Renewable Energy Investments Soar to Record Levels Amid Energy Transition Developments for June 6, 2025

Energy Transition in Motion (Week of June 6, 2025)
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This week’s renewable energy news highlights a significant milestone with global clean energy investments projected to reach a record $2.2 trillion this year. This figure is more than double the investments in oil, natural gas, and coal, according to the International Energy Agency (IEA).

The IEA reported on June 5 that this trend is driven by efforts to reduce emissions and the increasing impact of industrial policies, energy security concerns, and the cost-effectiveness of electricity-based solutions. Solar energy continues to be a leading force in this growth, with global investments in utility-scale and rooftop solar expected to reach $450 billion this year. Battery storage is also gaining momentum, with investments anticipated to exceed $65 billion, as these systems are often integrated with renewable energy projects to address intermittency issues.

The report also noted a significant increase in investments in nuclear power, which have surged by 50% over the past five years, with total investment projected to be around $75 billion. This increase is largely a response to rising global electricity demand. However, the IEA cautioned that investment in electricity grids, currently at $400 billion annually, is not keeping pace with spending on generation and electrification. To ensure electricity security, grid investments need to match generation spending by the early 2030s, a challenge complicated by lengthy permitting processes and supply chain constraints for essential components.

In contrast, investments in oil are predicted to decline by 6% in 2025 due to lower oil prices and demand expectations, marking the first decrease in upstream oil investment since the onset of the COVID-19 pandemic in 2020. However, the outlook for liquefied natural gas (LNG) remains positive, with new facilities expected to attract greater investment in Canada, Qatar, and the U.S.

### Renewable Energy Developments

#### Biofuels
**LanzaJet and ATOBA Partnership for SAF**
Sustainable fuels producer LanzaJet and ATOBA Energy have partnered to develop new commercial models aimed at accelerating the deployment of sustainable aviation fuel (SAF). The collaboration seeks to create pricing and offtake structures that benefit both SAF producers and consumers. “Scaling SAF requires flexible, forward-thinking commercial models,” said LanzaJet CEO Jimmy Samartzis.

**Aggreko’s Shift to Biofuels**
Aggreko has announced a 60% reduction in CO2 emissions at its North American headquarters by transitioning from diesel to biofuel. This change applies to operations in Texas, Louisiana, and California, where the company is using hydrotreated vegetable oil (HVO) for generator maintenance and fuel for service vehicles.

#### Airline Industry and SAF
A Bayer executive emphasized the need for airlines to establish long-term agreements for greater SAF procurement to meet industry climate targets. Although airlines are committed to achieving net-zero emissions by 2050, the current production of SAF is limited and costly. Bayer’s Matthias Berninger highlighted that long-term purchasing contracts are essential for ensuring a stable supply of SAF.

### Energy Storage and Critical Materials
**EU’s New Raw Material Projects**
On June 4, the EU announced 13 new raw material projects outside the bloc to enhance its supply of essential metals and minerals vital for the energy transition, defense, and aerospace industries. This initiative comes in response to China’s export restrictions on rare earth magnets, which have raised concerns about dependency on Chinese supplies. The EU aims to mine 10%, process 40%, and recycle 25% of its raw material needs by 2030.

**Standard Lithium and Telescope Innovations**
Standard Lithium and Telescope Innovations have successfully converted lithium hydroxide into battery-quality lithium sulfide using a new low-temperature process. This advancement could enhance the production of solid-state batteries, which are crucial for the next generation of battery technology.

### Renewable Energy Projects
**Energy Vault and Jupiter Power Collaboration**
Jupiter Power has partnered with Energy Vault for a 100 MW battery energy storage system in Texas, aimed at improving grid resiliency. This follows the successful completion of an initial 100 MW system in July 2024.

**Hydrogen Supply Agreements**
Axpo has secured an agreement to supply energy for HydroFleet’s hydrogen production and fueling stations across the U.S., including a collaboration with Hyundai in Georgia. This partnership aims to support the use of hydrogen fuel cell-powered trucks during the construction of Hyundai’s EV manufacturing plant.

**Avangrid and NextEra Energy Solar Projects**
Avangrid has commenced operations at its 202-MW Powell Creek Solar project in Ohio, generating enough electricity for approximately 30,000 homes. Meanwhile, NextEra Energy has launched its first utility-scale solar facility in Louisiana, the 100-MW Amite Solar, which will provide energy for thousands of homes and businesses.

### Wind Energy Developments
**Siemens Calls for Offshore Wind Capacity Increase**
Siemens Energy UK&I has stated that the upcoming renewable energy auction in Britain must secure a record amount of offshore wind capacity to meet the country’s clean power targets by 2030. The government aims to increase capacity from around 15 GW to between 43 GW and 50 GW by the decade’s end.

This summary encapsulates a week of significant advancements and initiatives within the renewable energy sector, showcasing the ongoing energy transition.