In October 2023, Managing Director, Joe Dubbin, and Director, Murray Fox, held an invite-only dinner in London on the theme of energy transition, bringing leaders from across the industry together to discuss updates, challenges and share ideas.
Throughout the evening, a number of topics were discussed including the ‘energy trilemma’ (how the transition to green energy needs to be affordable, sustainable and secure), financing roadblocks, and the most prominent being COP28. Read on for a brief summary of the key topics discussed at the dinner.
COP28
Unlike COP26, where Big Energy firms were not invited to attend, this year’s event, held in Dubai and hosted by president-delegate, Sultan Ahmed Al Jabar, changed tactics and extended an invite to these firms. While many condemn his actions, many have noted that it’s the larger firms which have the capital and the resources to develop green initiatives in an uncertain market and can manage the commercial risks.
The ‘Energy Trilemma’
While the need for green energy is of paramount importance for everyone, the ability for it to meet the three points of the ‘energy trilemma’ – affordability, sustainability, and security – is proving complex. Currently, oil is calculated to be circa USD$80 a barrel, whereas blue hydrogen is set at circa USD$250 a barrel and green hydrogen sits between USD$250-USD$400 per barrel. Where western countries find these prices difficult to meet, for developing countries, these costs are unfeasible and so far have left many unable to access any kind of renewable energy at all. On top of this, a lot of stop-start subsidies have made the market challenging to navigate and for many to build confidence in emerging clean technology.
Time is Running Out
The need to move quickly to meet net zero targets, create affordable, secure and sustainable renewable energy and to access appropriate financing is a challenge felt across the globe. Previous energy transitions have taken decades to develop and embed, but right now, this is a luxury we do not have. The clock is ticking, and so far, a lot has been said, but not enough delivered on. What is clear is that for net zero to be achieved, and for the energy transition to be fully realised, everyone, from governments to start-ups through to traditional Big Energy firms, need to work together to meet environmental and financial needs that’s accessible for everyone.
COP28 this year is offering a platform for all to be heard, but with so many topics and challenges to discuss, plus the already brewing news cycle already circling the event, there is more resting on the decisions and actions determined by the conference than ever before.
Find out more about what was discussed over the course of our energy dinner, and what our thoughts are on the current state of energy transition in our latest white paper.
