Gas, renewables and carbon capture and storage (CCS) need to work together for a rapid energy transition, according to a new report.
According to the research, gas and variable renewables will be the only energy sources with a higher demand in 2050 than today, and the resources will have to work together – alongside CCS – to secure a swift transition to affordable, decarbonized energy by 2050.
By mid-century, it is forecast gas will account for nearly 30 per cent of the global energy supply, providing the world with a base of secure and affordable energy alongside manufacturing feedstock.
The analysis also predicts that global oil demand will peak by the mid-2020s, accounting for more than 29 per cent of the world’s energy supply.
Furthermore, the outlook predicts that CCS will not be employed at-scale until the 2040s unless governments proceed to develop and enact more definitive policies on its use, considering it is the only currently available technology to deeply decarbonise hydrocarbon use.
“The future of CCS largely lies in the hands of the policy makers setting a higher carbon price than the cost of the technology,” DNV GL Oil and Gas CEO Liv Hovem said.
The Energy Transition Outlook said the sector will have the ability to decarbonise if it maintains society’s trust through safe operations, environmental performance and sustainability.
“The energy industry must however also shift its mindset from ‘gas vs renewables’ to ‘gas and renewables’ for success,” Ms Hovem said.
In 2017-18, natural gas accounted for 25 per cent of Australia’s primary energy mix.
For more information visit the DNV GL website.
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