Global-Energy-Transition
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SPECIAL REPORT Q4 2020 THE GLOBAL ENERGY TRANSITION ACCELERATED BY COVID-19? EXCLUSIVE 22 OPINION EDITORIALS Supported by: CONTENTS Q4 2020 SPECIAL REPORT CHAPTER 1 CHAPTER 2 CHAPTER 3 Over the Horizon? Momentum Building for Green Economy? Never Stop Transitioning? 03 Hydrogen Economics Finally Appeal 12 Positive Sentiment Buoys Green Plans 19 Trick to Corporate Survival? Kristina Haverkamp, Managing Director, German Energy Agency Christopher Cantelmi, Principal – Infrastructure & Natural Resource, Sir Mark Moody-Stuart, Chairman, UN Global Compact International Finance Corporation (IFC) 04 Unity Vital for Hydrogen Success 20 The Time is Now Dr. Anthony Yuen, Managing Director, Head of Commodities, 13 Sustaining Green Momentum Needs Attention! Frank Wouters, Director, EU-GCC Clean Energy Technology Network Pan-Asia Citi Research Dr. Firas A.H. Al-Abduwani, CEO, Hussam Technology Company & Former Deputy Director-General, IRENA 05 Hydrogen Needs More R&D – and Fast 14 Investors’ Green Appetite Unabated 21 Urgent Need for Tailor-Made Solutions Dr. Nader Mosavat, Director, Faculty of Engineering & Technology, Jeremy Crane, CEO and Co-Founder, Yellow Door Energy Yousef Al Ali, Executive Director, Masdar Clean Energy Muscat University 15 Stress Breeds Innovation 22 Dose of Reality for Oil Majors 06 Mixing Green Solutions is a No-Brainer Anita Nouri, CEO, Green Energy Solutions & Sustainability Paddy Padmanathan, CEO & President, ACWA Power Dr. Linda Wright, Chief Executive, New Zealand Hydrogen Association 16 Reshaping Low Carbon Attitudes 23 The Future? Environomics. 07 Tech Integration is Pivotal Dr. Pablo Izquierdo Lopez, Senior Manager – Energy Auditing Morgan Eldred, Managing Partner, Digital Energy Dr. Symeon Kassianides, Chairman & CEO, & Consultancy, Smart4Power Hyperion Systems Engineering Group 24 Diversification: A Great Ally 17 Time to Unite! Dr. Steven Griffiths, Senior Vice President, Research & Development, 08 New Normal for Data Processes? Christian Cravedi, SVP, Hub Manager, India, Middle East & Africa, Khalifa University Dean Mikkelsen, Data Management Manager, Energy Industries, ABB Rumaila Operating Organization 25 NOCs Face a Crossroads Laury Haytayan, MENA Director, Natural Resource Governance Institute 09 A President Biden: Sounds Good! 26 Power Lines Are the New Pipelines Amos Hochstein, Former Obama Administration International Energy Envoy Jessica Obeid, Academy Associate – Energy, Environment & Resources Program, Chatham House 10 Support for Circular Economy Tots Up Anish De, Partner, National Head, Energy & Natural Resources, KPMG India CHAPTER 1 OVER THE HORIZON? “A win-win model can be Hydrogen Economics created between countries like Germany – which Finally Appeal supplies technology, machinery, and investment Hydrogen is an area within the green space that is gaining much – and those that have the traction. It initially appeared uneconomic. But today we’re generating natural resources and excess green electricity, so it makes absolute sense to direct this to producing green hydrogen. Critically, this gas can also be stored and demand, such as Australia used to fuel heavy transport where battery power can’t. and the Arab Gulf.” By Kristina Haverkamp Allocation: Let’s be smart Managing Director, German Energy Agency An enormous amount of money is about to be spent, which could shape our infrastructure, buildings efficiency, energy systems, and zero win-win model can be created between With limited sunshine and space, Germany is emissions mobility for decades to come. On a countries like Germany – which supplies only targeting 10GW of indigenous hydrogen global level, about $26trn in stimulus packages A technology, machinery, and investment production in the medium-term. We’ll look to has been pledged so far. Germany has €130bn – and those that have the natural resources and import green hydrogen over the long-term while planned, of which 43% will be dedicated to demand, such as Australia and the Arab Gulf. continuing to export our expertise. green projects. Let’s make sure we get it right. 3 “Mainland China has set a strong policy direction for investment Unity Vital for in hydrogen fuel cells. If they can emulate what they did with solar, costs for hydrogen could collapse. Hydrogen Success Watch this space.” Investors’ interest in hydrogen has transformed in the last five trajectory for hydrogen is also in development. years. More stakeholders are coming together to explore it as Another differentiator to renewables is that financing for hydrogen will more likely come from momentum to leverage clean energy grows. the corporates themselves or venture capital, with less facilitation from the larger investor community. By Dr. Anthony Yuen Getting from A-Z Transportation will be a big trend to watch as Managing Director, Head of Commodities, Pan-Asia Citi Research the world emerges from the Covid-19 pandemic. Will we witness a permanent change in public echnology has also advanced, so it will Calling investors! transport, remote working, and international be interesting to see if a similar cost The banking and finance community has been travel? Or will 2020 only be a transient period? T curve can be achieved as was done with readily available to fund the renewables sector in The answer will all have a profound impact on renewables. Mainland China has set a strong policy the past decade, aided by favorable tax policies. how we think about the energy system going direction for investment in hydrogen fuel cells. If Investment into energy storage took a little longer forward. The EV market currently produces they can emulate what they did with solar, costs with question marks around revenue streams; 2mn cars a year, compared with 100mn sales of for hydrogen could collapse. there will be similar questions for hydrogen. It’s not combustion engine cars. Could the EV market yet clear how revenue will be generated as factors ever satisfy global transportation demand? It like the dynamics of hydrogen plans and offtake could very well be hydrogen that provides the agreements still must be worked out. The cost answer in this regard. 4 “Tapping into Oman’s Hydrogen Needs More natural advantage of solar radiation and R&D – and Fast using hydrogen as R&D is a critical enabler to move from blue to green baseload storage will hydrogen generation. We need sustainable innovation be invaluable. With and investment in technology to explore different types of production and utilization. R&D, the full potential can be realized.” By Dr. Nader Mosavat Director, Faculty of Engineering & Technology, Muscat University country’s energy agenda. Tapping into Oman’s ynergy and integration between industry trialing pilot applications in the field will be part natural advantage of solar radiation and using and academia will play an integral role and parcel of any future success. hydrogen as baseload storage will be invaluable. S in making hydrogen a viable energy Questions remain about how we’ll utilize the product and sector in the region. Raw ideas Unleashing Oman’s potential? full extent of hydrogen produced hybrids, or developed in academia need both local and Oman will continue to rely predominantly on how we’ll manage the massive disruption of international support from industry to increase oil and gas in the coming decade. Thereafter, fuel cell technology in transportation and other technology readiness and reach successful we could see a massive turnaround in terms industries. With essential R&D in place, the full commercialization. Funding for research and of hydrogen application and its role in the potential can be realized. 5 “The transportation and Mixing Green Solutions export of hydrogen and hydropower are just two is a No-Brainer examples of successful No one solution dominates. A tradable zero collaborations that New emission scale and integrated mix of green Zealand is pursuing in energy solutions must be developed. the Asia-Pacific region.” By Dr. Linda Wright Chief Executive, New Zealand Hydrogen Association Make it easy Governments must legislate provisions and fiscal ydrogen and battery power, for example, deployment, and upskilling are all required. incentives across the economy to motivate the don’t need to be mutually exclusive It’s also imperative to solve where and how behavioral changes required for residential, H as fuel-free mobility solutions. We to integrate across energy systems, both commercial, and industrial sectors to go green. must identify operational advantages and domestically and regionally. The transportation New Zealand is well on track in this regard limitations for all solutions and dovetail them and export of hydrogen and hydropower are and we are very committed to reducing and together. Additional funding in R&D to enable just two examples of successful collaborations redressing the importation of fossil fuels. Today, discovery of efficiency of scale, investment in that New Zealand is pursuing in the Asia-Pacific it’s 85% renewables, with legislation mandating infrastructure, technology development and region. 100% by 2035. 6 “Not only will we see digitalization being used to Tech Integration cut operational costs, but we’ll also see stronger cooperation between stakeholders on is Essential how to make digital tools a Integrating technologies is no easy task, especially seamless, safe, and profitable amid a pandemic. But it’s paramount to the long-term part of daily operations.” growth of the Middle East’s energy industry. Step change Through a very unfortunate default, the Covid-19