TCL #57: Cotton Waste to Carbon Credits

Materials

The Pentagon has invested $150 million in Atalco (Atlantic Alumina Co.), a Louisiana-based gallium and alumina company, to strengthen US defence supply chains. Atalco also expects to receive additional government funding and a $300 million investment from commodities firm Pinnacle. Gallium is essential for defence technologies such as advanced semiconductors, radar systems, satellites, and missile guidance. Gallium, a byproduct of alumina production, is not currently produced in the US. Atalco aims to eventually produce over 1 million tonnes of alumina and 50 tonnes of gallium annually in Louisiana.

Mining

Transition Metal Solutions has secured $6 million in a seed funding round led by Transition Ventures and included participation from various climate and deeptech investors. The capital raised will be used to advance a bio-enabled approach to copper recovery from existing mines and waste streams. The company's method, described as providing prebiotics for copper mines, focuses on enhancing the entire microbial community in copper ore rather than isolating specific strains. In lab samples, the company's proprietary cocktail has increased copper extraction from low-grade primary sulfide ore from 60 to 90%.The company plans to extend its platform to other critical metals like nickel, cobalt, gold, and zinc in the future.

Energy

-A US court allowed construction to resume on Ørsted's Revolution Wind project, a $5 billion project off the US northeast coast. This is the second time a court has ruled in favour of Revolution Wind, following the lifting of a previous stop-work order in September. Other suspended projects include Ørsted's Sunrise Wind and Equinor's Empire Wind, both of which are also challenging their suspensions in court. These projects were suspended on December 22 by the current US administration, citing national security concerns.

-The US Environmental Protection Agency (EPA) ruled that xAI illegally used methane gas turbines to power its datacentres in Memphis. These generators are not exempt from air quality permit requirements, even if portable or temporary. A local county loophole, wherein generators did not need a permit if they did not sit in a place for more than 364 days, was taken advantage of. Currently, the facility operates 12 permitted generators for power generation.

-Type One Energy, a Tennessee based fusion power startup, has secured $87 million in new funding. The company uses a magnetic confinement stellarator to control plasma for fusion. The startup has a deal with the Tennessee Valley Authority (TVA), a federally owned energy provider,  to build its first commercial power plant, Infinity Two, expected to generate 350 megawatts by the mid-2030s.

Carbon Removal

Varaha, an Indian startup, has signed an offtake agreement with Microsoft for biochar carbon removal in India. The agreement involves Microsoft purchasing over 100,000 tonnes of carbon dioxide removal credits from Varaha over the next three years. The startup aims to develop up to 18 reactors over 15 years, with the potential to remove more than 2 million tonnes of CO2. The reactors will convert cotton crop waste into biochar, a material that stores carbon in soil for extended periods and reduces air pollution from burning. The initiative will involve around 40,000 to 45,000 smallholder farmers in the western state of Maharashtra, who will provide the raw material, which is usually gotten rid of by burning. This repurposing of agricultural waste will reduce air pollution in certain parts of India and contribute to improved soil health by reducing reliance on chemical fertilisers and returning biochar to farms.