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Disseminated on behalf of Sierra Madre Gold & Silver Ltd.

Mexico has been a cornerstone of global silver and gold production for centuries, with historic mining regions such as Zacatecas, Durango, and the Sierra Madre belt supplying the world with these precious metals. Mining represents nearly 2.5% of Mexico’s GDP and produces significant export revenue.

However, decades of underinvestment and declining output from aging mines led to a slowdown in production growth. Today, a new wave of modern mining companies is reinvigorating Mexico’s silver and gold industry, bringing capital, modern technology, and strict environmental practices to historic mining regions.

Among these companies, Sierra Madre Gold & Silver Ltd. (TSXV: SM | OTCQX: SMDRF) is emerging as a standout player, spearheading the revival of Mexico’s rich Temascaltepec district with its La Guitarra Mine.

Mexico’s Silver and Gold Renaissance: Strategic Importance

Mexico remains the world’s largest silver producer, contributing roughly 23–25% of global output in 2024, with total production between 5,800 and 6,300 tonnes. The surge in industrial demand for silver is reshaping its role from primarily a jewelry and investment metal to an essential material in the clean energy transition.

  • With silver prices stabilizing around US$28 per ounce in 2025 and climbing above $50 in October, mid-tier producers like Sierra Madre stand to increase shareholder value while supporting rural economies.

Each solar panel consumes about 20 grams of silver, while electric vehicles require up to 50 grams. Analysts predict that by 2030, global silver demand will exceed 1.2 billion ounces annually, highlighting the need for stable, modern supply sources.

Mexico’s combination of skilled workforce, supportive regulations, and modern infrastructure makes it an attractive destination for exploration and investment. Sierra Madre’s work at La Guitarra, along with exploration at Tepic, exemplifies how new companies are turning dormant assets into engines of growth for the next decade.

Reviving La Guitarra: History Meets Modern Mining

The La Guitarra Mine has a storied history dating back to colonial times, producing both gold and silver under different owners, most recently First Majestic Silver. After a period of care and maintenance, Sierra Madre acquired the mine in 2023 with a clear strategy: restart production (achieved January 2025) and expand output.

The mine comes equipped with a 500-tonnes-per-day processing plant, permitted underground workings, and nearby infrastructure including roads, water, and power. With C$19.5 million in fresh capital and a skilled technical team, it has achieved a full-scale restart, with commercial production announced in January 2025.

  • By 2027, the company aims to up to triple production to 1,500 tonnes per day, leveraging smart mine design and local partnerships to keep costs low while ramping output efficiently.

Furthermore, their leadership blends local mining expertise with strong capital markets knowledge, enabling efficient project execution. La Guitarra’s high-grade veins, clear exploration targets, and straightforward permitting process make it one of Mexico’s most promising silver-gold projects.

La Guitarra Sierra Madre

Commitment to Responsible Mining

Sierra Madre embodies a new generation of environmentally and socially responsible miners. The company is upgrading waste and water systems to modern standards, reclaiming tailings efficiently, and minimizing water usage. Open communication with local communities, clear permitting, and strong ESG practices reinforce its credibility with stakeholders and investors.

Modernization at La Guitarra is as much about responsible operations as it is about increasing output. This focus on sustainability aligns with global investor expectations while strengthening its long-term partnerships.

Sierra Madre holds one other project in Mexico’s Sierra Madre mineral belt:

  • Tepic Project (Nayarit): High-grade epithermal gold-silver deposit with near-surface mineralization and strong exploration upside.

By focusing on assets with existing infrastructure and clear development paths, Sierra Madre reduces operational risk compared with early-stage exploration projects.

Industrial Demand Drives Silver’s Strategic Role

Silver’s function has evolved beyond traditional uses. Its high conductivity and reflectivity make it essential in solar panels, EV batteries, 5G networks, and electronics. Industrial demand is rising sharply: in 2024, industrial silver consumption reached 680.5 million ounces, accounting for over 30% of total usage, and solar energy alone represents a growing share.

The EV market further drives demand, with each vehicle requiring up to 50 grams of silver. Rising industrial requirements, combined with structural supply deficits, position companies like Sierra Madre to benefit from near-term production growth.

Global silver production is struggling to keep pace. In 2024, total output was roughly 819.7 million ounces, barely a 1% increase over the previous year. A projected 117.6 million-ounce supply deficit in 2025 underscores the need for reliable producers in Mexico’s rich silver belt.

silver supply and demand

Leveraging Gold’s Enduring Value in a Record-Price Era

Gold remains a cornerstone of stability. Prices are expected to hold above US$3,000 per ounce, supported by investment demand, central bank buying, and geopolitical uncertainty. In Q2 2025, total gold demand rose 3% year-over-year, reaching 1,249 tonnes, while mine production matched this growth, reflecting a healthy market balance.

At La Guitarra, underground mining at the high-grade Coloso vein started in April 2025, increasing production potential and improving grades. The company is upgrading milling systems to improve recovery rates and lower costs, capitalizing on record-high gold prices.

Strong Operational and Financial Performance

  • In Q2 2025, Sierra Madre sold 173,562 silver-equivalent ounces: 66,011 ounces of silver and 1,048 ounces of gold, generating 168,535 AgEq ounces at an average price of US$30.10 per AgEq ounce.

The Coloso Mine is ramping up to 150 t/d by year-end, while underground development at the Nazareno Mine has already delivered over 700 tonnes of mineralized material to the Guitarra mill, with grades exceeding prior estimates.

The company raised C$19.5 million in mid-2025 to expand throughput, launch a +20,000-meter exploration program across its mineralized belt, and target high-grade zones in the East District. Strong revenue, cash position, and working capital support ongoing operations and exploration, providing a solid financial foundation for growth.

Silver continues to show upside potential. With a gold-to-silver ratio of 70:1, silver is currently undervalued relative to gold. Combined with rising industrial demand and tight supply, this positions Sierra Madre’s dual-metal strategy to capitalize on both growth and stability. Analysts project that silver deficits will persist, reinforcing the value of near-term production assets like La Guitarra.

sierra madre gold&silver

Two Metals, One Growth Strategy

Sierra Madre’s dual-metal approach combines gold’s stability with silver’s growth potential. Gold anchors financial security, while silver leverages rising industrial demand. This strategy enables the company to maximize shareholder value while maintaining operational resilience.

Phased Expansion Plan

Sierra Madre is executing a two-phase expansion at La Guitarra:

  • Phase 1 (Q2 2026): Increase capacity to 750–800 t/d with equipment upgrades, including a new cone crusher and ball mill.
  • Phase 2 (Q3 2027): Ramp up to 1,200–1,500 t/d with additional crushing circuits, producing finer material and improving recovery rates.

No additional permits are required, and the expansion will be fully funded from existing cash flow, ensuring self-sustained growth.

Final Take: Why Sierra Madre Is Poised to Deliver Silver and Gold

Sierra Madre Gold & Silver is at the forefront of Mexico’s silver and gold revival. With a mix of production-ready assets, exploration upside, and strong financial backing, the company is well-positioned to benefit from rising demand, structural supply deficits, and supportive market dynamics.

Sierra Madre gold & silver

La Guitarra combines history, infrastructure, and timing for near-term production, while Tepic offers significant exploration potential. Sierra Madre’s dual-metal strategy balances stability with growth, leveraging gold’s safe-haven value and silver’s industrial demand.

As global demand for clean energy technologies, electric vehicles, and industrial applications rises, Sierra Madre is uniquely equipped to deliver both silver and gold. Its operational asset, responsible mining practices, and strategic expansion plan position it as a leading junior miner in Mexico’s most productive silver-gold belt.

In short, Sierra Madre has not just restarted a mine—it is breathing new life into Mexico’s historic silver and gold heartland while positioning investors to benefit from a transformative decade in precious metals.

DISCLAIMER

New Era Publishing Inc. and/or CarbonCredits.com (“We” or “Us”) are not securities dealers or brokers, investment advisers, or financial advisers, and you should not rely on the information herein as investment advice. Sierra Madre Gold and Silver Ltd. (“Company”) made a one-time payment of $25,000 to provide marketing services for a term of one month. None of the owners, members, directors, or employees of New Era Publishing Inc. and/or CarbonCredits.com currently hold, or have any beneficial ownership in, any shares, stocks, or options of the companies mentioned.

This article is informational only and is solely for use by prospective investors in determining whether to seek additional information. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. Examples that we provide of share price increases pertaining to a particular issuer from one referenced date to another represent arbitrarily chosen time periods and are no indication whatsoever of future stock prices for that issuer and are of no predictive value.

Our stock profiles are intended to highlight certain companies for your further investigation; they are not stock recommendations or an offer or sale of the referenced securities. The securities issued by the companies we profile should be considered high-risk; if you do invest despite these warnings, you may lose your entire investment. Please do your own research before investing, including reviewing the companies’ SEDAR+ and SEC filings, press releases, and risk disclosures.

It is our policy that information contained in this profile was provided by the company, extracted from SEDAR+ and SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee them.

CAUTIONARY STATEMENT AND FORWARD-LOOKING INFORMATION

Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate,” “expect,” “estimate,” “forecast,” “plan,” and similar expressions suggesting future outcomes or events. Forward-looking information is based on current expectations of management; however, it is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated.

These factors include, without limitation, statements relating to the Company’s exploration and development plans, the potential of its mineral projects, financing activities, regulatory approvals, market conditions, and future objectives. Forward-looking information involves numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking information. These risks and uncertainties include, among other things, market volatility, the state of financial markets for the Company’s securities, fluctuations in commodity prices, operational challenges, and changes in business plans.

Forward-looking information is based on several key expectations and assumptions, including, without limitation, that the Company will continue with its stated business objectives and will be able to raise additional capital as required. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information. Additional information about risks and uncertainties is contained in the Company’s management’s discussion and analysis and annual information form for the year ended December 31, 2024, copies of which are available on SEDAR+ at www.sedarplus.ca.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances except as may be required by applicable law.

For more information on the Company, investors should review the Company’s continuous disclosure filings available on SEDAR+ at www.sedarplus.ca.


Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: None.

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

The post Sierra Madre: Breathing New Life into Mexico’s Silver and Gold Heartland appeared first on Carbon Credits.

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Frontier Backs Climate Startup Reverion for 96,000 Tons of Biogas-Based Carbon Removal

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Climate startup Reverion, a German company specializing in biogas-based carbon removal, has secured several major offtake agreements through Frontier, the advanced carbon removal buyer coalition. The deals mark a significant milestone for the company as it works to commercialize its solid oxide fuel cell (SOFC) technology, which captures and permanently stores CO₂ while producing clean electricity.

Under the new commitments, Frontier buyers—including Google, McKinsey, H&M Group, Autodesk, Workday, and others—will pay $41 million for 96,000 tons of permanent CO₂ removal between 2027 and 2030.

Frontier’s carbon removal portfolio 

frontier carbon removal
Source: Frontier

These agreements strengthen the growing belief that biogas-based carbon removal can be both scalable and economically attractive when combined with high-efficiency energy production.

How Reverion’s Fuel Cell System Turns Biogas into Permanent Carbon Removal

Reverion, a 2022 spin-off from the Technical University of Munich, has created a system that generates clean electricity and captures carbon from biogas at the same time. Farmers produce biogas by placing manure, crop leftovers, and food waste into anaerobic digesters. These digesters create a gas mix that contains methane and CO₂.

  • The company’s solid oxide fuel cell (SOFC) converts the methane in this gas directly into electricity with very high efficiency.
  • During this reaction, the carbon in the gas separates into a pure CO₂ stream.
  • The system then liquefies this CO₂ and sends it for permanent geological storage.

Traditional biogas systems burn the gas in engines, lose energy, and release most of the carbon back into the air. Some even leak methane, which traps far more heat than CO₂. Reverion avoids these problems by capturing carbon from both methane and CO₂ in the biogas. As a result, the system increases the amount of carbon removed and cuts emissions at the source.

By pairing efficient power generation with full carbon capture, Reverion turns everyday biogas into a dependable pathway for long-term carbon removal.

Reverion CARBON REMOVAL Biogas
Source: Frontier

Energy, Hydrogen, and New Revenue Streams for Farmers

The press release highlighted that, today, more than 120,000 biogas plants operate worldwide, but many still use old engines with low efficiency. And Reverion’s SOFC gives farmers a major upgrade. It reaches about 74% fuel-to-electricity efficiency—one of the highest levels in the industry. This lets farmers produce more electricity from the same biogas, lower their energy bills, and earn extra money by selling clean power.

The system also adds flexibility. When electricity prices drop, often during times of strong wind and solar output, the fuel cell can run in reverse to make green hydrogen. Farmers can sell this hydrogen or use it on their own farms, creating another income source.

By delivering clean energy, flexible operation, and permanent carbon removal, Reverion offers a strong alternative to combustion engines and renewable natural gas upgrading systems.

Frontier Unlocks: Why BiCRS Matters in Carbon Removal Portfolios

Biomass Carbon Removal and Storage (BiCRS) is emerging as a strong contender for long-duration carbon removal. It includes several pathways such as BECCS, bio-oil sequestration, biomass injection, and now biogas-based fuel cell systems.

Frontier explains how BiCRS stands out for the following reasons:

  • Lower costs: Plants capture CO₂ naturally and at no cost. Many BiCRS systems also use existing waste streams, which reduces input costs.
  • Clear verification: Technologies like BECCS and biomass injection are easier to measure and verify compared with more experimental removal pathways.
  • Near-term scalability: Bio-oil and biomass injection can grow quickly, helping meet the rising demand for carbon removal supply.
Frontier
Source: Frontier

However, BiCRS is not without challenges. The biggest concern is sustainable biomass sourcing. Poor practices—such as removing too much crop residue, clear-cutting forests, or heavy fertilizer use—can harm biodiversity, damage soils, or increase emissions. Because of these risks, carbon removal purchasers must follow strict sustainability guidelines when sourcing biomass.

There is also a durability question for some BiCRS methods. Some biomass burial or sinking approaches could decompose over time, reversing the stored carbon. Frontier funds several R&D projects to evaluate long-term durability.

Finally, the BiCRS market is expected to be highly fragmented. Feedstock types differ by region, and the best removal pathway varies based on geography, transportation options, and local policy. Most BiCRS facilities also operate at a modest scale, meaning the market will rely on many distributed projects rather than a handful of giants.

Even so, BiCRS delivers several co-benefits. These include on-site clean energy production, lower fossil fuel use, reduced methane emissions, nutrient recycling for croplands, and destruction of harmful pollutants like PFAS.

BiCRS Dominates CDR Market

As per the CDR.fyi report, biomass-based carbon removal is leading the carbon removal market. In 2025, BiCRS projects delivered 97% of durable carbon dioxide removals, showing their major impact. BECCS, a key BiCRS pathway, is set to grow at a 19.3% CAGR from 2024 to 2030.

  • In the US alone, BiCRS could remove over 800 million tonnes of CO2 per year at costs below $100 per ton, with potential to exceed 1 billion tonnes with expanded biomass use.

The carbon removal market reached $3.9 billion in Q2 2025, with biomass projects accounting for 99% of transactions. Growth is fueled by rising demand for sustainable energy, expanding investment, and supportive policies.

bircs
Source: CDR.FYI

Why Reverion’s Model Stands Out

Reverion’s approach offers compelling advantages that support its rapid market adoption:

  • Large potential impact: With over 120,000 biogas sites worldwide, the theoretical removal potential from biogas could exceed 2 gigatons per year by 2040, according to IEA projections. Reverion could capture a meaningful share of this, especially alongside other BiCRS technologies.
  • Full-stream carbon capture: Most systems capture only the CO₂ portion of biogas. Reverion captures carbon from both CO₂ and methane, effectively doubling the removal impact.
  • World-class electrical efficiency: Its 74% efficiency ranks among the highest globally, increasing economic returns for operators.
  • Low methane leakage: Because methane is converted on-site, the system avoids pipeline leaks often associated with renewable natural gas.
  • Strong market demand: Reverion already holds 60 pre-orders and 120 letters of intent, signaling strong momentum.
Reverion biogas
Source: Reverion

As the world accelerates efforts to scale permanent carbon removal, technologies like Reverion’s offer a promising path—combining high-efficiency clean energy production with durable, verifiable carbon storage at biogas sites around the world.

The post Frontier Backs Climate Startup Reverion for 96,000 Tons of Biogas-Based Carbon Removal appeared first on Carbon Credits.

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Ferrari and Shell Sign Renewable Energy Deal, Powering Ferrari’s Carbon Neutrality by 2030 Goal

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Ferrari and Shell Sign Renewable Energy Deal, Powering Ferrari's Carbon Neutrality by 2030 Goal

Ferrari has signed a ten-year agreement with Shell to purchase renewable electricity. The deal will provide 650 gigawatt-hours (GWh) of clean power through 2034. This is enough to cover nearly half of the energy needs at Ferrari’s main production plant in Maranello, Italy.

The plant uses around 130 GWh of electricity each year. The remaining electricity will be supplied through additional renewable energy and certificates.

The agreement is part of Ferrari’s plan to reduce carbon emissions and shift toward cleaner energy in its operations. Davide Abate, Chief Industrial Officer at Ferrari, remarked:

“This agreement represents a further step forward in our journey towards decarbonizing the Maranello plant. The collaboration with Shell Energy Italia to supply renewable energy represents a concrete contribution to our goal of reducing Scope 1 and 2 emissions by at least 90% in absolute terms by 2030.”

For Shell, the deal demonstrates its growing role in supplying green power to large industrial customers. The oil giant is also increasing the scale of its renewable power generation. The electricity for Ferrari will come from a dedicated solar plant located in Italy, which improves supply reliability.

Gianluca Formenti, CEO of Shell Energy Italia, noted:

“In line with our strategy of producing more energy with fewer emissions, this agreement is a tangible example of our commitment to providing energy solutions to support our customers and partners in achieving their decarbonization goals.”

What are the Key Features of the Deal?

The PPA, or power purchase agreement, will deliver renewable electricity for ten years. Shell will provide most of the energy directly from a dedicated plant. The remainder will come from renewable energy certificates (RECs). These certificates allow Ferrari to claim that its energy consumption is backed by clean power, even if the electricity does not flow directly from the plant.

This combination ensures that Ferrari’s operations in Italy rely heavily on renewable sources. By securing long-term renewable energy, the luxury carmaker reduces its exposure to volatile energy prices.

The PPA includes fixed-pricing elements. This helps Ferrari avoid sudden jumps in energy costs. It also strengthens its ability to meet climate targets for carbon emissions.

The deal covers:

  • 650 GWh of electricity from renewable sources over 10 years.
  • Nearly 50% of Ferrari’s energy needs at Maranello.
  • Additional RECs and green power to cover the remaining electricity use.

Ferrari’s Carbon Reduction Goals and Renewable Energy Strategy 

Ferrari has committed to reducing Scope 1 and Scope 2 emissions by 90% by 2030. Scope 1 emissions come from Ferrari’s direct activities. This includes heating, production equipment, and company vehicles. Scope 2 emissions come from purchased electricity. Below are the ways the company uses to achieve its 2030 carbon neutrality goal.

Ferrari CARBON NEUTRALITY BY 2030
Source: Ferrari

The automaker reported several thousand metric tons of CO₂-equivalent emissions from operations in recent years. Progress has already begun as energy systems switch to cleaner power.

Switching to renewable electricity helps Ferrari cut Scope 2 emissions. The company has also invested in efficiency measures to reduce energy use across its facilities.

Moreover, it aims to streamline operations. They want to keep producing high-performance cars while using less energy overall. The company says some efficiency projects can reduce factory electricity use by 10–15% over time.

In recent years, Ferrari has been working on its energy mix. In 2024, it shut down a gas-fired trigeneration plant at Maranello. This plant had generated electricity, heat, and cooling from natural gas. By closing it, Ferrari reduced fossil fuel use and emissions.

However, the chart below shows that while Scope 1 and Scope 2 emissions show a gradual reduction, the total emissions show a steady increase. This is mostly due to growth in the company’s value chain activities.

Ferrari Carbon Footprint 2021-2024

Scope 3 emissions—mainly from the supply chain, purchased goods, and product use—are the dominant source, over 90%, and consistently drive the company’s total footprint.

Fueling Renewable Energy Expansion 

The Italian luxury sports carmaker is expanding its use of solar energy. It plans to increase photovoltaic (PV) capacity to around 10 megawatts peak (MWp) by 2030. Solar panels are installed on factory rooftops and other company-owned spaces. These panels already cover part of the factory’s daytime electricity consumption.

The company also partnered with Enel X to create a Renewable Energy Community (REC). This community lets nearby businesses, residents, and public institutions use clean power from Ferrari’s solar installations. It helps spread the benefits of renewable energy beyond Ferrari itself. The community has dozens of participants and supports local energy independence.

Ferrari has invested in energy-efficient transformers and storage systems. These upgrades improve the efficiency of electricity use and reduce energy waste. Combined with the new PPA, Ferrari’s approach is designed to achieve both emissions reduction and cost stability.

Offsetting the Unavoidable: Ferrari’s Carbon Credit Strategy

Ferrari tackles residual greenhouse gas (GHG) emissions. They support certified carbon avoidance projects by buying carbon avoidance credits. By using this method with direct emission cuts, the company reached carbon neutrality for Scope 1 and Scope 2 emissions in 2021, 2022, and 2023 across all its operations.

In 2024, Ferrari cancelled 77,691 metric tons of CO₂-equivalent carbon credits. These credits came from the Sustainability Community Project in Canada. They were certified by the Verified Carbon Standard (VCS) – Verra. This project combines over 800 carbon-reduction micro-projects from SMEs, municipalities, and NGOs. It includes more than 1,000 buildings in Quebec.

Ferrari carbon credits used
Source: Ferrari

The goal is to reach up to 10,000 customer facilities in a sustainable community. The GHG reductions come from activities such as improved energy efficiency, waste diversion, and fuel switching.

Also, Ferrari partners with ClimateSeed. This ensures that the projects follow strict environmental, social, and financial standards. The company hasn’t developed its own GHG removal or storage projects yet. However, it adjusts its carbon credit purchases each year. This helps offset unavoidable emissions and meet its carbon neutrality goals.

Industry Implications: Luxury Cars Join the Clean Energy Race

This deal reflects a growing trend among manufacturers in Europe. Companies are signing long-term renewable energy deals. This helps them cut emissions and stabilize energy costs.

For automakers, energy use is becoming an important part of environmental responsibility. Reducing emissions is not just about electric or hybrid cars. It also depends on how factories are powered.

Other car manufacturers are also pursuing renewable energy. BMW, Mercedes-Benz, and Porsche have all made deals to source clean power for major facilities. Ferrari’s agreement shows that luxury car makers are now also integrating renewable energy into their main operations.

Driving Forward: A Sustainable Shift for Ferrari

Ferrari’s renewable energy agreement with Shell is expected to have a lasting impact on its operations. It ensures a stable supply of clean energy and supports broader climate goals. It also ensures alignment between how Ferrari builds cars and the electric models it plans to sell in the future.

The partnership also strengthens Shell’s position in providing renewable solutions to industrial clients. It shows that legacy energy companies can play a role in helping others transition to cleaner power.

As Italy and other European countries aim to increase renewable energy use, long-term agreements like this one may become more common. Companies can benefit from cost predictability, emission reductions, and support for their sustainability goals.

The post Ferrari and Shell Sign Renewable Energy Deal, Powering Ferrari’s Carbon Neutrality by 2030 Goal appeared first on Carbon Credits.

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Microsoft (MSFT) Signs Solar Deal with Zelestra to Power Data Centers in Spain, Supporting Community Projects

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Microsoft Signs Solar Deal with Zelestra to Power Data Centers in Spain, Supporting Community Projects

Microsoft (MSFT) has signed a long-term Power Purchase Agreement (PPA) with Zelestra for 95.7 MWAC of solar power. The energy will come from two new solar farms in Aragón, Spain — Escatrón II and Fuendetodos II, both under construction. This clean energy will help power Microsoft’s data centers and operations in the region. It also supports Microsoft’s wider climate goals.

A Solar Deal That Shines Beyond Power

Beyond simply buying solar power, Microsoft is tying this deal to benefits for the local community. The non-profit ECODES will run a “Community Fund” financed by this PPA. ECODES plans to use this fund to support sustainability projects in Aragón. They will invest in local infrastructure, social inclusion, and environmental education.

Zelestra calls its strategy “3 Es”: Education, Energy, and Environment. Microsoft sees this as part of its “Datacenter Community Pledge,” which aims to ensure its operations help local areas as well as reduce its carbon footprint.

Why Microsoft’s 95.7 MW Bet Matters

This solar agreement matters for several reasons:

  1. Reliable clean energy: The 95.7 MW solar supply gives Microsoft a stable source of renewable power.
  2. Social benefits: ECODES will channel money into projects that help local people and ecosystems.
  3. Long-term local commitment: Zelestra intends to stay in Aragón and work with communities for years.

This structure shows how a big company can use a clean energy deal not just for itself, but for shared community value.

Spain’s Solar Boom and Zelestra’s Expanding Footprint

Solar power in Spain is booming. In the last few years, the country has added thousands of megawatts of solar capacity. According to Informa’s DBK report, solar energy grew by 6,000 MW in just one year, reaching 32,350 MW by 2024.

Red Eléctrica (the Spanish grid operator) data shows that by early 2025, solar PV installed capacity passed 32,000 MW, making solar the largest source of power capacity in Spain.

This growth reflects a major shift in Spain’s energy mix. In 2024, solar PV generated a record 44,520 GWh of electricity, about 17% of the country’s total electricity output.

At the same time, renewables now make up around 66% of Spain’s total power generation capacity. These numbers show how central solar power has become to Spain’s energy transition.

The outlook is even more ambitious. According to GlobalData, Spain’s solar capacity could reach 152.8 GW by 2035, driven by strong policy support and growing investor confidence. To fuel this, many new projects are already in the permitting stage.

Spain renewable power market 2035

In 2025 alone, more than 5 GW of solar projects were submitted for environmental approval. Castilla‑La Mancha is a major one of those major regions, and it stands out in Zelestra’s portfolio.

Zelestra is a major player in this growth. In 2025, it secured €146.6 million to build six solar plants in Castilla‑La Mancha, totaling 237 MWdc. These projects will create jobs, generate around 467 GWh of clean energy per year, and avoid over 84,000 tons of CO₂ emissions annually.

Zelestra is also expanding its corporate partnerships, providing renewable electricity for companies like Microsoft and Graphic Packaging International. Its portfolio in Spain exceeds 6 GW, showing its strong commitment to the country’s clean energy transition and its role as a key developer of large-scale solar projects.

Inside Microsoft’s Push Toward Carbon Negativity

Microsoft has set strong climate goals. In 2020, it announced its plans to be carbon negative by 2030. That means by then, it wants to remove more carbon from the atmosphere than it emits.

To reach this, the tech giant is doing several things:

  • It has contracted 34 GW of new renewable energy across 24 countries.
  • It aims to match 100% of its electricity use with zero‑carbon power by 2025.
  • It invests in carbon removal. In fiscal year 2024, Microsoft signed contracts for nearly 22 million metric tons of carbon removal.
  • It uses a $1 billion Climate Innovation Fund to support new technologies.

Progress and Challenges in Emissions

Microsoft has made real progress, but it also faces big challenges. Its Scope 1 and Scope 2 emissions (those from its own operations and electricity use) dropped 29.9% compared to 2020.

Microsoft carbon emissions
Source: Microsoft

But its total emissions (including its supply chain, or “Scope 3”) rose by 23–26% since 2020. This increase comes mainly from its rapid growth in data centers and cloud services.

Because it makes a lot of servers, chips, and hardware, Microsoft’s construction and supply chain also generate emissions. To cut those, it is working with its suppliers. By 2030, Microsoft plans to require high-volume suppliers to use 100% carbon‑free electricity.

Microsoft’s clean energy capacity has grown steadily since 2013, starting with wind projects in the U.S. By 2022, capacity reached 900 MW with wind and solar projects in Europe and the U.S.

Microsoft Clean Energy Contracts (Capacity, MW)
Notes: Clean energy deals include solar and wind projects

In 2024, Microsoft signed the largest corporate clean energy deal for 10.5 GW with Brookfield Renewable, delivering by 2030. This reflects Microsoft’s goal to power all operations with 100% renewable energy by 2030, underscoring its leadership in global sustainability efforts.​

Carbon Removal and Long-Term Risks

Microsoft is not just cutting emissions, it is also removing carbon. It invests in two big types of removal:

  • Nature-based removal: Microsoft has a deal with Chestnut Carbon to buy over 7 million tons of forest-based carbon credits.
  • Advanced removal: Microsoft supports projects like bioenergy with carbon capture and storage (BECCS). It recently backed a project in Louisiana that could capture 6.75 million tons of CO₂ over 15 years. 

Still, some experts warn that Microsoft’s climate strategy lacks targets beyond 2030. That could challenge its long-term impact.

SEE MORE on Microsoft: 

How the Solar Deal Fits into Microsoft’s Strategy?

The 95.7 MW deal in Spain ties directly into Microsoft’s overall carbon-negative goal. Here’s how it fits:

  • It adds zero-carbon electricity to Microsoft’s grid mix.
  • It supports Microsoft’s plan to match all its power use with clean energy.
  • The deal’s community fund reinforces Microsoft’s aim to pair climate action with social value.
  • It strengthens Microsoft’s global clean energy portfolio.

This helps Microsoft reduce its operational emissions (Scope 1 & 2) and supports its broader mission to remove carbon.

What’s Next for Microsoft, Zelestra, and Local Communities?

If all goes well, the two solar farms in Aragón will come online and deliver power to Microsoft for many years. The ECODES fund should start giving out grants to local groups, helping build greener projects in the community.

The tech giant must also keep pushing its carbon removal work and supplier engagement. It needs to make sure its long-term investments bring real, measurable climate impact.

Zelestra, for its part, will prove whether it can deliver reliable solar and meaningful social impact. If the model works, more companies may use similar “clean energy + community” contracts.

The agreement is more than just about cutting emissions — it’s also about helping local communities. At the same time, Microsoft’s push to be carbon negative by 2030 is ambitious and complex. It involves clean power, carbon removal, and changes in its entire supply chain.

This Spanish solar deal adds a new piece to Microsoft’s climate puzzle. It strengthens its clean energy supply and shows how corporate climate goals can benefit more than just the bottom line.

The post Microsoft (MSFT) Signs Solar Deal with Zelestra to Power Data Centers in Spain, Supporting Community Projects appeared first on Carbon Credits.

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