INDUSTRY REPORT
Renewable sources of electricity , such as wind and solar , grew at their fastest rate in two decades in 2020
world consistent with the Paris goals , the IEA projects that oil and gas will still provide 47 % of the world ’ s energy needs in 2040 . In other IEA scenarios , the role of oil and gas in the energy mix is even greater .
In its “ Oil & gas Industry in Energy Transitions ” report , the IEA again emphasized that investment in existing fields – and some new ones – remains part of the picture and that a wide range of approaches and technologies are required to achieve the necessary emissions reductions . The IEA warns not to exclude the oil and gas industry by stressing the important role it plays in bringing new technologies , such as carbon capture , utilisation and storage ( CCUS ) and hydrogen , up to speed .
IOGP and its members strongly agree – a ‘ well-below 2 degrees scenario ’ is impossible to pursue without more renewables and energy efficiency but , in particular , without adopting technologies such as CCUS and blue hydrogen .
Net Zero roadmap
In May 2021 , the International Energy Agency ( IEA ) published its Net Zero roadmap . It calls for the joining of efforts to achieve the goals of the Paris Agreement and identifies technology , innovation , policy and behaviour change as key enablers to reach the goal of decarbonisation .
“ Meeting global energy demand while achieving decarbonisation is a priority for industry and society and requires everyone ’ s commitment ” said Iman Hill , IOGP Executive Director . “ To get there , oil and gas will continue to play a key role in the energy mix . Without further investments in new oil and gas fields , the world would require massive deployment of other energy sources and efficiencies as well as huge investments in research and in new technologies , ramped up at a pace we haven ’ t seen yet , as acknowledged in the IEA ’ s Net zero roadmap .
“ We all share the same goal and are committed to innovating in areas such as electrification , flaring and venting , carbon capture and storage , energy efficiency and methane emissions detection , quantification and reporting . The oil and gas industry has the experience , skills and resources necessary to help find a balanced way forward , one which benefits society as a whole .”
Renewable sources of electricity , such as wind and solar , grew at their fastest rate in two decades in 2020 and are set to expand in coming years at a much faster pace than before the pandemic , according to a new report by the International Energy Agency . The growth in Europe and the United States will be even brisker than previously forecast , compensating for China ’ s transitional slowdown after exceptional 2020 growth .
According to the IEA ’ s latest market update , the amount of renewable electricity capacity added in 2020 rose by 45 % in 2020 to 280 gigawatts ( GW ), the largest year-on-year increase since 1999 . That extra power is equal to the total installed capacity of ASEAN , a grouping of ten dynamic South-East Asian economies .
Shifting power generation to renewable sources is a key pillar of global efforts to reach carbon neutrality , but CO 2 emissions are set to rise this year because of a parallel rise in coal use , underscoring the major policy changes and investments in clean energy needed to meet climate goals .
“ Wind and solar power are giving us more reasons to be optimistic about our climate goals as they break record after record . Last year , the increase in renewable capacity accounted for 90 % of the entire global power sector ’ s expansion ,” said Fatih Birol , the Executive Director of the IEA .
“ Governments need to build on this promising momentum through policies that encourage greater investment in solar and wind , in the additional grid infrastructure they will require , and in other key renewable technologies such as hydropower , bioenergy and geothermal . A massive expansion of clean electricity is essential to give the world a chance of achieving its net zero goals .’’ ■
24 | sheetmetalplus . com | ISMR June 2021