EIC - Energy Industries Council

06/04/2024 | News release | Distributed by Public on 06/04/2024 12:03

Reflections on the Future of Energy Transition from Breakbulk Europe 2024

Reflections on the Future of Energy Transition from Breakbulk Europe 2024

It was a privilege to attend and present at the Breakbulk Europe 2024 session titled "What's Next for the Energy Transition Market?" last week in Rotterdam. The panel focused on the key challenges and drivers for the energy transition movement, the likelihood of success, and what is necessary for a successful transition.

In my presentation, I explored the immense opportunities across Europe, particularly in hydrogen and carbon capture. But it's clear that for these sectors to achieve commercial scale, significant economic support is crucial. The long-term market potential is there, but the supply chain and the rest of the industry need tangible proof that these early-stage proposals will progress, with actionable plans addressing challenges such as port and vessel availability.

These are exciting times with numerous projects on the horizon for those involved in the cargo space. But to keep pace with the industry's ambitions and the growing size of projects, we need to bolster supply chain growth to prevent bottlenecks, a challenge already seen in offshore wind.

While the energy transition is making its mark, our data indicates that in the short term, investment opportunities will be more favourable in oil and gas, with this sector boasting the highest Final Investment Decision rate in Europe. Supply chains are shared across industries, and without addressing potential bottlenecks, this could again become an issue, with current profit margins looking more attractive in oil and gas.

Key Insights from Industry Leaders at the session:

Rafael Vicens (DB Schenker Middle East) highlighted the global commitment to carbon neutrality by 2050. However, challenges remain, especially regarding raw material scarcity.

Jaap-Jan Pietersen (Combifloat Group) stressed the need for a coordinated supply chain. The competition for resources worldwide requires collaborative solutions.

Mauro Varela (Tecnicas Reunidas) underscored the urgency of the energy transition. While projects are promising, progress is slow. We cannot afford to delay.

Read more about the session: Energy Transition Stands at Critical Juncture | Breakbulk Europe.

Feel free to share your thoughts or ask questions below!

Authored by:

Sharanya Kumaramurthy
Market Intelligence Manager (CAPEX) - EMEA & Interim Head of Consult

*Legal Disclaimer. The views expressed, and responsibility for the content of this publication, lie solely with the authors.