Delivering the Projects to Keep 1.5 Alive

How does engineering need to evolve to help deliver new technologies and accelerate the transition? New for this year’s event we gathered leaders from leading EPC firms to discuss this exact question and more. Steered by Chris Barry, Vice President - Head EMEARC Downstream Consulting, Wood Mackenzie , our panellists: John Gilley, CEO, Kent , Gonzalo Pardo Mocoroa , Chief Commercial Officer - Energy Transition, Tecnicas Reunidas , Rob Shaul , Senior Vice President of Low Carbon Solutions, McDermott International, Ltd & Marc Bonandrini , Chief Commercial Officer, Petrofac covered how they are delivering the projects to keep 1.5 alive.??

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Highlights from the discussion includes:??

• Government commitment for climate-positive projects - Businesses seek certainty from governments to support and execute climate-positive projects. The private sector is ready for action, but government commitment is vital to kick-start projects. As a case in point, the Offshore Wind (OSW) sector in the UK recently faced setbacks due to contracting issues, emphasising the need for seamless collaboration.?

• Adapting project approaches for the energy transition - Transitioning from conventional oil and gas to renewable and clean energy projects requires a shift in approach as well as dedicated specialised teams to focus on the new technologies and strategies??

• A team FID effort - Achieving FID requires collaborative efforts from stakeholders across industries. Clear policies and mandates facilitate project approvals, but innovative models for risk-sharing are essential to overcome financial barriers.?

• Sharing risks between parties is paramount - In the last few years, many ambitious projects lacked the necessary funds, but the tide is turning and 2024 may be the year that many projects can get off the ground. It’s essential to choose the right partners and contractors early on. Mega projects are tough when the technologies and policies are uncertain. Finding new ways to share the risks with all parties involved: partners, developers, and financers is key.?

• Collaboration is key - Collaborative engagement between clients and contractors is indispensable for project success. An open dialogue fosters realistic expectations and facilitates solution-oriented approaches.?

• Getting banks on board - The risk and uncertainty still scare off some of the traditional financers. Greater upfront engagement and recognition of the opportunities that new technologies present are needed for driving investment.?

• Early engagement - Involvement in feasibility studies enables cost optimisation and informed decision-making. Early engagement helps identify optimal technologies, locations, and cost-effective solutions?

• Attracting and retaining the boots on the ground - Aligning corporate values with employee’s personal goals creates an environment for talent attraction and retention. Initiatives like graduate programs and diversity enhancement contribute to a thriving workforce.?

• A PR Problem? Are young people turning away from the energy sector, perceiving it as the problem rather than the solution? The industry offers a diverse range of opportunities to work on global projects and EPC contractors play a vital role in driving the energy transition forward, it’s crucial to showcase this and change the image of the industry.?

• Leading from the front - Technology and policy risks already pose enough challenges without engineering risks being perceived as another. EPC’s are at the forefront with a huge breadth of expertise, knowledge and experience to deliver these energy transition projects.??

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This article is part of an extensive post-show report on the ESF Europe - Energy & Sustainability Forum that took place in Madrid in February 2024. We look forward to releasing the full report. In the meantime, head to europetro.com/esfeurope for more details about the event and how to get involved!

?? Save the dates!

The next edition of ESF Europe will take place in Vienna, Austria, in March 2025, with the support of our co-host, OMV. Make sure you take part in it

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