FGE's New Energy Service—providing decision makers in the energy sector with key insights and market analysis on the energy transition, decarbonisation, alternative fuels and the commercial opportunities and challenges these changes bring.
Global moves to cut CO2 emissions from the production and use of hydrocarbons are creating significant momentum towards reducing or replacing the combustion of oil and natural gas with CO2-free and/or CO2-neutral fuel sources.
A number of countries and companies have either proposed “net-zero” targets or have already passed their GHG/CO2 emission reduction targets into law or written them into their corporate strategies. These long-term targets will shape the future of energy use across a wide variety of sectors.
The past decade’s energy picture has been marked by falling costs for solar and wind power technology and delivery. This trend will continue, making green electricity a major contributor to the energy transition in the form of end-use product, as well as feedstock.
Batteries will remain the dominant means of decarbonising road transport. However, as energy transition policies gain traction around the world, it is becoming clear that rising global energy requirements cannot be met fully with an “electrify everything” approach.
These changes are creating a vast range of opportunities for companies that are currently devoted to, or mainly focused on, the traditional oil and gas business. Large-scale CO2removal from hydrocarbon-producing assets and facilities, combined with much-increased usage of carbon capture, utilisation and storage (CCUS) technologies, will be essential for achieving carbon neutrality for the oil and gas industry and, in turn, for countries’ ability to meet international climate change targets. The CO2 price will become the main linking factor between fuels and sectors. Hydrogen will become a major fuel in hard-to-decarbonise sectors due to its versatility and will also enable the production of synthetic fuels. Non-carbon-based and carbon-neutral liquid fuels, such as green ammonia and green methanol, will play a significant role in the marine bunker sector. Biofuels are already used widely by many sectors, usage which is set to rise sharply in the coming years.
FGE’s New Energy Service combines insights from conversations with key stakeholders together with detailed market analysis to provide an authoritative twice-monthly update on the energy transition, decarbonisation, alternative fuels, and the commercial opportunities and challenges that these changes will bring.
We do this by using and re-purposing our extensive expertise in data collection and analysis of refining, natural gas and oil markets, as well as by leveraging our longstanding client relationships across the refining, trading, and oil and gas production sectors.