Global target to reduce Green House Gases net emissions to zero by 2050 are not the dream of a group of visionaries. Such an aggressive target imposes a number of intermediate steps in the short term, that must be taken collectively by public and private companies, governments, financing institutions and, ultimately, people.
If that was true before the pandemic, covid-19 has only increased the pressure, as a consequence of a more acute sense of urgency about the health of the planet and of the entire humankind.
Companies have started accelerating the journey through energy transition that originally was only in their long-term strategies, dressed up with some generic mission statements and vague commitment.
According to an EY analysis, during quarterly earnings calls in 2020, the number of questions from the analysts regarding alternative energy investments and decarbonization has tripled compared to 2019.
By 2030, the decline required to reach GHG emission reduction is 7,6%, year over year.
Electricity demand, driven by the explosion of electrically powered vehicles (sales will double in 2022 only), will raise at a rate double than overall energy demand.
Only in Europe, offshore wind energy generation capacity will have to multiply 20 times and 500 Bln$ investments will be required to digitize network infrastructures.
Oil and gas companies have started to reshape their portfolio towards more gas and less liquid hydrocarbons, as gas combustion and treatments carries less carbon dioxide emissions. Earnings from a price per barrel that has recovered, and surpassed pre-Covid status, will finance investments in renewables through either direct ownership or joint venture and partnerships models.
The geographic footprint of International Oil Companies will change according to the country strategies, local content development and new set of relationships with National Oil Companies that likely will take over ownership and operatorship of hydrocarbon assets.
The oil industry workforce will reshape itself towards as less expats will be moving around the world and local content will evolve more rapidly thanks to the aid provided by digital solutions in learning, virtual and augmented reality, wearables, sensors, remote assistance and robotics.
These technologies will also enhance the workforce capabilities needed to restructure, empower and maintain electricity grids, gas pipelines and communication networks as well as micro and macro generation plants.
Pipeline will carry gas and hydrogen, power line poles will carry optical fibres and 5G antennas and will allow the transmission of electricity bidirectionally and intermittently, as generation will become more dispersed and less continuous due to the constant changes in sunlight or wind.
Batteries will become part of every modern household and, if not, electrical vehicles will act as temporary storage and load balancing devices.
From one household to the other, energy will be shared and traded within energy communities, not necessarily served by the same utility company, thanks to the rules set up by smart contracts leveraging blockchain technology.
Very likely we will not be able anymore to distinguish and oil company from a utility company, as they both will compete to reach and serve the final user, may it be industrial or residential.
The competition field of play will be defined by Customer Centricity, and the winners will be the ones that have better leveraged Research & Development to improve efficiency and Continuous Innovation to enhance customer experience and enrich the set of services and products offered.
In such context, circular economy models will rapidly emerge, interconnecting value chains that, as stand-alone processes, would not be able to generate positive returns. Wind farms will offer cheap electricity to activate electrolysis that will generate hydrogen suitable to be mixed with gas (diluting carbon dioxide emission) or as a pure source of energy in the industrial, transportation and residential sectors.
Similarly, waste produced by agriculture sector, food processing industries and citizens will interconnect with the energy value chain of a bio refinery or waste to energy plant, producing renewed energy.
Growth and ambitions can be constrained by the lack of sufficient generation, transmission and distribution infrastructures as well as port and railway capacity
Mozambique has a considerable number of investment opportunities in its productive sectors, which makes it an attractive destination for potential investors. The country that can aim to become a ‘regional energy superpower’, capable of using its natural gas, coal, and hydro to export power across the Southern African Development Community (SADC) region, whilst becoming a top 3 global LNG exporter and rising coal player.
Growth and ambitions can be constrained by the lack of sufficient generation, transmission and distribution infrastructures as well as port and railway capacity. Available and affordable access to digital technologies shall be considered as key enabler of Mozambique evolution.
