United States oil giant, ExxonMobil, says carbon capture and storage, hydrogen fuel and biofuels are three scalable technologies that hold significant promise for hard-to-decarbonize sectors in the United Nations Intergovernmental Panel on Climate Change (IPCC) Lower 2°C scenarios.
It maintained that these three key drivers though available, would require broad collaboration among governments, companies, universities, and others.
In its recently released, ExxonMobil Global Outlook: Our View to 2050, the company noted that while energy transition is underway globally, it is not yet happening at the scale or on the timetable required to achieve society’s net-zero ambitions.
The Outlook said these three drivers will also require three other support bases.
“First, continued public policy support. Incentives like those in the U.S. Inflation Reduction Act can provide the necessary catalyst to begin scaling up low-carbon solutions. Permitting reform is needed to accelerate the deployment of these solutions, a factor recognized in the European Union’s NetZero Industry Act.
“Other policy priorities include enhanced transparency so that market participants have sufficient time to adapt to changes, and a recognition of the importance of keeping supply matched with demand to help minimize economic hardships on consumers.
“Second, technology advances. Currently, only two of the 55 technologies needed to reach net-zero emissions by 2050 are “on track,” according to the International Energy Agency. An all-of-the-above approach to technology, where governments avoid picking winners and losers, will lead to the most cost-efficient solutions produced in a timely manner.
“And third, market-driven solutions. Governments across the world can’t afford to pay in perpetuity to reduce the amount of emissions needed to be removed or avoided.
“Ultimately, to achieve global emission-reduction goals, the world will need to move to widespread adoption of markets where society as a whole incentivizes driving emissions down. The world has made meaningful progress.
“Even with ongoing economic development, the emissions intensity of the world’s energy supply has declined since the Paris Agreement was signed in 2016,” the report said.
Alternative fuels
The Outlook also emphasized the need for incentives for wind and solar to catalyze rapid deployment and cost reductions.
“Given the need to do more and do it faster at a lower cost, progress will need to occur in parallel, supported by policies that are technology-agnostic and incentivize all approaches, equally. Multiple approaches, nurtured by public-private partnerships and cross-industry collaboration, will be needed,” it added.
Stating that all energy types needed to raise living standards and reduce emissions, the Global Outlook projects that the biggest change in the world’s energy mix between now and 2050 will be a significant increase in solar and wind, along with a significant reduction in coal.
It further said that “Renewable energy continues to hold great promise, and we see wind and solar providing 11% of the world’s energy supply in 2050, five times today’s contribution. “Other lower emission options, such as biofuels, carbon capture and storage, hydrogen, and nuclear, will also play important roles.
“And even with this unprecedented rise in lower-emission options, oil and natural gas are still projected to meet more than half (54%) of the world’s energy needs in 2050,” while electricity use will grow by 80%.
Currently, only two of the 55 technologies needed to reach net-zero emissions by 2050 are on track.
Investment in fossil fuels
Despite the growth in renewables, the Outlook further projects that oil and natural gas will still make up more than half of the world’s energy supply.
“The utility of oil and natural gas in meeting the world’s needs remains unmatched. They are energy dense, portable, available, and affordable — and serve as essential raw materials for many products we use today.
“Given that oil and natural gas are projected to remain a critical component of a global energy system through 2050, sustained investments are essential to offset depletion as production naturally declines by 5-7% per year.”
It continued: “Fossil fuels remain the most effective way to produce the massive amounts of energy needed to create and support the manufacturing, commercial transportation, and industrial sectors that drive modern economies.
“For this reason, a critical goal of any energy transition will be the affordable decarbonization of these economic sectors that account for half of all energy-related emissions.”
Besides, with billions more people, more prosperity, and more energy required, achieving net-zero emissions will require the adoption of constructive policies, the emergence of new technologies, and the establishment of market driven mechanisms, it said.
