Energy Transformation Projects

Transition from Fossil Fuels to an Energy Mix

If you ask a person in Renewable Energy generation what the Energy Transformation is they will say it is the conversion from a fossil fuel based energy economy to one generated from renewables; wind, solar, geothermal, etc. Someone in the fossil fuel industry will probably ignore that there is a transition occurring and that it is impractical to consider whole scale switch to a renewable source.

The debate over the interpretation of Energy Transformation and climate change will continue. The fact remains that the major generation of power (energy) on the planet is by fossil-based fuels (oil, natural gas and coal being the primary). The debates are irrelevant. What is occurring today is a transition from total fossil-based generation to a mix of generation. Energy transformation projects are being driven by the consumer and end-user of energy. The changes occurring are bringing new transportation modalities and infrastructure requirements. Statistics still show dominance of fossil-based energy sources, but there are signs of a change to more of a mix of energy generation choices taking place. Many nations are looking at non-fossil-based energy sources for a geopolitical and/or financial reason.

Generation price-points for renewables are coming down, while performance and reliability of EV’s (electric vehicles) is becoming more viable. Any increase of one of the renewables has impact on market share for a fossil-fuel, whether it be by legislation or consumer preference. The major trend is ultimately driven by the consumer and end-user choices. Major companies are making choices for long term energy generation suppliers by selecting power contractors based on renewables. Large vehicle fleet transitions from gasoline to electric are being seen. All of this has an impact in the Energy Eco System.

The Road Ahead

For suppliers of energy transfer and transform equipment: pumps, compressors, systems, controls, generators, etc., in the energy sector this could present challenges and opportunities. What is a long-term outlook for demand for your equipment type? What about the need for next generation equipment and what will that look like? How can your product become more adaptable to energy transformation opportunities? How can the product become smarter for the transition taking place? Is sustainability in the Energy Eco System an option or does it require an all-new direction? Faced with these challenges product strategies will require a new perspective and process.

Opportunities may be bigger than imagined for companies that take advantage of energy transformation projects in the Energy Mix. HuTech⁵¹ can help you navigate this transition and find a new path. The earlier this is considered, the easier it will be to gain opportunities as they arise.