The CEO of Repsol, a Spanish oil major, has highlighted the challenges facing global efforts to reduce reliance on oil and gas. CEO Josu Jon Imaz spoke at the World Petroleum Congress in Calgary, emphasizing the importance of addressing high electricity costs and inconsistent regulations.
Imaz pointed out that carbon capture technology is already cost-effective enough to support large-scale construction in certain areas. He called for a more open-minded regulatory approach that incentivizes clean energy development rather than bans or penalties.
One major obstacle to the development of clean energy technologies, such as hydrogen fuel production without emissions, is the high cost of electricity. Without affordable electricity, it becomes difficult to scale up and advance these technologies. Additionally, varying tax and regulatory policies across different countries present further challenges.
Imaz highlighted the U.S. Inflation Reduction Act as a potential model for the European Union. This act provides government incentives for the development of low-emissions technologies, including carbon capture and clean hydrogen production. The implementation of similar supportive policies in the European Union could help unlock further investment and innovation in the clean energy sector.
Repsol itself is actively transitioning towards renewable energy. The company has plans to install wind, solar, and hydro-power plants with a combined capacity of 20 gigawatts by 2030. Additionally, a significant portion of the $4.8 billion raised from the sale of a 25% stake in its oil business will be invested in renewable projects.
Addressing the challenges of high electricity costs and inconsistent regulations is crucial for accelerating the global transition to cleaner energy sources. By implementing supportive policies and fostering innovation, it is possible to make significant strides towards a more sustainable future.
Sources:
– Title: High Electricity Costs and Patchwork Regulations Holding Back Clean Energy Transition, Says Repsol CEO
– Source: Reuters article by Rod Nickel and Nia Williams.