Energy transition requires talent and technology

15 November 2023

Commentary
Jennifer Aguinaldo
Energy & technology editor

The largest national oil companies and energy developers are leaving no stone unturned as they seek to expand their capacities and maintain their positions as global energy exporters while lowering their emissions.

They benefit from abundant capital and favourable sovereign credit ratings to pursue solutions ranging from renewable hydrogen electrolysis to carbon capture, utilisation and storage (CCUS), as well as the production of synthetic fuels.

For example, Abu Dhabi National Oil Company (Adnoc) has adopted decarbonisation initiatives that include powering its entire operations with clean energy; enhancing the water-injection technology at its onshore oil fields; installing subsea high-voltage, direct current (HVDC) cables to reduce the carbon footprint of its offshore operations; and the adoption of CCUS systems.

Both Adnoc and Saudi Aramco have formed artificial intelligence teams to look into applying advanced technologies to improve energy efficiency in oil exploration and production.

Abu Dhabi National Energy Company (Taqa), which has allocated $20bn for asset expansion up to 2030, is investing in a geothermal project in Indonesia and an HVDC project that will pipe renewable energy from Morocco to the UK.

In addition to capital, these and other foreseeable decarbonisation projects require the development of new technologies, or the rapid scaling of existing ones. For instance, the maximum individual electrolyser capacity currently stands at 20MW, which means the Neom green hydrogen project in Saudi Arabia will require 100 units of 20MW electrolysers to reach its design capacity. 

In addition, the region, and particularly Saudi Arabia, plans to exploit mineral reserves such as copper and aluminium. These are crucial to energy transition technologies such as solar and wind turbine modules and lithium-ion batteries for energy storage and electric vehicles.

Securing expertise

All this will require a rapid build-up of expertise. This could initially take the form of firms seeking to attract and relocate experts into the region, or the establishment of joint ventures and hubs to facilitate technology and knowledge transfer.

Some jurisdictions in the region have pursued this model in the past – for example with the establishment of Dubai Internet City in the early 2000s or, more recently, Dubai International Financial Centre and Abu Dhabi Global Market – with mixed outcomes.

In a similar vein, experts are now pushing for the creation of 'hydrogen valleys' to facilitate the establishment of a domestic and international supply chain for the nascent sector.

As well as investing in physical infrastructure projects, the main stakeholders of the region's energy transition initiatives have to prioritise attracting and retaining international and local talent to ensure they meet their targets. 

Image: Pixabay

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Jennifer Aguinaldo
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