Energy Transition & Decarbonization

Climate Targets & Key Challenges

Climate change targets are pressing hard on investors and operators alike to realign their portfolios from fast changing regulatory environment across the globe towards greener energy solutions. The energy companies that have a clear transition and transformation plans, are likely to attract more investments. The companies, that fail to have credible transition plan may loose capital investments and face substantial decline in their asset value, to a risk of stranded-asset with no recourse to development.

 

We help energy companies to develop a strategy to manage their transition.

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Technologies & Startegies

  • Business-as-usual will miss emission target by big margin; end up with nearly 35 GtCO2/y by 2050

  • To meet Net-Zero, three broad strategies are used

    1. Avoiding Emissions

    2. Reducing Emissions

    3. Removing Emissions.

  • The first two strategies; avoidingreducing will decarbonize most industries except difficult ones (cement or steel). They will require removing emissions by nature based solutions and technology based solution (DAC & CCS)

  • Avoiding & Reducing strategies are short to medium-term strategies, that need to be pursued aggressively to remove most of emission

  • Removing emission is a longer-term strategy; requires technology regulations and incentives

 

1. Avoidance Strategies

  •  Use of renewables, like wind (offshore/onshore), solar for energy

  •  Avoiding methane from waste & landfills

  • Mergers & Acquisition is tool used for renewable energy diversification by companies 

 

2. Reduction Strategies

  • Decarbonization of  oil & gas 

    • Eliminate Flaring

    • Shut-off CO2 vents

    • Monitor & avoid methane (CH4) leakages

    • Zero Emission Electricity (ZEE) for for production

    • Use of Green Hydrogen

    • Use of Blue Hydrogen

  • Delinking Oil & gas

  • Coal-to-Gas shift 

3-Removal Strategies