Day Two: The Energy Gang at The Reuters Global Energy Transition Conference 2024
Jun 27, 2024
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Greg Jackson, CEO of Octopus Energy, discusses selling Kraken technology platform to utilities in the US market. David Carroll from Engie talks about legislation and regulatory initiatives driving renewable energy adoption. Ana Quelhas from EDP Renewables explores the role of hydrogen in a zero-carbon energy system.
Digitalization propels energy transition by Kraken technology at Octopus Energy.
Regulatory frameworks like Inflation Reduction Act drive renewable energy adoption.
Low-carbon hydrogen remains crucial for zero-carbon energy despite hype decline.
Strategic alignment with decarbonization goals essential for low carbon hydrogen market viability.
Deep dives
Octopus Energy's Journey and Innovation in Energy Transformation
Octopus Energy, led by Greg Jackson, emerged from a tech background with a vision to revolutionize the traditional energy sector. By leveraging their software 'Kraken' alongside their retail operations, Octopus Energy serves as a pioneer, driving digitalization and customer-centric innovation. Their approach combines enterprise software to transform utilities, leading the shift towards renewables and enhancing customer experiences.
Challenges and Opportunities in US Low Carbon Energy Transition
In the US, the enthusiasm for low carbon hydrogen has waned due to uncertainty in regulatory frameworks, impacting offtake commitments. Unlike Europe, where a comprehensive regulatory environment fosters project advancement, the US faces difficulties defining renewable hydrogen and meeting decarbonization targets. The debate over tax credit eligibility, particularly on hourly versus annual matching, poses challenges for the industry.
Navigating the Evolving Landscape of Renewable Hydrogen
The perception in the hydrogen industry reflects a lull in the hype cycle, indicating a broader understanding of the technological challenges in hydrogen production and utilization. EDP Renewables' strategic focus on renewable hydrogen emphasizes adherence to strict regulatory frameworks to ensure genuine decarbonization efforts. While transitioning rules gradually is acknowledged, a balanced approach to foster Green hydrogen investments is essential.
Exploring Decarbonization Challenges and Market Dynamics
The quest for low carbon hydrogen reveals a search for applications aligning with decarbonization goals in key sectors like ammonium fertilizers, energy, and transport. The fundamental shift to adopt low carbon hydrogen faces hurdles due to insufficient market demand without stringent mandates. Addressing the market viability of low carbon hydrogen requires a strategic alignment towards sectors with critical decarbonization needs and leveraging evolving regulations to drive sustainability.
Deciphering the Role of Hydrogen in Energy Transition
As hydrogen technology evolves, its market penetration and relevance are contingent on driving decarbonization across conventional and emerging sectors. Understanding the market dynamics for low carbon hydrogen necessitates aligning regulations with decarbonization objectives based on a transitional approach. Strategic deployment of hydrogen in sectors like energy, transport, and industrial applications remains pivotal for realizing sustainable energy transitions.
Decarbonization through Renewable Hydrogen
The podcast discusses the need for decarbonization and the role of renewable hydrogen in achieving full decarbonization of the economy. With parallels drawn to the renewable energy sector, it emphasizes the importance of policy objectives and tools to drive the development of renewable hydrogen, similar to what was done for renewables. The focus is on creating a regulatory framework, policy tools, and funding mechanisms to align incentives in society towards the transition, highlighting the necessity for the last mile of decarbonization with green molecules in the economy.
Challenges and Strategies for the Hydrogen Industry
The discussion revolves around the challenges and strategies in developing the hydrogen industry. While recognizing the potential of hydrogen as an energy vector, the podcast highlights the importance of prioritizing energy efficiency and direct electrification in certain sectors over hydrogen usage. It underscores the need to ensure a decarbonized grid before advocating for renewable hydrogen to prevent inadvertently increasing emissions. The conversation also touches upon the need for a realistic approach, emphasizing infrastructural development and appropriate technology deployment to achieve clean, efficient hydrogen production.
In this second special episode of Wood Mackenzie's The Energy Gang, recorded at the Reuters Global Energy Transition 2024 conference in New York, we speak with leaders at some of the key companies shaping the energy transition. We hear about how they are tackling the challenge of meeting rising demand for electricity while at the same time reducing emissions.
Greg Jackson, CEO of Octopus Energy, talks about his ambitions in the US market, which are centered around selling the company’s Kraken technology platform to utilities. He highlights the global potential of digitalization in propelling the energy transition forward.
The transition towards renewable energy is governed not only by technological progress, but also by regulatory and policy frameworks. Our second guest, David Carroll, Chief Renewables Officer at Engie, talks about how legislation including the Inflation Reduction Act, and regulatory initiatives such as the Federal Energy Regulatory Commission's (FERC) Order No. 1920, can catalyze the adoption of renewable energy sources.
Next we talk to Ana Quelhas, Managing Director of the Hydrogen Business Unit at EDP Renewables, about the role of hydrogen in the shift away from carbon-intensive energy. Some of the hype around low-carbon hydrogen has been dying away over the past year or two. But Ana Quelhas argues that, if done right, hydrogen can still be an important part of a zero-carbon energy system, for uses where direct electrification may not be feasible.
And finally, Bill Newsom, President and CEO of Mitsubishi Power Americas, tells us about what the energy revolution means for equipment suppliers. His company is developing and deploying solutions that address the demand for “clean firm” power that is available round-the-clock, through hydrogen and carbon capture. He talks about the prospect that these technologies could help provide the massive increase in 24/7 low-carbon electricity that will be required for new data centers and factories, and to charge electric vehicles.
Look out for the next special episode from day three of the conference, available on Friday June 28.
You can find Ed and the show on most social media platforms: we’re @theenergygang on X. Subscribe to the Energy Gang on Apple Podcasts or Spotify so you don’t miss the next show.
