The CEO of Repsol, a Spanish oil major, Josu Jon Imaz, highlighted that the progress towards reducing reliance on oil and gas, and promoting clean energy alternatives such as clean hydrogen, is being hindered by high electricity costs and inconsistent regulatory frameworks globally. Speaking at the World Petroleum Congress in Calgary, Imaz emphasized the need for open-minded regulators who encourage development through incentives rather than restrictions.
One of the main obstacles faced in the development of clean hydrogen, which is produced without any emissions, is the high electricity costs involved in its production. Additionally, the lack of uniform tax and regulatory policies across different regions further complicates its implementation. Imaz suggested that the U.S. Inflation Reduction Act, which provides government incentives for low-emissions technologies including carbon capture and clean hydrogen production, could serve as a suitable model for the European Union.
Repsol, as part of its broader renewable energy strategy, plans to establish wind, solar, and hydro-power plants with a combined capacity of 20 gigawatts by 2030. The company intends to allocate a significant portion of the $4.8 billion raised from selling a 25% stake in its oil business to renewable projects.
The industry recognizes that carbon capture technology is already economically viable for large-scale deployment in certain areas. However, the focus remains on tackling the challenges of high electricity costs and fragmented regulations to enable a more comprehensive global shift to clean energy sources.
Sources: World Petroleum Congress, Repsol