McKinsey expects fossil fuels to peak by 2030

• 1 year, 11 months ago (2022-05-02)
• David Flin

Renewables 751

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Research by the consultancy firm McKinsey & Company says that the energy transition is accelerating, with the share of renewables in global power generation expected to double over the next 15 years, and fossil fuel demand projected to peak before 2030.

McKinsey says, in its Global Energy Perspective 2022 report, that renewables are projected to grow threefold by 2050, accounting for 50 per cent of power generation globally by 2030 and 80-90 per cent by 2050. Already 61 per cent of new renewable capacity installation is priced lower than fossil fuel alternatives.

Global oil demand is projected to peak in the next three to five years, primarily driven by the uptake of electric vehicles, and the global energy mix is projected to shift towards low-carbon solutions with a particularly strong role for power, hydrogen and synfuels.

The research also expects hydrogen demand to grow by four to six times by 2050. Also, by 2050, the report estimates that carbon capture, utilisation, and storage could grow more than 100-fold from the current low base.