For Singapore, there are great business openings arising from the green transition within maritime, aviation and other existing industries that will transform. Similarly, in Norway, the big potential is within maritime, offshore wind and decarbonized gas.
The main challenge is not lack of knowledge of what we should do, but lack of action on the knowledge.
Sverre Alvik, Programme Director for the Energy Transition Programme in DNV
We are building up to the Singapore Norway Innovation Conference 20 and 21 October 2021. The time is ripe for adopting smart, sustainable solutions. Our planet is at a breaking point and we need urgent actions. Who will win in the future by adapting to change and embracing the business opportunities of the green transition?
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In the weeks building up to SNIC 2021, we are presenting our sponsors. In this article we present silver sponsor DNV. A big thanks to longstanding NBAS member DNV for your support!
World’s leading classification society
DNV is the world’s leading classification society and has been a trusted voice in tackling global transformations since 1864. 70% of DNV’s business is related to the production, generation, transmission and transport of energy. The company delivers world-renowned testing, certification and technical advisory services to the energy value chain. This includes renewables, oil and gas, and energy management.
The company’s purpose is to safeguard life, property and the environment. Hence, developing an independent understanding of, and forecasting, the energy transition is of strategic importance to both DNV and its customers.
Last month, DNV issued its fifth annual Energy Transition Outlook (ETO). The ETO is quite clear that we will miss the goals from the Paris agreement by a big margin. In fact, the report states that the world’s energy system most likely will result in global warming exceeding 2°C by 2100. There are two main reasons for this: The demand for energy will continue to rise globally. At the same time, the energy transition goes too slow.
When we see DNV’s ETO together with the ‘code red for humanity’ report by IPCC earlier this summer, it paints a picture of a bleak future. If any future at all. Here are six examples from IPCC to illustrate the catastrophic consequences of an increase of 2°C instead of 1,5°C:
- Expose 60 million more people in urban areas to extreme droughts.
- Expose 270 million more people water scarcity.
- Triple the reduction of geographical range for pollinating insects, such as bees.
- Affect 10 million more people with coastal flooding and salinization of water supplies, as a result of rising sea level.
- Drive several hundred million more people into poverty, due to reduced agriculture and coastal resources.
- Lead to 1,2 per cent loss in Gross Domestic Product in USA, with bigger impacts expected in the tropics and southern hemisphere subtropics.
However – and this is the author’s personal take – let’s keep a positive outlook! Let’s assume that people’s drive for innovation and technology-development and our ability to find commercially viable solutions will save the day in the end. We leave the rising demand for energy out of the equation. It is simply not within the human nature to demand or consume less or to accept that you cannot have what others have. Therefore, we need to focus on the supply – how we produce and provide the energy.
Continue rapid electrification
According to Project Director Sverre Alvik in DNV, there is no easy way to reach the Paris Agreement goals. Alvik has been heading up DNV’s global research work on the energy transition for the last six years.
“There is definitively no silver bullet, and a lot of things have to be done to meet Paris Agreement goals. Also note that the Paris agreement aims for ‘well below 2°C, striving towards 1,5°C’, not 1,5°C degrees in itself’, says Alvik.
Alvik points out a few critical factors to achieve the decarbonization goals.
“We need to continue the present rapid electrification of all sectors possible. At the same time, we have to make the electricity renewable. In order to cater for the high variable renewable share, this also includes a significant buildout of solar panels”, states Alvik. He argues that governments need to push much stronger on the hard-to-abate sectors that cannot electrify. “They need to use their entire toolbox of research and development, incentives, mandates, and standards. This especially applies to sectors such as maritime, aviation, trucking and heavy industry. Also, it includes technical solutions, like hydrogen and hydrogen derivates, carbon capture and storage and biofuels,” explains Alvik.
He also emphasizes that it is equally important to continue to focus on energy efficiency in all sectors, again using the entire government toolbox,
Big business potential
According to the project director, the biggest potential for companies to develop innovative, commercially viable solutions that contributes substantially to the energy transition, is within the hard-to-abate sectors. In this case, the hard-to-abate sectors include maritime, aviation, trucking and heavy industry. “These are the ones that most urgent need to speed up. There are definitely also opportunities and potential in large and coming sectors, such as solar panels, renewables, storage and all electric vehicles” says Alvik.
He asserts that the above applies regardless of geography. “However, some countries have a good resource base, both competence and natural resources, and should use these advantages. For Singapore, this could be maritime, aviation and other existing industries that will transform. Similarly, in Norway it could be maritime, offshore wind and decarbonized gas”, says Alvik about the regional variations in business potential within the green transition.
Act on our knowledge
When we ask Sverre Alvik whether he is an optimist regarding reaching the decarbonization goals, he refers back to the previous ETOs. “In the last five years we have seen an accelerating energy transition, but not beyond what we forecasted. ETO is our best estimate, and we have been clear from the start that we hope to be proven wrong. The main challenge is not lack of knowledge of what we should do, but lack of action on the knowledge.”
To stimulate this action, DNV has this year established a regional Centre of Excellence in Singapore for South East Asia. The purpose of the centre is to drive decarbonization and autonomy in shipping. The Centre is headed up by Dr Shahrin Osman. He will be participating in the Maritime segment at SNIC – exploring the business potential within the green transition.
Sign up for Singapore Norway Innovation Conference here.
Welcome to join our experts uncovering the big business potential in the green transition!