Caribbean Sustainable Energy Conference: Day 3 Highlights

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(Energy Analytics Institute, 26.Jan.2022) — Selected highlights from the virtual Caribbean Sustainable Energy Conference hosted by the Energy Chamber of Trinidad and Tobago from 24-26 January 2022 including presentations from International Energy Agency (IEA) Lead Gas Analyst Peter Zeniewski, IDB Invest Investment Manager Alicia Taylor, and Proman Operations Managing Director Aleeya Ali, among others.

Select highlights follow:

International Energy Agency (IEA) Lead Gas Analyst Peter Zeniewski

— “Emerging markets will make up the vast majority of the growth in energy demand over the next several decades.”

— “Emerging markets account for only one-third of global energy investment, even though they represent two-thirds of the global population. So, there is already a mismatch from where energy demand is coming from and where the money is being spent.”

— “With two thirds of the global population, emerging and developing economies have vast potential for economic and energy demand growth, but there is a major gap between future needs and todays energy investment flows.”

— “When we look at the amount of money spent on just clean energy, the share of developing economies is even lower still. Today, it’s about one-fifth of total investment in clean energy, which is going to the emerging world. If these trends continue then emerging markets are set to account for the bulk of emissions growth in coming decades and will struggle to finance clean energy projects, unless much stronger action is taken to transfer their energy systems.”

— “The challenge is to really find an investment model that meets the aspirations of these countries but avoids the high carbon choices that other development models have led to in the past.”

— “If we want to meet net zero emissions by 2050, then capital spending on clean energy has to expand seven-fold.”

— While major fuel-importing countries stand to benefit from transitions, oil and gas producers face huge pressures on development models that rely on hydrocarbon revenues. Diversifying the energy and economic base is crucial.”

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— “Most spending goes towards clean power (technologies, wind, solar, others), but there is also investment needed in energy efficiency, things like electric vehicles and also low emissions fuels.”

— “CCS and hydrogen come in as very strong contenders for emissions reductions particularly in the decade ahead.”

— A large share of investment in sectors and assets that do not immediately deliver zero emissions energy nevertheless are critical for net zero emissions goals.”

— “Sources of finance need to start to shift towards a greater role for private capital and debt markets but tapping those markets is quite difficult even for renewable project providers and its harder still for fuel and emission intensive sectors. So, the ability to attract finance for energy projects is becoming increasingly contingent on fulfilling sustainability criteria.”

IDB Invest Investment Manager Alicia Taylor

— “Financial institutions in the region have a critical role to play in the process of decarbonizing economies.”

— “We promote financial solutions for clean energy to accelerate the energy transition and decarbonization in the region.”

— “Our investment in the energy sector in Latin America and the Caribbean as of Dec. 2021 has been $2.45bn… we have done this through a variety of financial structures from green and blue as well as project bonds to corporate loans.”

— “In an example of a $100mn total project cost we cover 40% of the total project cost ($40mn) so under a debt/equity structure (70/30) we’re providing $40mn of the $70mn required.”

— “The Caribbean has all the right conditions to become a renewable energy hub. Renewable energy and energy efficiency is a burdening growth sector.”

The Ministry of Energy and Energy Industries Executive Penelope Bradshaw-Niles

— “Power generation, transport and industry are identified as the three main sectors that contribute to GHG emissions in Trinidad and Tobago. Of these the energy sector is the main contributor.”

— “Industry is keen to get into action on reducing CO2 emissions and footprints. Storage and EOR should equally be evaluated and value defined.”

— “Methane emissions reduction actions should be tracked and learnings shared across the industry. This could bring cost benefits to the industry and allow for Trinidad and Tobago commitments on methane to be met or exceeded by 2030.”

Captain Sukhjit Singh, Head of School, Maritime Science, University of Gibraltar, Technical Head, MTCC Caribbean

— “The revision of the Energy Taxation Directive (ETD) imposes a minimum tax on HFO while it removes exemptions and incentives for the use of fossil fuels.”

RELATED STORY: Caribbean Sustainable Energy Conference: Day 1 Highlights

— Under “alternative fuels infrastructure regulation states [are] to step up the availability of LNG by 2025 and onshore electrical power supply by 2030 in core EU ports. The impact will include an opportunity to advance the availability of alternative fuels for shipping and accelerating the discussion of global MBMs.”

DNV Director – Decarbonization and Transformation Simon Mockler

— “The maritime fuel mix will change dramatically… uptake of gas as fuel will accelerate through the next decade.”

— “Other than gas, no alternative fuels are today produced in volumes that make wide-spread marine adoption feasible.”

— “Significant new investment in methanol and ammonia capacity are expected in the 2020s.”

— “Growth in biofuel production is expected but is likely to be limited.”

Proman Operations Managing Director Aleeya Ali

— “Methanol is a leading alternative to conventional bunker fuels.”

— “Not only does shipping need to dramatically reduce its emissions the coming decades, it needs to start doing so now. Regulations from IMO and EU, as well as increased requirements from customers and financial institutions will push the shipping industry towards net zero emissions by 2050 at the latest.”

— “Production of green methanol from sustainable sources such as waste, biomass or renewable energy is growing and highly scalable.”

— “Natural gas-based methanol and existing technology enables early adoption, with immediate reduction of Tank-to-Waste emissions alongside other environmental benefits.”

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By Ian Silverman, Aaron Simonsky and Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.

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