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Shaping the Future: Accelerating the Green Energy Revolution
Shaping the Future: Accelerating the Green Energy Revolution

October 9, 2023

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In an era defined by the trilemma of sustainability, affordability, and security, the urgency to invest in the development of green energy has never been more critical. The energy sector must prioritize the transition to green energy to secure a sustainable future for our planet. To address the challenges of climate change and achieve a sustainable energy future, the industry must accelerate the deployment of current technologies and invest in the development of future innovations.

Decarbonization and Energy Efficiency

Decarbonization is reducing or removing the amount of gaseous carbon compounds (e.g., CO2, CH4) released into the atmosphere from human activity. The term decarbonization is also used to describe efforts specifically aimed at avoiding the combustion of fossil fuels to reduce the emissions of CO2 to the atmosphere. Decarbonization cannot be used interchangeably with the term emissions reduction because decarbonization specifically refers to fossil fuels, whereas emissions reduction is lowering or avoiding emissions from any sectors - agnostic of fuel type.

We firmly believe in the importance of decarbonization and improving energy efficiency as we move towards a net-zero future. To support this vision, we have established key industry partnerships and engaged in policy-making efforts, demonstrating our commitment to decarbonization.

Our customers are already making significant strides in environmental stewardship by utilizing available technologies and customized solutions from our lower carbon portfolio. These solutions address various challenges, such as reducing flaring, venting, and fugitive (methane) emissions, replacing coal and diesel with less emissive fuels like hydrogen, enhancing power generation and compression efficiency, driving operational efficiency, enabling electrification, and pioneering new technologies.

Digitalization and AI for Efficiency and Performance

Digitalization is a vital tool for companies striving for continuous efficiency. Through the implementation of digital tools and systems, organizations can achieve increased efficiencies, improved performance, and reduced emissions. Leveraging artificial intelligence (AI) and digitalization solutions can facilitate the transition to net-zero compatible operations, maximizing remote and automated processes to enhance efficiency and minimize environmental impact.

If today’s oil and gas operations were 10% more efficient, we would save ~500 million tons of CO2 per year. That represents a contribution of 5% per year of the emissions reduction target of the Paris Agreement climate goals. Reducing emissions from core oil and gas operations is a first and critical step to meeting global and industry emissions targets. By taking advantage of new digitalization and AI capabilities, organizations can reduce their carbon footprint by making better, faster decisions and eliminating the risk of error.

Collaboration for Common Goals

Accelerating the green energy revolution requires significant investment and financial support. Governments and financial institutions play a crucial role in providing the necessary funding and incentives to drive the transition. The International Energy Agency (IEA) estimates that achieving global climate and energy goals would require an additional investment of around $1 trillion per year until 2050. Governments can support the transition through policies such as feed-in tariffs, tax credits, and subsidies, while financial institutions can provide access to capital and innovative financing models.

Policy Frameworks and Regulatory Environment

To unleash the full potential of green energy, supportive policy frameworks and regulatory environments are vital. Governments must establish clear and ambitious renewable energy targets, implement effective carbon pricing mechanisms, and streamline permitting processes. Additionally, grid integration policies and infrastructure development are crucial to accommodate the increasing share of renewable energy in the energy mix. By creating a favorable policy and regulatory landscape, governments can encourage private sector investments and facilitate the transition to green energy.

The Economic and Environmental Benefits

Investing in green energy not only addresses environmental concerns but also presents significant economic benefits. The renewable energy sector has the potential to create millions of jobs globally, driving economic growth and fostering innovation. According to the International Labour Organization (ILO), the renewable energy sector employed 11.5 million people worldwide in 2019, and this number is expected to continue growing. Moreover, transitioning to green energy reduces dependency on fossil fuels, enhances energy security, and mitigates risks associated with price volatility and supply disruptions.

The transition to green energy is imperative for a sustainable future. By accelerating technology deployment, fostering collaboration, and embracing supportive policies, the industry can drive the green energy revolution. There is no path to net zero without partnerships, integrated thinking, and common sustainability standards. Baker Hughes remains committed to advancing sustainable practices and developing innovative solutions. Let us seize this opportunity to shape a better future for our planet, one powered by clean and renewable energy.

Author Details: Ashok G Rodagi is Executive - Technology at Baker Hughes in India. Ashok possesses 25 years of career spanning in various facets of engineering, project management, operations, and maintenance.

 


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