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EIC editorial
by Stuart Broadley CEO, Energy Industries Council
The 8x Cs of energy transition for supply chain success EIC kicks off 2021 with the 8x Cs of energy transition that, if acted upon by government and industry, ensure energy supply chain success. The hyper-topic of energy transition is thrown around as the obvious solution to reach net zero carbon targets. The reality though is that most new energy transition technologies are still years away from being proven, safe, scalable and economically affordable. And the clock is ticking. To meet 2050 net zero carbon goals, countries need to rapidly transition from where they are today – some with scaled and affordable renewable electricity, but most without – to a future with fully decarbonised power, industry, transport and heat. This transition needs to happen at pace and will require new technologies, at scale. Excitingly, and foreseeably, this should provide massive opportunities for almost all businesses across the energy sector. EIC analysis highlights 8x Cs of energy transition that, if acted upon by government and industry, will ensure supply chain success. Energy transition remains a complex topic with many unknowns, but the EIC believes that these 8x Cs of energy transition are key.
1 CLN: Clean
• Government o Clean energy, clean growth – focus UK energy policy on authentically green technologies at the start, such as green hydrogen, wind powered electrification and nuclear. o Focus CCUS investments more on decarbonising industry rather than CO2 capture for blue hydrogen.
o Clean conscience – re-establish higher UK aid budget to ensure a just transition. • Industry o Clean sheet – address your own carbon footprint quickly. Your customers will demand it, so start now.
2 CON: Confidence
• Government o Confidently pitch huge UK ambition to the world at COP26. o Aim to be top five globally in key energy transition technologies, confidently picking winning technologies for the long-term. EIC data shows that green hydrogen projects globally outshine blue hydrogen projects by a factor of 10:1 – don’t miss the boat, step up UK investment in this key new and authentically clean technology that the UK is geologically perfect for. • Industry o You have the capability and ability to grow, invest and export.
3 CTL: Control
• Government o Control the outcome, by filling in the supply chain gaps in the detail of the energy white paper, legislating and regulating supply chain investment and success, and communicating and delivering against a supply chain plan, intervening where necessary. o Link energy security to a planned and controlled, rooted and healthy supply chain. o Learn from offshore wind; don’t leave supply chain success to chance. Set clear UK content requirements for strategic UK projects, with both O&M and technology rules for UK-controlled scope.
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4 C£$: Cash
• Government o Assist COVID recovery with a green levy on businesses and consumers – direct the money raised towards UK utility-scale clean growth projects. o Supply chain companies cannot live on sporadic opportunities, they need a consistent pipeline of substantial green projects to invest properly themselves. • Industry o Business leaders need to get more involved. Become an expert in how to access and win government contracts, funding and support.
5 COL: Collaboration
• Government o Co-ordinate collaborative Government-Industry-Society communication and working. Excite the sharing of ideas, make decisions at pace, listen to all corners of the UK and its wide range of views, feed new technologies, and root clustered capabilities, build back better, and watch energy exports take off. • Industry o Decarbonisation affects everyone and everything – there is no longer an oil and gas or renewable industry, for instance – all sectors are now part of the clean, green economy and there is a key role for all technologies including transport, nuclear, renewable, gas, homes, grids, interconnectors, fuel cells and so on. o Embrace the concept of being part of a single and integrated UK energy supply chain, active in multiple sectors. Beyond energy, explore entering new sectors.
