ADIPEC has made enabling action to overcome the new global energy trilemma a major focus of its 2024 edition. (Image source: dmg events)

Christopher Hudson, President of dmg events, writes on how ADIPEC is facilitating conversations around the global energy transitions

The energy trilemma of the past has evolved to reflect the challenges of our current moment. While before, global leaders were concerned with the supply of energy that was secure, affordable, and sustainable, today the challenge is to provide the world with energy that is secure, sustainable and equitable. Equitable encapsulates the previous trilemma definition’s energy affordability, as well as accessibility and the socio-economic impacts of energy in a country. This is of particular importance as the development levels and quality of living gaps between the Global South and North close.

While this new trilemma definition encompasses more needs, making it more complex to resolve, the broad solutions are still the same. Major action needs to come from the global energy industry, which must continue to lead efforts to decarbonise and drive efficiencies through Artificial Intelligence (AI) and technology.

Critical to overcoming the current energy trilemma is the introduction of more low and zero-emission energy sources, like liquified natural gas, green hydrogen, solar, wind, and biofuels. These fuels can help provide an increasing number of the low-carbon energy molecules the world needs. Related to this is transitioning industries that previously ran on fossil fuels - like the hard-to-abate sectors of transportation, cement and steel production, and shipping - to running on low or zero-emission electricity.

Supporting a shift from coal-powered electricity to clean energy-powered electricity in Asia alone - which currently accounts for 82% of the world’s coal generation - could have vast benefits. Clean energy-powered industrial activity across Asia could advance the decarbonisation of many of the continent’s heavy industries while significantly reducing global carbon emissions. Achieving such large-scale changes requires supportive policy frameworks, financial incentives and tax breaks, clean energy finance and investment, and technology development.

And while the end goal of the energy transition is an energy system that is effectively zero carbon, it will take time to develop, commercialise, scale, and implement the technologies and systems that can do that. In the interim, we will continue to use energy sources that produce carbon but must do so while reducing their emissions impact. That is why the global energy industry needs to continue its efforts to develop and incorporate Carbon Capture, Sequestration and Utilisation (CCUS) and Direct Air Capture (DAC) technologies, which can help ensure that the hydrocarbons we use do not contribute to climate change. In parallel, government and industry should support the many startups that are working to turn captured carbon into useful products like graphene, polymers, concrete, and even biofuels.
Another key element to solving the energy trilemma is to increase the focus on energy efficiency. The International Energy Agency (IEA) estimates that around two-thirds of the total prime energy of the world goes to waste - primarily through energy leaks and ineffective energy use. This otherwise wasted energy could be considered an untapped energy source that the industry can harness through improved energy efficiency. This can be done through the integration of digitalisation technologies, like machine learning and AI.

The last critical component of the energy trilemma looks to address that third expanded need - energy equity. The pursuit of energy equity is about ensuring that no one is left behind in the global energy transition. Achieving it is not as simple as developing new clean energy technologies or implementing mega projects in places like Europe and North America. In many parts of the Global South, any type of energy supply is lacking, let alone clean energy. The energy industry must prioritise fair access to clean energy, ensuring the benefits of access to secure, clean energy reach vulnerable communities.

This can be achieved through collaborative efforts between the Global North and South to promote equitable distribution of resources and technologies. This collaboration needs to include technology transfer, access to finance and investment, and the development of customised solutions to create energy systems that are ideally suited for each unique market, instead of attempting to shoehorn solutions borrowed from the Global North.

Recognising the importance of bringing together the wider global energy industry to accelerate efforts to resolve these complex issues, the world’s largest energy event ADIPEC has made enabling action to overcome the new global energy trilemma a major focus of its 2024 edition. With our Strategic Conference gathering the world’s decision-makers and innovators, we will facilitate a meeting of minds across diverse sectors and geographies, forging the alliances and collaborations necessary to re-engineer the global energy system.

By platforming visionaries on critical topics, the conference will harvest insights on the latest thinking, trends and solutions around emissions, energy efficiencies and disruptive technology needed to advance global energy transitions. This mission is supported by the introduction of three new dedicated conferences - Digitalisation and Technology, Finance and Investment, and Voices of Tomorrow. These will spotlight industry progress and inspire collaborative and equitable action to fully unlock the opportunities presented by the integration and adoption of Fifth Industrial Revolution technologies.

Through ADIPEC’s timely agenda, the energy trilemma’s needs for decarbonisation, energy efficiency, and Global North-South collaboration will be advanced. ADIPEC’s gathering of the wider energy industry will facilitate the inclusive, meaningful and action-oriented dialogue needed to ensure that clean energy access reaches all corners of the world. 

For registrations, visit:  

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This article has been originally published on Upstream

The newly formed consortium has signed a framework agreement (FWA) with the Egyptian government during the Egypt-EU Investment Conference. (Image source: bp)

To advance plans of a multi-phase green hydrogen (gH2) project in Egypt, bp has signed a joint development agreement (JDA) with a consortium that includes Masdar, Hassan Allam Utilities and Infinity Power

While bp will remain the prime developer and operator, this consortium aims to bring together the region's hydrogen initiatives to provide a solid base for the promotion of this alternate energy medium. 

“We welcome the addition of bp to the consortium, building on the well-established existing relationship between our companies and supporting Masdar’s ambition to drive the development of green hydrogen around the world. We already have plans to develop green hydrogen projects in Egypt and this agreement reinforces Masdar and the UAE’s commitment to Egypt to realise its massive clean energy and green hydrogen potential, alongside our Africa renewable energy champion IPH,” said Mohammad Abdelqader El Ramahi, Masdar’s chief green hydrogen officer.

A single large-scale, multi-phase project for the development of gH2 and its derivatives to boost exports is also on the pipeline. “Hydrogen has a role to play in the future of global energy. We look forward to working with our partners to try to unlock hydrogen’s potential in Egypt’s energy story,” said bp’s senior vice president - hydrogen and CCS, Felipe Arbelaez.

bp has eyes on Egypt's hydrogen potential since 2022, when it signed a memorandum of understanding with the government to conduct feasibility studies, and considered the region home to 'world-class renewable energy resources'. That year witnessed multiple hydrogen research initiatives, one being Petrofac's first new energies project in Egypt. 

“We know Africa has abundant renewable resources, and this hydrogen export hub will take advantage of these resources and bring environmental and economic benefits to Egypt and other nations. Hydrogen power is an incredibly exciting technology, and this export hub can help to power green industry in Africa and beyond, and strengthen Egypt’s role as a leader in green power," said Nayer Fouad, CEO of Infinity Power.

Oppurtunity for regional cooperation and global expansion

The newly formed consortium has signed a framework agreement (FWA) with the Egyptian government during the Egypt-EU Investment Conference to kick-start research activities on the technical and commercial feasibility of the project.

In the presence of Moustafa Madbouly, Prime Minister of Egypt; Mohamed Shaker, Minister of Electricity and Renewable Energy, and Hala El-Said, Minister of Planning and Economic Development, the FWA was signed by Nader Zaki, bp’s regional president - Middle East and North Africa; Karim Hefzy, chief operating officer of Hassan Allam Utilities; Andreas Bieringer, director - green hydrogen business development and commercial, Masdar, and Mohamed Ismail Mansour, chairman of Infinity Power.

"We are pleased that the signing coincides with our celebration of 60 years in Egypt, which clearly reflects our ongoing commitment to the country. Over the decades, we have been a key supplier of energy in Egypt, consistently working to meet its increasing energy demands while supporting its endeavors for a more sustainable energy future. The diverse experiences of partners in energy projects present a great opportunity for regional cooperation and accessing global markets, fundamentally supporting Egypt's energy transition plans," said Zaki.

Recently, the MENA region is witnessing a surge in hydrogen projects, including Chariot's Project Nour in Mauritania and Project White Dunes by Falcon Capital Dakhla in Morocco.

The acquisition was a direct result of the NOC's pre-emptive rights. (Image source: Adobe Stock)

The Gabon National Oil Company has acquired exploration and production company Assala Energy from Carlyle 

This was the direct result of the NOC's pre-emptive rights, which the company excercised in November last year to initiate a sale and purchase agreement with Carlyle in February. Previously, Maurel & Prom was running for the Assala acquisition. 

Strategic acquisition 

The NOC tied up with Switzerland-based global energy commodities trading company, Gunvor Group, which offered financial support for the acquisition. 

“Gunvor is proud to have been selected as Gabon’s partner for this strategic acquisition,” said Stephane Degenne, member of Gunvor Group’s executive committee. “As a leading global oil trading company, Gunvor brings its strengths – global market expertise and financing – to support GOC’s energy agenda.”

Assala's daily production count remains around 45,000 barrels. Marcellin Simba Ngabi, Gabon Oil Company’s CEO, considers this acquisition a means for reinforcing control and sovereignty over its oil and gas reserves to increase revenues. Gabon continues to experience rich discoveries, with BW Energy-operated Hibiscus field being one of the latest instances. The northern flank of the field received sustantial oil with good reservoir quality. 

The AEB is a joint project by APPO and Afreximbank. (Image source: APPO)

In the true spirit of self-sufficiency, the establishment agreement and charter of the Africa Energy Bank (AEB) was signed this month in Cairo by Benedict Okey Oramah, president of African Export-Import Bank (Afreximbank) and Omar Farouk Ibrahim, secretary general, African Petroleum Producers' Organisation (APPO) 

The founding documents now await ratification from the Member Countries of APPO. 

A selection committee will be appointed to choose the host country for AEB's headquarters. Countries in the running include Algeria, Benin, Côte d’Ivoire, Ghana, Nigeria and South Africa.

A joint project by the APPO Member Countries and Afreximbank, the initial resolution for the establishment of the AEB was passed in the APPO Ministerial Council in 2022 to build financial support for the continent's rich oil and gas industry.

The primary objective of this development bank would be to support the domestic market, while prioritising the states that have given ratification as benefitiaries. 

APPO has always been enthusiastic in promoting local content in the oil and gas industy, and its recent memorandum of understanding with African Energy Chamber endeavours to empower local companies to become world-class operators capable of delivering major projects. 

Supporting domestic market

National companies in the hydrocarbon and energy sectors, as well as any private or public entity, having an impact on the development of the industry in the Member Countries will also have access to AEB's services. 

During the OPEC-Africa Energy Dialogue 2024 held in Cairo, the Africa Refineries and Distributors' Association (ARDA) expressed interest on providing prospective downstream projects for the AEB initiative.

A working group was brought together to develop the essential technical aspects of AEB's establishment. 

The bank is counting on an initial capital of US$5bn, and anticipating robust growth due to huge sector demands. Nigeria, Angola and Ghana have begun contributing their shares of a minimum amount of US$83.33mn that is expected of each Member Country to advance the project's capitalisation. 

The partners will also initate key staff recruitment for the AEB’s development.