ISSUE 45 AUTUMN 2021
F ROM T H E E N E RGY I N DUST R I E S COU NC I L VIEW FROM THE TOP G UK Energy Minister Greg a Hands on UKESC and delivering net-zeroo
FU FUTURE LEADERS Giving the next g generation of energy l leaders a voice today
ENERGY TRANSITION UAE Energy Minister calls for collaboration on green hydrogen
OIL AND GAS Tackling Scope 3 value chain emissions on the road to net zero
On your marks COP26 starts the ﬁring gun on a make-or-break decade for urgent climate action
COP C P 26
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Contents ISSUE 45 AUTUMN 2021
FROM THE EIC
18 COP26: A platform to raise climate ambition
5 Foreword From the Chief Executive
Chris Stark, Chief Executive, CCC
20 Engineering our way to net zero
6 View from the top Greg Hands , UK Energy Minister
10 News and events
Sinéad Obeng, Chair, Energy Institute Young Professionals Council
Updates from the EIC
23 Keeping 1.5˚C alive
12 Special report
Bill Hare, CEO, Climate Analytics
Jonathan Dyble talks to four young energy professionals who are helping to shape the vision of tomorrow’s energy system
28 Global appetite for oﬀshore wind accelerates
38 My business Luca Forno, VP Operations East Hemisphere, EthosEnergy
Top 20 oﬀshore wind growth markets on EICDataStream
What is COP26?
OIL AND GAS 30 Tackling the Scope 3 emissions challenge Xavier Denoly, Sustainable Development SVP, Schneider Electric
32 Mitigating methane emissions
25 Net zero, just transition and the energy supply chain Professor Jim Skea CBE, Chair, Scottish Just Transition Commission
26 Creating a global market for green hydrogen His Excellency Suhail Mohamed Al Mazrouei, UAE Minister of Energy and Infrastructure
Alexandra Thomas, UK Managing Director, Neptune Energy
His Excellency Suhail Mohamed Al Mazrouei
35 Charging forward Graeme Cooper, Head of Future Markets, National Grid
Mitigating methane in the North Sea
NUCLEAR 37 Net zero needs nuclear
Is the grid ready for EVs?
The Energy Industries Council 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Email firstname.lastname@example.org Chief executive: Stuart Broadley Should you wish to send your views, please email: email@example.com
Editors Sairah Fawcitt +44(0)20 7880 6200 firstname.lastname@example.org Mark Risley +44(0)20 7091 8600 email@example.com Account director Dan Butcher Production director Jane Easterman Senior designer Gene Cornelius Picture editor Akin Falope Content sub-editor Kate Bennett
Vicki Dingwall, Nuclear Institute Youth Generation Network Volunteer
Sales and advertising Richard Hanney +44(0)20 7324 2763 firstname.lastname@example.org Energy Focus is online at energyfocus.the-eic.com ISSN 0957 4883 © 2021 The Energy Industries Council
Energy Focus is the oﬃcial magazine of the Energy Industries Council (EIC). Views expressed by contributors or advertisers are not necessarily those of the EIC or the editorial team. The EIC will accept no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this publication.
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Foreword Stuart Broadley CEO
From the Chief Executive: In this edition we focus on COP26, the ground-breaking climate summit bringing together world leaders, negotiators, government representatives, businesses and citizens of the world for 12 days of talks in Glasgow, Scotland, from 31 October until 12 November.
It is undeniable that the UK government is working hard to lead the way by setting high ambitions, backed up by taking action. The UK was recently ranked the fourth greenest country in the world out of the top 40 categorised as ‘high income’ by the World Bank in 2019 – only narrowly beaten by Denmark, Luxembourg and Switzerland. Visual Capitalist’s latest ﬁndings also put the UK second in the world in terms of slowing its CO2 emissions rate, behind Denmark. What sets countries such as Denmark and the UK apart is the detailed thought they have put into developing roadmaps to achieve their net-zero commitments. The UK’s 10-point plan, recently backed up by detailed hydrogen and net-zero strategies, is critical in enabling stakeholders to understand how they can participate in the transition and build conﬁdence that investments in low-carbon technologies and capacities will not be in vain. In this edition of Energy Focus, UK Energy Minister Greg Hands provides our View from the Top, giving insights into government thinking on bringing net zero to life – particularly in terms of supply chains. He also comments on his role in the UK Energy Supply Chain Taskforce (UKESC), the new industrygovernment body that aims to amplify the supply chain’s voice in policy development and action. EIC is pleased to be UKESC secretariat and co-chair, and know how lucky we are to have the support of Minister Hands and new Export Minister Mike Freer. As Minister Hands mentions in the article, UKESC “will form the basis of a ﬁrst-of-itskind roadmap setting out practical steps that
will enable the UK-based energy supply chain to take maximum advantage of the development of clean growth technologies, the growing export market potential and the energy transition. Watch this space.” We are also lucky to have UAE Minister of Energy and Infrastructure, HE Suhail Mohamed Al Mazrouei, who talks about creating a global market for green hydrogen and the country’s plans to take this forward. As we contemplate the economic and technological challenges around decarbonisation, we are also increasingly aware that this is about connecting with young people. We must ensure they feel committed to, and passionate about, the work our industry is doing to decarbonise, so they commit to the sector for the long term. We need them to become our future leaders, to complete the important work we are now starting. Two features in this issue focus on the rising stars of our industry. First, we talk about empowering the next generation of energy leaders, inviting previous EIC/RGU Rising Star award winners to ask them what’s important for the industry to focus on now and what the future of energy should look like. We are also delighted to hear from Sinéad Obeng, Chair of the Energy Institute Young Professionals Council, about her hopes for COP26 and a fair and just transition to net zero. These are certainly unique times. I’ve been CEO of EIC for more than ﬁve years and have been running business in diﬀerent energy sectors for more than 25 years, and I’ve never seen a market like this. In a post-pandemic world, EIC data points to a high and sustained spike in demand for all commodities, driven by
unprecedented growth in all forms of life, including industry and transport. This will lead to at least 20% growth in project demand across all energy sectors in a short time period. This could be deﬁned as a boom, and most commentators link this period with shortages of materials, logistics and skilled workers – which could lead to a stint of relatively high inﬂation. With high demand and inﬂation, plus unprecedented interest in new technology development and government investment in green infrastructure, technologies and workforces, we could see a future that many would call the new industrial revolution. What a time to be working in this industry and making a diﬀerence. The energy industry is the place to work, where the best businesses will attract the most entrepreneurial, sustainable and diverse people and ideas. COP26’s importance cannot be underestimated. It is beyond doubt within governments, in boardrooms and at family dinner tables that we are running out of time to implement actions to protect the planet – and I am encouraged by the passion from leaders of all walks of life to stop waiting and start acting. So, hold on tight. The next few years are going to be some of the most dynamic and important for us all.
Stuart Broadley Chief Executive Oﬃcer, Energy Industries Council stuart.broadley @the-eic.com
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From the EIC Greg Hands , UK Energy Minister
View from the top Greg Hands UK Energy Minister
The next decade will be make or break for our planet, so we must act now to keep within reach our goal of limiting global temperature rise to 1.5˚C
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Q&A UK Energy Minister, Greg Hands: From the EIC
IMAGE: GREGORY HANDS - UK PARLIAMENT OFFICIAL PORTRAITS
One month into his new role, Energy Minister Greg Hands talks to Energy Focus about delivering a net-zero energy system, supporting the energy supply chain and ambitions for COP26
It’s going to be an exciting ﬁrst year for UKESC, which will be collecting vital data on views, needs, challenges and opportunities from across the UK energy supply chain. This will form the basis of a ﬁrst-of-its-kind roadmap setting out practical steps that will enable the UK-based energy supply chain to take maximum advantage of the development of clean growth technologies, the growing export market potential and the energy transition. Watch this space.
You’ve been appointed the new UK Energy Minister ahead of COP26. How are the preparations going, and what will be the government’s focus at COP26? Our message ahead of COP26 is clear – the next decade will be make or break for our planet, so we must take action now to keep within reach our crucial goal of limiting global temperature rise to 1.5˚C. On behalf of the COP26 presidency, we are urging countries to come forward with ambitious 2030 emission reduction targets and long-term strategies with a pathway to net zero by the middle of the century. And the UK is leading by example. Since we published the Prime Minister’s 10-Point Plan, we have enshrined our world-leading Carbon Budget 6 into law, secured record investment in wind power, launched a new UK Emissions Trading Scheme, committed to end coal power by 2024, and published clear plans to decarbonise energy, transport, hydrogen, heavy industry and North Sea oil and gas to protect and create jobs across the UK. Building on last autumn’s Energy White Paper and the Prime Minister’s 10-Point Plan for a Green Industrial Revolution, the policies and spending brought forward in the Net Zero Strategy mean that since the 10-Point Plan we have mobilised over £26bn of government capital investment for the green industrial revolution. Along with regulations, this will support 190,000 jobs by 2025, and 440,000 jobs by 2030, and leverage up to £90bn of private investment by 2030.
EIC research concludes that during the past ﬁve years, supply chain investment in innovation has reduced each year. Why do you think innovation is so unpopular at the moment? I’d say we are in a decisive moment when it comes to unleashing our world-class innovators, entrepreneurs and ﬁnance institutions, which are key to unlocking the technologies of the future. And it is no secret that we intend for the UK to stand as a world-leading centre for the development of brilliant ideas, innovation in industry and jobs for the future. That’s why government spending on R&D and innovation is higher than ever before, and spending on energy R&D in particular is the highest it has been for more than 30 years. I’m particularly excited about the £1bn net-zero innovation portfolio, which formed part of the Prime Minister’s 10-Point Plan. This is being used to accelerate the commercialisation of innovative low-carbon technologies, systems and business models across UK power, buildings and industry.
As co-chair of the new UK Energy Supply Chain Task Force (UKESC), with Department for International Trade Exports Minister Mike Freer and EIC CEO Stuart Broadley, what do you hope to see the Task Force achieve in its ﬁrst year? It’s an honour to be part of the UK Energy Supply Chain Task Force and to work with government, industry, and the sector’s biggest trade body representatives to ensure that UK companies can take advantage of signiﬁcant clean growth opportunities overseas.
Following the UK Hydrogen Strategy launch, do you believe the UK should focus predominantly on blue hydrogen, green hydrogen, or both – and why? We see a clear role for both blue and green hydrogen in our future energy mix – a position backed up by independent reports and advice, including from the Climate Change Committee (CCC). Blue hydrogen gives us the lowest-cost route to increased hydrogen production during the 2020s, and we need to build up UK supply chains as demand increases. As the cost of green hydrogen comes down
About Greg Hands Greg Hands was appointed Minister of State at the Department for Business, Energy and Industrial Strategy on 16 September 2021. He was previously Minister of State for Trade Policy in the Department for International Trade (DIT) from February 2020 to September 2021, and Minister of State at DIT from 2016 to 2018. Prior to serving as Chief Secretary to the Treasury, Mr Hands served as a local councillor in Fulham from 1998 to 2006. He was elected Conservative MP for Hammersmith and Fulham in 2005, and then for the redrawn Chelsea and Fulham constituency in 2010 and 2015.
www.the-eic.com | energyfocus
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From the EIC: Q&A UK Energy Minister, Greg Hands
and electrolyser sizes scale up, more green hydrogen capacity can give us even greater long-term carbon-reduction potential. EIC applauds the new UK Hydrogen Strategy, but how can supply chain participation and UK content be maximised? With our world-class innovators, highly skilled manufacturing base and natural assets, such as our abundant oﬀshore wind resources, the UK is ideally placed to build up strong domestic supply chains as part of our growing hydrogen economy. We’re going to set out more on this in our hydrogen sector development action plan, early next year. As hydrogen and carbon capture, utilisation and storage (CCUS) ramp up, where do you see UK industry having the greatest involvement and homegrown capability, and what actions are needed to enable this? There are real opportunities for UK industry right across the chain. Our support for both green and blue hydrogen will help develop bigger and better electrolysers, and more eﬃcient and modern methane reformation plants with higher carbon capture rates. We’re already supporting innovation across diﬀerent end-use cases, including hydrogenready equipment for industry and heating. Our hydrogen strategy sets out a comprehensive set of actions to ensure we work together with UK industry to grow this exciting new sector, while our CCUS roadmap sets out how government and industry can work together to harness the power of a strong, industrialised UK CCUS supply chain. There appears to be a huge global opportunity for carbon capture technology, but what needs to happen to ensure the UK invests at pace and scale to take advantage of this? Carbon capture is a key emerging technology that will help us meet our world-leading climate commitments. We have set a target to remove 10MT of carbon dioxide a year through carbon capture by 2030, and we are supporting this by investing £1bn into CCUS technology, with the aim of creating two
It’s an honour to be part of UKESC and to work with government, industry, and the sector’s biggest trade body representative to ensure that UK companies can take advantage of clean growth opportunities overseas carbon capture clusters by the mid-2020s and another two sets by 2030. How can UK suppliers leverage their legacy oil and gas expertise to become competitive in the global energy transition marketplace? What help is available to support this ‘just transition’? The UK is proud of its oil and gas industry expertise, which is world-leading and has long focused on energy eﬃciency, environmental and social governance. This is why we have agreed the North Sea
Transition Deal with the industry – a global exemplar for the transformation of the oil and gas sector. We are supporting the oil and gas and wider energy supply chain to ensure they are competitively positioned to capitalise on the opportunities of the energy transition. The establishment of UKESC is doing exactly this – working to help ensure that UK companies can more readily transition to the green economy by nurturing the key technologies, skills and capacity that we already have across thousands of businesses, and to identify and support the rapid growth of competitive new capabilities to meet future energy needs. This will allow expertise across the broad spectrum of energy technologies to be developed in the UK and then exported widely to global markets, helping deliver the global drive to decarbonisation. With the increased focus on whether future oil licences should be granted, what is your view on the future of the UK oil industry? While we are working hard to drive down demand for fossil fuels, there will continue to be ongoing demand for oil and gas over the coming years, as recognised by the independent CCC. The UK is and will remain a net importer of oil and gas, even in a net-zero world, so we believe domestic production has a place in supporting our energy needs as we transition to lowcarbon sources. However, we are clear that our support must be conditional on the industry playing its role in reducing greenhouse gas emissions. This is a key element of our North Sea Transition Deal, which commits the sector to reducing its production emissions and transforming the UK Continental Shelf into a net-zero basin by 2050. It also recognises many of the essential skills and capabilities in its world-class supply chain, which play a key role in supporting emerging technologies such as carbon capture and storage and hydrogen production. We know that we are at an important time for action on climate change, and it will be essential that any future licences are only awarded if they do not compromise our commitments to the decarbonisation of our economy. That is why we are introducing a climate compatibility checkpoint that will
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Q&A UK Energy Minister, Greg Hands: From the EIC
We will set out how the government will support companies to secure supply chain opportunities, skills and jobs in our hydrogen sector development action plan, early next year
(Above) Conceptual illustration of a fuel cell bus at a hydrogen ﬁlling station
IMAGES: ALAMY / SHUTTERSTOCK
ensure any future licences are only awarded on the basis that they are aligned with the government’s broad climate change ambitions, including reaching net zero by 2050. We have committed to introducing that checkpoint by the end of 2021. The UK’s ‘Green Industrial Revolution’ includes the use of nuclear power. How will the government ensure that nuclear baseload is embedded in our power supply? As set out in the Energy White Paper and 10-Point Plan, new nuclear power is a crucial
part of our plans for addressing climate change and reaching net zero. Whether large-scale power plants or next-generation technologies such as small and advanced modular reactors, nuclear power provides reliable low-carbon power. This will be required to complement renewable energy sources for times when the sun isn’t shining or the wind isn’t blowing, helping us ensure a stable, reliable low-carbon system. That’s why we’ve committed to approve at least one large-scale new nuclear project in the next three years, and are backing the next generation of nuclear technology with £385m to strengthen our energy security,
attract billions of pounds in private capital and create tens of thousands of jobs. What are your plans to leverage the tangible potential that ocean energy oﬀers to level up coastal areas and kick start an entire new renewables industry in the UK, with signiﬁcant export potential? The government has a long history of supporting the development and deployment of wave and tidal stream technologies in the UK. We have provided sustained and targeted support to enable the wave and tidal stream sectors to move from initial concept to prototypes, and now the ﬁrst arrays. Since 2010, various bodies across government have provided innovation and R&D funding of £80m to the wave and tidal sectors. Wave and tidal stream projects remain eligible to compete in the Contracts for Diﬀerence scheme, which supports the development of renewable energy technologies, and we continue to engage with industry as it seeks to cut its costs and compete with other forms of low-carbon generation. Do you see oﬀshore renewable energy as a continuing growth market for the UK, or has the decarbonisation of electricity largely been achieved? Our Energy White Paper sets out plans for a historic transformation of the UK’s energy system for a cleaner, greener future – including fully decarbonising our electricity generation by 2050 and supporting up to 220,000 jobs by 2030. This includes making the UK a world leader in clean wind energy. The UK is the world’s largest oﬀshore wind market, with more than 10GW installed. This will double by mid-2020s, and we have supported the development of the technology and the industry from the beginning. In October 2020, the prime minister announced a commitment to increase the UK’s oﬀshore wind capacity to 40GW by 2030, which includes at least one gigawatt of ﬂoating oﬀshore wind energy, and represents more electricity in a year than every home in the country uses now. www.the-eic.com | energyfocus
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U P DAT E S F RO M T H E E N E RGY I N D U S T R I E S C O U N C I L
news&events E COIPC@ GLA 26 S 202G1OW
The road to COP26 events Breakfast in conversation with Mott MacDonald
About the EIC Established in 1943, the EIC is the leading trade association for companies working in the global energy industries. Our member companies, who supply goods and services across the oil and gas, power, nuclear and renewables sectors, have the experience and expertise that operators and contractors require. As a not-for-proﬁt organisation with oﬃces in key international locations, the EIC’s role is to help members maximise commercial opportunities worldwide.
EIC LIVE e-vents
When: Tuesday 2 November Time: 10:00–12:30 (GMT) Location: Mott MacDonald, St Vincent Plaza, 319 Vincent St, Glasgow, G2 5LP Why attend? To kick start our week in Glasgow at COP26, we’re delighted to invite you to a morning with Mott MacDonald to discuss the very latest technologies and developments in carbon capture utilisation and storage (CCUS). CCUS involves the capture of carbon dioxide emissions from industrial processes, and is therefore critical in order to cut greenhouse gas emissions. However, it has become clear that emissions reduction alone will not be enough to ﬁght climate change. To truly safeguard a secure climate for future generations, we also need to deploy
During the next few months, we have some exciting virtual events and conferences to look forward to, many of which are free to attend for EIC members, including a series of free in-person events live from Glasgow during the opening week of COP26. Our packed speaker line-up from the week includes Mott MacDonald, Origen, Drax, DNV, TotalEnergies and Wood. To ﬁnd out more and book onto our latest events, visit www.the-eic.com/ Events/Calendar
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From the EIC News and events
The energy sector is evolving to play a leading role in delivering net zero
Engineering innovation, investment opportunities, and support for the UK supply chain will all be key. The challenges faced, knowledge gained and skillsets acquired during the past 50-plus years places the North Sea oﬀshore industry in pole position to lead the way in energy transition, both nationally and globally. In the session we will discuss future sustainable energy plans, focusing on the North Sea region. Visit www.the-eic.com/ EventDetail?dateid=3240
Rising Stars Networking Aperitif
technologies that remove carbon from the atmosphere. This session will identify key technologies and discuss CCUS research, developments, readiness and barriers, as well as the government support required. With a variety of case study presentations being made by Mott MacDonald partners, be sure to register your interest early for this ‘not to be missed’ morning discussion and key networking event. Visit www.the-eic.com/ EventDetail?dateid=3246
IMAGE: ALAMY / SHUTTERSTOCK
The Race to Net Zero When: Wednesday 3 November Time: 09:00–12:00 (GMT) Location: Wood House, St Vincent Plaza, 319 Vincent St, Glasgow, G2 5LP Why attend? As businesses recognise the need to act urgently on climate change, and many organisations already committing to help accelerate the transition to a net-zero economy, there is a unique opportunity for the energy sector to drive towards the 2050 net-zero target. This session will focus on how the energy sector is evolving to play a leading
role in the transition to a carbon-neutral future, providing the solutions for our net-zero ambitions, turning our existing energy system into one that is cleaner and more sustainable, bringing new ways of thinking to address the challenge of climate change, and how organisations are turning carbon ambition into action. Visit www.the-eic.com/ EventDetail?dateid=3225
The North Sea – An Area in Transition When: Thursday 4 November Time: 16:30–18:30 (GMT) Location: Wood House, St Vincent Plaza, 319 Vincent St, Glasgow, G2 5LP Why attend? On 7 October 1970, the future of energy in the UK changed forever. The discovery of the Forties Field and its successful development drove the northeast of Scotland – and with it the UK – into the spotlight of a new energy revolution. Today we are facing another distinctive challenge in reducing our carbon footprint to net zero by 2050 or sooner. Once again, the North Sea will play a pivotal role as the energy transition takes shape.
When: Friday 5 November Time: 15:00–17:00 (GMT) Location: Wood House, St Vincent Plaza, 319 Vincent St, Glasgow, G2 5LP Why attend? Each year EIC celebrates the leaders of tomorrow by presenting the Rising Star MBA Award in partnership with Robert Gordon University (RGU) of Aberdeen. Here we recognise and identify the sector’s future leaders, as well as shining the spotlight on the organisations and individuals who help to foster and develop new talent within the energy industry. This year, RGU and EIC aim to host a celebratory networking aperitif at Wood House during COP26, bringing together the industry’s Rising Star ﬁnalists. This industry celebration will provide an opportunity to focus on positives and triumphs from across the energy sector, while reﬂecting upon the achievements of those who inspire, lead, and enable the very best outcomes for the future of the industry. Let us come together to hear from previous winners, mingle with nominees, network with the future of the energy industry and celebrate the Rising Star Award Winner and Runner up, who will receive a funding contribution towards their MBA course. Visit www.the-eic.com/ EventDetail?dateid=3248
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Special report The future of energy
As COP26 approaches, the 2030 Sustainable Development Goals and 2050 ambitions of the Paris Agreement are once again at the forefront of global discussions. And there has never been a more important time for the voices of tomorrow’s energy leaders to be heard, says Jonathan Dyble
next generation of energy
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The future of energy: Special report
he 26th annual United Nations Climate Change summit (COP26) represents a critical milestone in the grand scheme of energy industry history. Taking place in Glasgow from 31 October to 12 November 2021, its agenda will cover a series of global issues in the aim of accelerating collective action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. And its outcomes will have profound, far-reaching impacts on businesses and consumers the world over. Indeed, the next decade will be deﬁning for the energy sector. Between the targets of aﬀordable and clean energy for all by 2030, which are outlined by Sustainable Development Goal 7, and the commitments of more than 70 countries to reach net-zero emissions by 2050, the industry as we know it will be transformed to accommodate climate-centric demands. As that transition unfolds, many of today’s energy leaders will step down, paving the way for future leaders to step forward and take the mantle. And it is the views, goals, aspirations, values and visions of this next generation that should be heard today. What are their calls for action? And how will traditional energy respond? To help answer these critical questions and get an accurate idea of what the energy industry could look like in one, two or even three decades, we asked some of the brightest minds in the sector today what’s important, and what the future of energy should look like. From climate action, energy equality and social empowerment to developing the skills of the next generation of the industry, here’s what they had to say.
Katarina Balcova, Marketing Manager and CRM Key User, TÜV SÜD Energietechnik; EIC Rising Star 2020. Having always been interested in diﬀerent cultures, languages and travelling, Katarina opted to study international relations – a degree that landed her a job in the nuclear energy division of the global testing, inspection and certiﬁcation company TÜV SÜD. Today she acts as the ﬁrm’s Marketing Manager, having made a profound impact in helping to propel the sustainability agenda, communicating the issue with various energy industry stakeholders internationally. In your view, what are the critical issues concerning global energy today? The critical issue from my point of view is shortsightedness. We focus more on immediate proﬁt and think less about the future consequences, despite having known for many years that we need to reduce carbon emissions. Progress is still too slow. If we want to reach the UN Sustainable Development Goals, we need to focus more on solutions and the incredible technological advancements that have already been made. Formulating clear concepts
and communicating them transparently will be key.
companies, big corporations and governments.
In your view, how can these issues be addressed? With education and transparency. We need to educate people on sustainable clothing, food, transportation and investment choices. Every single one of us matters. Sometimes we feel like we are too small to change anything, but that is not true. Of course, the biggest impacts stem from governments and big corporations, but I believe that when we start with individuals, we begin to inﬂuence families, small
Can you summarise your key vision for a successful, sustainable energy future for all? A successful, sustainable energy future will comprise many aspects. We must focus on further developing and transitioning to renewable energy sources, as well as improving energy eﬃciency and energy-saving solutions. New technologies such as small modular reactors or carbon capture utilisation and storage will also be valuable additions to the mix.
The Future Energy 500 project saw six Energy Institute members undertake a 500-mile road trip across Scotland’s future energy landscape
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Ducab: Powering the clean energy revolution through custom cables Cable manufacturers are central to the transition towards clean energy and will play an increasingly critical role in powering sustainable communities worldwide. Ducab, the largest cable manufacturer in the UAE, plays an integral part in powering the country’s green energy sector through the supply of customized cables to providing installation supervision, storage, training, certiﬁcations and more. Hydrocarbon-based energy has played a deﬁning role in the formation of the UAE as we know it today and has been central to industrial revolutions across the world. However, clean energy represents the future of our society, as the country continues to transition towards solar, wind, and nuclear power to meet growing demands. For the last 40 years, Ducab has built an impressive portfolio of cable and wire
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solutions customized to the unique needs of the energy industry. In keeping with the transitioning nature of the energy sector, from hydrocarbons to alternative power sources, Ducab has stayed true to its commitment to innovation by adapting and developing new products that meet the changing needs of the dynamic industry. PetroBICC has been part of the Ducab portfolio since 2014. Designed exclusively for the oil, gas and petrochemicals sector, the PetroBICC cable portfolio oﬀers both lead sheaths and polyamide versions (depending on the client speciﬁcations) to withstand the harsh chemical products they may encounter within daily use. As the energy sector evolved towards alternative energy, Ducab developed cables suited speciﬁcally to the need of the UAE’s budding energy industry. The company launched the UL approved SolarBICC line of cables followed by the 60-years-lifecycle NuBICC, catering to the solar and nuclear power sectors, respectively.
Ashish Chaturvedy – Head of Marketing
ideal for all applications in the energy sector. Additionally, Ducab produces overhead conductors and transmission lines, connecting the power industry to customers wherever they may be. Our mission goes beyond providing cables to the clean energy sector. Ducab is constantly seeking new ways to reduce our environmental impact by being conscious of our own consumption of resources. Ducab cables are all made to order – we only make what is speciﬁcally required by our customers. Further, any waste cable is recycled and reﬁned within our facilities for further use. We also adopt environmentally conscious projects within Ducab. Last year, we opened our solar plant at Ducab’s head oﬃce in Jebel Ali. The project includes a rooftop array and ground-mounted panels, which generate 3.5 GWh of power yearly, enough to save about 660 tonnes of carbon dioxide (CO2) a year. The electricity produced by the system covers the needs of Ducab’s PVC plant on site.
Ducab has also developed several cable solutions for the wind industry, although the sector is relatively new. The company previously supplied a wind energy scheme in the Dhofar region of Oman and provided its cables for several wind projects in North Africa.
Our “Made in UAE” products make it easier, safer, and more cost-eﬀective to deliver clean energy in the UAE. Additionally, our UAE customers buying locally-made products also oﬀer greater sustainability beneﬁts for their projects, with lower transportations costs, lower emissions, and more.
The diverse portfolio Ducab oﬀers today includes Low, Medium, High, and Extra High Voltage cables and wires, RuBICC rubber cables, grounding conductors, accessories (joints, terminations, cleats, glands, lugs) and more. Ducab manufactures cables with unique characteristics, including low smoke density, ﬂame retardant, and halogen-free, to mention just a few – making them
Visit ducab.com for more information.
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The future of energy: Special report
Hannah Mary Goodlad, Head of Baltic Sea Area Development, Equinor. Hannah Mary is a senior leader within Equinor Renewables, heading up the company’s Baltic Sea development eﬀorts, and part of the Energy Institute’s Young Professionals Network, including its Future Energy 500 (FE500) project. FE500 looks at how young professionals are ‘stepping up to the challenge of our time’ and actively working towards a better future for all. The project works to showcase the energy transition underway across diverse regions, delivering a powerful message of global solidarity, ingenuity, and ambition. What inspired you to get involved in the energy industry? The energy industry is often viewed as part of the problem when addressing climate change, but this couldn’t be further from the truth. With innovation and problem solving built into its DNA, the sector holds the key to many of the solutions the world needs. We, as future leaders in the industry, are passionate about how we can be part of this
solution and shape the future of energy for the better. Can you summarise your key vision for a successful, sustainable energy future for all? This has to be the decade for choice and change – to limit global warming, put our planet back on track and pivot towards a future that is fairer, cleaner and more secure for all. We live in an unbalanced
world where 15% of the population has two-thirds of the income and uses one-third of the energy. If the other 85% copy those lifestyles, there is no hope for a sustainable future. We need to rebalance, and this will come at a cost. Asking the world’s poorest countries to sacriﬁce economic growth for the sake of containing greenhouse gas emissions is not an option. Most of the UN’s Sustainable Development Goals call for
faster growth in these countries to improve quality of life, reduce inequality and enhance sustainability. This means that in a world prioritising sustainability, the world’s wealthier nations need to shoulder the bulk of the adjustments – something that will require a mindset change ﬁt for the future, ambitious education, radical policy shake-up and levels of global collaboration that society has never experienced before.
Ben Richardson, Director, ACCEDO Group Ltd; EIC Rising Star 2018. Ben started his career in manufacturing as an apprentice before moving into engineering design and completing a bachelor’s degree in mechanical engineering. Upon graduating, he joined Alpha Process Controls in 2012, eventually becoming Design Manager in 2017. In 2019 he started an MBA at Aberdeen’s RGU and, in May 2020, completed a management buy-out of Alpha Process Controls and Aldona Products from GT Group with his business partner. How do you view the energy industry today? What are the key challenges? Energy transition is a huge challenge. It’s one thing to be ‘on board’ but quite another having the resources to put infrastructure in place that can make change happen. Everyone needs to be working to the same ends, but
not everyone is in a position to purchase a brand-new electric vehicle or have their appliances replaced with hydrogen-friendly technologies. If the UK can show that it can be done, it would be a positive marker. Unless we can make these technologies cheaper, and governments across the
globe help both businesses and the general populous to aﬀord the move to cleaner energy, we can’t get there. What needs to change? Setting a positive example is key. That doesn’t just mean large steps such as installing solar panels on our houses – it also means being more energy conscious. It means wearing a jumper instead of turning the heating on, walking instead of driving, and only boiling enough water
to make the amount of coﬀee we intend to drink. Those are things we seem to have forgotten how to do in our age of convenience. I’d like to see a future where we can continue to live our lives unrestricted, without damaging our planet, but that’s not something that’s likely to happen soon. The key is technology, but it’s going to take time. That said, sitting and waiting for things to happen while we continue to be wasteful simply isn’t going to cut it.
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Special report: The future of energy
Supporting the next generation of energy leaders Daniel Gear, Director, Voar Energy; EIC Rising Star 2017. Daniel’s interest in the energy sector stemmed from writing a book about community reaction to a large wind farm development in Shetland in 2009. He began studying as a mechanical engineer by night class, and joined Petrofac as a piping designer. Today Daniel is founder and Director of Voar Energy, a low-carbon project business focused on major developments in Shetland; looks after Peterson Oﬀshore Group’s Shetland business; and sits on the Engineering Construction Industry Training Board. What are key questions need to be asked of the energy industry today? For me, these need to relate to sustainability priorities, emissions and the energy transition: how do we arrest the activities driving climate change as quickly and as fairly as possible? How do we correct a market failure, wherein the people who have contributed least to the problem of climate change now ﬁnd themselves paying the highest price, both literally and metaphorically? How big is the challenge in question? It is huge, but it’s also a huge opportunity. We have a once-in-a-lifetime chance to hit the reset button and build new industries and systems designed not to cause harm, use resources with consideration, and do so fairly. Contributions to this system depend on the contributors. In places such as Shetland and Orkney, it’s about community – local businesses grabbing opportunities to develop skills and grow locally-focused
delivery capability into something exportable. In engineering and construction, there are lots of partnerships appearing between technology businesses, service companies, and even developers. Can you summarise your key vision for a successful, sustainable energy future for all? What might this look like? And what is important to you? It’s a combination of doing no harm and grabbing the opportunity to build a global energy system that supports the environment and people, regardless of how distant their shores are. We need to create an energy system where any harmful waste that leaves the system (such as greenhouse gas) is recaptured. Achieving that is about forming the right partnerships, being inclusive in your approach, and moving quickly to understand which part of the no-harm system you want to create. It’s also about action – ﬁnancing, designing and building, as well as people, businesses and governments singing from the same hymn sheet.
For these visions to move from “We need to encourage smart ideology to reality, the young leaders young people to become the future of today must be given the right workforce and leaders for the energy platforms and resources to be truly transition, and provide the new skills heard. Thankfully, the energy and capabilities required for industry is striving to meet the delivering the net-zero agenda,” expectations of such individuals in Phillips explains. “Young people want several ways. ‘something’ to be done and are The Energy Institute’s Young looking for careers where they can Professionals Network (YPN), which contribute to energy transition. We Hannah Mary Goodlad and several see this with those joining the other professionals are engaged renewables and low-carbon sector. with, is a prime example. Aimed at As Greta Thunberg put it: ‘You must supporting those aged 18–35 in the take action. You must do the earlier stages of their career, the impossible. Because giving up is programme runs activities ranging never an option.’” from technical panel sessions to soft skills development initiatives, helping The tide is turning young professionals develop and The Acorn Project, YPN and Future hone their skillsets. Energy 500 are not alone. Globally, “We try to give young people numerous initiatives support the exposure to the skills that will help aspirations and opportunities of them learn, network and grow,” young energy professionals – the explains Denis Pinto, Managing Sustainable Energy Youth Network, Director of Caledonian Flow Systems Student Energy, the World Energy and founder of the Aberdeen, Council’s Future Energy Leaders Highland and Islands YPN. “We give initiative, and Young Professionals in them the tools to become future Energy all stand as examples. They energy leaders and entrepreneurs.” show that the tide is starting to turn. The YPN aims to stimulate Governments and companies are conversation around, and address, waking up to young people’s the issues discussed in this article, demands. There is growing from energy transition to equal recognition that addressing opportunities to circular economies. emissions in a fair, logical manner “Last year, we ran a number of must be the priority, and that a online sessions on net zero and the signiﬁcant proportion of young energy transition. people simply won’t This year we came up want to work in oil and with our FE500 gas and fossil project to showcase fuel-burning the energy transition enterprises, or for at COP26,” Pinto says. companies that are Ian Phillips, failing to contribute to Development a greener world. Director at Storegga, “The challenge is is also passionate that we have to deliver about helping the this transition in a just next generation of manner,” says Phillips. energy professionals. “Fuel poverty, regional Having worked for 20 inequalities and skills years for companies shortages are issues in Daniel Gear, Director, such as Shell and BP, society today – we Voar Energy Phillips became a need to ensure that founding Director of CO2DeepStore the enormous investments in energy in 2007, seeking to deliver carbon transition improves rather than capture storage at a time when it was exacerbates this reality.” not widely supported. He is now part Should organisations want to of Scotland’s biggest hydrogen and attract the best and brightest talent, carbon capture initiative, the Acorn they must not only consider what Project, and has a passion for helping they are doing to address the climate young people accelerate their crisis, but also consider how they are careers in engineering. doing it.
We have a once-in-alifetime chance to hit the reset button
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It’s time to put Climate First. Organised by:
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Chris Stark, Chief Executive at the Climate Change Committee – the UK’s independent adviser on tackling climate change
his November, the UK has a unique opportunity to showcase its expertise in tackling climate change and demonstrate that it has the institutions to govern the transition to carbon neutrality. Hosting COP26 oﬀers the UK diplomatic leverage over global climate action, even with the giant economies of China and the US. Let’s lay out the considerations. In August, the IPCC – the UN’s clearing house for climate science – told us that human activities had warmed the planet by 1.1˚C since the pre-industrial era. As President of COP26, the UK will preside over the ﬁrst major stocktake on climate action since the Paris Agreement in 2015. The
central task is to cajole national governments to make a more rapid transition away from polluting fossil fuels, bringing temperature projections down from the 3˚C currently predicted, to something closer to 2˚C. And the true mark of success is whether an even narrower corridor of global outcomes can be kept alive, limiting global temperature rise to just 1.5˚C.
Demonstrating the ‘how-to’ Much of the focus at COP26 will be on national ambitions to reduce emissions. However, that masks the real challenge – delivering a real transition. And here lies the UK’s second major task: to model the steps that will deliver carbon neutrality.
So far, the UK has been willing to put a 2050 net-zero emissions target into law – and it has gone further, adding stretching short-term goals to reduce emissions by 68% by 2030 and 78% by 2035. If targets can be said to be ‘world-leading’, these ﬁt the bill. But these targets must be delivered. My own organisation has mapped ﬁve separate paths to net zero – and in all of them, low-carbon electricity becomes the dominant energy source for the UK, doubling current demand by 2050. That enables rapid decarbonisation across the economy, in transport, housing and industry. Oﬀshore wind delivers 80% or more of the UK’s electricity needs, reaching the government’s goal of 40GW in 2030 and doubling again after that. And from the 2030s, a complementary hydrogen economy grows from virtually zero today to a scale that is comparable to existing electricity use by 2050.
a platform to
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How energy supply chain companies can support net zero All eyes are now on the government’s own plan for net zero. The transformation of the energy system oﬀers huge opportunities for energy supply chain companies. Government policies must provide clear long-term signals to investors. Get that right, and new commercial and employment opportunities in the energy sector will abound. Companies throughout the energy supply chain are also well placed to support the fuel supply sectors as they work to minimise emissions, even as consumption of fossil fuels falls.
From ambition to delivery These factors come together at COP26: a unique moment for the UK to demonstrate that a rapid transition is achievable, and something worth replicating around the world. The storyline to this Glasgow summit is seductive: the UK began the fossil-fuelled economy; it must now hasten its conclusion.
Much of the focus at COP26 will be on national ambitions to reduce emissions. That masks the real challenge – delivering a real transition
What is COP26? COP26 is the 26th annual Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). For nearly three decades, the UN has brought together world governments for an annual summit to negotiate multilateral responses to climate change. Under the 1994 UNFCCC, every one of the 197 signatory parties – eﬀectively every nation and territory in the world – is treaty-bound to avoid dangerous climate change and ﬁnd ways to reduce greenhouse gas emissions. The word ‘COP’ stands for ‘Conference of the Parties’. The COP is the supreme decision-making body responsible for monitoring and reviewing the implementation of the UNFCCC.
Why is COP26 important? COP26 has been billed as crucial to delivering the goals of the Paris Agreement. It is the ﬁrst conference since last year’s deadline for countries to strengthen their 2030 climate targets as part of the ratchet mechanism. One benchmark for success in Glasgow is as many governments as possible submitting new nationally determined contributions, and these together being ambitious enough to put the world on track for 1.5˚C.
What are the goals of COP26? Alok Sharma, President of COP26, wants this year's conference to reach agreement on a number of key targets, including: Keeping the 1.5˚C goal alive Putting an end date on the use of unabated coal Providing US$100bn of annual climate ﬁnancing Making all new car sales zero emissions within 14–19 years Ending deforestation by the end of the decade Reducing emissions from methane
What is the Paris Agreement? The Paris Agreement was agreed upon at COP21 in 2015. For the ﬁrst time ever, it saw aw countries co ount ntrie riess rie agree to work together to limit global warming ng to well below 2˚C ˚ and aim for 1.5˚C, adapt to the impacts of a changing climate, and make money available to deliver on these aims. It also requires each country to submit their individual climate action plans – known as ‘nationally determined contributions’ (NDCs). The non-binding plans must be as ambitious as possible and are reviewed every ﬁve years under a ‘ratchet mechanism’.
Who is expected at COP26? More than 100 world leaders are expected to attend the conference including US president Joe Biden, UK prime minister Boris Johnson and Scotland’s ﬁrst minister Nicola Sturgeon. The Queen and other senior members of the UK royal family will also be in attendance. Other international leaders attending include Italian prime minister Mario Draghi Draghi, US special presidential envoy John Kerry, Australian prime minis minister Scott Morrison, French president Emmanuel Macron and UN secret secretary general Antonio Guterres. As COP26 People’s A Advocate, Sir David Attenborough will ad address world leaders and nd other attendees during the ssummit. Former US president esident Barack Obama, Cardin etary of state Cardinal Pietro Parolin, secretary of the Vatican City, aand Greta Thunberg will ill attending. also be atte
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IMAGES: SHUTTERSTOCK / GETTY
It is achievable, but we lack a government plan to get there. So far, credible government policies cover only 20% of the required reduction in emissions to meet the 2035 goal.
The COP26 UN Climate Change Conference, hosted by the UK in partnership with Italy, will take place from 31 October to 12 November 2021 at the Scottish Event Campus in Glasgow
Giving tomorrow’s energy leaders a louder voice today
Engineering our way to
net zero ´ Obeng Energy Focus talks with Sinead AMEI, Chair of the Energy Institute Young Professionals Council, about her hopes for COP26 and a fair and just transition to net zero What is your deﬁnition of just transition? How would it work, and how critical is this over the next ﬁve to 10 years? Just transition, simply put, is a transition that works for all. The Climate Change Committee estimates that 62% of the emission reductions needed for the UK to get to net zero involve some form of societal or behavioural change, mostly in combination with novel or unfamiliar technology. This points to the need for our industry to be of and for the society it serves, otherwise, it will have no hope of understanding its customer base. It’s particularly important that both the current and future workforce have the tools to reskill where required. Society must be holistically engaged, in a fair and equitable way, in the drive to net zero.
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In building the net-zero workforce, the energy industry needs to work together to attract and retain the right people. Do you see a skills gap in the UK? There is certainly a new skills requirement for the future – leaders with vision and T-shaped skills are best suited to succeed. The Energy Institute’s Generation 2050 Manifesto, aimed at giving a voice to more than 1,000 young professionals globally, places a premium on future energy leaders who can deliver communication and change management skills, and who have a broad knowledge of the wider world. More needs to be done to reinforce the pipeline of new, diverse talent entering clean energy careers, as well as repurpose the existing workforce to avoid those in high-emitting sectors, and their communities, being left behind. When it comes to attracting young people to join the energy industry, are you seeing diﬃculty because of the increasingly negative reputation of hydrocarbons linked to net zero? Absolutely. The public narrative on why we extract hydrocarbons is poor. The industry is increasingly viewed in polarised terms, which can put new entrants oﬀ. The industry should make more eﬀorts with mainstream media to explain the energy trilemma to the public, and
The next decade will be critical for getting on track in the race to zero at COP26
60% of young people in the energy sector identify climate change as the primary motivator for a career in energy 90% recognise that a career in energy has given them greater agency in tackling the climate challenge, and 72% recognise it has given them greater agency in tackling energy poverty Future leaders The most important skills and qualities needed by our leaders of tomorrow are: Vision and ability to deliver Knowledge of wider world Communications/ change management Source: Energy Institute Generation 2050 Manifesto
more importantly young people, who are more engaged in current aﬀairs than ever before. That said, we know young professionals are extremely motivated to make a change – the Generation 2050 survey found that 60% identify climate change as the primary motivator for choosing a career in energy, and 90% recognise that it has given them greater agency in tackling this global challenge. From my perspective, I’ve worked predominantly in the gas industry, where a plethora of initiatives to decarbonise energy are underway, from the electriﬁcation of upstream assets and hydrogen deployment in the gas transmission networks to investments in oﬀset programmes. The oil and gas sector will continue to play a central role in the journey to net zero, so the industry must better highlight the opportunities available to young professionals who want to play their part in the transition.
net-zero pledge by mid-century, helping to keep 1.5˚C within reach. At the very least, we should be striving to substantially increase the number of nationally determined contributions (NDCs) that are pledged, as well as the level of ambition contained in them. Beyond this, eﬀorts must be made to mobilise ﬁnance to combat the climate emergency, recognising that this needs to be done in a fair way and that those from developing nations mustn’t bear the brunt of this cost. Closely related to this, I’m also keen to see the outcome of Article 6 discussions at COP26, a crucial part of the Paris Agreement rulebook, where negotiators will discuss how countries can voluntarily use jointly recognised international carbon market system(s) to help accelerate their emission reductions and investment in sustainable development – for example, using carbon credits produced in Colombia to help the US meet its NDC target.
Should a country’s net-zero strategy go hand in hand with its energy security strategy? Absolutely – ensuring security of supply is critical and a key focus for our sector, and must go hand in hand with our net zero strategy. Helping to foster and grow indigenous energy sources in the UK not only helps with security of supply and to support local jobs, but it will also help with our reliance on imported energy. Currently, gas prices have soared to all-time highs, partly impacted by the lack of gas storage capacity in the UK and Europe. Any net zero strategy should recognise and diﬀerentiate energy sources suitable for baseload generation and peak generation. Reliable energy storage is also a key strategic tool that’s required for any robust net-zero strategy.
How do we build a global energy system ﬁt for the future? The next decade – and this year in particular – will be critical for getting on track when it comes to our political, industrial and societal leaders rebuilding after the pandemic, and in the race to zero. Meeting net zero requires creative solutions that involve all technologies and realms of the energy industry. Human ingenuity in our ﬁeld has achieved so much, and yet around 800 million people still don’t enjoy access to electricity, and three billion people still cook with dangerously toxic cooking fuels. Finding aﬀordable, reliable pathways to provide sustainable energy for all populations without compromising security of supply is crucial. While the challenges ahead are great, I’m genuinely optimistic that the industry’s innovative and pioneering spirit can be harnessed to rise to the challenge and create an energy system ﬁt for the future.
What do you believe should be the key outcomes of COP26? True success at COP26 would obviously be to secure a global
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G20 NDC ambitions
South Korea Mexico
Yet to submit updated NDCs, but China has proposed a stronger NDC target
Brazil Saudi Arabia
Submitted updated NDCs, but did not increase ambition on 2015 submissions
South Africa Source: Climate Action Tracker
Announced plans to strengthen their targets later this year Submitted plans that allow higher emissions compared to previous targets / *current ‘business-as-usual’ trajectory
1.5˚C alive By Bill Hare, CEO of Climate Analytics
e know from the Intergovernmental Panel on Climate Change’s special report on 1.5°C that to stay safely within a 1.5°C pathway, global emissions must be reduced by 45% from 2010 levels by 2030. However, the collective commitments put forward by countries are a long way from this. In this context, the G20 group of nations is critical, accounting for around 75% of global emissions, 80% of economic activity, and 60% of the worldwide population.
Strengthened their 2030 emission reduction targets compared to 2016 NDCs
Can the G20 close the 2030 emissions gap? We recently conducted a study with our colleagues at the World Resources Institute on how the G20 could take the world closer to
achieving the required 2030 emission reductions: in other words, how much can it close the 2030 ‘emissions gap’? The answer is sobering. The commitments put forward so far would narrow the gap of 29 gigatonnes of CO2 equivalent (GtCO2e) in the reference scenario (estimated in December 2019) by about 6 GtCO2e. That leaves 23 GtCO2e to be reduced by 2030 for a Paris Agreement-compatible pathway.
What could be done? The report shows that if the G20 countries with net-zero targets bring their 2030 goals into line with those targets, the gap will close by around 9 GtCO2e. If the G20 governments without net-zero goals increase their 2030 goals in line with the Paris Agreement, the gap will be reduced by a further 6 GtCO2e. The G20 cannot do it alone: all countries must step up to close the signiﬁcant remaining gap (8 GtCO2e) in this decade. But if the world’s leading economies aligned their targets with what science says is needed to avert the worst impacts of climate change, it would be a massive act of leadership.
Under current policies, the IEA indicates that renewables will need to ramp up by a further 50% by 2030 – about 160% above 2020 levels. Oil and gas use would need to be 30% down compared to where they are otherwise headed under current policies by 2030. Coal use will need to be well under half of the present levels.
Seize the opportunities On the economics, the IEA indicates this transformation will bring signiﬁcant economic beneﬁts to nearly all countries, such as reduced energy costs and lower levels of air pollution. Decarbonising the energy economy is a major transformation, but will bring massive opportunities. The beneﬁts are likely to accrue more to those that lead than those that lag. That is the main political challenge ahead at Glasgow. We must seize these opportunities and set the world on a path towards net zero by 2050, with the biggest transformation in the energy system since the Industrial Revolution.
Can this be done, and how? Fortunately, the International Energy Agency (IEA) has provided an invaluable perspective on this with its recent publications World Energy Outlook 2021 and Net Zero by 2050: a Roadmap for the Global Energy Sector, published in May. Targeting COP26, these reports focus on the main challenge: the transformation of the energy system towards a clean net-zero system by mid-century. What does the IEA net-zero roadmap tell us about the energy transformation ahead? www.the-eic.com | energyfocus
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the use of fossil fuels whilst transitioning to alternative energy sources. Valves from the Oliver Twinsafe range are ideally suited for the new pipeline infrastructure that will be required for this rapidly expanding decarbonisation technology. Where subsea CO2 storage is required, valves from the Oliver
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“Hard to abate” industries i.e., those where switching to less environmentally impactful operations is not possible or extremely difficult; will need to adopt alternative, high density fuel sources including hydrogen. With some of the most rigorous development and testing regimes in the industry, valves from the Twinsafe range can meet the requirements for the safe transportation of hydrogen in pipelines or storage vessels.
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Energy Transition Just transition
ligning the UK’s net-zero ambition with a thriving economy is not a utopian aspiration. Unless that alignment takes place, it is hard to see how social consent will emerge for the needed changes. The energy industry will be at the heart of the net-zero transition, so redirection of the sector’s existing skills and competences is critical. In 2019, the Scottish Government established a Just Transition Commission to provide realistic, practical and aﬀordable recommendations on maximising the economic and social opportunities oﬀered by Scotland’s goal of reaching net-zero emissions by 2045. The Commission, comprising representatives from business, trade unions, NGOs and academia, reported in March this year. It grouped its recommendations into four themes.
Practical steps for fair transition The ﬁrst theme concerned making an orderly transition, involving sectoral planning, as unplanned transitions tend to be unjust transitions. The second concerned equipping people with skills and education needed to participate in the transition. The third concerned empowering local communities and strengthening local economies. The ﬁnal theme was about sharing beneﬁts widely and ensuring burdens are distributed on the basis of ability to pay. Following the Commission’s recommendations, a new ministerial post for just transition, employment and fair work has been established to co-ordinate the just transition to net zero across the Scottish economy. The Just Transition Commission has been re-established to provide independent advice on and scrutiny of government policy. The Scottish Government has already established a Climate Emergency Skills Action Plan to provide access to skills training critical for net zero and to help create new, high-quality green jobs. A Just Transition Planning Framework, which will act as an umbrella for more
Net-zero just transition and the energy supply chain Climate action, fairness and opportunity can and must go together, says Chair of the Scottish Just Transition Commission, Professor Jim Skea CBE speciﬁc sectoral Just Transition plans, is being established. Reﬂecting its importance for the Scottish economy and its critical role on a path to net zero, the ﬁrst Just Transition Plan will address the energy sector.
Creating lasting local value The challenges are considerable, as the events of the past year have shown. While the UK has been successful in deploying oﬀshore wind, employment creation associated with the deployment has been less so. The situation at Fife-based fabricators BIFab, which went into administration in December last year, crystallised several concerns for members of the Just Transition Commission. In a letter to Scottish Ministers, Commissioners identiﬁed actions that could be taken to avoid such situations arising in the future. They emphasised in particular the need to invest in and support regional supply chains.
Unplanned transitions tend to be unjust transitions
In its March report, the Commission returned to these challenges. It identiﬁed a need for some reform of the Contracts for Diﬀerences mechanism used to procure oﬀshore wind and other forms of renewable energy, so that it takes account of local content. It also suggested exploring options such as a border carbon tax to ensure UK ﬁrms are not competitively disadvantaged by operating in an economy with high levels of climate ambition relative to other countries. This latter option needs to be approached carefully, as a just transition is also a global challenge. The perception that trade barriers are being erected needs to be avoided, particularly with COP26 in mind.
The green road ahead The path to net zero will not be easy, but by planning ahead and investing in skills, it will be possible to build on the UK’s substantial energy sector competences and secure a place in the global green economy. By Professor Jim Skea CBE, Chair, Scottish Just Transition Commission and Chair in Sustainable Energy, Imperial College London www.the-eic.com | energyfocus
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Energy transition UAE green hydrogen
Creating a global market for
green hydrogen A competitive global hydrogen market requires international collaboration, says UAE Minister of Energy and Infrastructure HE Suhail Mohamed Al Mazrouei
reen hydrogen is taking its place on the global stage as an innovative and promising newcomer in renewable energy. The production of green hydrogen is rising, with it rightly set to become an integral part of many nations’ ambitious net-zero strategies as a supplement to fossil fuels. Indeed, just this summer, the UK released its own National Hydrogen Strategy to help meet its 2050 net-zero targets, including the goals to replace up to a ﬁfth of natural gas with green hydrogen.
UAE hydrogen future takes shape In the UAE we launched our Energy Strategy 2050, in which we unveiled our roadmap to become an international hub for clean energy, including the construction of the Middle East’s ﬁrst green hydrogen plant in Dubai. This provides clean fuel to power all transportations during Dubai Expo 2020, an early demonstration of the real-world applications of green hydrogen. With an AED600bn (US$163bn) investment planned, we are also now on the road to 2050 net zero – which we see as a major economic growth opportunity. Despite the increase in both interest and demand and a deepening climate crisis, green hydrogen production remains in its infancy, and we need an international collaboration to accelerate its development.
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UAE green hydrogen: Energy transition
As the fuel of the future, green hydrogen now requires signiﬁcant global investment. Green hydrogen is a new and transformative carbonneutral fuel that has the potential to decarbonise major industries that are traditionally hard to abate, such as steel and aluminium production and heavy transport. As an energy source produced entirely from renewable-powered electrolysis (a process that involves splitting water to produce hydrogen and oxygen), it is an attractive cleaner alternative to the typical fossil fuels such as coal and oil, and its beneﬁts are clear. However, despite being considered as the most eﬀective fuel for the future, it currently accounts for just 0.1% of the hydrogen produced globally. This needs to change if we aim to collectively reach our ambitious global climate goals. We need to increase the production of renewable electricity required to produce green hydrogen. The UAE has a geographical advantage for such clean energy production. Our weather conditions ensure a prime climate for the solar energy generation – in fact, BMW has recently decided to use Emirates Global Aluminium’s solar-smelted CelestiAL aluminium in its cars, which is an important ﬁrst step into a journey to deliver carbon-neutral smelted metals. With targets to increase the contribution of clean energy from 25% to 50% by 2050, the UAE is prioritising investment in the development of green hydrogen production, while utilising our
The fuel of the future
Only 0.1% of hydrogen produced globally is green
GCC countries could provide 30% of hydrogen demand in Europe and East Asia by 2050
A net-zero world will require 306 million tonnes of green hydrogen per year by 2050*
Green hydrogen could supply up to 25% of the world’s energy needs by 2050 †
As the fuel of the future, green hydrogen now requires signiﬁcant global investment
The addressable market for green hydrogen could be worth U$12trn by 2050 †
Sources: *International Energy Agency, †Goldman Sachs
advantageous and reliable weather conditions to do so. Gulf Cooperation Council (GCC) countries alone could provide 30% of hydrogen demand in Europe and East Asia by 2050 for such reasons. It’s our hope that in the future, green hydrogen will play a signiﬁcant role in our domestic strategy to meet our own 2050 net-zero goals, and also in assisting other countries by exporting hydrogen.
The road to green hydrogen is paved with collaboration The challenge we face now lies in creating a global market for green hydrogen, and unlocking collaboration will be key. Given that all these technologies are in relatively early stages of development, it is imperative that we collaborate to achieve net zero faster. For many countries, green initiatives are at the heart of their recovery plans following the economic disruption of COVID-19, but we cannot solve these issues in silos. To tackle the climate emergency and harness the power of transformative fuels that will make a real and lasting impact on our world, we must combine our knowledge and expertise globally to meet these targets. International co-operation and the pooling of cutting-edge research will help push these technological advancements to the forefront of global agendas. For example, here in the UAE, we have signed deals with Japan to develop an international hydrogen supply chain, and have also established a strong partnership with Germany that allows us to deploy hydrogen technology together. We want to combine global talents, investing in technology, research and academic partnerships, and using our strong trade links to foster a viable, global green hydrogen market. We are at a crucial time in the evolution of green hydrogen, and through collaboration, we can accelerate its growth for a carbon-neutral future. As we edge closer to 2022, we have a key opportunity to put the development of a green hydrogen market at the front of the global agenda. This global challenge requires an equally global response. We are in a strong position to produce vast quantities of green hydrogen fuel, but we must now lean on each other’s expertise and research, working globally to meet the climate crisis head-on. By His Excellency Suhail Mohamed Al Mazrouei, UAE Minister of Energy and Infrastructure, and board member of the Abu Dhabi National Oil Company ADNOC and Mubadala Investment Company www.the-eic.com | energyfocus
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Renewables Oﬀshore wind
appetite for offshore wind
accelerates The global oﬀshore wind energy market is undergoing a period of explosive growth. With signiﬁcant activity in almost every continent, EICDataStream is currently tracking more than 402GW of capacity under development up until 2035. The UK is the global leader in oﬀshore wind, but China – with 10GW operating by the end of 2020 and more than 56GW of upcoming capacity under its belt – looks set to take over in the ﬁrst half of the decade. Germany, the Netherlands and Denmark continue to carry their weight as
they move towards subsidy-free builds. Emerging markets will generate a boom in installations in the second half of the decade and all eyes are on Brazil, the US and Ireland, with over 36GW, 23GW and 21GW of planned capacity respectively. While there is rapid growth in activity in these markets, EIC data shows that these pipelines have emerged with supply chain gaps yet to be explored – providing multiple export opportunities for UK companies during this new and exciting phase.
Brazil EICDataStream is currently tracking 17 oﬀshore wind projects with more than 36GW of capacity – all in the early stages of development. One of the new oﬀshore wind markets to watch, the country has yet to install a turbine oﬀshore and will be an emerging prospect for the latter end of the decade. Its existing oil and gas supply chain capabilities and strong onshore wind sector for potential diversiﬁcation give Brazil a good head start. Key players such as Equinor and Iberdrola have already entered the scene; however, regulatory frameworks and port infrastructure need to be addressed if Brazil is to make its 16GW by 2050 target achievable.
Crown Estate Scotland continues to drive momentum for oﬀshore wind in the country. Its ﬁrst ScotWind leasing round is set to deliver 10GW of oﬀshore wind between 2027and 2032 and favours ﬂoating foundations. The auction has received 74 bids, with major players including Shell, Equinor, BP and TotalEnergies showing interest. Anticipation surrounds the leasing round, and successful applicants will be announced in early 2022. After the announcement of the Innovation and Targeted Oil and Gas (INTOG) oﬀshore wind leasing round, more opportunities are imminent to support decarbonisation of the oil and gas sector. Leases could be in place by the end of 2023, adding up to 4GW to the market.
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Oﬀshore wind: Renewables
Poland has emerged as one of the most anticipated oﬀshore wind markets for the next few years and has seen signiﬁcant advancements in its legislation. The country signed its ﬁrst Oﬀshore Wind Act into law in February 2021, followed by its Polish Oﬀshore Wind Sector Deal in September 2021, to maximise development and local content for the ﬁrst batch of projects totalling 5.9GW. These projects are scheduled to start operating from 2025 onwards and are the results of Poland’s ﬁrst Contracts for Diﬀerence auction this year.
Vietnam has the potential for 160GW of oﬀshore wind capacity and has proposed the possibility of raising its oﬀshore wind target for 2030 to 10GW. The country is well-placed for signiﬁcant growth due to its existing local supply chain, shipbuilding and oil and gas expertise. However, its current Feed-in-Tariﬀ is due to expire in November 2021. A two-year extension has been proposed to the scheme. The sector will transition to a competitive bidding auction process, creating downward pressure on costs, should this not go through.
MARKETS TO WATCH
Azerbaijan Despite substantial wind resources and favourable water depths, the country’s poor political commitment and dependence on fossil fuels have not supported oﬀshore wind. Recent studies by World Bank’s Energy Sector Management Assistance Program have indicated a technical potential for 157GW of oﬀshore wind in the country, with 122GW allocated for ﬂoating wind. In a bid to develop the oﬀshore wind sector, the Ministry of Energy and the World Bank’s International Finance Corporation will assess Azerbaijan’s potential for oﬀshore wind and form a roadmap and tender management plan for future projects.
California China Brazil UK Taiwan South Korea US Ireland Germany
Vietnam Sweden Iceland Japan Denmark Netherlands
Potential capacity (MW) in offshore wind through to 2030
Poland Norway France Australia
Countries leading the way in proposed capacity
Italy Spain 0
EICDataStream is the EIC’s leading project tracking database For more information on global oﬀshore wind projects please contact Sharanya.Kumaramurthy@the-eic.com
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Australia is a less-discussed emerging market in the Asian waters, with ﬁve oﬀshore wind projects in its pipeline gradually progressing. Anticipation for the market is yet to grow as the country still needs to bolster its ﬁnancial support and political stance to push the technology forward. The government allocated US$3.8m in its 2020–21 Federal Budget to the establishment of an oﬀshore renewable energy regulatory framework in October 2020. More recently, its Oﬀshore Electricity Infrastructure Bill 2021 was introduced in September 2021 to allow oﬀshore wind projects in Commonwealth waters.
California has been at the forefront of advancements following the new Biden administration’s target of 30GW of oﬀshore wind by 2030. Its untapped potential for ﬂoating wind is now one step closer to its much-needed boom. California committed to building 4.6GW of oﬀshore wind oﬀ Morro Bay and Humboldt County in May 2021. Also, the State’s Assembly Bill 525 – legislation that will boost oﬀshore wind production through a large-scale wind energy plan and targets for 2030 and 2045 – has been approved by its Governor, marking a major milestone for the industry.
Philippines The Philippines emerged from the woodwork this year in June 2021 with its Philippine Oﬀshore Wind Roadmap launch. It aims to set short and long-term oﬀshore wind targets, strategies for integration into the government’s renewable energy portfolio, and needed policy recommendations. While the country has an ambitious 35% renewable energy target by 2030, it has the technical potential for 178GW of oﬀshore wind. With 160GW of this being ﬂoating wind, the government plans to increase its buildout. However, attention is needed on developing a local supply chain, supporting frameworks and reducing grid constraints.
www.the-eic.com | energyfocus
Oil and Gas Scope 3 emissions (Below) Schneider Electric is committed to being eﬃcient with resources at all stages of its supply chain
Scope 3 emissions
challenge Climate goals will not be reached without tackling Scope 3 emissions, says Xavier Denoly, Sustainable Development SVP at Schneider Electric – the company at the top of this year’s global league of green ﬁrms
o keep global warming below 1.5˚C, we all need to do more. Modelling from the Schneider Electric™ Sustainability Research Institute highlights that we need to reduce global CO2 emissions by three to ﬁve times more than the amount governments have currently committed to by 2030. Otherwise, meeting the Paris Agreement risks becoming perilously out of reach. Scope 3 (indirect non-electricity) emissions span both the upstream and downstream value chain (see Figure 1). They also include other sources of indirect emissions, such as business travel and employee commutes,
waste management and product end-of-life, and franchises and investments. They represent the largest share of most organisations’ carbon footprints, yet only a minority of companies currently have commitments to tackle them. According to the World Wildlife Fund’s Power Forward 4.0 report, less than one in ﬁve (91) Fortune 500 companies have a climate goal that covers indirect emissions across their value chain. Scope 3 emissions are hard to measure, calculate and address – so it is unsurprising that many organisations do not know where or how to start. However, to reach net-zero emissions and avoid the worst impacts of
climate change, all companies must bring their Scope 3 impact into focus as a part of their decarbonisation strategies.
Journey to sustainability Schneider has been on this journey for more than 15 years. Sustainability is at the heart of everything the company does and has been a driver for innovation and revenue growth. We calculate our impact, set goals, measure reductions and report our progress publicly every quarter (in line with our ﬁnancial reporting). Each time we achieve targets, we set new ones. The company has reduced its operational footprint by 60%, and 80% of the electricity used across the entire global business is renewable. We have saved or avoided 302MT CO2e for our customers, and by 2025 the target is to have saved or avoided 800MT CO2e. The company has also created the Zero Carbon Project, working with 1,000 suppliers in our supply chain to help them halve emissions by 2025. The business has more than 130,000 employees operating in over 100 countries. We manufacture products, ship them worldwide and work with customers in some of the hardest-to -abate sectors, such as oil, gas, mining, heavy industry, manufacturing, transport and construction. Earlier this year, we were proud to be ranked as the world’s most sustainable company by Corporate Knights, proving that business and organisational complexity is not a roadblock to ambitious climate action. Attitude and culture also have a role in delivering an organisation’s climate ambitions. Sustainability is complex and diﬃcult to scale. There is no well-trodden path to follow, and there is not yet a solution
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Scope 3 emissions: Oil and Gas
Figure 1: T Types of em emissions
Tackling Scope 3 There are many ways to start reducing Scope 3 emissions:
Scope S Sc ope 1
Direct Dire ect em emissions Emiss Emission ssion source: so All direct direect emis emissions within tthe he operational operatio onal control con of an org organisation ganisatio
Scope 2 Indirect emissions Emission source: Indirect emissions generated from purchased electricity, heat, steam or cooling
for every problem. However, part of Schneider’s success has been down to our culture: ensuring that everyone in the organisation understands they have a role to play, and establishing a culture that supports your net-zero strategy and understands that embedding it at the core of your business transformation will help drive change faster.
Calculating Scope 3
IMAGE: GETTY / JOHN-SIMMONS
A culture that always challenges the organisation to do more will enable you to make real progress in tackling your own Scope 3 emissions. Before you begin to collect any data, you need to ensure the scope of your calculation is clear. We recommend the following steps: Choose a methodology Determine the reference year Deﬁne the organisational and operational scope Develop cartography of the ﬂows of CO2 Understand data accessibility. Data collection for calculating Scope 3 can be quite a challenge. It is not always readily available, or available in the optimal format. For example, the most accurate information to estimate CO2 emissions duee to the purchase of goods is the weight of materials. However, this information may not always be available.. Instead, we have had to
Emission source: All other indirect emissions, from sources such as business travel, waste management and the value chain
calculate the number of parts purchased and then convert this information into weight. The accuracy of data can also be a problem, so it is necessary to prioritise the most signiﬁcant sources ﬁrst, as well as the sources of emissions that are a priority for reduction actions. Calculating emissions from the least important sources, where detail is not available, can be done from estimates. For example, you can measure the carbon impact of semi-ﬁnished goods or services using simpliﬁed ratios. Once you have calculated the emissions, you can identify the elements and stages of your life cycles that have the highest emissions. These are the areas in which companies should try to act ﬁrst to make an immediate impact.
Scope 3 emissions are hard to measure, calculate and address
Turn ambition into action Despite recent climate reports demonstrating how far we need to go to combat climate change, there is still time to limit the temperature rise to 1.5˚C. However, we all need to do more – and faster. The technology exists today to deliver the reductions we need to make in easy-to-abate sectors by 2030, but we cannot wait. We all need to go further in our sustainability ambitions. T Together, we can accelerate action. a By Xavier D Denoly, Sustainable Development SVP, D Schneider Electric El
Reduce greenhouse gas emissions from purchased goods. Change materials sourced to those that have a lower CO2 content, use recycled materials, and engage with suppliers about setting their own climate targets and improving their carbon footprints. Reduce transport emissions. Reduce the distances that goods travel and the weight of products that are transported, increase the size of the load in a vehicle, and improve fuel eﬃciency – or switch transport fuels. Reduce emissions from product use. Expand the life expectancy of products to reduce the consumption of raw materials. Improve the energy eﬃciency of products, such as household appliances or engines, via design for environmental practices. Reduce emissions arising from end-of-life treatment. Design products for a circular economy that are more durable, and that can be repaired and retroﬁtted in order to have several lives. Favour easy dismantling to maximise resource recovery at the end of the product’s life.
(Above) Scope 3 emissions include those that arise from the transportation of products
www.the-eic.com | energyfocus
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Oil and Gas Measuring methane
Cutting methane emissions from production and throughout the entire oil and gas value chain will make a substantial contribution to achieving the Paris Agreement climate goals, says Alexandra Thomas at Neptune Energy
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Measuring methane : Oil and Gas
arbon-cutting initiatives have been the focus of government and industry attention for many years, but until recently, efforts to tackle the much more potent greenhouse gas, methane, were given second billing. Methane has more than 80 times the warming power of carbon dioxide within the first 20 years after its release. Atmospheric concentrations of the gas are increasing faster now than at any time since the 1980s, according to data from the Environmental Defence Fund (EDF), one of the world’s leading environmental organisations. While reducing CO2 emissions remains essential, carbon-cutting initiatives have typically received most of society’s attention, and addressing methane will be no less critical in meeting emission reduction targets overall.
Bold new pledge The Global Methane Pledge, signed by the EU and the US in September, is a welcome sign that the impact of methane is gaining increasing recognition. The pact, which is to be formally launched at COP26, commits signatories to cut methane emissions by 30% by 2030. A number of countries have already indicated their support for achieving this target, with the UK being on the list of early participants.
North Sea methane mitigation The North Sea energy industry – and the UK Government – has already shown leadership in its approach to meeting the UK’s 2050 net-zero target. The North Sea Transition Deal recognises the importance of continued oil and gas production to support energy security throughout the transition while driving down greenhouse gas emissions, including methane. It commits to reducing methane emissions in line with the World Bank’s Zero Routine Flaring By 2030 initiative, cutting emissions from oil and gas production on the UK Continental Shelf by 15m tonnes – the equivalent of the annual emissions from 90% of the UK’s homes.
With precise measurements comes greater understanding
Methane has more than 80 times the warming power of carbon dioxide within the ﬁrst 20 years after its release
This commitment aligns with Neptune Energy’s own target of zero methane emissions by 2030. That is why we have entered into a scientific collaboration with the EDF to test a new approach for measuring methane emissions from offshore oil and gas facilities. The study, which took recently took place in September at the Cygnus platform in the UK North Sea, is the first of its kind, measuring methane emissions on a working platform using advanced drone and sensing technology. To date, the industry has faced challenges in obtaining accurate methane measurements due to the limitations of in-situ measurements. This new approach could enable more accurate, repeatable measurements, reporting and verification, and will provide a robust industry baseline. The work involves a team of international researchers, including Scientific Aviation, a provider of airborne emissions sensing, and Texo DSI, a UK-based drone platform provider. Global investment firm The Carlyle Group, a shareholder in Neptune Energy, is also supporting the project to drive research and set best practice. State-of-the-art drone and methane sensing technologies were deployed to provide a close-up view of operations typical of a North Sea offshore facility, such as gas separation, drying and compression technology, and flaring and venting. An unmanned drone aircraft clocked up 313 miles during the ﬁve-day survey, gathering data while circling the platform at 250–500m. Researchers will use this data to test advanced methods for quantifying facility-level oﬀshore methane emissions and prioritise any mitigating actions. In addition, a rotary drone operated by experts on the rig was also used to measure
emissions from various points on the platform. Bringing consistency to the somewhat disparate measurement, reporting and verification processes available today will also help target activities to reduce methane emissions and provide the most accurate measurements. Experts will analyse the data, with the outcomes published in a scientific peerreviewed paper in 2022.
Delivering a low-carbon future The carbon and methane intensities at Cygnus are recognised for being among the lowest on the UK continental shelf. However, we want to go further. To this end, we are also evaluating options for the potential electrification of the platform. Research from the International Renewable Energy Agency suggests that the lower-carbon future we are striving for will require the industry to invest an estimated US$120trn in clean energy to meet the Paris Agreement targets. Projections also suggest investment of US$1.6trn in existing oil and gas production is necessary if supply is to keep up with global demand. Given the gas price spike that has severely impacted Europe and the UK reently, this is enormously important. Despite the massive growth in renewable energy, gas remains the single largest baseload power source and affordable heat for the UK. And with statistics from the UK’s Climate Change Committee showing that 85% of UK homes rely on gas for heating, we know gas will continue to have a significant role in the years ahead. means that the UK has to not only This mean think about how we generate alternative sources of eenergy, such as hydrogen, but also how we minimise emissions of and methane from our domestic carbon an supplies – setting an example that gas suppli the rest of the world can follow. By Alexandr Alexandra Thomas, UK Managing Energy Director, Neptune N www.the-eic.com | energyfocus www
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Power National Grid
the industry must install around
60,000 charging points to power around
ransporting people and goods is one of the dirtiest things we do in the UK. It equates to around 27% of the UK’s carbon emissions – around 126m tonnes of CO2. To achieve a greener future, have cleaner air and reach net zero, we need to decarbonise vehicles. Electric vehicles (EVs) are a viable solution that, while not a silver bullet, will be a signiﬁcant part of the mosaic of solutions needed. With the government banning the sale of new diesel and petrol cars and vans from 2030, we can expect a faster transition than initially anticipated. Ensuring there is enough clean energy to power the revolution will be critical – and at National Grid, we are conﬁdent the grid can support the extra demand for electricity that this shift will create.
Enabling the EV transition The data for the last ﬁve years shows decarbonisation increasing at pace, culminating in 2020 being the greenest year on record for Britain’s electricity system. In total, the country was powered coal-free for more than 5,147 hours in 2020, compared with 3,666 hours in 2019, 1,856 in 2018 and 624 in 2017. The growth in renewable energy – such as wind power from the oﬀshore wind farms being developed – will adequately meet future demand from EVs. Of course, getting the right charging infrastructure in place is essential to support the transition and encourage consumers and businesses to make the switch. Research shows that once people feel conﬁdent there is a viable network of charging points in place, they will be encouraged to make the move to EVs. We also know consumers would feel more comfortable buying an EV knowing that recharging facilities are not just widely available, but also fast. This means it is crucial for energy companies to support UK development of a network of future-proofed,
The UK grid stands ready to support the electric vehicle revolution, says Graeme Cooper at National Grid ultra-rapid chargers, especially at key places such as motorway services. While the scale of the move to EVs is massive, businesses will grab those opportunities if they can see the ﬁnancial incentives. We have seen the global costs of renewables come down signiﬁcantly – and whole-life costs of electric cars. It is daunting but it gives people opportunities to crack the challenge, and change can happen quickly. We still have some way to go to get the infrastructure in place for the ‘early majority’, and it is important we work with government to map out where critical network infrastructure is needed to enable the faster roll-out of charging points. We are already seeing action in the right direction – for example, government has already committed to signiﬁcant investment in EV infrastructure, with a £950m fund for future-proofed electricity connections for a rapid charging network, and the recent Transport Decarbonisation Strategy has provided an overall strategy that sets out how the targets will be achieved, giving more conﬁdence to both consumers and industry. Smart charging will also be key to this transition, allowing electric cars to ‘talk’ to the grid and using data to assess when is the best time for the car to charge. This will save
consumers money and provide a more energy eﬃcient and sustainable way of charging EVs. From a policy and business perspective, the clean energy transition, including EV uptake, will rely heavily on plugging the green skills gap – if we do not, it could hold back progress. The UK needs 400,000 extra recruits to meet the 2050 net-zero time frame, according to National Grid research, and many of these roles will be in transport decarbonisation.
Driving the UK to net-zero As we look ahead to COP26 and beyond, there is still lots of work to be done on the managed transition to net-zero. We are focused on how we can support government with the rollout of EVs at pace and in a way that will futureproof capacity. While there are still challenges posed at street level for the arrival of mass EVs, the implementation of EV infrastructure on the grid will be hugely beneﬁcial to the overall net-zero ambition and will achieve lower costs for consumers, too. The shift to EVs will not happen overnight, but it is by no means an impossible transition. We know there is deﬁnitely enough energy, and that the grid can cope – and as the EV revolution gets underway, we are ready to play our role in putting the right wires in the right place to meet future demand. By Graeme Cooper, Head of Future Markets at National Grid www.the-eic.com | energyfocus
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Nuclear A net-zero solution
uclear plants have provided clean, reliable lowcarbon energy for over 65 years, and nuclear is the second-largest source of low-carbon energy globally, after hydropower. The science is clear: to reach our net-zero targets while meeting rapidly increasing energy demands, the continued deployment of new nuclear plants will be critical as the world phases out fossil fuels and integrates a higher share of variable renewables into its energy system. This is the consensus among major international institutions, including the Intergovernmental Panel on Climate Change (IPCC), which indicated in its Global Warming of 1.5°C Special Report that a global increase of nuclear output of between 98% and 501% is required by 2050.
Perceptions of nuclear The IPCC recognises the incredibly low lifetime emissions of nuclear power and shows it to be similar to wind and hydropower. Indeed, France, which produces approximately 75% of its electricity from nuclear energy, has the lowest per capita emissions of the world’s seven largest industrialised countries. However, research shows that while the public is predominantly aware of nuclear power’s contribution in ensuring the security of the energy supply, its potential contribution to combating climate change is less recognised. It also shows that support for nuclear energy is generally correlated with experience of and knowledge about nuclear power. So, what do we do? How do we make sure that nuclear becomes part of the net-zero narrative?
Young Generation Network at COP26 The Young Generation Network (YGN) – the young members’ branch of the Nuclear Institute (NI) – has formed a team of volunteers to ensure young voices are heard in shaping the future of nuclear and
Net-zero needs nuclear Without new nuclear there can be no net zero, and perceptions must change, says Nuclear Institute Young Generation Network volunteer Vicki Dingwall driving collaboration between nuclear and renewable technology. The diverse team of international volunteers has spent the 12 months prior to COP26 educating and inspiring others while advocating for nuclear. Having authored the Nuclear for Climate position paper to inﬂuence policymakers, it runs the social media campaign #netzeroneedsnuclear, which aims to dispel myths and show support for nuclear energy. It is also planning an ambitious timetable of activities at COP26 in conjunction with other industry supporters.
Beyond COP26 The NI YGN team also wants to inspire future generations into the industry. New nuclear development is required around the globe, meaning there is an urgent demand to grow the nuclear workforce. The nuclear industry is complex and supports a broad range of disciplines and roles, including power station operators, new build vendors and developers, healthcare scientists, and specialists in health and safety, radiation protection, decommissioning, waste management and fuel cycles, to name just a few. The current nuclear workforce is ageing. In the UK, for example, the average nuclear engineer employee is 54 – in part because Hinkley Point C is the ﬁrst new nuclear power station in the UK since 1995. As a result, there is a serious need to grow the workforce, close the skills gap and ensure vital industry knowledge is
A global increase of nuclear output of between 98% and 501% is required by 2050
not lost. It is a similar picture when looking at many other prominent nuclear nations. We need to make sure young people want to work in nuclear. The nuclear industry has suﬀered more than most when it comes to misguided negative public opinion due to common misconceptions and negative imagery. Historically, very little has been done to address this issue eﬀectively. If we are to attract young, conscientious minds into nuclear, we need to rebrand the industry and promote it for what it is: a clean, abundant and inclusive energy source that will play a critical role in reaching our net-zero targets, while delivering sustainable global development. The nuclear industry is also at the forefront of delivering and applying pioneering science and technology within a truly challenging but exciting ﬁeld. Ensuring that this is understood and communicated eﬀectively will help to attract and nurture some of the brightest minds. These minds will be so important when bringing new ways of thinking to the industry and driving forward innovation. It is equally important to ensure that diversity and inclusion are fully embraced and promoted. Taking proactive steps to ensure the future nuclear workforce is open and accessible to all will be critical in growing the talent pool and making sure it is robust, harnessing a variety of diﬀerent perspectives and approaches. With the future of the climate on the line, we must continue to mobilise youth into action and inspire the next generation of nuclear leaders. And they will not only be responsible for driving the industry forward to new heights, but will also be climate champions. By Vicki Dingwall, YGN Volunteer and Community Relations Manager, Hinkley Point C www.the-eic.com | energyfocus
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EIC E IC M Member ember F ocu s Focus EthosEnergy EtthosE E hossE ho En neerg rg y
Luca Forno EthosEnergy
What does ‘circular economy’ mean to EthosEnergy, and why is it a focus? Climate concerns have already placed pressure on traditional ‘take, make, dispose’ business models – a linear approach in which we buy new, use and then get rid once we’re done. Circularity decouples economic activity from the consumption of materials and energy by creating closed-loop cycles in which waste is minimised and resources are reused. Even companies with traditional linear business models, such as oil and gas, can introduce elements of circularity to their operations. EthosEnergy looks at what circularity can oﬀer to companies across the power generation, oil and gas and industrial sectors to regenerate and extend the life of existing assets. To transition from a linear economy to a circular one, we need to look across three key areas: maximising product use, prioritising renewable inputs and recovering by-products and waste.
fuels with lower carbon content (such as hydrogen). We have been actively cooperating with the Politecnico di Torino on this front, as we believe university and industry liaising will be the main contributor to our future reshape. We believe that there needs to be more collaboration and alignment between business, social and environmental factors to achieve success.
VP Operations East Hemisphere Luca Forno takes Energy Focus behind the scenes at EthosEnergy What opportunities do you see for the energy industry in circular economy? The uptake to reuse in the energy industry is not as good as it should be. There’s real opportunity to reuse instead of disposing when equipment is close to decommissioning. Our value is to provide economic, social and environmentally beneﬁcial solutions to extend life of existing equipment. At EthosEnergy we have already developed a suite of life extension and emissions compliance solutions to support current assets in meeting critical targets. This has a signiﬁcant impact on CO2 emissions across two fronts: one is we avoid production of new equipment and therefore avoid emissions during the manufacturing process; and the second is where we can avoid or postpone the recycling of aged assets. There is also opportunity to reduce the environmental impact of current assets by making them more eﬃcient through regeneration and by enabling them to operate with alternative
What does the future hold for EthosEnergy? As a global leader in power generation and rotating equipment solutions, it is our responsibility to support our customers to provide safe, sustainable, aﬀordable and reliable power across power generation, oil and gas and industrial applications. EthosEnergy is committed to becoming a sustainability leader. Beyond this, we aim to be decarbonisation leaders, without sacriﬁcing reliability or eﬃciency. We aim support our customers to implement changes today to revitalise existing assets, and work with our partners to develop solutions for tomorrow. Tell me about EthosEnergy. Our customers are facing a challenging future. They want a ﬂexible and viable partner to support them in a world of changing expectations. EthosEnergy turns on potential to deliver services and solutions globally for rotating equipment, to make energy aﬀordable, available and sustainable. We oﬀer a combination of partnership and service quality, backed by our track record of tailored solutions for the power, oil and gas, industrial and aerospace markets. EthosEnergy operates in more than 100 countries to improve performance across the value chain.
What is EthosEnergy’s response/ commitments to decarbonisation? The journey to net-zero greenhouse emissions is underway. As the energy transition increasingly takes centre stage, particularly with COP26 coming up, it’s incumbent on all companies to play their part in ensuring we meet critical targets. While environmental, social and governance (ESG) performance is critical for our long-term success, we believe we have a moral responsibility to take a leading role in shaping a better future, both for us and for generations to come. We have introduced an ESG framework that will help us build growth and ﬁnancial sustainability, and deliver longterm value through eﬀective engagement with our teammates, our customers and the communities we operate in.
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