Authors :
OFILI, METHADIUS IWEANYA
Volume/Issue :
Volume 8 - 2023, Issue 1 - January
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3RD42he
DOI :
https://doi.org/10.5281/zenodo.7614211
Abstract :
This research was carried out investigate what energy transition strategies and to what extent the
IOCs are addressing the harder-to-abate sectors of shipping, aviation, trucks and petrochemicals;
why adopted strategies are ineffective/effective; why the sector is hard-to-abate/neglected, and what
fuels have been adopted. Secondary data was collected from IRENA and the seven leading IOCs.
Findings were qualitatively and quantitatively analyzed, and show that IOCs have increased their
harder-to-abate sector energy transition engagements, compared to previous years. Biofuels and
hydrogen are the renewable fuels adopted for this difficult-to-electrify sector, which is not easily
directly amenable to other sources of renewable energy. The ‘horizontal strategies’ of direct/own
investments/projects, partnerships, strategic alliances, JV, stake and fuels purchases and outright
acquisitions were employed by IOCs to grow their biofuel and hydrogen portfolios, while ‘vertical
strategies,’ entail short and long term strategies. Biofuels represent short term strategy because they
are readily deployable fuels requiring little or no engine modifications, while hydrogen represents
long term strategy, as engine re-calibration, new distribution and dispensing infrastructures are
required. Through the implementation of the horizontal strategy, the vertical strategies are
accomplished, leading towards 2050 net-zero target. The IOCs are producing not only grey hydrogen,
but also blue (CCS/CCUS-applied) and green hydrogen. Global green hydrogen production entails the
electrolysis of water, using enormous amounts of renewable electricity. They now produce, not just
bioethanol and biodiesel, but through technological innovation, have developed SAF, Bio-LNG, RCNG, RNG, LCF and HVO biofuels. While these developments are commendable, they are
ineffective, as current sector investments must more than triple, annually, for net zero to be attained,
otherwise, it will be an illusion.
This research was carried out investigate what energy transition strategies and to what extent the
IOCs are addressing the harder-to-abate sectors of shipping, aviation, trucks and petrochemicals;
why adopted strategies are ineffective/effective; why the sector is hard-to-abate/neglected, and what
fuels have been adopted. Secondary data was collected from IRENA and the seven leading IOCs.
Findings were qualitatively and quantitatively analyzed, and show that IOCs have increased their
harder-to-abate sector energy transition engagements, compared to previous years. Biofuels and
hydrogen are the renewable fuels adopted for this difficult-to-electrify sector, which is not easily
directly amenable to other sources of renewable energy. The ‘horizontal strategies’ of direct/own
investments/projects, partnerships, strategic alliances, JV, stake and fuels purchases and outright
acquisitions were employed by IOCs to grow their biofuel and hydrogen portfolios, while ‘vertical
strategies,’ entail short and long term strategies. Biofuels represent short term strategy because they
are readily deployable fuels requiring little or no engine modifications, while hydrogen represents
long term strategy, as engine re-calibration, new distribution and dispensing infrastructures are
required. Through the implementation of the horizontal strategy, the vertical strategies are
accomplished, leading towards 2050 net-zero target. The IOCs are producing not only grey hydrogen,
but also blue (CCS/CCUS-applied) and green hydrogen. Global green hydrogen production entails the
electrolysis of water, using enormous amounts of renewable electricity. They now produce, not just
bioethanol and biodiesel, but through technological innovation, have developed SAF, Bio-LNG, RCNG, RNG, LCF and HVO biofuels. While these developments are commendable, they are
ineffective, as current sector investments must more than triple, annually, for net zero to be attained,
otherwise, it will be an illusion.
