owns Britain’s seabed, has given the go-ahead to expand high-density wind farms on current seabed leases, seeking a rapid and space-efficient way to raise capacity and support the country’s energy transition.

Seven projects, including RWE’s Rampion 2, and SSE and Equinor’s Dogger Bank D, are set to increase capacity by 4.7 gigawatts (GW) under this Capacity Increase Program.

Britain plans to largely decarbonize its electricity sector by 2030 and wants to increase renewable power, particularly offshore wind, to insulate it against fossil fuel price shocks.

It has a target to have up to 50 GW of clean energy from offshore wind deployed by 2030, up from 15 GW currently.

All seven projects have grid connections and infrastructure that will enable swift deployment, and are within pre-established offshore wind sites, The Crown Estate said in a statement.

“Our purpose is to create lasting and shared prosperity for the nation. Offshore wind enables us to do that as a driver of economic growth through jobs creation and supply chain development,” said Gus Jaspert, managing director, marine, at The Crown Estate.

“Delivering the Capacity Increase Program is an effective way to provide up to four million homes with secure, clean energy and further decrease the UK’s reliance on fossil fuels, often sourced internationally,” Jaspert added.

Britain is already the world's second-largest offshore wind market by capacity, after China, but spiraling costs amid high inflation and supply chain bottlenecks have hit the sector.

Ørsted Cancels Major UK Wind Project as Economics Worsen

Ørsted will no longer build a major British offshore wind farm, the company said May 7. Ørsted cited a deteriorating global business environment for renewables that deals a blow to U.K. ambitions to decarbonize its energy supplies.

The Danish company’s market value has fallen by about 80% from its 2021 peak as costs have risen, supply chains have been disrupted and U.S. President Donald Trump’s opposition to offshore wind has sapped investor confidence.

Ørsted said canceling Hornsea 4, one of the world’s largest offshore wind farms, would cost it up to 5.5 billion Danish crowns (US$837.85 million) in the form of breakaway fees and write-downs, but that the value it would create had fallen.

“The combination of increased supply chain costs, higher interest rates, and increased execution risk has deteriorated the expected value creation of the project,” CEO Rasmus Errboe said in a statement.

Hart Energy Staff and Reuters contributed to this report.