CERAWeek 2023 / March 2023 / Energy Focus

CERAWEEK 2023

Security, Affordability, Transition – Energy Trilemma in the Spotlight

Breaking down barriers, powering partnership, and igniting innovation has been at the heart of the famed CERAWeek conference since its establishment. This year, one of continued tumult and upheaval, is one which few have strategized for, and no one can reliably predict. This makes CERAWeek 2023 one of the most important gatherings of energy industry people in modern times, as the best in the space meet to discuss the way forward with affordability, security, and speed of transition foremost on the agenda.

PRODUCTION: David Hill

Book signing of ‘The Globalization Myth’ by author Shannon K. O’Neil, Council on Foreign Relations

//Daniel Yergin, S&P Global Vice Chairman and Pulitzer Prize-winning author, hosted another CERAWeek in March, highlighting the challenges and opportunities in the global energy industry. Known as a fountain of knowledge on the history of energy markets, Yergin is comfortable looking back, even through the past tumultuous year; but looking forward is a whole different proposition. Today, making predictions is harder than ever before. The level of uncertainty is sky high and - whether it’s the Russian problem or global supply chain issues or Covid-19 legacy or green transition related challenges – reliability, the holy grail of certainty for investors and stakeholders, seems like a dream.

In Houston, one of the world’s energy capitals – where there is a

shift underway, moving from oil and gas centre to energy transition home – leaders from the global energy space gathered for a week of insight, awareness, idea sharing, collaboration, and empowerment to bring about change and advance the future of energy.

CERAWeek is a product of Cambridge Energy Research Associates, a US consultancy offering up industry leading advice for governments and organsation on energy markets, geopolitics, and industry trends. First held in 1981, the event has attracted hundreds of thousands of attendees over the years, with the world’s most important speakers gracing the stage each year. Now delivered by global intelligence and insight business S&P, CERAWeek grows in popularity each year. Typically an event delivered

from a US perspective, CERAWeek is a unquestionably global in importance, and with energy security now a top priority for most governments, knowledge about the way forward that comes from discussions at CERAWeek

// WE SAW HOW QUICKLY, WHEN FORCED TO PRIORITISE SUPPORTING THE ECONOMY OR SUPPORTING PEOPLE’S NEED FOR ENERGY, WE ABANDON CLIMATE OBJECTIVES

Always somewhere to go or see in the Agora Atrium

will help, as much as possible, as complicated planning is at the heart of country and company strategy.

In 2023, the key themes include volatility, sparked by the Russian invasion of Ukraine; technology and innovation, as existing infrastructure is either phased out of adapted to achieve Net Zero targets; finance and capital, with trillions of dollars needed to continue a transition against a backdrop of high inflation; supply chains and commodity markets, required to achieve any sort of transition but over complicated and overpriced as they are; and the workforce, which will need to be overhauled and upskilled to team up with AI to meet significant challenges. But the central question posed to almost all of the experts across the week, in some shape or form, is about the trilemma – security, affordability, and speed of change.

Building an energy system that

is secure, sustainable, and affordable, while at the same time redesigning and redeveloping the global economy to address the climate change challenge –this is the problem facing organisations, and discussions at CERAWeek were underpinned by this key theme.

HIGH PROFILE

Darren Woods, CEO at ExxonMobil, told the conference: “We saw how quickly, when forced to prioritise supporting the economy or supporting people’s need for energy, we abandon climate objectives. We saw that in Europe as it

Audience at the Electrification of Everything plenary

went back to burning coal. The lesson there is to make sure that, as we move forward, we have policies that strike a balance and continue to manage all the dimensions of our energy need, providing affordable and reliable power to people around the world, at the same time finding ways to quickly reduce emissions. We can do both of those things, but policy needs to be structured to support that.”

He added that oil and gas remain vital as an energy source in the energy transition. “We recognised before

unveiling our strategy in 2018, that it was underinvested. It’s a depletion business. Most people forget that with every barrel that is produced, that is then not available for the future and the industry has to continue to invest. In 2018, when everyone was pulling back, we leaned in – and we were heavily criticised at the time for doing so – but we recognised at some point that supply would be needed and we wanted to make sure we would be there to provide.”

Mike Wirth, CEO at Chevron, agreed, saying: “The world uses an enormous amount of energy. It’s what makes life possible and what makes life better in developed countries and those that are still developing. Affordable and reliable energy is essential to the quality of life and the advancement of human progress. The issue of how we best move towards a lower carbon future is one that is being reframed as we get some real experience in pushing

these new technologies forward.

“The world runs on System A and we want to move to System B but it is only 2% built so you have to be very careful about turning System A off prematurely. System B needs to be scaled and proven in the conditions that are needed to provide the energy supply that the world depends on.”

Hon. John Kerry, the first United States Special Presidential Envoy for Climate, was clear in the message that a managed transition ensures success across the trilemma. “Demand is there globally. People are demanding that we keep our economies moving. You can’t suddenly just shut off the economy, shut off the lights, and shut of the heat - you have to keep things going. But at the same time, you can stay focused on reducing the emissions that are the by-product of the energy that keeps your economy moving.

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AFFORDABLE AND RELIABLE ENERGY IS ESSENTIAL TO THE QUALITY OF LIFE AND THE ADVANCEMENT OF HUMAN PROGRESS

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There is a shift in the marketplace, and that will continue. Companies are starting to move. They’re reducing their own emissions, and they’re looking at ways to have a clean supply chain.”

Clearly, a significant point from the

event is that, despite the challenges driven by Russia, the commitments to emission reductions and achieving climate goals are not going to be neglected. The demand from people is clear – keep us energised, move us forward, but clean up your act – and do it all at the same time.

Herein lays the challenge, and this is where discussion in the event’s Innovation Agora become increasingly important.

FUTURE ENERGY

An expected hot topic across the Hilton Americas in Houston was hydrogen and its inevitable deployment within energy systems of the future. The abundant element and its use within the energy mix as unquestioned, but safe generation, storage, and deployment at scale remain experimental. Industry leader, Linde and the company’s VP Clean energy, David Burns was on

hand to explain more about use in refinery processes. Alongside a panel of hydrogen experts, Burns highlighted the current level of expertise in the space and said that Linde is ready now. “For Linde, steel is already a very important business. We’re very familiar with it and we’re well connected with the major players. So as customers look to decarbonize, we’re in a good position to step in and support. The viability of green hydrogen is largely dependent on having a continuous and viable supply of green power. That’s what will determine the pace of uptake,” he said.

Driving a new conversation on the renewable front, Chris Griffin –CEO at Hover Energy – presented the company’s innovative wind powered micro grid solution and integrated energy management system, which

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// TO SUCCEED, WE NEED TO MOVE PAST THE CONCEPT OF A SINGULAR TECHNOLOGY ANSWER AND START THINKING ABOUT HOW WE INTEGRATE TECHNOLOGIES //

Women in Energy Reception

Generating Power Where it is Consumed

Hover Energy is helping accelerate the energy transition through unique climate technology. The company’s Wind-Powered Microgrid™ was recently on display at CERAWeek 2023 in Houston, and the innovative package stood alone in the renewable energy space. CEO Chris Griffin highlights for Energy Focus the impact of Hover, and the major opportunities in the market.

In 2022, Hover Energy was lauded as Technology Innovation of the Year at the Wind Investment Awards thanks to its ability to offset up to 100% (and sometimes well beyond 100%) of a building’s power consumption. The Hover Wind-Powered Microgrid™ features a combination of proprietary wind power technology and solar energy generation, with a state-of-the-art electronic control system for behind-the-meter power integration.

At CERAWeek 2023, Hover was the only company to display an integrated system which can harness alternative forms of natural power, owning the technology and creating contributors from consumers.

What is the problem that Hover Energy is solving?

Energy security and independence. The built environment is a consumer of nearly one third of all power on earth but, sadly, this massive consumer has never been a contributor to its own power needs, and its reliance on the grid makes both energy security and aspirations to achieve net zero nearly impossible.

We have, for too long, been dependent on centralised power. We believe we can be a part of the transition to independence through distributed energy. What if you could utilise the assets you already have instead of planning for them from a distance? At Hover Energy, we envision a world where buildings can capture all of the energy they need from their very own rooftop – it’s not only possible, but it is being done right now. We have worked with the best of the best, over the past decade, to exponentially increase the achievable power on site. Our Wind-Powered Microgrid™ features a Renewable Energy Router control system, which has an open architecture to combine multiple sources of renewable energy.

I walked through the conference looking for different microgrid solutions and I only found two that looked at microgrids in a similar way to Hover – meaning they were integrating multiple technologies to deliver as much power on site as possible. In one instance, the solution provider was acting primarily as a developer, with no technology IP being deployed. The other microgrid solution I saw incorporated fossil fuel burning gensets as a component of their solution, whereas Hover is 100% renewable. Not a bad solution, just not ‘clean’. And during the conference, there was one other that had embarked on a path that’s focused on a singular technology. After years of being in the market, Hover is convinced that an open-architecture, multi-source approach has the greatest future in renewable energy microgrids.

How does the Hover technology work and how scalable is the concept?

Hover can design, develop and deploy a power solution that takes full advantage of all environmental resources. The volume of power produced by the Hover Wind Powered Microgrid™ is a game changer for the built environment. The aerodynamic design of the turbine uses the building as a sail. As wind sweeps up and over the edge, it is accelerated significantly. The unique shape of the wind turbine diverters and positioning on the building’s edge, further optimise the available wind resource. Silent night-time power means the potential for 24-hour production. Solar acts as a complement to the turbine array, generating power during daylight hours. The energy captured by both sources is directed into a Renewable Energy Router where the energy is combined, cleaned, and converted into three-phase AC power, directly linked to the building management system (BMS).

The result is transformation of the built environment from a consumer to a contributor of energy. Whether you are a building, an island, or a city, achieving energy independence and securing resilience is finally a reality.

Hover connects people to the power they consume. Already active on rooftops around the world, the idea is evidenced with major international clients and could benefit your business financially and environmentally. Contact Hover today to learn more.

www.hoverenergy.com | info@hoverenergy.com

+1 (214) 771-9747

INCREASE THE RECOVERY OF NATURAL RESOURCES WITH SUSTAINABLE NANOBUBBLE TECHNOLOGY

Nanobubbles are a new class of science that enhances and improves the performance and productivity of some of the most critical industrial processes, unlocking the power of water to help farmers grow more food, empower businesses to manage their water needs more effectively and efficiently, restore aquatic ecosystems sustainably without chemicals, and improve the extraction of minerals and natural resources. Established in 2016 in California, Moleaer, the global leader in nanobubble technology, has continually expanded this science into a variety of industries with more than 2000 installations in over 51 countries around the world.

Nanobubbles have unique properties and behaviors, such as a high surface area, the ability to alter fluid properties and high gas transfer efficiency, that can be applied to mining and oil and gas industries to aid in mineral recovery and production. For example, the leaching of primary sulfide ores requires the presence of oxygen. Nanobubbles can assist in creating an oxygen-rich environment to facilitate ferric oxidation and help maintain and enable heterotrophic microbial activity. This can lead to an improvement in the kinetic copper recovery rate of the heap leach, especially in leaching applications with poor permeability and naturally low oxygen levels.

In oil and gas applications, nanobubbles have been found to have a variety of impacts, from enhancing oil recovery in waterbased flooding techniques to increasing oil/water separation rates in produced water treatment applications. The type of gas used to create the bubbles can be adjusted to influence the impacts and objectives, from carbon dioxide or nitrogen to hydrocarbon-based gases. The bubbles themselves have been shown to improve the wettability of the fluids they are in as well as provide a scouring effect due to their surface charge and affinity for hydrophobic substances. Meanwhile, the addition of the gas can have a miscibility effect that increases swelling and reduces viscosity, increasing production on existing assets.

Green hydrogen production is a new frontier that will be essential to reduce emissions and decarbonize heavy industries and transportation. Splitting water molecules via electrolysis using renewable electricity produces emissions-free “green hydrogen”, however, an enormous amount of electricity is required in this process. Global green hydrogen production targets will require more renewable electricity than the total current global capacity. Research is underway to harness the power of nanobubbles to improve the efficiency of hydrogen production from electrolysis and sustainably reduce the amount of electricity required to separate hydrogen from water.

Academic research on nanobubble applications is growing rapidly, with over 2,000 research articles published in 2022 alone. More and more commercial industries are implementing nanobubbles in their aqueous processes to deliver efficiency, improved sustainability, and increased return on investment. Moleaer has partnered with world renowned universities and global leaders, such as BASF Mining Solutions, to accelerate and deliver the benefits of nanobubbles in the world’s most critical industries. Moleaer’s largest customer industries include agriculture, aquaculture, surface water, municipal and industrial wastewater, mining, oil and gas, and continues to expand its applications into new arenas.

Learn more at www.moleaer.com or contact us at info@moleaer.com to learn how nanobubble technologies can improve your business.

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has already been proven on rooftops around the world, taking the built environment from net energy consumer to contributor. With specially designed, highly efficient turbines, and a microgrid concept that is trademarked, Hover has been engaged by governments and private institutions to bring renewable energy into their asset portfolio. “To succeed, we need to move past the concept of a singular technology answer and start thinking about how we integrate technologies.

Replacing grid level fossil fuels with grid level renewables is an important step already underway in many parts of the world. we believe our future is creating clean energy, right where it is

consumed. Microgrids give people and cities the ability to create distributed energy with no transmission, thereby ensuring greater energy independence.”

In technology and innovation, California-based Moleaer was in attendance to discuss the growing phenomenon around nanobubbles. This relatively new area has already seen major success in the oil and gas industry, and is showing promise in hydrogen. Nanobubbles assist in a number of different applications, but in separation of product in mining and reducing water recycling in oil and gas, this is an innovation that will undoubtedly add value to operations. “By unlocking the power of water to enable industries to do more with less, Moleaer is protecting and growing

the world’s resources,” said CEO Nick Dyner, explaining the company’s role in the energy transition.

Within the Innovation Agora - an open marketplace for the exchange of ideas and insights on energy innovation, emerging technologies, and solutions – more than 300 speakers gave special attention to the different lanes in which they run as part of the transition journey. Thankfully, 125 startups were also present giving hope that brilliant minds continue to enter the energy space and most see opportunities over challenges.

TAKE AWAY

After each CERAWeek, attendees leave with big ideas and hope for the year ahead, often with new partnerships

Dinner & Dialogue Geopolitics -Reshaping the World plenary

INDUSTRY FOCUS: EVENTS

and blossoming relationships in place, and this year was no different. The event continues to act as an ecosystem of invention, and a chamber of development in the energy industry.

“These insights help us foster collaboration in answering this century-defining challenge. I look forward to seeing how the big ideas and innovative solutions discussed throughout the week take shape as we

forge ahead toward our global clean energy goals,” said Sandhya Ganapathy, CEO EDP Renewables North America, reflecting on her experience in Houston. Some of the key take aways from the event surrounded the importance of collaboration, technology, and ambition. Firstly, again hinting at the damaging impact of the Russian invasion in Ukraine, many were keen to point out that the only sustainable

HYDROGEN HOPE IN HARD-TO-ABATE SECTORS

way to achieve energy security and protect consumers from oil price waves is to reduce reliance on fossil fuels altogether – a sentiment backed by the big O&G players, albeit at a managed pace. Secondly, the development of new technologies in the replacement of fossil fuels is essential, and hydrogen will definitely be a star in this regard. Third, digitalisation of systems is fundamental, and making the most of AI and technology advances will be key in decarbonising electricity – this includes grid improvement, waste reduction, clear understanding of grid patterns, and the ability to shift input as needed, embracing renewables. Lastly, collaboration is critical - this cannot be understated.

Hydrogen is used today across a wide range of industrial processes in sectors such as chemicals, refining, aerospace, electronics, metals, and glass. As the world unfolds the full potential of the lightweight gas, the scope for its application increases beyond its traditional uses to include a key role in decarbonizing transportation and hard-to-abate sectors and in enabling renewable power.

Deep decarbonization in sectors such as steel, maritime, aviation, and ammonia is easier said than done. Such sectors are known as “hard-to-abate” due to either a lack of technology to date or prohibitive costs – or both. But while these challenges cannot be solved overnight, there are strategies that can be applied today to get the decarbonization journey started.

“Linde has been in the hydrogen business for many decades,” explains David Burns, VP Linde Clean Energy, “Our expertise throughout the value chain is unrivalled and we can draw on it to help accelerate the energy transition. We’re hydrogenready now!”

Ammonia production for instance, is a heavy contributor to harmful emissions. Every year, roughly 190 million tons of ammonia are produced globally – mostly for agricultural fertilizers. Using green hydrogen to produce ammonia is therefore a promising path toward a more sustainable future.

As with other sectors, scalability of green ammonia production will prove to be a challenge in the coming years. Blue hydrogen – generated when carbon capture technologies are applied to conventional hydrogen production methods – is an important steppingstone on the path to zero emissions. This already effective solution allows for the necessary frameworks and infrastructures to be developed while green hydrogen production reaches the necessary scale.

“Clean hydrogen is the key ingredient when it comes to green steel, sustainable aviation fuel, alternative drop-in fuels for shipping and of course, green ammonia – which itself can be used as a zero-carbon fuel or as an energy vector for clean power,” says Burns. “As a global leader, we can offer our expertise in production, distribution and storage when exploring these opportunities,” he adds.

Visit www.lindehydrogen.com for more info.

Think Hydrogen. Think Linde.

// TO SUCCEED, WE NEED TO MOVE PAST THE CONCEPT OF A SINGULAR TECHNOLOGY ANSWER AND START THINKING ABOUT HOW WE INTEGRATE TECHNOLOGIES //

Think Hydrogen. Think Linde.

Accelerating the energy transition.

At Linde, we know hydrogen – we’ve been producing, processing and distributing the versatile gas for over 100 years. Whether you are looking to decarbonize transportation, heavy industry or develop P2X solutions, Linde has the technologies, infrastructure and operations expertise to ensure you have a safe and optimized decarbonization journey.

Learn more at www.lindehydrogen.com

The world’s big energy organsation, private and public, must share the cost and the glory in this challenge.

“Make no mistake,” said US Secretary of Energy, Jennifer Granholm, “enormous challenges remain across global energy markets. We have not yet vanquished the volatility that characterised so much of the last 12 months. The risks to energy security, and the vulnerabilities they leave for our national and economic securitythose have not disappeared. And the imperative every country faces to meet the energy needs of its citizens will heighten as demand rises in the years ahead. It will take partnership between governments and private sectors to meet those challenges. A willingness to work together, even amid differing views. And here’s where we need to start: by acknowledging the clean

energy transition is happening, and that we are growing the energy pie.”

Ultimately, this is the number one message from CERAWeek – a collaborative approach can see the energy transition succeed, and do so quickly. Partnerships between companies, countries, and the private and public sectors must be furthered, and global-scale funding must be established to advance some of the amazing technology innovations on display. With the next event set for 18-22 March 2024, there is hope that progress is being made, despite significant bumps in the road.

“The energy transition - a monumental undertaking under even the most stable conditions - has been made all the more challenging by a global economy beset with volatility and disruption,” said Daniel

Yergin. “The sequential shocks of pandemic and war have brought with them a greater recognition that the energy future must be secure and affordable, as well as sustainable. Meeting this challenge will require keen strategies, smart investment and transformative technologies.”

Hopefully, this message is heeded companies look beyond their own bottom line towards a reality where energy of the future achieves all of that and more or energy of the past.

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