Energy Transition, Renewables, Emissions, Carbon
June 3, 2026
ET Highlights: Asia-Pacific hydrogen hopes, US DOE negotiating with reactor developers, UK carbon prices rally
Energy Transition Highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.
Top story
Asia-Pacific bets big on renewable hydrogen as deals, infrastructure, prices align
Asia-Pacific could become a key driver in commercializing low-carbon hydrogen and its derivatives, as firm supply agreements, emerging infrastructure buildouts, and low production costs signal the region’s ambition to anchor the future global clean fuel trade.
The region hosts about 795 projects with a combined projected capacity of about 35.20 million metric tons/year, including renewable-derived and fossil fuel-based hydrogen with carbon capture, according to S&P Global Energy’s Hydrogen Production Assets database.
The Middle East conflict could accelerate a structural shift, with the transport, power, and industrial sectors increasingly pivoting toward renewables and low-carbon hydrogen -- a transition already beginning to take shape across the region, Nobuo Tanaka, chair of the steering committee of the Innovation for Cool Earth Forum and former executive director of the International Energy Agency, has said.
“The oil shock will certainly push Asian countries into the more energy-efficient model of economic growth,” Tanaka said.
Benchmark of the Week
GBP58.44/mtCO2e
Platts UK carbon prices reached their highest since early February on May 29, on expectations of progress towards linking to the EU Emissions Trading System.
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Stockholm emerges as key buyer of removal credits with bioenergy carbon capture deal
The city of Stockholm has emerged as the world's fifth-largest buyer of permanent carbon removal credits after signing a 15-year agreement with Stockholm Exergi for 50,000 mt/year, marking a significant expansion of the Swedish capital's climate strategy as it races to meet ambitious 2030 targets. The deal, signed through the city's group company, Stockholm Stadshus AB, will help offset hard-to-abate emissions from construction materials and wastewater treatment as Stockholm pursues its goal of becoming climate-positive by 2030 and fossil-fuel-free by 2040, the companies said May 26.
US DOE negotiating with reactor developers to use surplus plutonium for fuel
The US Department of Energy is engaged in negotiations with five advanced reactor developers for the possible provision of surplus plutonium from the country's weapons program, a spokesperson from the department's Office of Nuclear Energy said May 27. In April, the DOE "competitively selected five companies for advanced negotiations regarding the potential allocation of surplus plutonium materials," the spokesperson said.
S&P Global Energy Core
UK carbon prices rally as EU ETS linkage hopes grow ahead of summer summit
UK carbon prices climbed to three-and-a-half-month highs as market participants anticipate a UK-EU July summit that could yield an agreement to link their emissions trading systems, according to industry sources and government officials. The UK government confirmed it is negotiating an emissions trading deal with the EU, which will be one of the key focus areas at the upcoming UK-EU summit.
Keppel starts hydrogen-compatible CCGT power plant in Singapore
Keppel has started commercial operations at the 600-MW hydrogen-compatible combined cycle Keppel Sakra Cogen Plant, expanding Singapore's scope for using low-carbon fuels to generate power, the company said. KSC increases Keppel’s power capacity by about 45% amid growing demand for reliable, future-ready power infrastructure, as the focus shifts to energy security and resilience, it said.
New York budget legislation delays climate deadlines, shifts emissions reporting
After several delays, New York lawmakers advanced a budget bill for fiscal year 2026-27 that rolls back several provisions of the state's landmark 2019 climate law. Under the new regulations, the state will have until Dec. 31, 2028, to implement necessary policies and regulations, such as a cap-and-invest program.