Tag Archives: Front End of Energy

At present the net-zero equation remains unsolved- part two outcomes and costs

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January 2022 Copyright c McKinsey & Company

The second part of my summary or part-reproduction of the McKinsey report “The Net-zero transition: what it will cost, what it can bring”

In a very extensive report, “the Net-zero transition in what it will cost and what it can bring” running to 224 pages, is produced by McKinsey Global Institute in collaboration with McKinsey Sustainability and McKinsey’s Global Energy & Materials and Advanced Industries Practices and published in January 2022.

Within this report, McKinsey outlines the Net-zero transition in one scenario-based analysis, that provides sobering but terrific value to thinking through all that is required in the net-zero transition being attempted.

I have taken here, in this second post, significant parts of their summary, their “in brief,” to amplify this work and show their summary of costs and outcomes. The first post is here. On both, I have not added any views, thoughts or comments. The only change I made was replacing “we” when referring to themselves in this report with McKinsey. Continue reading →

At present the net-zero equation remains unsolved- part one scenario limitations

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January 2022 Copyright c McKinsey & Company

In a very extensive report, “the Net-zero transition in what it will cost and what it can bring,” running to 224 pages.

This report is produced by McKinsey Global Institute in collaboration with McKinsey Sustainability and McKinsey’s Global Energy & Materials and Advanced Industries Practices and published in January 2022.

McKinsey outlines the Net-zero transition in one scenario-based analysis that provides sobering but terrific value to thinking through all that is required in the net-zero transition being attempted.

I have taken here in this post parts of their preface, executive summary and in a second post their “in brief” to amplify this work and provide the outcomes. I have not added any views, thoughts, or comments. The only change I made was replacing “we” when referring to themselves in this report with “McKinsey”. Continue reading →

The Global Energy Innovation System is NOT Thriving

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The Global Energy Innovation System is NOT Thriving

In a very sobering report from Hoyu Chong of Information Technology & Innovation Foundation (ITIF) published on 10th January 2022, it is highlighted how the global energy innovation system is in poor health.

In this report, it is pointed out there are weaknesses across most indicators and the need is to rectify these by most nations.

The key takeaways: Continue reading →

Not seeing the wood for the burning trees at COP26.

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We have just finished the most critical COP  meeting in Glasgow. It was the eleventh hour. For two weeks, nearly two hundred countries entered into discussions, finally agreeing on the “Glasgow Climate Pact” to keep the 1.5 degrees C target alive and finalize the outstanding elements of the Paris Agreement.

The President of the proceedings, COP26 President Alok Sharma, commented, “its pulse is weak, and it will only survive if we keep our promises and translate commitments into rapid action.”

“Keep 1.5 alive” has been a rallying cry for diplomats and activists alike at the COP26 negotiations. The phrase refers to the goal of limiting the global temperature increase to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels.

1.5 degrees Celsius is seen as the threshold beyond which the effects of climate change become increasingly dangerous to people and ecosystems. But scientists warn that time is running out for humanity to take the transformative steps to achieve the 1.5 goals. And according to multiple estimates, the deal negotiated in Glasgow does not bend the curve enough to get there. Continue reading →

The World Awaits, What is the Energy and Climate Outlook?

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I have been reading IEA’s World Energy Outlook 2021 (WEO), issued a month earlier in October, specifically because of the COP26 Climate Change
Conference meeting in Glasgow in a few weeks time.

This is the IEA flagship report, a 380 plus page report has for this year’s edition of the WEO been designed, exceptionally, as a guidebook to COP26.
It spells out clearly what is at stake.

This COP – short for the Conference of the Parties, the main decision-making body of the United Nations Framework Convention on Climate Change – is particularly significant. This COP session is being held between 31st October to 12th November 2021 and perhaps is the most pivotal climate meeting to date. Why?

It is the first test of the readiness of countries to submit new and more ambitious commitments under the 2015 Paris Agreement. It is also an opportunity – as the WEO-2021 states – to provide an “unmistakable signal” that accelerates the transition to clean energy worldwide.

I wanted to “lift out” of the report a few very short but essential messages provided in this report that give the essential snapshot. Continue reading →

Getting concerned for Hydrogen

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Image: IRENA

Since I launched this dedicated posting site www.innovating4energy.com, in December 2019, specifically around innovating in energy, I have written 80 plus posts. Each post was undoubtedly a fundamental learning point for me as I attempted to dive deeper into the topic.

Within this, Hydrogen has been one of the main contributors. Including this post, I have written about different aspects of Hydrogen over ten posts, but most were during 2020.

Posts (with links) have covered Hotter Shades of Hydrogen, Tensions and Bottlenecks and Concerns, Show me the Electrolyzer, Hydrogen is the Big Ticket Needing a Landscape View,

Also, Has Hydrogen got the necessary gas, Massive Doses of Hydrogen Reality, Hydrogens Promise, Believing in Hydrogen and how Plug Power is the Apple of Hydrogen?

Then I suddenly “went off the boil” on Hydrogen. I felt a sense of hijack from the Oil & Gas Majors and the Equipment Suppliers, all pushing hard the interim solutions blending different gases for offering blue Hydrogen as the necessary bridge, over the next ten years or so.

I felt a sense of “lock into” as the investment to purchase gas generating assets and infrastructure can run for thirty or more years. That’s not interim or intermediate and is likely to stay blue as CCUS will get added on at the later stage as the logical option to complete a ROI on this “interim” decision

Continue reading →

My multipliers for innovation at the Front End of Energy

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Following my last post, “Putting innovation into energy, sparking transformation“, I want to outline why I am focusing increasingly on this front end of the energy transition (FEE) within my innovation work.

For me, it is the ability to apply the “multiplier effect” to any discovery and validation that accelerates the understanding of where the potential growth and impact points of a new business opportunity can occur.

Today, we are all trying to piece together the Energy Transition.

The claim is that there are solutions abound to move us towards the Energy Transition we all need of clean, reliable, energy built upon renewables, but I honestly don’t share that current optimism; we actuaölly have an awfully long way to go in discovery, application and adoption. Continue reading →

Putting innovation into energy, sparking transformation

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I see the front end of energy as the critical feeding-in point for the energy transition. So what does this mean exactly?

The front end of energy for me is the point of discovery and validation. It is the place I feel I can make the best contribution within the energy transition. The discovery is where the stimulus and catalyst point to take an idea to commercialization.

This capturing, evolving, exploiting and exploring needs a clear management process and understanding of how to undertake this. This needs a focused innovation specialist or a systematic approach to building those innovating capabilities and capacities.

I believe there is a real gap for many organizations involved in the Energy industry; often in the recognition, they lack a real lasting, robust innovation capability, capacity and competency, as the sustaining way to help accelerate the Energy Transition journey. Continue reading →

The crucial role Innovation must play in the Energy system

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Innovation is vital to the energy system’s integration and operation design, and we need to further recognize its crucial role. I believe we undertake a radical transformation in the way we supply, transform, and use energy. This requires a profound transformation in technologies, systems, and infrastructure.

Innovation is made up of many enabling technologies that support energy. This complexity requires innovative approaches to be built in highly systematic ways. Its ultimate result is to offer innovation that can continually look for re-imagining new market designs and business models to stimulate the changes and solutions for our future energy transformation.

Innovation needs to be transformational, offer greater value than what it is replacing, show the real advantage, set out to achieve competitive gains and offer a higher level of sustainability, value and impact.

We need an innovative mantra for energy.

Energy is a vital part of any country’s ability to be competitive. Today half the world’s capital is invested in energy and its related infrastructure as it is the backbone of any industrial and urbanization strategy.

Our need is to keep pushing for discoveries, for experimentation, for demonstrating. We must nurture innovation, and we must continuously look for ways to facilitate its pathway. Continue reading →

Our need for a climate-friendly energy source

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We need to find a climate-friendly energy source that overcomes those current end-use sectors that are hard to electrify as they need to require high-intensity heat levels than coal and natural gas provides. These high-grade industry heat sectors, known as hard-to-abate, such as steel and chemicals, some heavy transport, aviation, shipping, agriculture, and industrial feedstocks, need to put in place a clean energy carrier.

Enter Hydrogen, reinvigorated and repurposed based on Renewables and new Technology designs

Presently Hydrogen is the only feasible route for at-scale decarbonization. It is a highly versatile, clean, and flexible energy vector. So many have evaluated the potential of hydrogen sector by sector that ramping up Hydrogen is needed to achieve any energy transition in an efficient and economically attractive way.

The problem today is that Hydrogen is simply not (yet) fit for large-scale deployment. The accepted wisdom is Hydrogen is a really good solution as a clean energy carrier, feedstock, and fuel. It can facilitate the extensive scale integration of renewables through conversion from H2O to pure Hydrogen (H2). Continue reading →