Apr 3, 2020

Capgemini on integrating energy and automation

Technology
Energy Efficiency
William Girling
3 min
A report by French multinational Capgemini has identified the energy sector’s insufficient integration of automation as among its greatest mistakes
A report by F...

A report by French multinational Capgemini has identified the energy sector’s insufficient integration of automation as among its greatest mistakes.

Finding that roughly 50% of respondents in its survey had under-estimated the utility of intelligent automation (IA), the company estimates that savings between US$237bn and $813bn were broadly possible if uptake for the technology was increased. 

Defined as a holistic approach to digital transformation incorporating process management (BPM) and robotics (RPA), IA can result in a trinity of process optimisation, affecting users, systems and tasks. 

More than this, however, IA also incorporates aspects of artificial intelligence (AI) and machine learning to keep systems flexible.

The challenges of implementation

Taken as a whole, the adoption of AI to some degree within energy companies has demonstrated exponential growth: 52% in 2019, a large step from the 28% reported just two years previously. 

However, Capgemini identifies issues around scaling tech innovations to the large operational frameworks energy companies operate in to be a problem, although this is far from a unique issue; other industries are experiencing similar challenges.

It may be from this difficulty in understanding the ‘big picture’ that the report also finds a general lack of awareness regarding easy-to-implement solutions (only 18% of organisations have done so). 

Relating to core functions, these include the use of AI and data analytics to augment forecasting, energy trading and yield optimisation amongst others.

SEE ALSO:

For ancillary tasks, i.e. functions which can easily be relieved by RPA, which can then allow an increase of diverted time for staff towards more qualitative tasks - contract management, defect detection, data management - the uptake was even slimmer: 11%.

If Capgemini’s report reveals anything, it is that the energy sector needs to be enlightened as to the significant benefits of integrating automation in its processes and to expand their horizons for its implementation. 

The steps towards success

The report recommends five steps in the roadmap for remedying this industry problem:

  • Focus on pragmatism: Business leaders need clear, empirical data and case studies of energy’s integration with automation in order to facilitate a practical change within their respective companies.

  • Know where to optimise: Identifying the key areas that could benefit most from increased efficiencies will show short-term gains and ease the holistic optimisation of all operations. 

  • Stay up-to-date: Technology is constantly upgrading, meaning it’s important to stay in the loop regarding the latest innovations and how they can be useful.

  • Maintain clear leadership: Nebulous management will impede or confuse the transition process, so always maintain a core executive with a unified vision. 

  • Invest in staff: Upgrading the technology of a company will mean upskilling the workforce appropriately; it is important to consider that increased automation could yield an entirely different work paradigm and staff will need to be part of it. 

Share article

Jul 29, 2021

Carbon dioxide removal revenues worth £2bn a year by 2030

Energy
technology
CCUS
Netzero
Dominic Ellis
4 min
Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades says the UK's National Infrastructure Commission

Carbon dioxide removal revenues could reach £2bn a year by 2030 in the UK with costs per megatonne totalling up to £400 million, according to the National Infrastructure Commission

Engineered greenhouse gas removals will become "a major new infrastructure sector" in the coming decades - although costs are uncertain given removal technologies are in their infancy - and revenues could match that of the UK’s water sector by 2050. The Commission’s analysis suggests engineered removals technologies need to have capacity to remove five to ten megatonnes of carbon dioxide no later than 2030, and between 40 and 100 megatonnes by 2050.

The Commission states technologies fit into two categories: extracting carbon dioxide directly out of the air; and bioenergy with carbon capture technology – processing biomass to recapture carbon dioxide absorbed as the fuel grew. In both cases, the captured CO2 is then stored permanently out of the atmosphere, typically under the seabed.

The report sets out how the engineered removal and storage of carbon dioxide offers the most realistic way to mitigate the final slice of emissions expected to remain by the 2040s from sources that don’t currently have a decarbonisation solution, like aviation and agriculture. 

It stresses that the potential of these technologies is “not an excuse to delay necessary action elsewhere” and cannot replace efforts to reduce emissions from sectors like road transport or power, where removals would be a more expensive alternative.  

The critical role these technologies will play in meeting climate targets means government must rapidly kick start the sector so that it becomes viable by the 2030s, according to the report, which was commissioned by government in November 2020. 

Early movement by the UK to develop the expertise and capacity in greenhouse gas removal technologies could create a comparative advantage, with the prospect of other countries needing to procure the knowledge and skills the UK develops.

The Commission recommends that government should support the development of this new sector in the short term with policies that drive delivery of these technologies and create demand through obligations on polluting industries, which will over time enable a competitive market to develop. Robust independent regulation must also be put in place from the start to help build public and investor confidence.

While the burden of these costs could be shared by different parts of industries required to pay for removals or in part shared with government, the report acknowledges that, over the longer term, the aim should be to have polluting sectors pay for removals they need to reach carbon targets.

Polluting industries are likely to pass a proportion of the costs onto consumers. While those with bigger household expenditures will pay more than those on lower incomes, the report underlines that government will need to identify ways of protecting vulnerable consumers and to decide where in relevant industry supply chains the costs should fall.

Chair of the National Infrastructure Commission, Sir John Armitt, said taking steps to clean our air is something we’re going to have to get used to, just as we already manage our wastewater and household refuse. 

"While engineered removals will not be everyone’s favourite device in the toolkit, they are there for the hardest jobs. And in the overall project of mitigating our impact on the planet for the sake of generations to come, we need every tool we can find," he said.

“But to get close to having the sector operating where and when we need it to, the government needs to get ahead of the game now. The adaptive approach to market building we recommend will create the best environment for emerging technologies to develop quickly and show their worth, avoiding the need for government to pick winners. We know from the dramatic fall in the cost of renewables that this approach works and we must apply the lessons learned to this novel, but necessary, technology.” 

The Intergovernmental Panel on Climate Change and International Energy Agency estimate a global capacity for engineered removals of 2,000 to 16,000 megatonnes of carbon dioxide each year by 2050 will be needed in order to meet global reduction targets. 

Yesterday Summit Carbon Solutions received "a strategic investment" from John Deere to advance a major CCUS project (click here). The project will accelerate decarbonisation efforts across the agriculture industry by enabling the production of low carbon ethanol, resulting in the production of more sustainable food, feed, and fuel. Summit Carbon Solutions has partnered with 31 biorefineries across the Midwest United States to capture and permanently sequester their CO2 emissions.  

Cory Reed, President, Agriculture & Turf Division of John Deere, said: "Carbon neutral ethanol would have a positive impact on the environment and bolster the long-term sustainability of the agriculture industry. The work Summit Carbon Solutions is doing will be critical in delivering on these goals."

McKinsey highlights a number of CCUS methods which can drive CO2 to net zero:

  • Today’s leader: Enhanced oil recovery Among CO2 uses by industry, enhanced oil recovery leads the field. It accounts for around 90 percent of all CO2 usage today
  • Cementing in CO2 for the ages New processes could lock up CO2 permanently in concrete, “storing” CO2 in buildings, sidewalks, or anywhere else concrete is used
  • Carbon neutral fuel for jets Technically, CO2 could be used to create virtually any type of fuel. Through a chemical reaction, CO2 captured from industry can be combined with hydrogen to create synthetic gasoline, jet fuel, and diesel
  • Capturing CO2 from ambient air - anywhere Direct air capture (DAC) could push CO2 emissions into negative territory in a big way
  • The biomass-energy cycle: CO2 neutral or even negative Bioenergy with carbon capture and storage relies on nature to remove CO2 from the atmosphere for use elsewhere

Share article