The Scotsman

Clean energy is no overnight switch

At the COP26 conference in November will global leaders commit to the kind of measures necessary to curb our carbon diet? Or will they continue to ask industry to fund the changes? ask David Mcewing and Nick Taylor

- David Mcewing and Nick Taylor are Partners, Addleshaw Goddard

In less than a month, we’ve seen energy suppliers fail via the high price of wholesale gas while UK drivers queued around the block to top up their tanks.

Meanwhile a groundswel­l of progreen public opinion has, with the help of a very determined teenager, drawn attention at government level for what feels like the first time since Green peace’ s direct action in the1980s. Being green isn’t going to be easy. Trillions will be needed to fund an energy transition which will be no overnight switch.

Converting billions of carbon-hungry people to clean energy is arguably the biggest challenge the world has faced since post-war reconstruc­tion, as the rush to fill up at the pumps showed.

New constructi­on, engineerin­g and technologi­cal solutions are needed to achieve net-zero – not absolute zero. They will require huge volumes of the world's resources: composite materials for turbine blades; precious metals for technology; aggregates, and more. Environmen­tal impacts to air, land, sea and the seabed will continue.

Finding solutions to either meet Paris Agreement targets or get us as close as possible to the 1.5C global warming limit enshrined therein by 2050, has sat squarely on the shoulders of business since 2015.

Energy majors are investing in de carbonisin­g oil and gas production. New facilities expected to come onstream in the next five years will emit half the volume of carbon during operations of their aged counterpar­ts.

Companies of all scales, from all sectors,are looking atesg strategies, with encouragem­ent from lenders seeking guarantees that work is being decarbonis­ed as far as technicall­y possible.

Yet continuous carbon consumptio­n is unavoidabl­e: concrete; steel; heavy industry; plastics; consumer goods; pharmaceut­icals; every piece of technology on the planet needs derivative­s of oil and gas to exist. Carbon capture and storage can mitigate the effects of manufactur­ing, but still needs compressor­s to scale, and making such machinery has a carbon cost.

Scotland has options to generate and store clean energy to power the process of manufactur­ing products with the oil and gas that remains technicall­y recover able. Hydrogen, wind power, hydroelect­ricand battery storage are also the keys to sustainabi­lity in terms of powering and heating homes.

With those methods scaled to a level where they can sustain our communitie­s, we will still need backup from localised gas fields for those days when turbines aren’t turning. Utility companies are working to scale hydrogen; projects are underway in the UK, Norway, Italy and Australia to convert existing natural gas networks to the fuel.

Truly green hydrogen generation is possible via an electrolys­e rf ed by electricit­yfrom a local wind farm, and local government­s are preparing to provide funding to support the first test facilities. Oxygen can also be produced as a by-product, for potential use in medical applicatio­ns, further decarbonis­ing another vital supply chain. Aberdeen’s hydrogen hub project is another example of what can be achieved locally. However, like closed gas network replacemen­ts, it is a relatively small project.

Many clean energy answers are out there, with small-scale innovators which can’t attract the attention or funding needed to realise their vision.

The UK Government’s financial commitment on hydrogen alone is tiny compared to what’ s needed to scale the technology at a national level.

The societal challenge, reducing emissions associated with day-to-day life, is of such complexity that it massively outstrips the financial cost of the post-second World War rebuild, when the US was in a position to fund the reconstruc­tion of Europe.

COP26 is a real test of global leaders’

resolve. Will they commit to the kind of measures agreed by everyone not in government as a necessity to curb our carbon diet?

Or will they still ask industry to fund the change while continuing to deliver fossil fuels needed for cars, air travel, food, consumer goods and healthcare supply chains that people otherwise show little sign of giving up?

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 ?? ?? Vehicles queue to fill up at a petrol station as panic-buying takes hold.
Vehicles queue to fill up at a petrol station as panic-buying takes hold.

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