Geothermal energy has great potential, but it has been underused for years. Although it’s been available for over a century, its global impact has been limited. New drilling and resource management technologies, many from the oil and gas sector, are now lowering costs and tapping into deeper reservoirs.

These innovations could make geothermal a crucial part of future energy systems, especially for the proliferating data centers.

Data centers have seen a sharp rise in electricity use in recent years, starting from a small base. A December 2024 report from Lawrence Berkeley Lab (LBL) found that data center power demand grew by 20-25% each year in the early 2020s. Their share of total U.S. electricity use rose from about 2% in 2020 to around 4.5% in 2024.

Tech giants like Amazon, Microsoft, and Meta are expanding quickly. This growth pushes utilities and policymakers to find sustainable energy solutions.

• SEE MORE: U.S. Data Centers’ Power Demand Surges to 46,000 MW: What’s Driving the Growth?

Geothermal Energy’s Role in Low-Carbon Future

Geothermal energy harnesses Earth’s heat to produce electricity with minimal emissions. Unlike wind and solar, which depend on weather, geothermal plants run at over 90% capacity. This ensures a stable power supply.

According to EIA, geothermal power plants create electricity without burning fuel, leading to very low pollution. They emit 97% less sulfur and 99% less carbon dioxide than similar fossil fuel plants.

These plants use scrubbers to remove hydrogen sulfide from natural reservoirs. They then inject the used steam and water back into the earth. This process helps renew the resource and reduces emissions.

The U.S. DOE revealed that,

• By 2050, geothermal energy can avoid up to 516 million metric tons (MMT) of CO₂ equivalent emissions. This is comparable to removing 6 million cars from the road per year.

Geysers and fumaroles in places like Yellowstone National Park are protected by law and are national treasures.

Enhanced Geothermal Systems (EGS): The Next Big Power Play for Data Centers

The U.S. has about 4 GW of geothermal capacity, mainly in California and Nevada. Traditional geothermal taps into naturally occurring steam or hot water. Next-gen geothermal tech, called Enhanced Geothermal Systems (EGS), uses advanced drilling. This method taps into heat from deep rock layers. This expands its potential beyond the Western states.

EGS provides a great solution to rising energy needs and helps reduce greenhouse gas emissions. By deploying EGS at data centers, companies can generate clean and reliable power. This makes geothermal a viable option for sustainable growth.

• Rhodium Group says geothermal energy could supply 55-64% of data center energy needs by the early 2030s.

Large-scale data centers run by Amazon, Microsoft, and other tech giants will need about 27 GW of power by 2030. Of this, 15-17 GW could come from geothermal facilities built at hyperscale data centers.

• With strategic placement near optimal geothermal sites, energy costs could drop by up to 45%.

In a broader scenario, geothermal could supply at least 15% of power in 20 out of 28 key data center hubs. Most geothermal potential lies in the western U.S., but cities like Northern Virginia, Chicago, Columbus, and Memphis also have promise. Only Atlanta and New York City have limited potential for on-site geothermal.

Direct Cooling: A Smart Energy Solution

Geothermal can also cool data centers effectively. AI-driven facilities generate excessive heat, increasing the need for advanced cooling systems. Instead of relying on electric methods like adiabatic or liquid cooling, geothermal can directly manage temperatures. Here’s how:

• Geothermal heat pumps use underground pipes to cool IT components efficiently.

• Geothermal absorption chillers use low-grade heat to create cooling through evaporation.

• Shallow aquifers offer another way to access stable underground temperatures for cooling.

By reducing the need for deep drilling, these methods lower costs and minimize water use—an advantage in water-scarce regions.

The Future of Geothermal Power

An NREL report predicts geothermal will make up 1.94% of U.S. generating capacity by 2035 and 3.94% by 2050. Geothermal energy runs steadily. Its impact on clean energy is much greater when we look at total electricity generation.

According to DOE, the U.S. grid will need 700-900 GW of extra firm capacity by 2050. Next-gen geothermal could provide 90-300 GW. In many decarbonization plans, solar PV and onshore wind are key players. Battery storage and natural gas provide backup support.

Despite its low carbon potential, geothermal cooling isn’t widely used due to high upfront costs. Tax credits and utility incentives help data centers save energy and cut emissions. Some companies are investing in it. However, more research is needed. This will help improve efficiency and tackle issues like heat buildup in certain climates.

On a positive note, DOE revealed that costs could drop to $60-70/MWh by 2030. The U.S. Department of Energy’s Enhanced Geothermal Shot™ aims for $45/MWh by 2035.

Tech Giants Invest in Geothermal Energy

Major tech companies are investing in geothermal. In June 2024, Alphabet teamed up with NV Energy. They secured 115 MW of geothermal power from Fervo Energy.

A few months later, Meta partnered with Sage Geosystems. They aimed to supply geothermal power to data centers located east of the Rocky Mountains. This marked a first for the region. Data centers will pay a 20% premium for green energy over standard rates.

This analysis shows that geothermal energy could transform data center power and cooling. With support from innovation and policy, it offers a reliable, low-emission option. As demand grows, it drives the industry toward sustainability.

• READ MORE: Hot Funds for Cool Tech: Geothermal Company Fervo Energy Raises $244M

The post Why Geothermal is the Hot Ticket to Low-Carbon Data Centers? appeared first on Carbon Credits.

China has reopened its voluntary carbon credit market after eight years. This has caused sharp price swings. A Bloomberg report showed that the new China Certified Emission Reduction (CCER) credits rose to 107.36 yuan ($14.82) per ton.

This price was 21% higher than mandatory carbon allowances. However, it then fell to 72.81 yuan, a 17% discount.

The price shifts reflect strong initial demand and a limited credit supply. In the first five days, traders exchanged 911,000 tons of credits. That’s almost three times the volume of China’s mandatory emissions market.

Understanding the CCER Program

China’s Certified Emission Reduction (CCER) program is key to the country’s carbon market. It allows companies to trade carbon credits, supplementing the Emissions Trading System (ETS). CCER allows firms to create and sell carbon credits voluntarily.

However, this is different from the ETS, which sets limits on emissions. This approach promotes investments in clean energy and emission reduction projects.

The Ministry of Ecology and Environment (MEE) manages the CCER program. Project operators and verification agencies maintain transparency. On January 23, 2024, China’s voluntary carbon market saw its first transaction. China National Offshore Oil Corporation (CNOOC) bought 250,000 tons of carbon credits.

CCER credits fall into two categories:

• Emission allowances: Government-allocated quotas that companies must follow.

• Certified carbon credits (CCER credits): Tradeable credits from emission reduction projects.

The program helps industries reduce emissions, manage carbon credits, and trade them for financial gain. High-emission sectors can offset quotas, while low-emission industries can trade credits and enhance their reputation. Renewable energy companies can use carbon credit revenue to improve profits.

A New Beginning for CCER Credits

The CCER program started in 2012 to reward projects that cut greenhouse gas emissions. China paused it in 2017 because of worries about project approvals. In 2024, the Ministry of Ecology and Environment revived the program.

It now focuses on four areas: afforestation, solar thermal power, offshore wind power, and mangrove restoration. This effort aims to promote green projects and help China meet its carbon neutrality goals.

Notably, the China Beijing Green Exchange (CBGEX) believes China’s carbon market will expand significantly because of financialization. The estimated quota is 7 to 8 billion tons. Annual trading volumes could exceed 10 billion tons. Transaction values might top RMB 1 trillion (US$140 billion).

China’s Carbon Emissions: 2025

China’s emissions surged in 2023, putting the country off track from its goal of reducing carbon intensity by 18% under the 14th Five-Year Plan (2021-25). To stay on course for its 2060 carbon neutrality target, CO2 emissions must now drop by 4-6% by 2025.

• RELATED: Experts Say China’s Emissions Peak Is Near: How EVs and Renewables are Playing a Big Part

Expanding the Carbon Credit Market

The Bloomberg report further revealed more details about China’s expansion of its carbon credit market.

• China approved nine new projects expected to supply 9.5 million tons of carbon credits in 2025.

These projects include seven deepwater offshore wind farms and a solar thermal plant. Key state-owned companies leading these initiatives are China Three Gorges Corp, State Power Investment Corp, China Energy Investment Corp, and China General Nuclear Power Corp.

China’s national carbon market, launched in 2021, initially covered power utilities. However, low liquidity and oversupply kept prices below European levels. It plans to include steel, aluminum, and cement producers by the end of 2025, expanding coverage to a larger share of national emissions.

BloombergNEF analyst Layla Khanfar explained that the market activity picked up a bit in February after a slow start. However, supply and demand are still lower than in early 2023.

Strengthening ETS to Counter CBAM Impact

China is a top exporter of CBAM-liable goods. From 2026 to 2040, it will likely ship about 868.94 million metric tons of these commodities, according to a forecast from S&P Global Commodity Insights. Iron and steel account for 42% of these exports, cement 8%, and aluminum 6%.

The country’s ETS (launched in 2021) now covers 40% of emissions and is set to expand to 8 billion tons. Major 2024 reforms include stricter allowance banking rules, a shorter compliance cycle, and the addition of CBAM-affected industries.

Clear Blue Market forecasted that the China Emissions Allowance (CEA) price, averaging 98 yuan (€13) in 2024, is projected to reach 100 yuan (€13) in 2025 and 200 yuan (€25) by 2030, with a market deficit expected by 2026.

To meet CBAM regulations, China requires factories emitting over 26,000 tons of CO₂ annually to verify emissions data. Thus, China is challenging the EU’s CBAM at the WTO while reinforcing its ETS to align with global carbon pricing.

China is expanding carbon credits. The above-explained actions show a global push to regulate emissions. However, price volatility and economic concerns remain challenges. As carbon prices rise and regulations tighten, businesses must adapt to remain competitive. Lastly, the effectiveness of carbon markets in reducing emissions will be closely monitored.

• READ MORE: China’s Renewable Energy Boom: A Record-Breaking Shift or Still Chained to Coal?

The post China Revives Its Carbon Credit Market: Price Swings & Future Outlook appeared first on Carbon Credits.

Uranium Energy Corp (UEC) is making big strides in the uranium industry. With strong financial results, strategic acquisitions, and a growing focus on sustainability, the company is positioning itself as a leader in clean energy.

In the second quarter of the fiscal year 2025, UEC reported impressive revenue, expanded its domestic uranium production, and strengthened its commitment to net-zero emissions. Here’s a closer look at how UEC is shaping the future of nuclear energy.

Strong Financials Fuel UEC’s Growth

UEC generated a revenue of $49.8 million from selling 600,000 pounds of U₃O₈ (uranium ore concentrate) at an average price of $82.92 per pound. This resulted in a gross profit of $18.2 million. 

Additionally, UEC maintained an inventory of 1,356,000 pounds of U₃O₈, valued at $97.3 million based on current market prices. The uranium company has strong liquidity, holding $214 million in liquid assets and no debt. This positions the company well for future growth and stability in operations.

The company’s President and CEO remarked on their financial results, saying:

“This quarter, UEC achieved significant milestones in production ramp-up, acquisitions, sales and construction across our project pipeline…Financial strength remains a cornerstone of our growth strategy, with over $214 million(4) in liquid assets and zero debt as of January 31, 2025. Our strong balance sheet, combined with the low capital intensity of ISR operations, provides the capability to accelerate production growth in a rapidly tightening uranium market.”

UEC is boosting U.S. uranium production through the following initiatives:

Christensen Ranch and Irigaray Processing Plant. UEC has restarted the Christensen Ranch In-Situ Recovery (ISR) Mine. It’s located in Wyoming’s Powder River Basin. Uranium-loaded resin is now on the way from the Christensen Ranch Satellite Plant to the Irigaray Central Processing Plant. This plant can produce 4.0 million pounds of U₃O₈ each year.

Burke Hollow ISR Mine is growing in Texas. Right now, 32 workers are on the job. This expansion aligns with UEC’s strategy to enhance domestic uranium production.

UEC bought Rio Tinto’s Wyoming uranium assets. This includes the Sweetwater Plant, which can process 3,000 tons per day. It has a licensed capacity of 4.1 million pounds of U₃O₈ each year. This acquisition strengthens UEC’s position in the uranium market.

Roughrider Project. UEC’s Roughrider Project in Saskatchewan, Canada, shows great economic promise. The project is among the lowest 15% in global production costs.

In addition to its robust financial performance, UEC is positioned to benefit from the growing interest in Small Modular Reactors (SMRs), which offer significant advantages over traditional large-scale nuclear plants. SMRs are smaller, scalable, and faster to build, making them ideal for flexible power generation. They require less capital upfront, have shorter construction times, and can be strategically located near electricity demand centers, reducing transmission losses and infrastructure costs.

Several countries, including Canada and the United States, are actively investing in SMR technology, aiming to expand clean energy capacity and reduce reliance on fossil fuels. As a key uranium supplier, UEC will play a crucial role in providing the necessary fuel for these reactors, supporting a stable energy transition and enabling countries to meet ambitious climate goals.

Net-Zero Uranium: UEC’s Sustainability Roadmap

The demand for uranium is outpacing primary production, with a 1-billion-pound supply gap projected by 2040, according to UEC. As 31+ countries pledge to triple nuclear energy capacity by 2050, the push for uranium intensifies.

In the U.S., government policies favor domestic uranium production, banning Russian imports and funding nuclear technology. Additionally, big tech companies, driven by rising data center electricity demands, are turning to nuclear power for clean energy solutions.

• RELATED: Meta, Google, and Amazon Join Global Pledge to Triple Nuclear Energy by 2050

UEC, as America’s largest uranium supplier, is positioned to benefit from this shift, ensuring a stable domestic supply amid increasing reliance on nuclear energy for net-zero goals (1.5C Pathway).

Commitment to Net-Zero and Emissions Reduction

Uranium Energy Corp is focused on achieving net-zero carbon emissions across its U.S. ISR operations. In 2023, the company remained CO₂ neutral from its operations for the second consecutive year. The company has also conducted a decarbonization study for its Texas ISR facilities to align with this goal.

UEC has expanded its Scope 1 and Scope 2 emissions measurements to cover all operational locations, ensuring comprehensive tracking of its environmental impact. A decarbonization strategy for its Wyoming facilities is also in progress.

• In 2023, the company reported total greenhouse gas (GHG) emissions of 2,711.86 tCO₂e, with Wyoming contributing the most (1,475.23 tCO₂e). Scope 1 emissions totaled 1,343.77 tCO₂e, while Scope 2 reached 1,368.09 tCO₂e.

The company is also looking at new carbon-reduction technologies. This will help it cut down emissions even more.

Sustainable Mining Practices

UEC uses In-Situ Recovery (ISR) mining. This method is eco-friendly – it cuts down on surface disturbance and uses less water and energy. This approach avoids blasting and moving waste rock. So, it leads to lower emissions and less harm to the environment than traditional mining methods.

The ISR process greatly cuts greenhouse gas emissions. This is better than open-pit or underground mining. Traditional uranium mining methods release higher levels of CO₂ due to the heavy use of diesel-powered equipment and the need for extensive land excavation.

By using ISR technology, UEC is able to cut CO₂ emissions, making uranium extraction cleaner and more sustainable. The company is exploring alternative energy sources. It looks at solar and wind to power its mining operations, aiming to reduce carbon impact.

Carbon Offsets and Renewable Energy Investments

To further reduce its carbon footprint, Uranium Energy Corp has invested in carbon credits to offset emissions. In 2023, the company neutralized all its corporate emissions. This totaled 2,712 metric tons of CO₂ equivalent (tCO₂e). They achieved this by buying carbon credits from the A-Gas Voluntary Emission Reduction Program in Texas.

This initiative helps prevent the release of used hydrofluorocarbons (HFCs), which are significantly more damaging to the environment than CO₂. Supporting this program lets UEC reclaim and destroy harmful gases. This way, they don’t get released into the atmosphere.

In addition to carbon offsets, UEC has also invested in Renewable Energy Certificates (RECs) for its Palangana ISR site in Texas. These certificates help create clean energy. This reduces the company’s dependence on fossil fuels.

UEC is committed to lowering its environmental impact. It does this by combining carbon offsetting with renewable energy purchases in its sustainability strategy. This approach supports responsible uranium production.

Nuclear Power’s Role in a Low-Carbon Future

UEC plays a key role in the transition to clean energy by supplying uranium for nuclear power, a low-carbon alternative to fossil fuels. Nuclear energy supplies 55% of the U.S.’s carbon-free electricity. This cuts emissions like taking 107 million gas cars off the road each year.

The company is aligned with global net-zero commitments, including the COP28 pledge to triple nuclear energy capacity by 2050. UEC has also begun evaluating a net-zero mine design for its Roughrider Project, further integrating sustainability into its operations.

Uranium Energy Corp’s strong financial performance, strategic acquisitions, and commitment to sustainability highlight its leadership in the uranium sector. UEC focuses on clean energy, cutting emissions, and responsible mining. This puts them in a strong position to help the world shift to a low-carbon future. 

• READ FURTHER: $125 Billion Annual Boost in Nuclear Power Needed to Hit Net Zero, IAEA Says

For real-time insights into uranium pricing, visit our Live Uranium Pricing page.

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