The energy transition offers us opportunities to develop new businesses and jobs. Driving this transition allows us to build greater resilience and independence into our energy matrices.
According to the International Energy Agency, the energy sector accounts for approximately 75% of global greenhouse gas emissions. The energy transition is the process of decarbonizing our energy sources in favor of renewable energies and is key to addressing the climate crisis.
In this context, Juan Antonio Rozas, general manager of Statkraft, moderated the panel “Green Light for the Energy Transition” at nexos+1: Latam Forum 2023, The event was attended by representatives of the port operator DP World and Compañía Minera Condestable. The importance of companies prioritizing the energy transition to renewable energies was discussed, in order to ensure their resilience in the future.
“We are in a context where weak energy security, access to affordable energy and the climate crisis indicate that we must now accelerate the global energy transition where renewable energy, electrification and energy efficiency are the key pillars,» explained Rozas.
Statkraft annually reports an analysis of the state of the energy transition in the world today through 2050. In their latest report, they project that global energy demand will more than double by 2050, with solar and wind power supplying about two-thirds. While there is a temporary increase in metal prices that has affected the costs of solar and wind power recently, these technologies remain competitive compared to fossil fuel-based technologies, whose prices have increased at a faster rate. In addition, it is estimated that renewables will provide approximately 80% of the global electricity system by 2050, with solar being the winner in this transition.
Sany Rodriguez, Director of Safety and Environment for DP World commented that the company's operations are based on the use of energy to move cranes and containers. Although the company's global goal is to be carbon neutral by 2040 and net zero by 2050, in the port of Peru it has moved ahead to achieve carbon neutrality by 2030 through a process of aggressive decarbonization of its operations.
“We have to be below two degrees. Many say below one and a half degrees and the only way is with a tangible commitment and with very clear goals from month to month and year to year, in order to reach this carbon neutrality,” Rodriguez emphasized.
For DP World, In the case of the US, decarbonization is no longer just about resource efficiency, but a complete change in technology. With respect to the initiatives they are prioritizing, they have switched all of their equipment from diesel to electricity, which accounted for 70% of their emissions in their baseline measurement. To address the other 30% of their emissions from their electricity consumption, this year they have started to purchase renewable energy with certificates.
Cecilia Rabitsch, vice president of environmental affairs and sustainability of the Condestable Mining Company, acknowledged the importance of senior management's conviction to approach the energy transition strategically as a long-term process and investment.
“The vision that led us to this was that the energy transition globally to renewable energy is supported by mining, specifically copper mining, lithium mining, nickel mining. If that mining is not sustainable mining the remedy is worse than the disease,” shared Rabitsch.
Similar to the example of DP World, Constable started the process by measuring their emissions in order to set and manage targets for their reduction. In their case, the heaviest load in emissions was the processing of minerals and for that they opted to go with a renewable energy contract. As a second action, they are targeting mining electromobility with the successful implementation of a pilot 35-ton electrified haul truck operating inside a mine. Despite initial fears about power and performance in a mining environment, the truck has proven to be efficient and has been running smoothly for several months. As a result, they have begun to change the entire fleet of vehicles and have installed chargers for both trucks and vans. And finally, they are looking at energy efficiency processes in the mining operation.
By prioritizing emissions reduction, they have achieved other benefits such as improving air quality at the mine and providing a better working environment. Their goal is to move towards a sustainable mining operation and have all electric vehicle units charged with energy from the renewable grid within the next few years.
Examples of DP World and of Condestable Mining Company outline three courses of action to decarbonize. The first has to do with improving energy efficiency. The second has to do with renewable energy contracts, which are very powerful because they are also indicators of market demand for renewable energies. The third is the technological change from fuel to electric.
Regarding this technological change, Rabitsch concluded that “The capital investment at the initial moment is high. Later it is evident when you make the financial models that even if it is in a longer term, the return is worth it and it is worth it not only economically, but also because it is a better quality of life for everyone.”.
Watch the full panel discussion here
