Technology dictates pace, nature, direction of energy transition

The discourse around energy transition has always been housed within economics especially because of its impact on global macroeconomics policy responses. But at the same time, it directly affects man’s survival tendencies from the very beginning of human existence (with detailed and unambiguous historical background and progressive trend that dates to the “stone age” of the “early man” and shortly after, the agrarian revolution that followed). Energy sourcing, production and consumption directly relate to technological evolution with its relevant and respective advancements actualized at every stage of human life, and all the eventual industrial revolutions over the ages. This is still an ongoing phenomenon with a trend of innovative initiatives that always lead to multi-dimensional economic results and manifestations. It is also directly factored into costs of energy utilization and the overall energy economy (manifesting from the very operational energy-mix at each point in time). It is also known that the outcome significantly affects productivity, economic efficiency, social/environmental impacts, and its sustainable consequential aftermath on the globe. In other words, without technological ingenuity, development and growth, energy transition would obviously not see the light of the day; and may have remained as in the “dark-age”. Science and technology, therefore, are very vital and essential academic faculties/tools (through constant engagement, continuous research and development – R&D) that will sustainably maintain the energy development trend, improve on energy systems, and the ever-increasing tempo of continuous technological insights and advancement on the transition to cleaner energies.

In the events of today’s contemporary global energy issues, challenges and the ongoing catastrophic and very threatening environmental impact on man’s sustainable future existence on the planet earth, it is again through technology/technological advancement and the attendant knowledge-based growth on energy utilization that meaningful transition can be formulated in the direction that would suit its sustainability, while at the same time maintain the strategy of remediation on the existing environmental devastations and the various kinds of environmental disasters (ranging from flooding, drought, fire incidences, desertification, earth quake and tremors, windy storms and so on). The environmental impact results from the past usage of energy; for economic activities and maintenance of life. These are sourced from fossil fuels (knowingly or unknowingly) that heated up the globe with carbon emissions. Consequently, whenever adaptation and mitigation are mentioned for the feasible, green solutions on the ongoing global fight against climate change, through cleaner or renewable energy sources, the very first thing that must be borne in mind of every matured creature, is an innovative pathway offered through R&D in technology; for the purposes of reversing the trend on future losses and damages brought on nations. It is only technology that offers such solution (including achieving the targeted net zero effect, along with the risks on environment, social and governance – ESG). The targeted net zero effect (as contained in the Paris Agreement) is the increasing commitment plan for removing as much CO₂ produced by companies (including cities and nations) to limit global warming, come 2050.

Energy companies all over the globe have started strategizing and offering technological solutions that would drive the aspired transformation through a carefully, calculated economically feasible energy transition. A typical example from the industry is the sustainability solutions efforts with worked out indices for over two decades (made by SEEK & PROSPER, a division of S&P Global) that are as flexible as, to the market participants, by reflecting convictions, which align with the objectives of the Paris Agreement, and the other global/regional standards. All these are driven by datasets of the indices that assist in the mitigation of physical, climate, social and governance risks that range from ESG, net zero, low carbon climate approaches that target other strategies like the clean energy or hydrogen. This also involves the urgent need to invest in new technologies to reduce emissions, as suggested by Zahar Ibrahim, vice president at Baker Hughes, who has outlined what is being done in his region of coverage (Europe, Middle East & Africa) towards making energy affordable, reliable, and available to all. The attraction focuses on energy consumption, which requires the technology that would drive its transition, knowing that their main source of fuels for energy in that region is fossil-based; and situation demands that a balance must be struck to suit its energy-mix portfolio for greater economic benefits for the region and its people. The technological operations required, ought to consider efficiency in oil extractions for more output with less carbon emissions. Reason being that the world cannot just jettison the energy needs and consumption from oil and gas, which still play an important role in energy affordability and its reliability too, bearing in mind the abundant and heavy reserves of hydrocarbons in the Middle East and Africa region (in-spite of the ongoing plan for a global shift in energy transition). The just concluded COP27 and the forthcoming 2023 COP28, being hosted consecutively within the region, indicates the fact that Africa and the Middle East are committed to the Paris Agreement in driving the climate change agenda for a targeted net zero plan by 2050, through technology.