Executive Summary 2017
Providing Cleaner Energy for the Many
The inaugural Gas Fest takes place at a time when the world is transitioning towards a carbon neutral future. 1.2 billion people have little or no access to electricity. Gas holds the potential to provide cleaner energy for the many. There is a push from global and local authorities to use cleaner sources of fuel. Gas provides a replacement for more polluting fossil fuels such as coal and oil in the energy production and transport sectors. A lot has been achieved, but there is still potential for shaping a better future by using the use commercial and environmental benefits that gas offers. The gas industry as a whole needs to develop a coherent message and a strategic roadmap on how the benefits that gas provides will ensure that it stays relevant for the foreseeable future. The Gas Fest is uniquely designed to engage high-level leaders and influencers across the value chain, onshore and offshore, in framing the gas agenda. Through a carefully designed collaborative process, the participants explored opportunities and challenges, identified solutions and shaped the way forward on utilizing the benefits of gas in providing cleaner energy for the many in a carbon neutral future.
The Gas Fest began with a welcome from Stijn van Els, Chairman of Shell Germany, who reminded the group how far Europe has come since the coal – filled years of his youth, in large part, thanks to natural gas. His belief, that gas will play a key role as a bridge fuel started the Gas Fest on an optimistic note . From here, a panel of experts expanded our thinking. The panelists agreed that gas has a crucial role in sustainability in Europe, and that the industry needs to better communicate about the benefits of LNG, and work to develop new technologies to make gas even more sustainable in the future. The group divided into thirteen Home Base teams with each tasked to define their topic and to come up with most urgent issues to address collectively. The Home Base teams would continue to meet and improve their ideas throughout the Gas Fest . Next, the participants went into four different Knowledge Labs to learn more. In the Labs the understanding of the issue was augmented by presentations from a variety of experts on the subject.
Participants worked in small teams to identify the key points of the presentations and how they are relevant to the gas industry. These insights were then taken back to the Home Base teams to raise the understanding of the group and to use the info to further refine their solutions . To envisage the future, participants went into new groups to work on two ‘What If’ scenarios: one about a positive gas future, and the other about a negative future . We closed Day 1 with a keynote from Stijn van Els. He walked us through two highly useful scenarios about the future of gas. Both scenarios, one with a focus on aggressive sustainability, and the other in which the economy slows down, showed a prominent role for gas . Jakko Eskola, President and CEO of Wärtsilä, closed Day 1 with encouraging words about the work of the day and an invitation to celebrate with drinks and dinner . The following morning David Bodanis, author and thought -leader, started the day by expanding the thinking about ‘truth’ using Einstein and his later work as an example. With this information in the mind of participants, they further refined their solutions in their Home Bases. The solutions were shared in two rounds with the others, and finally discussed as an entire group in the closing plenary, where next actions and steps were debated and agreed upon.
Didier Sire, World Energy Council
Johannah Lamminen, CEO Gasum
Rudolf Huber, Chair, LNG Austria
Jan Valkier, Veder Group
The opening panel set the context and opened our minds to issues and ideas to engage with over the next two days. Didier Sire reminded us that demand for electricity will double by 2060. Half of power generation will still be nuclear or gas or coal. The goal for gas is to have a larger role in power generation. He felt the most challenging issue for gas is the transport sector, where 40 percent of all emissions come from, and where we will need diverse solutions to bring emissions down. It’s not a battle against diesel, electric cars. It’s about consumer power and access. Johannah Lamminen reminded us that gas has a crucial role in sustainability in Europe. Crucial for the industry is to win the hearts and minds of consumers, who are demanding change faster than regulators can keep up with. She challenged us to create smart, ecological, economical partnerships that tailor solutions for our clients.
Jan Valkier warned us that LNG is not the end solution and that we must avoid a ‘dieselgate’-like crisis in reputation. He has been a leader in LNG and is working on a ‘green certificate’ that goods were transported using cleaner energy. Rudolf Huber is a cheerleader for LNG. He argued for talking more coherently about the cost of renewables. He believes that biogas and synthetic methane will be as cheap as other fuels are today. The challenge is figuring out ways to pay for the infrastructure. Gabrielle Walker advised that the strongest narratives include both facts and a great story. She asked about areas that the industry must pay close attention to. The answers included, leakages, carbon capture, infrastructure, vessels, taxation, and to ensure that regulations and access/incentives are predictable. A participant suggested that rather than focusing on greenhouse gas the industry begins to focus on pollution and health, especially in India and China. A final piece of advice: Get some self-confidence. Gas is not petroleum.
The objectives of these sessions was to learn about ideas, concepts and research that will impact the gas industry, representing both opportunities, challenges and threats. explore impact on the industry’s value chain discuss challenges and opportunities in utilizing the commercial end environmental benefits gas offers.
Political, macro-economic and environmental aspects impacting the future of LNG in the energy mix
Whether or not COP21 will ultimately rule out the direct use of LNG as a fuel, or if gas and renewables will be frenemies, robust policymaking is required to address the tradeoffs between energy security, energy affordability, and environmental impact mitigation.
Gas and renewables can be frenemies
– Tjerk de Vries, Executive Vice President and Regional Director, DNV GL
Robust policymaking to address the Energy Trilemma:
the trade-offs between energy security, energy affordability, and environmental impact mitigation – Didier Sire, Senior Advisor to the Secretary General and Head of Sectoral Programmes, World Energy Council Moderated by Rudolf Huber, Chairman, LNG Austria
Power generation and energy storage: the role of LNG in the Future Energy Mix
To maintain its relevance, the gas industry must prepare to face transformative conditions, from gas storage and batteries to future scenarios on the usage of gas in power grids. How can the gas industry leverage new technologies as opportunities to maintain its relevancy for the foreseeable future?
Why can “LNG to Power” be part of the energy mix?
– Dominique Verians, LNG Director, Gas Chain, ENGIE
Smart power generation with gas
– Niklas Wägar, Director, Technology and Product Management, Wärtsilä Energy Solutions
Moderated by Peter van Buuren, CEO, Hamina LNG
Making shipping a little greener: the role of LNG in the future shipping fuel mix
From introducing LNG to new markets to proactively help policy makers shaping a framework for LNG as a maritime fuel, the industry can provide solutions that will help the shipping industry reach its ambitions to improve the fuel efficiency and carbon footprint of its vessels.
Why LNG is the preferred marine fuel
– John F. Hatley, PE Director Market Shaping, Gas Initiatives, Wärtsilä Marine Solutions Recent regulatory developments at IMO to address emissions from international shipping: providing the framework for the use of LNG as a fuel – Dr. Edmund Hughes, Head, Air Pollution and Energy Efficiency, Marine Environment Division, IMO
LNG for maritime transport: Reducing the global carbon footprint through tomorrow’s fuel today
– Lauran Wetemans, GM, Downstream LNG, Shell Moderated by Steve Esau, General Manager, SEA\LNG Ltd