Energy industry continues focus on how technology can reduce carbon intensity
OGCI Climate Investments recently sat down with IHS Markit Expert Carolyn Seto, Director of Upstream Insight, to discuss the importance of low-emissions technologies in meeting climate change goals. The partnership between IHS Markit and OGCI Climate Investments includes Venture Day, which will feature a selected shortlist of 10-15 companies working on energy efficient solutions with the potential to deliver material reductions in CO2 emissions in the energy and industrial value chains. This partnership brings promising technologies and commercial models to the forefront of CERAWeek discussions, giving a voice to how the industry can meet the carbon challenge, while also building connections between the public and private sectors.
Heavy industry continues to consume the vast majority of energy demand in the US, thereby being a significant contributor to emissions. Because many industrial processes cannot be feasibly be substituted by low carbon intensity fuels or renewables, the focus on how technology can improve energy efficiency becomes critical. Four key areas that technology can support carbon reduction in the value chain are: materials and resources (extraction and production), system design and process optimization (understanding system wide perspective), automation and digitization (operational efficiency), and distribution networks (like transport resources and materials). These areas are all interconnected, allowing for synergies that could multiply and accelerate the impact of these technologies on lowering carbon intensity.
Heavy industry and energy can combine forces to target larger carbon reduction goals than if they worked individually. Taking a holistic perspective on the energy-industrial value chain, products from the energy industry are inputs to industrial processes and vice versa. For example, modifying fuels to burn more efficiently in an industrial process or developing stronger or lighter weight materials will require less energy for transportation will support system level reduction of carbon intensity. Additionally, both industries use common components like valves, motors and pumps. Solutions developed to increase efficiency of these components in the energy industry also have applicability in heavy industry. In working together, the two industries can become champions in driving an energy efficiency solution scalable for other industries and markets.
Carolyn explores this concept in greater detail in an article with OCGI Climate Investments. Read the full article.
See Carolyn at CERAWeek 2019 as she explores other this and other topics including how companies are changing how they treat and use data during the "Is Data the New Oil?" Agora Studio and the role of startups in reshaping the energy industry at the Energy Innovation Pioneers Breakfast.
Posted 1 March 2019
Follow IHS Markit Energy
- Navigating the investor landscape for North America unconventionals
- IHS Markit Forecasts $2 Gas in 2020
- 2021 offshore rig market: Out of intensive care but in rehab
- The potential of electric fracking
- From hope to frustration
- Low renewable auction prices in India – Aggressive bids or unrealistic expectations?
- Global battery storage: Poised for rapid growth as renewables drive need for flexibility?
- Announced wind turbine orders globally reaches record high in first half 2019