The energy ecosystem is changing, with political and economic influencers now focusing on decarbonisation and energy independence. A climate emergency has been virtually unanimously declared, requiring industry to make decarbonisation a priority. Meanwhile recent events, such as the COVID-19 pandemic and Russia’s invasion of Ukraine, have raised the importance of energy independence. Therefore, disruptive revolution of the current energy ecosystem is required.
The Paris Climate Agreement seeks to limit global average temperatures to considerably below 2°C above pre-industrial levels. The decarbonisation shift will continue to grow until 2030 with renewable energy generation at the centre of the energy transition. Green energy will need to be transferred from its production site to the points of consumption, increasing demand for supporting technologies. In this space, four key technologies are emerging:
- Battery: multi-sector potential to enable the storage of renewable energy at the points of production and use, as well as within the electricity transmission grid
- Green hydrogen: can be considered a zero-carbon fuel when hydrogen is generated using renewable energy; it may become ubiquitous as a green energy vector
- Bioenergy/Biofuel: waste and residue can be processed to manufacture sustainable biofuels which can be consumed in internal combustion engines for applications in multiple sectors
- E-fuel / Synthetic fuel: The Fischer-Tropsch process produces a chemically identical liquid to hydrocarbon-based fuel, such as gasoline, diesel, gas, or kerosene, which can be easily introduced into existing infrastructure and technologies
In this paper we assess the multi-sector use cases of green energy technologies and identify early investment opportunities that can both deliver growth and support significant decarbonisation of the European energy system.
