A report on Decarbonisation Technology for the Energy Sector corporate strategists by KPMG
“The Paris Agreement spurred the discussions around Net Zero emissions globally. ‘Net Zero’ refers to attaining an overall equilibrium between the amount of greenhouse emissions produced and the amount of greenhouse emissions removed from the atmosphere. Presently, barely 10 per cent of global emissions are covered by some form of adopted Net Zero target
The KMPG report highlights that Companies need to select and back R&D efforts required for bringing technologies to market based on investment cycles and recommends Businesses will need to manage interplay with competing technologies and hedge their risks at the same time. Ultimately, governments will have a role to play in bridging the gap of the unknown
The four dominant clean energy technology pathways are:
Electrification of end use sectors will be the largest contributor in reaching Net Zero emissions
The global primary energy demand is expected to increase at a CAGR of 1.2 per cent over next 20 years fueled by population and GDP Growth. The power sector is expected to absorb almost 75 per cent of the increase in energy demand driven by power demand growth as well as electrification of end use segments such as industries, buildings, and transportation.
Carbon capture, utilization and storage (CCUS) will be a crucial enabler for achieving Net Zero
CCUS is an emissions reduction technology used to capture CO2 emissions produced by the use of fossil fuels and is a crucial enabler for fulfillment of “Net Zero” ambitions As per IEA, the investment potential of CCUS projects that are close to a final investment decision is estimated to be about USD27 billion, more than double the investment planned in 2017.
Hydrogen is expected to play a key role as an energy vector in the on-going energy transition
Hydrogen is the most abundant element in the universe but is not readily available in pure form on earth. Instead, hydrogen is usually found chemically bonded in water (H2O), bio-waste, wood, fossil fuels like coal, natural gas, and oil. Presently, the hydrogen industry is wellestablished, and it has years of experience in the industrial sector as a feedstock
Bioenergy:As per IEA, Bioenergy contributes to climate change mitigation in case when biomass is sustainably grown using waste/residues and is efficiently converted to displace GHG intensive fuels. Modern bioenergy accounts for 50 per cent of all renewables in total final energy consumption and is the only renewable source that can provide electricity, direct heat and transport fuels.