ENVIRONMENT, SOCIAL AND GOVERNANCE • DEPARTMENTS
DNV report: Energy transition is accelerating, but skills shortage is critical challenge
Energy industry leaders say the energy
transition is accelerating faster than ever
and 2022 is set to be a strong year for
industry growth, according to a new report
from DNV analyzing the views of more
than 1,000 senior energy professionals.
Findings show that industry players
from across power, renewables and oil and
gas believe the commercial opportunities
presented by the transition outweigh the
risks to their businesses . Skills shortages
are the greatest barrier to growth , followed
by a lack of policy support .
Maintaining reliable energy sup-
ply is also a concern, with many in the
oil and gas industry convinced that not
enough is being invested in exploration
and upstream expansion to meet future
demand. Some 38% of oil and gas respon-
dents say that their organization is finding
it increasingly difficult to secure reason-
ably priced finance for projects.
Across the energy industry , expecta-
tions are increasing for large, capital-
intensive projects to be approved in the
year ahead, while almost half of the indus-
try expects their organization to increase
capital expenditure. Green hydrogen is
the technology that the greatest num-
ber of energy companies are targeting for
increased investment in 2022, followed by
solar PV, floating offshore wind, and car-
bon capture and storage .
Much of the industry is increasing
investment in decarbonization, but it is
telling that only 42% are optimistic about
their company reaching its decarboniza-
tion targets and 28% are outright pessi-
mistic. Survey confirms COVID-19
advanced actions on ESG
The H2opZee project to produce green hydrogen offshore the Netherlands could
help to decarbonize energy-intensive sectors.
New offshore green hydrogen project to begin this year
Neptune Energy and RWE have signed
a n agreement to develop an offshore
green hydrogen project called H2opZee.
The demonstration project will aim to
build 300-500 megawatts electrolyzer
capacity in the North Sea to produce
green hydrogen using offshore wind. The
hydrogen will then be transported to
land through an existing pipeline.
The project is an initiative of TKI Wind
op Zee, supported by the Dutch govern-
ment .
In the first phase of H2opZee , a fea-
sibility study will be carried out, likely
starting in Q2 2022, and an accessi-
ble knowledge platform will be set up.
The objective is to start the roll-out of
hydrogen at sea in the Netherlands.
Implementation will then be carried out
in the second phase of the project. For
this phase, a tender methodology has yet
to be defined.
“We see an important role for green
hydrogen in future energy supply, and it
can be produced here in the North Sea,”
said Lex de Groot, Neptune’s Managing
Director in the Netherlands. “The energy
transition can be faster, cheaper and
cleaner if we integrate existing gas infra-
structure into new systems.”
Sven Utermöhlen, CEO Offshore Wind
at RWE Renewables, said: “Hydrogen is a
game changer in the decarbonization of
energy-intensive sectors.”
A new survey by GlobalData has revealed
that 67% of 1,500 ESG and corporate social
responsibility executives across indus-
tries believe the COVID-19 pandemic has
increased focus and action on ESG issues .
“The sudden disruption of numerous
business activities due to COVID-19 led
many to realize that environmental action
was much more feasible than previously
thought,” Filipe Oliveira, Thematic Analyst
at GlobalData, said. “Most of the focus and
investment within ESG is going towards
environmental issues — 69% prioritized
environment issues, while 16% prioritized
social and 15% governance. ”
Further, 65% of respondents said ESG in
decision making is “very important” while
an additional 32% said it is “important.”
“Since the COVID-19 outbreak, leading
oil and gas companies have been reevalu-
ating their operations, with emphasis on
clean energy ,” said Bargavi Gandham, Oil
& Gas Analyst at GlobalData. “This has
brought about a change in their approach
towards ESG, especially on the environ-
mental aspect. Activities from leaders such
as Shell, BP and Equinor has also trickled
down to smaller players, national oil com-
panies and service companies. Around
1,800 industry players have pledged to
achieve net-zero in carbon emissions by
2050. Companies are also publishing sus-
tainability reports annually to improve the
transparency of their operations ”
GlobalData’s annual ESG Strategy
Survey report is based on a survey of 1,500
ESG leaders and executives worldwide and
was conducted in October 2021.
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