Cleantech Investments Set to Surpass Oil and Gas Spending by 2025
Key Ideas
  • Cleantech investments, including solar PV and green hydrogen, are projected to exceed upstream oil and gas spending by 2025, reaching $670 billion.
  • Solar PV is anticipated to represent half of all cleantech investments and dominate two-thirds of installed megawatts.
  • AI and energy storage innovations are revolutionizing project economics and renewable grid integration, addressing market challenges and enhancing economic viability.
  • Ammonia is playing a crucial role in low-carbon hydrogen projects, supporting electrolytic and carbon capture-based initiatives for decarbonization.
The cleantech sector is poised for a significant milestone as cleantech investments are projected to surpass upstream oil and gas spending by 2025, reaching a total of $670 billion. This surge in investments is driven by a shift towards renewable power, green hydrogen, and carbon capture technologies. Solar PV is expected to lead the cleantech investments, representing half of the total investments and dominating the installed capacity. Furthermore, advancements in AI and energy storage solutions are reshaping project economics and grid integration, boosting economic viability and mitigating price drops during peak renewable output. The report highlights the importance of battery energy storage in addressing market challenges, along with the role of AI in transforming renewable generation and grid planning. Additionally, the increasing role of ammonia in low-carbon hydrogen projects and the growth of carbon capture capacity are key trends in decarbonization efforts. Corporate clean energy procurement is also on the rise, with datacenters expected to significantly increase their clean energy sourcing by 2030. The report underscores the transformative changes in the cleantech sector, positioning it as a dominant force in the global energy landscape.
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