Energy

The majority of signatories are pursuing investments in new energies. (Image source: Adobe Stock)

The majority of signatories to the Oil & Gas Decarbonization Charter (OGDC) are on track to meet its goals, according to a progress report

The Oil & Gas Decarbonization Charter (OGDC) is one of the landmark initiatives launched at COP28, with objectives including net zero operations by 2050, and reduction of methane emissions to near zero and the elimination of flaring by 2030. 54 oil and gas companies - representing almost 45% of global oil production, have signed up to the Charter.

In the past 12 months, OGDC has established a governance framework and launched a survey to determine signatories’ emissions reduction ambitions and implementation plans to set a baseline to track future progress.

OGDC has also implemented a Collaborate & Share program to disseminate solutions, promote peer-to-peer collaboration and encourage the adoption of best practices to reduce emissions. The initiative has also attracted three new members, with Oil India Limited, PetroChina and Vår Energi joining.

“We are proud of the 54 companies that have already signed up to the Charter and are encouraged by the extent of their engagement in this first major piece of work that helps to establish a base on which to build future success,” said OGDC’s three CEO Champions and founding members – Abu Dhabi National Oil Company (ADNOC) CEO Sultan Al Jaber, Aramco CEO Amin Nasser and TotalEnergies chairman and CEO Patrick Pouyanné, in a joint statement.

Investing in future energies

According to the survey, most of the signatories are already investing in future energies, including renewable energy, energy storage, low-carbon fuels, hydrogen, methane abatement, carbon capture utilisation and storage (CCUS) and carbon removals technologies, and plan to increase investments.

Bjorn Otto Sverdrup, the head of the OGDC Secretariat said: “A survey of oil and gas industry climate performance has never been attempted on this scale. Participants ranged from companies that pioneered decarbonisation decades ago to those still in the early phases – all with different capabilities and reporting methods. The lessons learned will be used to improve reporting visibility and data quality and to create more targeted programs.”

Over the next year, OGDC will focus on providing the resources and guidance the signatories need to reduce their GHG emissions, methane emissions and flaring. OGDC will also help signatories to shape their net-zero roadmaps and develop emissions reporting to ensure progress can be tracked and to demonstrate how collective action can deliver positive climate impact on a global scale.

The investment also supports the development and commercialisation of UIG’s Energy Storage for Resiliency (ESR) platform. (Image source: Volvo Penta)

Expanding on the foundation set by Volvo Penta’s initial investment in 2023, Utility Innovation Group (UIG) is set to amplify its expertise to address the rising demand for adaptable, sustainable electric grid infrastructure.

“This follow-on investment in UtilityInnovation Group reflects our commitment to advancing reliable and efficient electrified power solutions as part of our broader net-zero ambitions,” said Anna Müller, president of Volvo Penta.

UIG’s expertise in data centre power solutions and the evolving grid landscape is further enhanced by the integration of Volvo Penta’s robust BESS subsystems. This collaboration addresses the demand for resilient energy solutions by combining Volvo Group’s advanced technology and global reach with UIG’s deep integration capabilities.

Together, they aim to deliver larger, innovative energy developments for clients, including utilities, data centres, and high-energy users worldwide.

Optimisation technique

The investment also supports the development and commercialisation of UIG’s Energy Storage for Resiliency (ESR) platform, a solution intended to bolster power stability and ease the energy demands of intensive data centres reliant on AI and machine learning, as well as optimise large microgrids.

Additionally, UIG’s GridSure platform leverages data-driven insights and cyber-secure management tools to oversee grid capacity, improve system resilience, and monitor infrastructure comprehensively, ensuring stable and efficient grid operations.

“The investment in UtilityInnovation Group highlights the potential we see in our BESS subsystems for high energy demand sectors,” said Hannes Norrgren, president of Volvo Penta’s Industrial Business. "Entrepreneurial companies like them bring specialised expertise that enhances our capabilities to meet future demands and accelerate time-to-market with pioneering solutions.”

Sidney Hinton, founder and CEO of UIG, added, “We are thrilled to deepen our partnership with Volvo Penta. Their global reach and commitment to sustainability make them an ideal partner as we work to address the critical challenges facing the energy sector today.”

Volvo Penta’s investment in UtilityInnovation Group reinforces its commitment to advancing the global energy transition and highlights its focus on creating sustainable, resilient energy solutions for the future. This transaction does not significantly impact Volvo Group’s financial results or overall financial position.

The panel emphasised South-South collaboration. (Image source: Alain Charles Publishing)

During a panel session at ADIPEC 2024, industry stakeholders discussed ways to increase collaboration between countries in the global South and the global North.

The discussion focused on energy transitions and the role of OPEC in ensuring energy access. Key points included the need for diverse energy sources, with OPEC advocating for all forms of energy, not just renewables. The conversation highlighted energy inequalities, such as Heathrow Airport consuming more energy than Sierra Leone.

The Paris Agreement was emphasised as a reduction of emissions, not a phase-out of fossil fuels. The East Africa pipeline and Uganda's oil projects faced financing challenges but are progressing.

The importance of South-South cooperation and regional collaboration in energy projects was underscored, with examples from Uganda, Cyprus, and Sierra Leone.

His Excellency Haitham Al Ghais, Secretary General of OPEC, explained why fossil fuels will continue to play an important role in the global South.

“We talk about the importance of another factor, which is urbanisation. By 2030 which is less than six years from today, we're going to have over 582 million people, nearly 600 million people, moving into new cities all around the world, again in non OECD developing parts of the world,” he said.

“The Paris Agreement, ladies and gentlemen, is about reduction of emissions. It's not about phasing out or phasing down or keeping the oil under the ground. It's about reducing emissions that includes technology, that includes investing in renewables, investing in all sources of energy.”

“We have the OPEC Fund for International Development, an agency, a sister agency, based in Vienna, that is very active in Africa and other parts of the world in developing and promoting socio economic development projects, energy projects as well as renewable energy projects.”

“We also have the charter of cooperation, which we signed in 2019 which is a platform that is open for oil producers to participate in, whether it's exchange of technologies, exchange of experiences between various member countries and non OPEC producers who are not members of OPEC that can participate in this platform to gain access to the best practices being implemented in our member countries.”

Growing South-South collaboration

Uganda’s Minister of Energy and Mineral Development Ruth Nankabirwa, said, “The East African crude oil pipeline was a negotiated project, and it was a win-win. My president wanted all the oil refined in Uganda, but because we didn't have money to do it by ourselves, we collaborated with investors and we let some of the crude leave the country, while some is refined, which will come with industrialisation.”

Deputy Minister of Energy for Sierra Leone Edmond Nonie, said, “We have big clients in the mining sector who have the capital to pay and have the willingness to pay for lower priced electricity from the grid. So we are embarking on a campaign to connect these mining companies, and once we have these transmission lines out to these companies, we can then do the further, last mile connection to our communities.”

Meanwhile, Cyprus is collaborating with Egypt for energy transmission.

The country’s Minister of Energy, Commerce and Industry, George Papanastasiou, said, “The conversation with my colleagues in Egypt is to utilise the [Egyptian] infrastructure [for export]. Secondly, there are pipelines that cross the eastern Mediterranean, which reach Egypt. And the infrastructure in Egypt, there are two LNG terminals, liquefaction plants in Egypt, which are under-utilised.

“This is possibly the destination in order to reach the markets. Of course, there is the domestic market of Egypt as well, which is very important. We all know that power generation in this country is mostly coming from natural gas. Cyprus is very well positioned, and at the right time in order to support and provide the natural gas and use the infrastructure in order to reach the international markets.”

ADIPEC 2024 is spotlighting the pivotal role of AI in the energy transition. (Image source: ACP)

On 4 November, Abu Dhabi welcomed the global energy sector to the UAE as ADIPEC 2024, the world’s largest energy event, opened at the ADNEC Centre

Hosted by ADNOC and themed 'Connecting Minds. Transforming Energy', ADIPEC 2024 is spotlighting the pivotal role of artificial intelligence (AI) in the energy transition, while introducing new insights from finance, technology, and the Global South, as well as youth perspectives, to promote a sustainable, secure, and equitable energy future.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said at the opening ceremony, “Energy markets must shift and grow, and energy systems must be transformed.” He said that by 2050, “Wind and solar will expand seven times. LNG will grow by at least 65% and oil will continue to be used for fuel and as a building block for many essential products.”

These growing demands can only be met via artificial intelligence, he said. “AI is one of those areas defining breakthroughs that are changing the pace of change itself. It is redefining the boundaries of productivity and emissions, and it has the potential to accelerate the transformation of energy systems and to supercharge low carbon growth.”

“As AI expands, it will rely on a massive scale up of data centres for its huge and fast growing computational needs. Over the next six years, data centres will more than double, requiring at least 150 GW of installed capacity by 2030 and doubling again by 2040. No single source of energy is going to be enough to meet this demand. We need to integrate renewable energy, nuclear energy and gas in the most cost and carbon efficient way.”

The keynote speech by Al Jaber was followed by a ministerial panel, where leaders from the UAE, India, Egypt and Uganda presented their positions.

“ّIn the UAE, we are privileged with a leadership that believes in investments in energy, and all forms of energy. Our president His Highness Mohammed bin Zayed is a visionary leader, for the role of different forms of energy. And as you can see, we are investing in renewable, nuclear, and conventional as well.”

“In India, I can tell you that today we are using artificial intelligence for refinery automation,” said Hardeep Singh Puri, India's Minister of Petroleum and Natural Gas. “We are using artificial energy intelligence for 2D and 3D seismic surveys, for finding oil and gas. We are using low cost solar energy in a way to boost our power in our data centres.”

Karim Badawi, Egypt’s recently-appointed Minister of Petroleum and Mineral Resources, said, “Egypt's position as a regional hub, provides an ability to contribute to the petrochemical sector, in the refining sector, as well as export sector. We have the capacity to export refining capabilities of 40 million tons. So when we look at the situation in Egypt, we would like to leverage our position to be able to unlock the potential of the gas reserves, not only of Egypt, but of the region and of the Mediterranean.”

“Uganda's participation [in ADIPEC] will be to exploit the potential that you have in power generation, because advanced technology requires power and clean power,” said Ruth Nankabirwa Ssentamu, who is Uganda’s Minister of Energy and Mineral Development. She said that the country is equipped to diversify its energy mix, consisting of solar and hydro power. “We also have potential for nuclear power,” she said.

Uniting global tech leaders

This year’s event debuts the Energyai by ADNOC zone, where global tech leaders such as enercap, Accenture, AIQ, Microsoft, and Baker Hughes will present innovative AI solutions to address energy needs and drive emissions reduction. This dedicated AI area will feature the Energyai Conference, Creative AI Lab, Reskilling Lab, networking spaces, demo stations, and an interactive AI showcase, offering attendees a firsthand look at cutting-edge technologies and collaborative opportunities within the industry.

With an anticipated 184,000 attendees from 164 countries, ADIPEC 2024 will be the largest event in its history. The conference lineup will include over 1,800 speakers, featuring 40 ministers and 200 top executives from the Middle East, Asia, Africa, Europe, and the Americas, all engaging 16,500 delegates across more than 370 sessions. ADIPEC’s ten-conference series, including the flagship Strategic Conference, will bring together global business, political, and industry leaders to set a clear path for an inclusive and balanced energy transition.

Under the patronage of H.H. Sheikh Mohamed Bin Zayed Al Nahyan, President of the UAE, ADIPEC 2024 is poised to deliver insights and innovations to shape the future of the energy industry. A convenient Park-and-Ride service will run every five minutes between Zayed Sports City and ADNEC from 6:00 to 19:00, ensuring easy access for all participants from 4–7 November 2024.