Leading the Energy Transition with Rare Earth Elements

Preface

"Imagine a world where the energy that powers your home and car no longer comes from fossil fuels, but from the wind and sun. This clean energy revolution is already underway, and its success depends on hidden, invaluable resources—rare earth elements like neodymium, dysprosium, and samarium. These critical minerals, often overlooked, are as essential to our future as oil was to the 20th century. The oil and gas industry, known for powering the world for the last century, now has the unique opportunity to fuel this next era of clean, sustainable energy."

Executive Summary

The global transition to renewable energy presents unique opportunities for the oil and gas industry, particularly for firms like Cobeal that specialize in Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC). With the global wind energy capacity projected to more than double by 2030 (International Renewable Energy Agency [IRENA], 2021), the demand for critical rare earth elements like neodymium, dysprosium, and samarium will grow exponentially.

As the CEO of Cobeal , an EPCIC firm deeply involved in both onshore and offshore infrastructure projects, I recognize the vital role that rare earth elements will play in the future of renewable energy. Our industry's expertise in offshore environments, global logistics, and large-scale infrastructure projects provides a solid foundation to lead the development, extraction, and recycling of these essential minerals.

This article will explore how the oil and gas industry, particularly EPCIC companies, can spearhead this transition, ensuring our sector remains innovative and environmentally responsible while maintaining profitability.

"Rare earth elements are not just an industry buzzword—they are the backbone of the wind turbines that could one day power your city. The high-performance magnets made from these minerals enable turbines to generate more electricity with less wind. By investing in their development, we ensure that the world’s clean energy sources are as efficient as possible."

Leveraging EPCIC Expertise for Rare Earth Mining

The growth of the offshore wind energy sector is set to become a cornerstone of the clean energy revolution. As offshore wind farms proliferate, the demand for high-performance magnets, which are made from rare earth elements such as neodymium, dysprosium, and samarium, will rise. These elements are essential because of their ability to withstand harsh marine environments and improve turbine efficiency. I see this as a natural progression for our company, as we already have the expertise in installing and maintaining complex offshore structures.

Our firm's experience with offshore drilling platforms and marine engineering allows us to transfer these competencies to the exploration of underwater rare earth element deposits. Current estimates show that China controls over 80% of the global rare earth supply (U.S. Geological Survey [USGS], 2020), which creates a vulnerability in the global supply chain. As an EPCIC firm with global operations, we have the unique opportunity to diversify the supply chain by investing in new mining and processing facilities in regions like Southeast Asia, Africa, and Australia, thereby strengthening the security of rare earth supplies outside China.

"Offshore wind farms may seem like distant specks on the horizon, but they are quietly revolutionizing how we generate power. By 2030, these turbines could provide enough clean energy to power millions of homes, all while cutting down on emissions that contribute to climate change. And the oil and gas industry—often seen as part of the old guard—can actually drive this change by using its offshore expertise to make wind energy a dominant force in the global energy mix."

Offshore Wind: A Seamless Integration for Oil and Gas Expertise

Offshore wind farms present an area where oil and gas firms, especially those specializing in EPCIC, can contribute significant value. With the global offshore wind market expected to grow at a 13.5% compound annual growth rate (CAGR) from 2021 to 2030 (Global Market Insights, 2021), the need for large-scale installations in increasingly remote and challenging environments will require expertise that our industry has honed over decades. By incorporating rare earth element mining and processing into our service offerings, we can position ourselves as key players in the future of offshore wind development.

Our company has a proven track record of managing the construction of complex offshore platforms. The same technology and logistical capabilities that support oil and gas extraction can be repurposed to support offshore wind turbine foundations, installation, and maintenance. By aligning our operations with the expanding wind energy market, we can drive the innovation needed to ensure that offshore wind farms are built with sustainable materials like neodymium, dysprosium, and samarium.

"Think about your smartphone or electric car—each of these technologies relies on rare earth elements to function. Now imagine if, instead of mining new resources, we could recycle the same elements again and again. This approach not only reduces the need for environmentally harmful mining but also makes rare earth elements more accessible and affordable for future technologies. It's a win-win for both the planet and the people who rely on these products."

Recycling Rare Earth Elements: A Critical Strategy for Sustainability

While rare earth element mining is essential, I believe that recycling these materials is equally critical to ensuring their long-term supply. As wind turbines and electric vehicles reach the end of their lifecycle, the ability to recover and recycle the rare earth elements they contain will be crucial for reducing environmental impact and securing a circular economy for these critical materials. In our company, we are already exploring advanced material processing and refining techniques that could be adapted for rare earth recycling.

Recycling offers significant advantages over traditional mining, both in terms of reducing environmental degradation and minimizing the geopolitical risks associated with sourcing rare earth elements from a limited number of countries. By investing in the development of rare earth recycling facilities, we can position our firm as a leader in sustainable resource management, ensuring that the materials needed for the clean energy transition are available long into the future.

Leading the Charge Toward Sustainable Mining

As the world turns its attention toward decarbonization, the oil and gas industry must adapt to remain relevant. I firmly believe that sustainable mining practices will play a crucial role in this adaptation. The expertise our firm has developed in managing large-scale, environmentally sensitive projects positions us well to lead the development of low-impact mining methods for rare earth elements. By focusing on reducing water usage, minimizing habitat destruction, and using renewable energy in mining operations, we can ensure that rare earth element extraction aligns with global environmental standards.

Governments and international organizations are increasingly demanding more sustainable practices from industry leaders. By aligning with these expectations, our firm can continue to thrive in a rapidly changing energy landscape. Moreover, our commitment to sustainability will strengthen Cobeal's reputation with investors, partners, and clients who are seeking to align themselves with environmentally responsible firms.

Securing the Future: Innovation in Supply Chains and Technology

The energy transition presents significant challenges, but also incredible opportunities for companies that are willing to innovate. I believe that the oil and gas industry, particularly those of us in the EPCIC sector, must seize the opportunity to integrate rare earth element supply chains into our operations. This will not only secure our place in the renewable energy future but also help diversify our revenue streams as demand for fossil fuels declines.

By investing in new technologies for deep-sea mining, robotic exploration, and advanced geophysical mapping, we can improve the efficiency and sustainability of rare earth element extraction. Additionally, the development of alternative rare earth sources, such as geothermal brines, presents exciting new possibilities for the future of clean energy material supply chains. By staying at the forefront of these innovations, we can ensure that Cobeal remains a leader in the global energy market.

"For everyday consumers, the impact of the energy transition may not always be immediately visible, but it is vast. Whether it's the wind turbine powering your lights or the electric vehicle in your driveway, rare earth elements make these innovations possible. By investing in the sustainable extraction and recycling of these elements, we’re not just supporting an industry—we're helping create a cleaner, more sustainable world for future generations. The oil and gas industry, long known for its influence, now has the chance to be the champion of this new energy era."

Conclusion

"At the heart of the clean energy transition is the understanding that the resources powering our future must be as sustainable as the energy itself. The oil and gas industry stands at a crossroads. By seizing the opportunity to lead in rare earth element development, we have the chance not only to stay relevant but to redefine our role in a greener, more eco-friendly world. This isn’t just about industry or profit—it's about ensuring that the innovations of tomorrow are built on the shoulders of today’s pioneers. And those pioneers include every company and consumer pushing for a cleaner planet."

References

Global Market Insights. (2021). Offshore Wind Market Size, Industry Analysis Report, 2021-2030. Available at: https://www.gminsights.com/industry-analysis/offshore-wind-market

International Renewable Energy Agency. (2021). Global Wind Energy Capacity Projections 2021-2030. Available at: https://www.iea.org/energy-system/renewables/wind

U.S. Geological Survey. (2020). Rare Earth Elements: Critical Minerals for the Future. Available at: https://www.usgs.gov/centers/nmic/rare-earths-statistics-and-information