In focus: Global hunt for energy security revving up as Russian crisis jolts supply chains

With the next United Nations Climate Change Conference approaching, governments and energy companies around the globe are working on strategies on how to shift from fossil fuels to renewable energy.

COVID-19, the Russia-Ukraine crisis and supply chain disruptions have all been shaping the global energy market in the last couple of years. Now, more than ever, the pressure is rising to balance between easing the financial burden of the energy crisis and slowing down climate change.

The week behind us saw European countries intensify their efforts to align with net-zero pledges and tackle supply chain woes. A decarbonised power sector, dominated by renewable sources, is seen as a vital part of a sustainable energy future.

With this in mind, the government of Canada’s province Alberta decided to invest over $40 million in 11 projects focused on advancing carbon capture utilisation and sequestration (CCUS) to accelerate Alberta’s transition to a low-emissions future.

Projects which will receive the funding represent industrial sectors including power generation, cement, fertilizer, forest products, and oil and gas. If the investments turn out to be successful, these projects could lead to over $20 billion in capital expenditures, and most importantly reduce about 24 million tonnes of emissions annually.

On the other side of the world, in Europe, there is a growing concern about a possible energy emergency during the coming winter. The UK and German governments are accelerating energy projects and splashing billions of euros to meet future demand. With this in mind, the countries reached a financial close for NeuConnect project, the first ever energy link between the UK and Germany,

The project is backed by a consortium of more than 20 national and international banks and financial institutions including the UK Infrastructure Bank, European Investment Bank (EIB), and Japan Bank for International Cooperation (JBIC).

The 1.4 GW NeuConnect interconnector will see two new substations built on the Isle of Grain in Kent, UK, and the Wilhelmshaven region in Lower Saxonia, northern Germany, connected by over 700 kilometers of subsea cables traveling through British, Dutch and German waters. Works will start on site in the UK and Germany later this year.

Meanwhile, a consortium comprising Shell New Energies NL BV, ENGIE, Vopak and Anthony Veder is working on producing, liquifying and transporting green hydrogen from Portugal to the Netherlands. Key sector players in heavy duty, marine and aviation have expressed their support for this development as it fits well with their intention to decarbonise operations.

The aim is to deliver the first shipment of liquid hydrogen from Sines to Rotterdam by 2027.

The governments of Portugal and the Netherlands have strengthened their joint ambition for the production and transport of hydrogen. This project follows the signing of a Memorandum of Understanding (MoU) in 2020.

In line with Spain’s roadmap for the development of offshore wind power and marine energy, which set an objective to reach 1 to 3GW of floating offshore wind power, and between 40 and 60MW of marine energy installed capacity by 2030, this week the government revealed a plan for four aid programs totaling €200 million.

The aid program will promote new projects, technologies, or installations of marine renewable infrastructures that will contribute to the development of these technologies in Spain.

The projects must be completed before 30 June 2026 and must respect the principle of ‘not causing significant damage’ to the environment, the officials emphasized.

Meanwhile, to accelerate the energy transition in the UAE, the broader Middle East and North Africa, French engineering company Technip Energies and UAE’s National Petroleum Construction Company (NPCC) have established a new company NT Energies which promises to provide valuable services in blue and green hydrogen and related decarbonisation projects, CO2 capture in addition to other industrial projects.

The partners expressed their desire to support the energy transition in line with the UAE’s strategy to take positive and effective climate change actions and ensure a decarbonised future.

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