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December 2024 • Volume 17 • No 9 • Published monthly • ISSN 1757-7365

THE ENERGY INDUSTRY TIMES is published by Man in Black Media • www.mibmedia.com • Editor-in-Chief: Junior Isles • For all enquiries email: enquiries@teitimes.com

Special Focus: Gas Fired

Generation

Leading the charge

Siemens Energy explains why gas red

generation has a key role to play in the

energy transition. Page 10

In turbulent times the quest for self-

sufcient microgrids for industry and

infrastructure is more urgent than

ever. Page 15

News In Brief

US urged to stay in Paris

Agreement

US President-elect Donald Trump

has been urged to remain in the

Paris Agreement by several coun-

tries – including some that have

historically resisted the shift from

fossil fuels to renewables.

Page 2

Mexico electricity system

reopens to private investors

In a shift from her predecessor,

Mexican President Claudia Shein-

baum has announced plans to allow

private sector participation in Mex-

ico’s electricity industry.

Page 3

Indonesia announces clean

energy initiatives

Indonesia unveiled a raft of mea-

sures at last month’s COP29 Cli-

mate Summit, which will help ac-

celerate the country’s green energy

growth.

Page 4

UK bids to be global clean

power leader

Britain’s Prime Minister Keir

Starmer pledged at the COP29

summit in Azerbaijan to reduce the

UK’s emissions by 81 per cent com-

pared with 1990 levels by 2035, in

a bid to regain a global leadership

role in decarbonisation.

Page 5

Azerbaijan plans massive

clean energy investment

Petrostate Azerbaijan enhanced its

green energy credentials at the

COP29 Climate Summit. During

the summit, hosted in its capital,

Baku, the government signed sev-

eral deals that highlight its desire

to embrace clean energy.

Page 6

European companies

refocus as Trump effect hits

renewables

Shares in renewable energy com-

panies slumped last month over

fears that the re-election of Donald

Trump will put the brakes on the

sector.

Page 7

Energy Transition

Investment Series

Portugal is a living laboratory for

global decarbonisation. The coun-

try’s economy and credit prole

have improved signicantly over

the past decade but despite its

achievements, investing in renew-

able energy projects presents no-

table challenges.

Page 14

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Although nance was seen as the main focus of the COP29 Climate Summit in Azerbaijan,

global climate negotiators again fell short on agreeing on what is needed. Junior Isles

Global alliance will drive transition to clean power

THE ENERGY INDUSTRY

TIMES

Final Word

The future of global

climate talks looks shaky

after Baku, says

Junior Isles. Page 16

Developing countries were forced to

accept a nance package to help them

tackle climate change, which many at

the recent COP29 climate summit in

Baku, Azerbaijan, see as inadequate.

Negotiations were salvaged from the

brink of collapse after wealthy nations

agreed to offer $300 billion annually,

still well short of the more than $1 tril-

lion that experts say is needed.

The summit almost collapsed twice

as vulnerable nations walked out of

negotiations more than 24 hours after

the summit was due to close, and end-

ed with India objecting ercely as the

gavel came down to ofcially close

the talks and seal the deal.

Indian delegation member Chandni

Raina said the country was “extreme-

ly disappointed” by the abrupt pas-

sage of the agreement, adding: “This

was stage-managed”. “It is a paltry

sum. I am sorry to say that we cannot

accept it. We seek a much higher am-

bition from developed countries.” The

agreement was “nothing more than an

optical illusion”, she added.

India’s outburst was followed by

objections from Bolivia, Chile and

Nigeria, who were told by COP29

President Mukhtar Babayev that their

statements were noted.

Smaller nations, such as Malawi,

Fiji and the Maldives, also voiced

their disappointment. Cuba noted

that the $300 billion was less than the

previous goal of $100 billion agreed

more than a decade ago, taking into

account ination.

European Union Climate Commis-

sioner Wopke Hoekstra tried to assure

disappointed smaller nations, saying

he was “condent we will reach the

$1.3 trillion” economists say develop-

ing countries need to shift to green

energy and cope with climate change.

Under the deal agreed by almost

200 countries, wealthy nations said

they would take the lead in providing

“at least” $300 billion in climate -

nance by 2035 to help developing

countries cope with climate

change. Although well short of the of

the $500 billion which G77 group of

developing nations had sought, it was

an improvement on the initial $250

billion offered.

Avinash Persaud, an adviser to the

Inter-American Development Bank

said nance goal was “at the boundary

between what is politically achiev-

able today in developed countries and

what would make a difference in

Continued on Page 2

The G20 Leaders’ Summit in Brazil

saw the launch of the Global Clean

Power Alliance (GCPA) – a new dip-

lomatic grouping focused on driving

the global transition to clean power.

Led by the UK, with 12 signatories

thus far and support from the US and

EU, the alliance will initially focus on

a ‘mission’ to mobilise signicantly

scaled up energy transition nance,

with more missions to come.

Leo Roberts, E3G Programme Lead

Coal to Clean, said: “Following its

ambitious NDC [see page 5] , the UK

is bringing leadership in the race to

deliver clean power globally, in line

with the global commitment to transi-

tion away from fossil fuels made at

COP28. The GCPA situates the UK

centrally in driving political action to

address the chronic nancing chal-

lenges faced by many Global South

countries. It now needs to set some

clear, ambitious goals for nance mo-

bilisation, and show how it will lever-

age existing and new diplomatic alli-

ances to drive political leadership and

action on the ground.”

The Alliance was rst announced by

the UK government Foreign Secre-

tary David Lammy on September 17

to help speed up the global shift to

renewable energy by sharing technol-

ogy and nancial resources.

Responding to the announcement,

Rebecca Newsom, Senior Political

Advisor at Greenpeace UK, said:

“The goals of tripling renewables and

doubling energy efciency by 2030

will be reached faster through strong

international collaboration, which

this alliance could help with. It should

prioritise knowledge-sharing, collec-

tive purchasing and enhancing routes

to market in emerging economies for

renewables, as well as encouraging

the interconnection of national and

regional electricity grids.

“To avoid making the debt crisis in

many developing countries even

worse, nancial support from devel-

oped countries should be provided in

the form of highly concessional grants

and loans. Billions of dollars in public

funding could be unlocked by taxing

the most polluting industries, such as

the fossil fuel sector, to make pollut-

ers pay. This would help propel the

‘transition away from fossil fuels’

agreed at COP28 that must remain

front and centre of efforts to tackle

climate change.”

Another recent initiative seen as key

in the international climate change

movement, is the ‘Baku’ Priority In-

ternational Actions launched by the

Breakthrough Agenda. The pact made

at the COP29 Summit in Azerbaijan is

aimed at accelerating progress on cli-

mate change and enhancing collabo-

ration in preparation for COP30 in

Brazil.

More than 60 governments repre-

senting 80 per cent of global emis-

sions came together at COP29 in

support of the Breakthrough Agenda

to strengthen international collabora-

tion across more than 150 interna-

tional initiatives and accelerate ac-

tion ahead of COP30.

Countries have aligned on key areas

of international collaboration for the

Breakthrough Sectors, developing the

‘Baku’ Priority International Actions

across the road transport, power, steel,

buildings and hydrogen sectors.

These actions build on the outcomes

of COP28 and COP29, driving prog-

ress towards COP30.

While there has been good progress

in improved international collabora-

tion, stronger, coordinated action is

required in areas including invest-

ment, R&D, demand generation and

the deployment of new technologies.

The Actions support key high-level

commitments made at COP29, such

as the COP29 Presidency’s Hydrogen

Action Declaration, the COP29 Glob-

al Pledge on Scaling International As-

sistance for Industry Decarbonisa-

tion, the Global Energy Storage and

Grids Pledge, and the rst annual up-

date of the Global Zero Emissions

Ve hi cl e s Tr an s it io n R oa dm a p.

Since COP28, the number of coun-

tries supporting the Breakthrough

Agenda has risen to 61, covering

over 80 per cent of global emissions,

with Kazakhstan and Singapore join-

ing the Hydrogen Breakthrough at

COP29.

Climate deal

falls short

on nance

COP29 President Mukhtar Babayev

THE ENERGY INDUSTRY TIMES - DECEMBER 2024

Junior isles

US President-elect Donald Trump has

been urged to remain in the Paris

Agreement by several countries – in-

cluding some that have historically

resisted the shift from fossil fuels to

renewables.

During the UN Conference of Par-

ties (COP) 29th Climate Summit in

Baku, Azerbaijan last month, China,

Russia and Saudi Arabia all called on

Trump – who has promised to pull the

US out of the global agreement on

climate change when he takes up of-

ce in anuary  to remain within the

UN pact.

Boris Titov, Russian President Vlad-

imir Putin’s special representative for

international cooperation in sustain-

ability, told the Financial Times he

was “sure it is not” the right move to

leave the Agreement.

“We have to work with the Paris

Agreement… we cannot withdraw

from Paris but we can make it more

efcient,” he said.

In contrast to the incoming Trump

administration, China’s government

is a solid believer in the need for

global cooperation on what is a glob-

al challenge.

Liu Zhenmin, China’s climate en-

voy, said he hoped “cooperation on

global climate action will continue to

be enhanced” between the world’s two

biggest economies.

“Climate change is now a pressing

global challenge that demands a col-

lective response from the interna-

tional community,” Liu told summit

delegates.

China has been criticised in the past

for hindering climate change negotia-

tions but is making signicant prog-

ress in rolling out renewables and

clean energy technology to tackle

emissions. Now, the country, which is

the world’s largest emitter alongside

the US, is under pressure to take up a

leadership role in climate action fol-

lowing Trump’s election.

Saudi Arabia, long regarded as a

block to negotiations at COP summits,

also stressed why it was crucial to

remain within the Agreement. Its cli-

mate envoy, Khalid Almehaid, Depu-

ty Minister of Sustainability and Cli-

mate Change and chief climate

negotiator, said that the 2015 Paris

Agreement had posed a “great chal-

lenge” but that his country had de-

cided it wanted to be “part of the train”.

“We are part of the train,” he said,

but added: “… we are going to make

sure that we are going to be a leader.”

He pointed out that Saudi Arabia is

focusing on renewable energy, energy

efciency and how to capture green-

house gas emissions from fossil fuels.

Almehaid said that by the end of this

year, the country would have 44 GW

in renewable energy, up from less than

1 GW in 2022. “If Saudi Arabia can

transition, I think anyone in the world

can transition,” he said, “We would

like to see all oil producer [countries]

follow suit in making sure they really

do fully integrate climate change and

future transition.”

Meanwhile, the EU voiced concerns

about a domino effect if Trump quits

the Paris Agreement, after Argentina

pulled its negotiators out of the talks

in aku.  ofcials are also con-

cerned over the possibility of the US

withdrawing from the 1992 parent

treaty, the UN Framework Conven-

tion on Climate Change.

Writing in the FT, Laurence Tubian,

Chief Executive of the European Cli-

mate Foundation and France’s special

representative for COP21, called for

calm. He said Donald Trump’s election

victory “is undoubtedly a challenging

setback” but noted that in 2017, when

Trump announced the US would leave

the Paris Agreement, “it did not trigger

the domino effect that he hoped for”.

Tubian wrote: “Quite the opposite:

many countries redoubled their com-

mitment, and China in particular saw

an opportunity to accelerate its leader-

ship and competitive advantage in

green technology.”

Today, the case for staying commit-

ted to the Paris Agreement is even

stronger, he said, noting that the In-

ternational Energy Agency expects

the global market for key clean tech-

nologies to triple to more than $2 tril-

lion by 2035.

“This is not a time for panic, but for

resolve,” wrote Tubian. “Those of us

committed to tackling the climate cri-

sis anticipated this; we haven’t been

blindsided as in 2016. We are well

prepared. We have economic logic, a

critical mass of countries, and public

support on our side.”

developing countries”.

alling short on adeuate nance

was just one of the shortfalls of what

was, as always, a fractious affair.

Notably, it also failed to make any

progress in an agreement to transi-

tion away from fossil fuels. Several

people involved in the talks said that

countries led by Saudi Arabia and

Russia had made efforts to block

any references to advancing last

year’s agreement to transition away

from fossil fuels.

“Maybe they’ve been embold-

ened by [Donald] Trump’s victory,

but they’re acting recklessly here,”

said Alden Meyer, a Senior Associ-

ate at E3G, a London-based climate

research organisation that was at the

negotiations. “They’re being a real

wrecking ball.”

Germany accused the petrostate

host Azerbaijan of backing attempts

by fossil fuel producing countries

to hijack the summit. Annalena

Baerbock, Germany’s foreign af-

fairs minister, had warned that a

“few fossil fuel states” were at-

tempting a “geopolitical power

play”.

In her COP29 closing statement,

UNEP Executive Director Inger

Andersen, warned: “Climate

crunch time is here. COP29 has

delivered a hard-fought deal. This

is at a time when science tells us

that without action, climate impacts

will only intensify further. COP29

has now secured a foundation on

which we must now rapidly build.

However, we must be clear, ambi-

tion and promises are only as good

as the action and delivery that backs

them up.

“We therefore need to see more

transparent, inclusive progress on

nance, on mitigation and on adap-

tation. UN Environment Pro-

gramme will continue to work with

all parties and stakeholders to en-

sure that climate nance is mobil-

ised in the most effective way, with

maximum impact on the ground for

communities that need it the most.”

Andersen said all eyes must now

turn to the NDC 3.0 February dead-

line and urged all member states to

“now stretch ambition to ensure we

can live up to the 1.5°C promise”.

She said: “The NDC plans can

unleash a wave of resilient eco-

nomic growth, new jobs and address

cost of living challenges. The G20

must lead, and lead quickly. The

road to Belém must be one of con-

certed action and living up to com-

mitments. There is no other way.”

Twentyve countries and the 

have now pledged not to build any

new unabated coal power plants in

their next round of national climate

plans in a bid to scale up ambitions

in the next phase of climate action.

The ‘no new unabated coal power’

COP29 initiative was signed by EU

climate envoy Wopke Hoekstra to

pledge that when the 25 nations

submit their national climate plans

by February 2025 along with all

other nations party to the Paris

Agreement, theirs will reect no

new unabated coal in their respec-

tive energy systems to accelerate

phasing out of fossil fuels.

Continued from Page 1

Negotiators at the COP29 climate

summit in Baku, Azerbaijan, agreed

a deal to launch multi-billion dollar

carbon markets governed by UN rules

on emissions.

It was the rst notable breakthrough

at the summit and came despite the

threat that US President-elect Donald

Trump will withdraw from the Paris

Climate Agreement.

Carbon trading could help raise

some of the cash that developing

countries will need to adapt to the ef-

fects of climate change, while helping

big polluters cut their emissions.

Negotiators at the summit reached a

consensus on standards for the cre-

ation of carbon credits under Article

6.4 of the Paris Agreement. This will

enable climate action by increasing

demand for carbon credits and ensure

that the international carbon market

operates with integrity under the su-

pervision of the United Nations.

The COP29 Presidency had identi-

ed the full operationalisation of Ar-

ticle 6 as a key negotiating priority

this year. Finalising Article 6 negotia-

tions could reduce the cost of imple-

menting national climate plans by

$250 billion per year by enabling

cooperation across borders.

The decision is seen as an essential

step in achieving that goal.

Commenting on the agreement,

COP29 President Mukhtar Babayev

said: “This will be a game-changing

tool to direct resources to the develop-

ing world. Following years of stale-

mate, the breakthroughs in Baku have

now begun. But there is much more

to deliver.”

However, Sonya Bedford, Partner at

law rm pencer est P warned

“The impact and ultimate success of

the agreement will depend on what

the carbon credits are used to incen-

tivise in the rst place. or eample,

more renewable energy or energy ef-

ciency initiatives. It also depends on

whether there is then a market for the

carbon credits which then drives more

renewables and decarbonisation. If

these conditions are satised, then the

agreement is ultimately a good thing.

“We will need to see more policy

and criteria for the carbon credits to

avoid ‘greenwashing’ and stringent

criteria and a regulatory market will

need to be in place. If the higher pol-

luting countries – those who would

gain carbon credits – are not able to

undertake their own projects, then this

is a positive step.”

Too many countries are prolonging the

use of fossil fuels, despite the rapid

expansion of renewable energy, ac-

cording to the latest Climate Change

Performance Index CPPI).

The CPPI, which ranks states’ cli-

mate protection measures, evaluated

63 countries plus the European Union

that are responsible for 90 per cent of

global greenhouse gas emissions.

Of the countries analysed, it noted

that 42 countries’ current per capita

emissions are not aligned with the

Paris goal of limiting global average

temperature rise to 1.5

ommenting on the ndings, iklas

Höhne of German climate policy think-

tank NewClimate Institute and report

co-author, said: “The world is at a turn-

ing point. Peak of global emissions is

closely in sight. But states need to act

quickly to drastically cut emissions and

prevent further dangerous conse-

quences of climate change.” He added

that the Index shows “how big the re-

sistance from the fossil fuel lobby is”.

The countries that ranked worst in the

CCPI – Iran, Saudi Arabia, the United

Arab Emirates and Russia – are also

among the largest oil and gas producers

in the world. The share of renewables

in their respective energy mixes is un-

der 3 per cent, the analysis found, with

the countries showing “no signs of

departing from fossil fuels as a business

model”.

Countries that received a high rank-

ing included Norway, Sweden, Lux-

embourg, Estonia and Portugal, along-

side the Philippines, Morocco, Chile

and the world’s most populous country,

India.

The CPPI also showed that 61 have

managed to increase the share of green

energy sources, like wind and solar, in

their energy mies over the last ve

years. Launching the report at the UN

climate summit in Azerbaijan, lead

author an urck from environment

NGO Germanwatch said: “Renew-

ables are in the fast lane, especially in

the electricity sector. In addition, there

is an increasing electrication of the

mobility, residential and industrial

sectors. The trend towards electrica-

tion is continuing.”

The ‘EI Statistical Review of World

Energy’, released just ahead of COP29,

highlighted the complex variety of en-

ergy and emissions stories unfolding

in economies around the world.

The Country Transition Tracker,

which plots the relative progress of

around 80 of the world’s largest energy

consuming countries along eight met-

rics, revealed that 42 of the 70 itemised

countries have reduced their energy-

related CO

e emissions since 2017, the

rst full year after the Paris Agreement

was ratied. It also showed that 0 out

of 79 countries have reduced their fos-

sil fuel consumption.

Headline News

Countries still clinging on to fossil fuels

US urged to stay in Paris

Agreement

Andersen says all eyes

must now turn to NDC 3.0

n Russia “sure” withdrawal is not the right move

n China hopes co-operation on global climate action will continue

Carbon trading deal, despite likely US

ac o cae 

The National Grid Corporation of the

Philippines (NGCP) is ready to imple-

ment more than 100 transmission proj-

ects worth over P600 billion ($10.2

billion) that are aimed at ensuring grid

reliability and stability to prevent

transmission-related outages.

In a press brieng, GP ofcials

said the grid operator annually updates

its Transmission Development Plan

TP, which forms part of the epart-

ment of Energy’s (DOE) Philippine

Energy Plan.

ecently, the GP unveiled its

long-term grid development plan in

nationwide consultations. The consul-

tations for orth uon, outh uon,

isayas, and indanao, gathered in-

put and provided updates for the ex-

pansion and improvement of the na-

tion’s power grid under the proposed

202200 TP, which is a roadmap

of transmission projects for the next

20 to 25 years.

The updated TDP is designed to ad-

dress the needs of the power grid, en-

suring its reliability and stability to

prevent transmission-related outages.

The public consultations also dis-

cussed NGCP’s ongoing and future

grid developments, including upgrad-

ed project timelines, regulatory status,

integration of renewable energy sourc-

es, such as offshore wind plants, and

the implementation of smart grid tech-

nologies for a more efcient and sus-

tainable transmission system.

ollowing the news, GP an-

nounced that the Energy Regulatory

Commission (ERC) authorised the

country’s grid operator to pursue three

projects worth P38.09 billion that are

seen as vital to boost the stability of

the Luzon and Visayas grids.

Philippines outlines major investment

in grid stability and resilience

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Junior Isles

Indonesia unveiled a raft of measures

at last month’s P2 limate um-

mit, which will help accelerate the

country’s green energy growth.

peaking at the orld eaders li-

mate Action ummit A at tge

29th UN Climatic Change Conference

P2 in aku, Aerbaijan, ashim

jojohadikusuomo, pecial nvoy of

the President of Indonesia said the na-

tion plans to develop a 0 000 km long

Green Transmission Line to support

the energy transmission to the most

populated islands set up “Green mart

grid infrastructure” to double the ca-

pacity of wind and solar power; and

setup 0 G of hydropower, geother-

mal, solar and wind power.

Indonesia’s increased ambition is a

step towards realising the President’s

vision of economic growth above 8 per

cent through green, resilient, and in-

clusive economic development. By

200, Indonesia aims to have  per

cent of the country’s electricity capac-

ity come from renewable sources.

The government announced €1.2 bil-

lion in green funding for the Indonesian

power sector from German state devel-

opment bank reditanstalt fr iede-

raufbau f. The funding was

marked by the signing of a emoran-

dum of nderstanding o between

PT P Persero and f.

ashim emphasied that the govern-

ment is committed to accelerating the

energy transition.

“e have developed a new strategy

over the net ve years to achieve a

minimum of 8 per cent sustainable

economic growth,” ashim said,

stressing that the development of clean

energy sources is crucial for enhancing

industrial competitiveness.

ver the net  years, Indonesia’s

renewable energy generation capacity

is targeted to increase by 75 per cent

from the total addition of 00 G in

electricity capacity. “e will be a ma-

jor country fullling our responsibility

to protect the environment’s future. e

deeply appreciate the established inter-

national cooperation as a joint effort

toward reaching the Net Zero Emis-

sions  target,” ashim added.

f Group’s ustainability fcer,

urgen ern, eplained the f sup-

port for Indonesia represents Germa-

ny’s commitment to international co-

operation for green transformation.

urther, ern highlighted that P is

at the centre of Indonesia’s energy tran-

sition. PLN is strongly committed to

greening the energy sector while ensur-

ing reliable energy access.

“Therefore, we believe that Indone-

sia and Germany can continue

strengthening their partnership in the

energy sector, especially in clean en-

ergy projects like geothermal, hydro-

power, and transmission. Achieving

the NZE target requires solid collabo-

ration and partnership,” ern said.

In a separate announcement shortly

after, the greenlight was given for a $

billion gas development project that

will later use carbon capture in the pro-

duction process. BP and its partners

gave the go-ahead as major energy

companies continue to bank on de-

mand for gas growing in the region.

The project is an additional develop-

ment of the Tangguh liueed natural

gas project in Papua, which has been

shipping G to Asian countries like

Japan and China since 2009. BP holds

a 0 per cent stake in the project, and

will foot the equivalent portion of the

$7 billion bill.

The project would look to develop

the badari gas eld, which would feed

into the LNG facility. The plan is to

enhance gas recovery by capturing as-

sociated CO

from the eld, then re-

compressing and injecting it to main-

tain pressure in a nearby reservoir.

This will be P’s rst ever carbon

capture, utilisation and storage project.

Production at the eld is epected to

start in 202, the ritish major said.

Other partners in the project include

China’s CNOOC and Japan’s Nippon

Oil Exploration.

The decision to give the go-head

comes as BP and its competitors scale

back their renewable ambitions and bet

on a future where fossil fuels will play

a role in the global energy mix for lon-

ger. Oil and gas majors have been put-

ting a renewed emphasis on G,

seeing it as a fuel that can ease the

transition away from coal and into re-

newable energy.

Indonesia announces major clean

energy initiatives

n Plans to develop ‘green transmission line’

n Country targets 60 GW from hydropower, geothermal, solar, and wind sources

T G IT TI   202

Asia News

India’s climate policies are exceeding

epectations, with projected carbon

dioxide emissions reductions of ap-

proximately 4 billion t between 2020

and 2030, signicantly surpassing the

nation’s COP26 commitment of 1 bil-

lion t, according to a new report by the

ouncil on nergy, nvironment and

ater .

The elhibased thinktank’s study

reveals that existing policies have al-

ready yielded substantial results, with

emissions reduced by 440 million t of

between 2015 and 2020.

The power sector is expected to see

a 2 per cent decline in coal red gen-

eration by 2030 compared to a sce-

nario without current policies, effec-

tively avoiding the installation of 80

G of new coal red power plants.

At the same time, the combined share

of solar and wind power is projected

to expand from 3 per cent in 2015 to

2 per cent by 2030, and further to 3

per cent by 2050. The shift is crucial

for the world’s fthlargest economy,

which currently relies on coal for about

71 per cent of its electricity generation.

  Arunabha Ghosh em-

phasised that while India has demon-

strated signicant climate leadership,

continued bold action and interna-

tional nancial support will be crucial

for achieving the country’s 2070 net

zero target.

ast month, TP Green nergy

imited G, a subsidiary of

TP, announced plans to invest s

trillion ($417 billion) by 2030 to lead

India’s clean energy transition.

The initiative will be funded by a

Rs10 000 crore ($8.33 billion) initial

public offering IP, enabling G

to advance projects in renewable pow-

er generation, green hydrogen, sustain-

able fuels, and energy storage.

India surpassing COP26 commitments

as power sector emissions plummet

THE ENERGY INDUSTRY TIMES - DECEMBER 2024

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power drop-off when the wind is not

blowing.

“When this happens, and parts of

Europe are not very favourable for

solar, where do you get the electricity

from? This has made it very clear that

you need dispatchable power and if

it’s not available through long dura-

tion storage, which we still do not

have, then the solution we have is

gas,” explained Amin.

Expanding on the storage discus-

sion he said: “Batteries are not suited

for long term energy storage – they

are only suited for a few hours. If the

electricity demand is less than 3-4

hours, then battery storage technology

would denitely be a viable solution

to consider. However, we don’t have

the scale yet; also, we don’t have the

technology today to take care of lon-

ger durations. Technologies like

compressed air and others are still in

their infancy when we talk about the

scale, we need nationwide.

“If battery storage or any form of

storage was available, reliable, and

scalable, the industry would have

chosen it. There is a reason why we

don’t see it at this point. I don’t be-

lieve that for long term storage, we

have the scale and maturity yet that is

needed to support a critical infrastruc-

ture such as energy.”

He added: “We will see exponential

growth in batteries, but the world is

also seeing a lot of pressure on the

raw materials needed for batteries,

which are also needed for electric

vehicles. So, there is a lot of competi-

tion [for raw materials].”

If gas use is unavoidable this then

begs the question: how do you decar-

bonise it to avoid locking in future

emissions? Amin questioned the ar-

gument that constructing a gas red

plant today means the world is locked

into its emissions for its lifetime.

“If you build a gas red plant, does

that really mean you are locked-in to

emissions for 25 years? I would say

the answer is no. You don’t need to

run it baseload; you only need to run

it when you need it. This provides the

affordability and security of supply

the system needs as much as it needs

sustainability. Operating hours are

about 20 per cent of what it used to be

before. So, if you used to run a basel-

oad gas turbine for 8000 hours [per

year] it would now be less than 2000

hours.”

He also pointed to ongoing work to

decarbonise gas turbines by convert-

ing them to run on green hydrogen,

i.e. hydrogen produced through elec-

trolysis of water using electricity

generated from wind or solar.

He said: “Gas turbines also have a

path to decarbonise, even by blending

it with clean hydrogen. Obviously,

you always need to look at the feasi-

bility of doing that, and how much it

will cost, etc., but it’s a path. And

some countries, like Germany, are

clearly following this path.”

Siemens Energy has been making

progress in adapting its portfolio of

gas turbines and has demonstrated

00 per cent hydrogen ring on its

SGT-400 machine. In 2022, an initial

series of tests enabled the industrial

plenty of scope for cutting emissions

through switching.

“Germany alone has about 30 GW

of coal red generation and ambi-

tious phase-out plans for the upcom-

ing years,” said Amin. “But we also

see a clear shift [from coal to gas] in

Eastern Europe and the US. If we

look at the US; in the period from

2005 to 2020, the US managed to

achieve a total reduction of 850 mil-

lion t of CO

– 500 million t of this

came from the coal-to-gas shift, while

250 million t came from the addition

of renewable capacity. So, the biggest

cut came from coal-to-gas.”

The US is one of the largest markets

where this has been happening, but it

is also a trend in Eastern Europe,

where there have been many projects

in countries like Poland, Romania and

Czech Republic, which have been

focusing on replacing coal capacity

with gas red generation.

Amin noted: “We hope that we will

soon be able to see a reliable timetable

for the transition to efcient and 

ready gas red power plants in Ger-

many and other industrial countries.

We have seen a strong demand for

gas in the last 12 months. Siemens

Energy has sold 32 large gas turbines

globally, for example European

countries like Poland, Greece and

Romania are looking to move away

from coal, introduce more renewable

energy and back this up with dis-

patchable power. This ts into the

EU’s plan for decarbonisation.”

Amin also expects to see this coal-

to-gas shift in China. He added:

“China and other parts of Asia such as

Indonesia, Philippines, Vietnam and

India – countries where you have a

very strong coal backbone  will de-

nitely follow, but beyond 2040. There

is still a long way to go in getting coal

completely out of the system, and

certainly replacing it with more re-

newables backed by dispatchable

power, which in our view will be a

mixture of gas and energy storage.”

According to its calculations, Sie-

mens Energy says that in the last year

it has sold gas turbines – mainly fo-

cused on coal-to-gas – that will result

in the avoidance of about 500 million

t of CO

emissions over the typical

20-year lifetime of the plants installed.

espite the clear benets of gas in

terms of it being far cleaner than coal,

there are those who argue that instead

of locking in any emissions for 20-30

years – albeit a reduced amount – all

fossil fuels should be left in the

ground. It’s not an argument that

Amin believes holds water.

“We have been hearing this narra-

tive for the last six or seven years and

it has become very clear that renew-

ables are the technology that the

world needs to follow in order to de-

carbonise and have the least impact

on the environment. There’s no doubt

around this. But it has also become

very evident that you cannot run most

countries’ electricity systems solely

on renewable energy because of its

intermittence.”

He pointed to the UK as one ex-

ample, noting that in one day there

can be a swing of up to 17 GW in

Amin has seen an increased

role for gas

hile the future of electricity

generation is renewables,

any prediction that it means

the imminent end of fossil red gen-

eration, and gas in particular, is pre-

mature. The growth of wind and solar

has been exponential and indeed needs

to continue at an even faster pace if the

world is to meet its climate targets. But

according to the International Energy

Agency (IEA), demand for gas will

continue to grow.

In its recent World Energy Outlook

(WEO 2024), the Paris-based agency

revised upward its forecast compared

with WEO 2023. The report says the

revision reects “stronger anticipated

demand for gas to meet growth in

electricity demand in China as well as

additional demand in the Middle East,

where policies to shift away from oil

in electricity generation have been

reafrmed”. The IA largely attri-

butes the upward trajectory to the ac-

celerating deployment of renewables,

efciency gains and the electrication

of end-uses.

It is an outlook echoed by Siemens

Energy. Commenting on the role of

gas going forward Karim Amin, who

is a Member of the Executive Board

and leads the Gas Services Business

Area at the manufacturing giant, said:

“During the last year and a half,

we’ve started to see a stronger realisa-

tion of the role of gas as part of the

solution in facilitating the energy

transition rather than being itself part

of the problem.

“We’ve seen an increased role for

gas. In 2024 there have been more

than 120 large gas turbines sold in the

market, amounting to about 60 GW.

So, there is clear indication and proof

points that there is a strong demand

for natural gas.”

According to Siemens Energy, there

are a few key reasons for this demand.

Firstly, gas is a very strong enabler for

renewables. Amin notes that for every

3-4 GW of renewables, operators

need to also add 1 GW of gas as dis-

patchable power to ensure security of

supply.

“With COP28 calling for a trebling

of renewables by the end of the de-

cade, there’s strong demand for gas

– either for peaking applications or

for mid-merit operation to handle in-

termittency,” said Amin.

In the mid-term, i.e. out to 2029-30,

Siemens Energy forecasts the market

for large gas turbines will be around

65-70 GW annually.

Amin sees a growing population,

electrication of industry and data

centres and the growth of articial

intelligence (AI) as key drivers of

global energy demand.

“From our discussions, we see that

by 2030, the energy demand of data

centres will be equal to 4 per cent of

global electricity demand,” he noted.

“There we also see demand for medi-

um-sized gas turbines. The demand

coming from generative AI is huge

and the data centre infrastructure is

growing exponentially. The semicon-

ductor bottleneck is not the central

challenge [to this growth] anymore;

the number one question for every

data centre operator right now is how

to get the electricity they need – how

to get it fast and how to decarbonise

that generating capacity. And this

would add more demand on top of the

65-70 GW per annum.”

In light of the energy crisis in Eu-

rope, where electricity prices have

skyrocketed as a result of gas price

volatility, some have questioned the

viability of gas as a power generating

source going forward. Further, the

security of gas supply and the poten-

tial impact on the security of electric-

ity supply, has also come under the

spotlight with Russia’s invasion of

Ukraine.

As Europe attempts to wean itself

off pipeline gas from Russia, other

players have stepped in to not only ll

the void but also to meet increasing

global demand. Azerbaijan expects to

increase LNG exports to the EU, and

the US has also struck deals to help

meet European demand.

“If you look at the shale gas coming

from the US and LNG from Latin

America, I think we will see increased

supply of natural gas. Recently, there

have also been huge nds in audi

Arabia and Qatar, and they will con-

tinue to drive their energy agenda to

supply the world with the energy it

needs. Prices are therefore expected

to remain competitive.”

Amin argues that for Europe to

achieve its sustainability targets while

maintaining affordable, secure elec-

tricity, it will need to look to gas and

nuclear as complementary solutions.

“We will see what we call a nuclear

renaissance. There is a lot of discus-

sion around building new nuclear ca-

pacity or extending existing nuclear

capacity. But this takes time and the

exponential need for electricity will

not wait,” said Amin. “We will have

to see what the new administration in

the US brings, but we expect there

will be a lot of focus on reducing the

cost of electricity and this will support

the affordability of gas red power

plants.”

The other main driver for gas is de-

carbonisation. According to Amin,

“the coal-to-gas switch is also a

strong driver”, noting that switching

from coal to gas can reduce CO

emis-

sions by as much as 60 per cent. With

coal still accounting for 35 per cent of

electricity generated globally, there is

Gas: still a key role to play

in the green transition

Special Focus Gas Fired Generation

THE ENERGY INDUSTRY TIMES - DECEMBER 2024

Some argue that the

days for gas red

power generation are

numbered.

Junior Isles hears

from Siemens

Energy’s Executive

Board Member,

Karim Amin, why this

is far from the truth.

The new Komotini combined

cycle power plant is part of

Greece’s plan to withdraw

from coal red generation

Photo: courtesy TERNA S.A.

THE ENERGY INDUSTRY TIMES - DECEMBER 2024

Special Focus Gas Fired Generation

A Siemens Energy SGT-

9000HL gas turbine on its way

to Saudi Arabia, where highly

efcient ga red oer

plants in combination with

capture and storage are

part of its net zero strategy

needs to be capable of doing that ef-

ciently and when both are mied,

they also need to be burned efciently.

So basically, you are trying to opti-

mise three combustion modes. If it

was a case of developing a combus-

tion system able to burn 100 per cent

hydrogen alone, we could go even

faster.”

Carbon capture and storage/utilisa-

tion offers another route to decarbon-

ising gas red plants. igh cost,

however, has resulted in negligible

uptake among power plant operators

globally. Nevertheless, the need for

urgent climate action has seen a push

from a handful of governments.

For example, in October the UK

government announced a £22 billion

investment, spread over 25 years, in

carbon capture and storage projects,

focusing on developing two carbon

capture clusters in Merseyside and

Teesside to help the UK meet its cli-

mate objectives.The investment will

be split between three projects, cap-

turing carbon dioxide released either

from making hydrogen, generating

gas power or burning waste to create

energy from 2028.

Meanwhile the US is expected to

increase its carbon capture capacity

seven-fold by 2035, supported by

incentives from the Biden adminis-

tration. The nation will have the ca-

pacity to capture as much as 164

million t of carbon by 2035 – almost

equivalent to the next three markets

combined – according to Bloom-

bergNEF. The clean energy research

organisation said the global carbon

capture sector attracted more than

$11 billion in investments last year

– nearly doubling from the 2022

level. The US share was 25 per cent.

In addition, some gas red projects

are being built with the ability to

capture carbon at some stage in the

future. For example, Saudi Arabia

has a strategy to reach net zero by

2060 and is relying on modern,

highly efcient gas red power plants

in combination with CO

capture and

storage, to signicantly reduce its

emissions. In June this year Siemens

Energy secured a contract to supply

key power plant technologies to the

Taiba 2 and Qassim 2 power plants,

which will together provide almost

4 GW to the Kingdom.

The new plants will save up to 60

per cent of CO

compared with oil-

fuelled power plants. They will also

be compatible with the Kingdom’s

energy strategy, which calls for the

construction of CO

capture and

storage facilities in the medium term

to enable a carbon-neutral energy

supply.

Amin noted: “The customer is

building the combined cycle plant

today with provisions for carbon

capture. So, we build the plant today

because they need it but we also al-

ready consider space at the site,

layout design, and auxiliary systems

to accommodate the integration of a

carbon capture plant at a later stage.

This would remove around 90 per

cent of the CO

emissions.”

Amin is condent that progress in

capture technology will drive pene-

tration in the power sector. Asked

whether costs must come down, or

carbon prices have to rise in order to

make CCS feasible, he said: “I think

there are two elements. One is the

feasibility – doing carbon capture

costs money. There is capex cost,

and performance [cost] – the chemi-

cal processes for CO

capture use

energy. With regards to carbon price

the question is whether there are

enough incentives – whether through

carbon credits or investment incen-

tives to do it.

“But the second point is the technol-

ogy. The conventional technology we

have right now for carbon capture is

very capex intensive. It almost dou-

bles the capex you need to build a

conventional combined cycle power

plant. So, the cost is high and there is

a lack of incentives.”

Nevertheless, he sees two things

that are changing  rstly govern-

ments are providing the much-needed

incentives such as those provided in

the  through its Ination educ-

tion Act. And as the investment case

becomes stronger, technology devel-

opment is accelerating.

“There are technologies under

development – technologies that are

not ready for commercial release but

under development. We refer to these

as ‘Generation II’ carbon capture.

They are moving away from the ca-

pex-heavy conventional technology

to ‘lighter [capex]’ technology that

makes much more use of centrifugal

separators. This capex reduction,

combined with incentives could make

a case for carbon capture,” said Amin.

Unlike conventional capture which

uses solvents and chemical process

to remove carbon dioxide, centrifu-

gal separators use centrifugal force

to separate the CO

in the ue gas

from the other gases. Such installa-

tions will be much smaller and

cheaper than their chemical-based

counterparts.

Notably, in partnership with 8 Riv-

ers Capital, a decarbonisation tech-

nology and property developer, Sie-

mens Energy is developing a zero-

emissions turbine that will generate

270 MW of electricity from captured

. Since the end of 2023, 8 Rivers

and Siemens Energy have been devel-

oping directred supercritical 

turbines across a range of applications

and fuel types.

Amin notes, however, that although

these new technologies will help

penetration in the power sector, CCS

deployment will also depend on geol-

ogy as not all plants will be located

close to sites suitable for sequestering

. “It has to be in a place where it

is possible to use the CO

or store it,”

said Amin “but we are starting to see

projects be awarded.”

In preparation for a future where the

role of gas is increasing in the near- to

mid-term but ultimately decrease,

Amin believes the company’s wide

portfolio means it is well placed to

enable the energy transition.

“e are very eible in moving our

resources between the gas business,

our renewables wind power business

or Grid Technologies business, which

is growing exponentially as well –

whether its engineering resources,

project management or even repur-

posing some of our manufacturing

facilities,” he said. “But right now,

what we see for 2030 and beyond is a

very strong demand for new build.

This year we saw our highest number

of orders for gas turbines in a decade.”

In its nancials released last month,

Siemens Energy’s Gas Services busi-

ness reported a 28 per cent growth in

orders, amounting to €16.4 billion,

compared to last year. And projecting

to 2028, the business is forecasting

low- to mid-single digit revenue

growth.

“We have reached a record backlog

of €45 billion in our Gas Services

business – mainly for servicing. This

gives us very strong predictability and

we expect to see more demand, driven

by decarbonisation. This will create a

good runway for revenue growth,”

Amin commented. Siemens Energy

believes the market demand is ro-

bust. As Amin put it: “Energy de-

mand is the backbone of any eco-

nomic social or development.”

With plant operators around the

globe, apart from Europe, running gas

plants for longer hours, the future

looks bright for the company and the

Gas Services business. So much so,

that the company plans to expand its

factor capacity for large gas turbines

by 30 per cent.

“There is clear direction that the

existing capacity is short of market

demand, and we are responding to

that,” said Amin.

It is in some ways ironic that with

the power sector moving rapidly to-

wards total decarbonisation, largely

through renewables, the use of gas, a

fossil fuel, has become crucial to

meeting clean energy growth. Not so

long ago many did not expect gas to

ourish in such a market.

gas turbine to operate with a 30 per

cent hydrogen content, mixed with

natural gas. Then in October 2023 a

power-to-hydrogen-to-power dem-

onstration project in France, known

as HYFLEXPOWER proved that

state-of-the-art turbines with dry low

emissions technology can be fuelled

with up to 100 per cent hydrogen as

well as with natural gas and any

blends in between.

The knowledge and experience

gained from the project will help the

company to continue developing its

entire gas turbine eet for a hydrogen

based future. The interaction between

electrolysis, storage, and hydrogen

conversion at one site has been dem-

onstrated, and now, says Siemens

Energy, it is a matter of scaling the

results.

The plan is to extend this capability

to its large units with the expectation

that 100 per cent H

gas turbines will

be commercially available in all tur-

bine size ranges by 2030.

Amin commented: “We have a

roadmap, including our large gas tur-

bines, to get to 100 per cent hydrogen-

ring. ome months ago, we ran a

test on an F-class machine on 15 per

cent hydrogen and we are planning to

go to 30 per cent after the winter peak.

We are also running testing campaigns

in our facilities in Germany for our

large, advanced HL machines.”

The challenge of moving from an

average of 15 per cent today to 100

per cent in just ve years, says Amin,

is not in burning pure hydrogen. “The

complexity,” he said, “is in develop-

ing a combustion system that is ca-

pable and is optimised to work with

these dual fuels. When it burns natural

gas, it needs to be able to do so ef-

ciently; when it burns hydrogen it

erie of iemen nerg ga trine drogen coring caailitie

LNG demand projected to peak in 2040 but

new capacity is still required

Biden administration grants $2.2 billion to

hydrogen hubs in Midwest and Gulf Coast

Gary Lakes

In global energy markets, LNG is

viewed as the way to go in the future.

Countries, especially developing

economies, are switching to gas from

coal in order to reduce their greenhouse

gas emissions in line with internation-

al efforts to stop global warming and

address climate change. During the

course of its 60-year career, LNG has

seen prices rise and fall, depending on

all the factors that determine supply

and demand, but in a new report on

“the looming supply of LNG” by Lon-

don-based Gas Strategies, the LNG

market has grown to become “one of

the most consequential energy markets

in the world”.

The world has another ve years to

go before reaching 2030 and between

now and then LNG is expected to see

a number of uctuations in demand

and supply, and prices as well. For

example, in its ‘Global LNG Outlook

2024-28’ released in April this year,

the Institute for Energy Economics

and Financial Analysis (IEEFA) fore-

cast “lacklustre demand growth and a

massive wave of new export capacity”

that would send LNG markets into

over-supply within two years. The

IEEFA acknowledged that the Rus-

sian invasion of Ukraine had caused

a spike in European LNG imports that

sent global prices to record highs but

noted that prices have since fallen,

primarily because of reduced demand

from developed countries such as Ja-

pan, South Korea and Europe, the

three of which account for more than

half of global LNG demand.

According to the IEEFA, demand

will continue falling for now and in

the future alternative energies would

encroach on demand for LNG. The

Institute refers to a projection by the

Paris-based International Energy

Agency (IEA) that says total LNG

trade in 2050 would reach 482 million

tons per year under its stated policies

scenario. IEEFA projects that total

LNG production capacity by the end

of 2028 will reach 666.5 million t/y

which means that capacity of that size

will exceed what the IEA has forecast

for 2050.

In the report released last month,

‘How LNG supply will form in a mar-

ket of peak LNG’, Gas Strategies says

that LNG demand will grow by some

345 million tons by 2040, to 745 mil-

lion tons. LNG has come to play a

crucial role that the gas analysis rm

says will continue.

During 2023, a little over 400 million

tons was traded and currently some 218

million tons have undergone a nal

investment decision (FID) and will

come online in the next few years. But

a supply gap will open with the start of

2030, caused in part by a production

decline brought about by a decline in

aging gas elds that are feeding older

facilities such as some in Australia,

Indonesia and Algeria. This will create

a need for new capacity by 2040 of

around 220 million t/y on top of the

capacity that is currently under con-

struction, Gas Strategies said.

The situation will require FID for 20

million t/y annually until the mid-

2030s, the report says. And this will be

done within the context of ‘peak LNG’

in the market.

“Going forward, the sanctioning of

new large-scale plants will depend on

a continuation of an investment cli-

mate favourable to LNG, including

the availability of nance for fossil

fuel investments and a willingness of

buyers to conclude long-term con-

tracts,” the report says.

There are a number of challenges

that a facility planned to come online

in the mid-2030s would face, the re-

port suggests. There could be a fall in

the number of long-term off-takers;

producers could face strong competi-

tion as demand for LNG dissipates (to

around 580 million t/y in 2050, ac-

cording to Gas Strategies); and poor

conditions for nancing might de-

velop, with lenders reluctant to -

nance expensive new LNG projects.

The rm listed a number of G

projects that are expected to be sanc-

tioned by 2026 and operating by 2030,

which would give them the benet of

10 years growth in LNG demand. But

it also pointed out that there are a

signicant number of projects that are

not yet ready to take FID in the next

two years – after which the industry

will be approaching peak LNG. “Ma-

jor LNG projects may have a window

of only two years to take FID in their

current proposed form,” the report

states.

For these projects, Gas Stategies

listed several factors that should be

considered when attempting to deploy

new capacity in a world approaching

peak gas: lower capital costs for new

projects will be better able to compete

with existing plants and operate in

lower price environments; a shorter

operating lifespan; smaller capacity;

and a closer geographical location to

the facility’s target market. Other fac-

tors include debottlenecking, the use

of cheaper and smaller modular trains,

and oating G vessels.

As the LNG market reaches a point

of peak demand, the industry’s struc-

ture, participants and behaviour will

change signicantly, the Gas trategies

report states. This, it adds, is an un-

avoidable fact.

Gary Lakes

The US Department of Energy (DOE)

last month awarded grants worth $2.2

billion meant to fuel the development

of two hydrogen hubs – one that will

cover the states of Illinois, Indiana,

Iowa and Michigan through the Mid-

west Alliance for Clean Hydrogen

(MachH2) and for the Gulf Coast, the

HyVelocity facility in Texas. The two

projects are the fourth and fth to re-

ceive federal funding following the

ARCHES project in California,

ARCH2 in West Virginia and the Pa-

cic orthwest ydrogen ub in

Washington, Oregon and Montana.

Both hubs have initially received $22

million from the DOE. The grants

cover $1.2 billion for HyVelocity and

MachH2 is to receive $1 billion.

A total of seven projects proposed for

the production of hydrogen were se-

lected by the DOE last year as part of

the Regional Clean Hydrogen Hubs

Program. ome $ billion in nancing

is available to the projects under Pres-

ident Joe Biden’s 2021 Bipartisan In-

frastructure Law.

“The Biden-Harris Administration

has followed through on its promise to

kickstart a new domestic hydrogen

industry that can produce fuel from

almost any energy resource in virtu-

ally every part of the country and that

can power heavy duty vehicles, heat

homes, and fertilise crops,” US Secre-

tary of Energy Jennifer M. Granholm,

said in a statement released by the DOE

on November 20. “Today’s announce-

ment marks a major milestone in

DOE’s Hydrogen Hubs programme,

signalling our deep commitment to

strengthening America’s energy secu-

rity and boosting our economic and

global competitiveness while also

tackling the climate crisis,” she added.

Both projects named last month in-

clude large-scale green and blue hy-

drogen projects. (Green hydrogen and

ammonia are produced using renew-

able energies, blue hydrogen and am-

monia are produced with energy pro-

duced from fossil fuels). MachH2 will

also produce pink hydrogen by using

nuclear power. Those projects using

fossil fuels will include methods of

carbon capture storage and utilisation.

The Biden administration had set a

target to produce 50 million t of clean

hydrogen by 2050.

First phase development for the fa-

cilities, covering planning, design,

and community engagement, is set to

last 18 months. But as President-Elect

onald Trump will enter ofce on

January 20, there are questions as to

whether his administration will con-

tinue to support a hydrogen develop-

ment programme. The facilities may

not be able to proceed with a nal

investment decision unless they can

access a $3/kg clean hydrogen tax

credit that was included in the 2022

Ination eduction Act. The Trump

administration – backed by a Repub-

lican Congress – can amend the act or

overturn it.

Hydrogen’s unique characteristics

will allow the H2Hubs to substan-

tially reduce harmful emissions from

some of the most energy-intensive sec-

tors of the economy, such as chemical

and industrial processes and heavy-

duty transportation, while creating

new economic opportunities across

the country, the DOE statement said.

It could also be used as a form of long-

duration energy storage to support the

expansion of renewable power. By

enabling the development of diverse,

domestic energy pathways across mul-

tiple sectors of the economy, clean

hydrogen will strengthen American

energy independence and accelerate

the American manufacturing boom,

the DOE stated.

Most of the hydrogen produced cur-

rently – as much as 70 million tons

annually – comes from fossil fuels,

but hydrogen advocates argue the it

could be used in the steel, cement,

aluminium industries and for long-

haul power generation. Research is

being carried out for the use of hydro-

gen in home heating and as automo-

tive fuel. A big part of making hydro-

gen a substitute for fossil fuel has to

do with reducing the cost of producing

it. Currently, the cost is around $7/kg,

but to make it commercially viable, a

price near $1.50/kg would launch ma-

jor changes.

It has been calculated that green hy-

drogen made from the electrolysis of

water will be fully cost competitive

with fossil hydrogen when it costs less

than $1.50/kg, according to the website

Carbon Commentary, which reports

that NEL, the world’s largest electroly-

ser manufacturer has forecast a price

of $1.50/kg will be possible by 2025,

based on a price of $20/MWh for elec-

tricity. The website said that at the cur-

rent efciency level of about  per

cent, the world will need 50 TWh for

each million tons of green hydrogen.

At the prospective efciency level of

about 75 per cent, this number falls to

about 44 TWh, according to the web-

site’s calculations. A world that re-

quires 500 million tons of hydrogen

will therefore need to produce 22 000

TWh of green electricity a year just for

this purpose. Today’s global produc-

tion from all wind and solar farms is a

little more than 0 per cent of this g-

ure. To meet the need for hydrogen we

need a sharp acceleration in renewable

installations to several terawatts a year,

it said.

It seems like a daunting challenge,

and while the Trump Team believes

that “drill, baby, drill” is the answer

to the world’s energy problems and

the climate crisis is a fallacy, it could

wind up with the next US administra-

tion giving little attention to support

for hydrogen.

Hydrogen

Gas

Natural gas, and LNG in particular, have grown in importance as the world begins to transition away from coal.

Demand for LNG has expanded and contracted in recent years due to economic and political factors, but LNG will

continue in a vital role for the next decade and demand will nearly double before it peaks, according to a new report.

n the nal days of his administration, S President oe Biden has awarded 22 billion to two potential hydrogen

production centres But as onald rump prepares to return to the hite ouse, uestions abound as to hydrogens

future in the S

THE ENERGY INDUSTRY TIMES - DECEMBER 2024

Fuel atch

upper-medium grade. This marks a

signicant recovery from the 202

203 period, when the credit rating

was close to “junk” status, or on

Investment Grade peculative. The

country ranks among the top 2 per

cent globally for innovation and is in

2th spot out of 0 nations on the ‘

enewable nergy ountry Attrac-

tiveness Inde’. ther indicators fur-

ther highlight Portugal’s investment

appeal top  per cent globally for press

freedom and within the top 20 per cent

for corruption perception and rule of

law. onetheless, its judicial system

remains heavily backlogged.

espite these achievements, in-

vesting in renewable energy projects

in Portugal presents notable chal-

lenges, some common across mar-

kets and others uniue to the country.

ureaucratic hurdles, such as delays

in project permitting, and restricted

access to nancing for smallerscale

projects are widespread issues. Por-

tugalspecic challenges include

slow progress in green infrastructure

approvals and smart grid epansion,

limited policy clarity regarding its

green hydrogen strategy, and a high

energy cost structure. nly 33 per

cent of the average household elec-

tricity price reected actual energy

costs, with the remaining  per cent

due to taes and tariffs in 2020, ac-

cording to the IA. imilarly, for

industrial users, energy costs com-

prised just 2 per cent of the average

price, while tariffs and taes ac-

counted for the remainder.

Policies

Portugal received signicant recogni-

tion for its progressive climate and

energy transition policies. These ef-

forts are detailed in the ational n-

ergy and limate Plan 2022030

P 2030 and the oadmap for

arbon eutrality 200 200,

both lauded as ambitious strategies.

The P 2030 was updated in

ctober 202 with revised targets to

include a  per cent share of renew-

ables in nal energy consumption, an

increase from the earlier goal of 

per cent. It also raised its greenhouse

gas emissions reduction target to 

per cent compared to 200 levels.

lean energy targets include 2 G

of offshore wind capacity by 2030

0 G by 200. Green hydrogen

ortugal is a global leader in cli-

mate action. Its strategy focuses

on electrication, renewable

epansion, and energy efciency so as

to reach carbon neutrality by 20. The

nation’s strong clean energy prole

and improved investment environ-

ment position it for signicant growth,

despite bureaucratic hurdles and high

energy taes.

Commitments

Portugal is an early adopter of carbon

neutrality, aiming to achieve net ero

emissions by 20  ve years ahead

of the ’s target. y 2030 it wants to

cut greenhouse gas emissions 

per cent compared to 200 levels, in-

creasing to  per cent by 200.

Additionally, the country aspires for

 per cent of gross nal energy de-

mand and 0 per cent of generation to

come from clean energy.

The decarbonisation strategy rests

on three primary pillars higher

electrication rates, renewables

generation, and energy efciency. Its

roadmap has a greater level of detail

and more ambitious renewable en-

ergy goals compared to many of its

peers. Portugal also leads many in

integrating solar, wind, and green

hydrogen technologies into its energy

system.

otably, hydrogen is prioritised as

a solution for hardtodecarbonise

sectors. Also, the autonomous re-

gions of the Aores and adeira

have become “living laboratories”,

spearheading innovative energy so-

lutions, focusing on smart grids, and

achieving high levels of renewable

energy integration.

espite its achievements, Portugal

faces signicant challenges on the

road to carbon neutrality. educing

reliance on energy imports remains a

priority, alongside managing high

energy costs, which are heavily inu-

enced by taes and tariffs. urther

investment is reuired to epedite

transport decarbonisation, while en-

ergy efciency improvements are

critical, particularly in buildings.

urrently, twothirds of structures

lack energy performance certicates.

Energy profile

Portugal boasts a strong clean energy

prole, which is poised for signicant

epansion in the coming years. In

2023,  per cent of its electricity was

from renewables,  per cent from

nonrenewable energy, with net im-

ports making up the remaining 20 per

cent. This represented a 2percent-

agepoint increase for renewables

compared to 2022, while nonrenew-

able sources fell by  percentage

points and imports rising 2 percent-

age points. Production from renew-

ables reached 3.2 Th, a 2 per cent

yearonyear increase. This output

was distributed across several tech-

nologies wind energy contributed 2

per cent, hydroelectric power 23 per

cent, biomass  per cent, and solar

energy  per cent.

Portugal has successfully phased

out coal red power generation,

achieving a major milestone in 202

with the closure of its nal two coal

plants. The 0  ines Power

Plant, operational for 3 years, was

the rst to cease operations in April

202. ater that ovember, the 2

 Pego Power Plant, in service for

2 years, also shut down.

oth sites now play pivotal roles in

the country’s energy transition. ol-

lowing the ines closure, Portuguese

utility P announced plans to

transform the site into a green hydro-

gen hub. This ambitious project pro-

posed 200  of renewable energy,

00  of electrolysers, and a 

centre. owever, the initiative was

suspended in 202. eanwhile,

panish utility ndesa won the tender

to repurpose the Pego site. Its 00

million $2 million project out-

lines a hybrid renewable energy

project comprising a 3 p solar

installation, 2  of wind capac-

ity, .  of integrated energy

storage, and a 00 k electrolyser for

green hydrogen production.

Portugal has also epressed inten-

tions to phaseout gas red generation

by 200. owever, no natural gas

plant owners or operators have yet

agreed to decommission their plants.

Portugal saw a 30 per cent decline in

natural gas consumption in 20

223, a downward trend that contin-

ued in 202. ver the siyear period,

gas usage for conventional purposes,

such as domestic and industrial ap-

plications, fell by 20 per cent, while

consumption for combined cycle

plants generation eperienced a

sharper decline of  per cent, high-

lights the Institute for nergy co-

nomics  inancial Analysis.

Investment environment

Portugal’s economy and credit prole

have improved signicantly over the

past decade. oody’s currently as-

signs the country a sovereign credit

rating of A3 table, while P rates

it A Positive  both classied as

production targets were also updated,

aiming for 3 G of installed elec-

trolysis capacity, down from the

previous goal of  G, while setting

a target of 2 G for energy storage

capacity.

To enhance the efciency and speed

of environmental and climaterelated

investments, the inistry of nviron-

ment and nergy announced the cre-

ation of a new limate Agency which

will take over management of the

nvironmental und, currently over-

seen by the general secretariat of the

inistry. The agency will also handle

other environment and climate funds.

The minister emphasised that the

limate Agency will be signicantly

more effective and efcient, with ve

times the current workforce of the

nvironmental und, according to the

bservador.

Investors

Portugal has cultivated a vibrant clean

energy investment landscape, charac-

terised by the involvement of robust

domestic companies alongside a di-

verse range of international develop-

ers. An eample is wind power invest-

ments announced in the past 2

months. Ireland’s Gaelle ind Pow-

er plans to establishing a local supply

chain for offshore wind energy and

aims to develop modular oating plat-

forms capable of supporting wind

turbines with a capacity of 22 ,

paving the way for largescale offshore

wind production. Another Irish rm,

imply lue Group, partly owned by

the based ctopus nergy Gen-

eration, is advancing plans to construct

a 0  oating offshore wind farm,

further boosting Portugal’s offshore

wind potential.

apan’s Tokyo Gas has also demon-

strated its interest, acuiring a 2.2

per cent stake in an eisting 2.2 

oating offshore wind farm. Germa-

ny’s  has epressed its intention

to eplore offshore wind investments

in the country. inally, pain’s Iber-

drola is seeking authorisation for a

2  onshore wind farm, which

would integrate with its eisting 0

 hydropower and 0 

pumped storage facilities.

Prepared for The Energy Industry

Times by Joseph Jacobelli at Asia

Clean Tech Energy Investments.

T G IT TI   202

Energy Transition Investment Series

espite signicant

improvements in its

economy and credit

prole, inesting in

Portugals renewable

energy projects

presents notable

challenges n

its latest country

analysis, TEI Times

looks at Portugals

generation and

consumption proles,

policy, emissions

targets and ability to

attract the inestment

needed to meet

goernment targets

Portugal: a living laboratory for global

decarbonisation

Portugal 2023 electric power generation and net demand

Source: Author using data from Redes Energéticas Nacionais, Sgps, S.A.

(ed), ‘2023 REN Technical Data’ (REN 2024) https://datahub.ren.pt/en/publi-

cations/

Portugal’s renewables

inetment role

nergy demand continues to

show strong growth around

the world as the population in-

creases and urbanisation accelerates.

According to independent research

company, Enerdata, global energy

consumption growth accelerated in

2023, increasing by 2.2 per cent,

which is signicantly faster than the

average annual growth rate of .

per cent observed between 200 and

20. lectricity demand is growing

at a substantially faster rate, due to

acceleration in demand created by

 mobility, by the rapid growth of

data centres, and the growth of pow-

er needs in the global south.

According to the International En-

ergy Agency (IEA), the global grid

will need to double in size and ca-

pacity by 2040, and according to the

niversity of lemson enter for

Advanced anufacturing, the ability

to grow the capacity of the grid will

lag the demand growth by at least

vefold.

Meanwhile, climate change is in-

tensifying, bringing with it more

freuent and severe weather events.

In line with this, the World Eco-

nomic Foundation, highlighted in

2023 that extreme weather occur-

rences are not only becoming more

common but also more expensive

and harder to predict.

For example, Hurricane Milton in

the  caused signicant damage to

power grids, prompting discussions

on the need for more resilient ener-

gy infrastructures.

In this context, microgrids – decen-

tralised energy systems capable of

operating independently from the

main grid  represent a transforma-

tive solution to the growing need for

energy security. By producing, stor-

ing, and optimising energy locally,

microgrids offer industries, commu-

nities, and critical infrastructure the

ability to maintain power, even when

eternal grids falter. Their increasing

adoption signals a shift toward a

more resilient, reliable, and sustain-

able future for energy generation and

distribution.

This presents a growing case for

microgrids. Historically, centralised

grids have been the backbone of

energy distribution, but they face

mounting pressures from ageing in-

frastructure, unpredictable natural

disasters, and increasing energy de-

mands. hile efforts to modernise

and expand these grids continue,

they cannot be relied upon as the

sole solution for future energy

security.

icrogrids offer a compelling

complementary solution. By produc-

ing energy from local sources, which

can include renewable energy sys-

tems like solar or wind power,

alongside energy storage technolo-

gies, they can provide a steady sup-

ply of electricity without depending

solely on large, centralised networks.

The ability to “island,” or disconnect

from the larger grid during outages

or emergencies, allows microgrids to

ensure uninterrupted power for their

users. By working in concert with

the adjoining grid at most times, mi-

crogrids provide a power solution

for regions to increase overall elec-

tric grid resiliency.

This is especially critical for in-

dustries that cannot afford down-

time. or instance, industrial facili-

ties, chemical plants, and data

centres can face signicant nancial

losses if power outages disrupt their

operations. In the case of energyin-

tensive industries like manufactur-

ing or rening, even a brief loss of

power can result in millions of

pounds in lost production and dam-

age to sensitive euipment. y in-

corporating microgrids, these indus-

tries gain an additional layer of

protection against grid disruptions.

ne of the most signicant advan-

tages of microgrids is their ability

to enhance power reliability. By op-

erating independently, they mitigate

the risk of largescale blackouts, al-

lowing industries and communities

to maintain a consistent power sup-

ply. This is particularly important as

climate change continues to fuel e-

treme weather events that can crip-

ple traditional grids.

Microgrids provide greater control

over energy resources. Through ad-

vanced digital technologies such as

AI-driven energy management sys-

tems and IoT sensors, operators can

optimise energy ows in realtime.

This ensures that the right amount

of power is generated, stored, and

distributed where needed, further

enhancing operational resilience.

or critical infrastructure  such

as hospitals, airports, or emergency

response centres – having a reliable,

localised energy supply is para-

mount. In the event of a disaster,

microgrids can maintain power for

essential services, potentially saving

lives. They can also stabilise supply

in the face of unepected disrup-

tions, making them a crucial asset

in the transition to a more decentral-

ised and resilient energy future.

For a large industrial asset, a mi-

crogrid avoids loss of production

worth upwards of $ million dollars

per day, according to Gulf nergy

Information, and $ million dollars

per data centre outage incident, ac-

cording to Uptime Intelligence.

Microgrids are also playing a piv-

otal role in accelerating the shift to-

ward cleaner energy sources. By in-

tegrating renewable energy into

their systems, microgrids can help

reduce reliance on fossil fuels and

support the global transition to net

zero emissions. Renewable energy

sources, such as solar and wind, can

be integrated with energy storage

systems to ensure a stable supply,

even when weather conditions are

less than ideal.

Incorporating local renewables

into a microgrid not only reduces

greenhouse gas emissions but also

helps to achieve sustainability tar-

gets. As industries and communities

look to reduce their carbon foot-

prints, microgrids offer an effective

way to optimise the use of green en-

ergy. This can help organisations

meet regulatory reuirements and

corporate sustainability goals while

lowering energy costs.

By stabilising power supplies with

renewable energy, microgrids sup-

port the broader goals of energy se-

curity, resilience, and environmen-

tal sustainability. This approach

also positions microgrids as a key

solution in the global push toward a

lowcarbon future, where decentral-

ised, selfsufcient power systems

can coexist with traditional grids.

Technology plays a central role in

enhancing the performance and ef-

ciency of microgrids. AIpowered

systems can predict energy load and

available renewable generation to

perform load balancing and adjust

supply in real-time, ensuring that

renewable power and grid storage is

used as efciently as possible.

or instance, during periods of

low demand, the system can reduce

generation from traditional energy

sources or store excess energy in

batteries. During peak demand, it

can draw on stored energy or ramp

up local generation from renewable

sources like solar or wind, ensuring

that the microgrid operates ef-

ciently without over-producing or

under-producing power.

At the same time, IoT devices and

sensors help operators monitor en-

ergy ows and storage levels, en-

abling smarter energy management

by providing real-time data on vari-

ous aspects of the system, such as

energy generation, consumption,

and storage levels. These devices

collect and transmit data on critical

parameters like voltage, current,

temperature, and battery charge. By

continuously monitoring these vari-

ables, they give operators detailed

insights into how energy is owing

throughout the microgrid.

This data is processed and visual-

ised through advanced software plat-

forms, allowing operators to detect

inefciencies, predict maintenance

needs, and make informed decisions

about energy distribution.

Microgrids also provide the capa-

bility for improved peak shaving, a

techniue that enables asset opera-

tors to reduce demand during times

of high grid usage. y drawing on

stored energy or generating power

locally, microgrids help reduce strain

on the main grid, lower electricity

costs, and minimise emissions. This

optimised energy management not

only improves operational perfor-

mance but also supports long-term

sustainability.

Microgrids with advanced control

systems can balance different energy

sources, including renewables and

traditional generators, to ensure con-

sistent power availability. This level

of automation and control provides

signicant cost savings and opera-

tional efciency, making microgrids

an attractive option for businesses

and communities seeking to enhance

their energy independence.

Beyond reliability and sustainabili-

ty, microgrids offer nancial benets

that make them a smart investment

for many sectors. As mentioned

above, microgrids can help offset de-

mand charges  fees imposed by

utilities based on the highest amount

of energy used during peak times.

By optimising when to generate and

store energy on-site, industries can

reduce peak loads and avoid hefty

demand charges.

Moreover, industries with surplus

energy from their microgrids can

participate in energy markets, selling

the excess capacity back to the main

grid, generating up to an estimated

$00 000 annually for customers

with onsite generation over 0 .

This creates a twoway relationship

between the user and the grid, pro-

viding nancial returns while con-

tributing to the overall stability of

the energy system.

The return on investment for mi-

crogrids can be signicant, espe-

cially when considering the poten-

tial costs of grid failure. As power

outages become more freuent and

costly, the nancial case for energy

resilience becomes increasingly

compelling.

The evolution of microgrids points

to a future where energy generation

and distribution are increasingly de-

centralised. As the demand for ener-

gy continues to grow, and the threats

to centralised grids intensify, mi-

crogrids will play an essential role in

ensuring energy security.

icrogrids not only offer a solu-

tion for today’s energy challenges

but also provide a scalable model for

future energy systems. They are a

critical part of the shift toward clean-

er, more resilient, and locally con-

trolled energy networks that can

adapt to the demands of tomorrow.

As the world grapples with the

dual pressures of rising energy de-

mands and the need to combat cli-

mate change, microgrids offer a

clear path forward. y leading the

charge for energy security, mi-

crogrids are helping to build a future

where power is always on, even in

the face of uncertainty.

Ron Beck is Senior Director at soft-

ware and services provider, AspenTech.

As global power

systems face

unprecedented

geopolitical and

climate-induced

challenges,

distributed energy

management is

gaining traction as

a vital strategy for

securing our energy

future. This makes

the quest for self-

sufcient microgrids

for industry and

infrastructure more

urgent than ever,

says AspenTech’s

Ron Beck.

Microgrids: leading the charge

for energy security

T G IT TI   202

Industry Perspective

Beck says the return on

investment for microgrids can

e ignicant

THE ENERGY INDUSTRY TIMES - DECEMBER 2024

Final Word

aku, Azerbaijan: host to this

year’s COP29 climate summit

and once home to the Nobel

brothers. Although perhaps better

known as the name behind the Nobel

Prizes, the brothers also founded the

rst foreign oil company in the coun-

try. It was their pioneering move that

perhaps put the country on the inter-

national oil map, and on the path to

becoming a signicant oil and gas

producer. Yet if Azerbaijan’s standing

in the oil and gas sector was initial

cause for concern over the likelihood

of success at the summit, news of Don-

ald Trump’s victory in the US election

cast an even darker shadow over the

meeting and indeed the future of glob-

al climate change talks.

Whether concerns over Azerbaijan’s

roots in oil and gas were warranted is

up for debate. Certainly, going into the

summit, participant registration

numbers showed the fossil fuel voice

would override that of clean energy

proponents. According to gures

published in the Financial Times,

fossil fuel industry and consultants

were dominant among the Azerbaijan

guests, while delegates from the G7,

nance and industry were noticeably

decreased.

In his opening remarks Azerbaijan’s

President Ilham Aliyev was unasham-

edly forceful about the nation’s reli-

ance on its oil and gas wealth, which

generates about 90 per cent of exports

and which he has repeatedly described

as a “gift from god.” Indeed, Azerbai-

jani gas exports have been a blessing

to the EU in the wake of the gas crisis

resulting from Russia’s invasion of

Ukraine.

Lambasting western critics, Aliyev

said: “Unfortunately double standards,

a habit to lecture other countries and

political hypocrisy became kind of

modus operandi for some politicians,

state-controlled NGOs and fake news

media in some Western countries.”

Any insinuation that his country was

not committed to the climate change

movement because of its oil and gas

abundance was also disputed by state-

owned oil company SOCAR.

Just ahead of the summit, I had the

opportunity to visit Baku to discuss

the optics of holding a climate change

summit in the country.

Orkhan Huseynov, Press Secretary

at SOCAR, told TEI Times: “Initially

when Azerbaijan was nominated [as

COP host], the main media attacks

were around: ‘why hold it in a petro-

state again?’ My personal point of view

is that you need to push where it hurts.

So, we don’t run away from the

problem. We understand that the

problems are there. There is a lot to be

done but why not do it in the country,

which is already having these issues?

Our position is that we are not shying

away from our oil and gas industry but

at the same time we understand that

there are things to be done, and we are

ready to be part of it.”

Mustafa Gurbanli, Head of the En-

vironmental Disclosures and Green

Affairs Department added: “By hold-

ing COP in Azerbaijan, there is much

closer scrutiny of our operations; we

are under the spotlight. If you ask me,

holding COP in a petro-state only ac-

celerates the transition because of the

spotlight.”

Asked whether SOCAR had any

concerns about a shift to a greener

economy and whether it might harm

oil and gas revenues, Gurbanli, said:

“…We don’t have any serious con-

cerns, but transition has to happen

smoothly. It requires time. The world

is saying forget about oil; let’s be-

come green… but you can’t just re-

move it in 20 years and say forget

about it. Society, people and infra-

structure have to adjust. I think there

needs to be a proper rulebook with

the right regulatory environment.

And it’s very important that policy-

makers are adopting policies that not

only help consumers but also help

producers, and we all move together

in one direction.”

With funding for the transition and

climate adaptation expected to be the

main talking point at the COP meeting,

SOCAR also pointed out that money

generated from oil and gas exports

would be important.

“e need to nance these projects

and to do so, we need to continue with

fossil fuels to some extent and inject

that money into renewable projects,”

said Huseynov.

Although rich with fossil fuel re-

sources Azerbaijan is still making a

signicant effort to green its energy

system.

SOCAR is in the process of trans-

forming itself from National Oil

Company into National Energy

Company and by 2035 aims to have

“a diversied portfolio that includes

not only oil and gas, but also low-

carbon businesses”.

Gurbanli, said: “By 2050, SOCAR

is aiming to become net zero… by

2030 we are aspiring to achieve zero

routine aring and by 203, near ero

methane emissions. And 2050 is the

target to become net zero.”

To reach its ambition the company

says it is establishing new businesses

in partnerships with “global leading

companies” in areas such as renew-

ables (solar and wind), green hydrogen

and new technologies “to support

development of specic territories of

Azerbaijan”. Earlier this year it

founded SOCAR Green LLC, a

company that is focusing on low-

carbon businesses.

SOCAR’s partnership with bp is one

example of its partnerships aimed at

decarbonisation. Together they will

undertake the Sunrise project – a 240

MW solar plant that will generate

power for the electrication of an-

gachal oil and gas terminal, reducing

emissions by 260-330 kt per year.

Even more notable is its partnership

with Masdar to develop three major

solar and wind projects with a capac-

ity of 1 GW.

Groundbreaking on the projects in

June this year follows Masdar’s

completion of the 230 MW Garadagh

solar plant in October 2023 – Azerbai-

jan’s rst foreign investmentbased

independent solar power project, and

the largest solar plant in the region.

SOCAR with its partners has com-

mitted to 2.3 GW of renewable capac-

ity, which is twice the renewable en-

ergy capacity required for the national

target. It’s a signicant commitment,

especially when considering the

country’s peak demand is 4.5 GW,

occurring just once a year, according

to the Ministry of Energy.

Commenting on the importance of

COP29 to the country’s renewable

plans, Javid Abdullayev, Director,

Azerbaijan Renewable Energy

Agency under the Ministry of Energy

of the Republic of Azerbaijan, said:

“COP29 is important to show what we

are doing in the eld of green energy

and share our experience with other

countries.”

As an important oil and gas pro-

ducer it is important that Azerbaijan

and the likes of SOCAR takes owner-

ship in taking a lead in the energy

transition. Yet such examples are few

and far between. A recent report from

Carbon Tracker warned that oil and

gas companies are falling short in ef-

forts to curb carbon emissions, claim-

ing that “progress has basically

stalled”.

The report was the latest warning of

slower progress on curbing emissions

as thousands of country leaders and

executives gathered in Azerbaijan.

Notably, it came hot on the heels of

Donald Trump’s re-election as US

President, with his looming promise

to “drill baby, drill” and threat to re-

move the US from the Paris Climate

Agreement.

As COP kicked-off John Podesta, US

President Joe Biden’s top climate ad-

viser conceded action to limit global

warming “may be put on the back

burner” after Trump’s return to the

White House but sought to reassure

the world that this could “slow, not

stop” the shift away from fossil fuels.

Podesta said “we should believe”

Trump when he said he would “reverse

much of [the] progress” the US had

made on tackling climate change. “In

January, we will inaugurate a president

whose relationship to climate change

is captured by the words: ‘hoax’ and

‘fossil fuels’,” he said.

“Are we facing new headwinds?

Absolutely. But we won’t revert back

to the energy system of the 1950s. No

way,” said Podesta.

Unfortunately, such words ring hol-

low with the news that Chris Wright,

the hief ecutive of oileld ser-

vices group Liberty Energy is to be the

new US Energy Secretary in the Trump

administration.

What would the Nobel brothers,

Alfred, Ludvig and Robert have made

of it all back in 1876? Would they have

“drilled baby, drill” in pursuit of build-

ing their oil empire or would Alfred

have led the climate change movement

with the same foresight that founded

the prizes which recognise those that

have conferred the greatest benet to

humankind?

Abandoning a noble

cause?

Junior Isles

Cartoon by Jem Soar