As we will be discussing at the IESE Global Energy Day on March 27th , the reduction of renewable energy costs and the penetration of disruptive technologies are transforming the energy sector. In this context, the role of natural gas in energy transition will be critical.
Natural gas is the cleanest among all fossil fuels and it has a higher efficiency rate than coal (55% vs 35%) and a lower carbon dioxide (CO2) emission factor (33% vs 95%). It also reduces the nitrogen oxide (NOx) emissions in a half compared to coal and has very little (almost 0) sulphur dioxide (SO2) emissions.
Natural gas can be transported in two ways: by pipeline or by ocean-going ships, usually known as LNG carriers/tankers. Historically, most of the transportation has been made by pipeline (~70% Global Natural Gas trade), but the trend is changing, and currently more transportation is by the tankers. According to Monitor Deloitte, worldwide LNG demand is expected to grow at a 6% CAGR in the following years.
But what exactly is LNG? LNG (Liquified Natural Gas) is natural gas that has been cooled down to -162°. Reducing its temperature and changing its state from gas to liquid achieves volume reduction of 600 times. Once natural gas is in its liquid form, it is loaded into the LNG tankers, that are specially designed to keep the fluid at a low temperature. Upon arrival to the port, the tankers transfer the LNG to the regasification station, where it is transformed back into gas state and injected into the gas network.
In summary, LNG brings a safer and more efficient way of transporting natural gas and opens the natural gas market to the whole world. Thanks to this technology, countries with no gas reserves and low pipeline infrastructure can consume natural gas.
“Coronavirus, energy?” Over the past few weeks, we have seen the Coronavirus – COVID-19 – having a health and economic impact over the globe. It has been on everybody’s mind and impacts us directly. The French government has forbidden any gathering above 5,000 people, canceling the Paris half marathon this weekend. But it also has an impact on the energy and environmental sector.
Imagine you are on the committee responsible for leading the energy transition in your country. What direction and steps would you recommend? This is one of the most important topics in our current leaders’ agenda because the decisions we are making today will have a massive impact in the global environment and the world’s population.
Last week we were delighted to welcome Bulb Spain at IESE campus in Barcelona. Bulb is a 100% renewable energy supplier founded in the UK only 4 years ago. It has since been recognised as UK’s fastest-growing private company for second year running, acquired more than 1.6m customers, raised over £60m in venture capital and certified as a B-Corp. Spain is one of its first expansion markets, and we were lucky to meet some of the team to learn about the industry, disruption and their exciting growth plans.
Three key trends steer the future of the global energy sector, and these are often abbreviated as 3D. In t his short article we provide an overview of what these 3D energy trends are, and how each contributes to industry transformation.
IESE second year MBA students have recently returned from Africa where they learnt about Kenya’s Energy Projects. The country is at the forefront of renewable energy implementation, and set on its target to achieve the first breaks in mass usage of clean energy on the continent. The vast amount of untapped solar energy in a country that receives 8 – 11 hours of sunlight daily, has the largest wind farm in the continent, hydroelectric dams that contribute about 36% of the grid capacity and huge investments in ongoing geothermal projects, reveal natural energy sources yet untapped and the abundance economic growth that can be unlocked in the country.