Only 9% of hydrogen projects have reached FID. (image source: Adobe Stock)

A new report from the UK’s Energy Industries Council (EIC) finds that energy industry confidence in reaching global net-zero targets is declining sharply, with policy instability, financial uncertainty and slow project approvals cited as obstacles to progress

Only 16% of senior energy executives interviewed for the EIC’s Net Zero Jeopardy Report II now believe the world can achieve net zero by 2050, down from 45% last year, with growing concerns over the lack of clear regulatory frameworks, underinvestment in clean technologies and delays in bringing projects to the final investment decision (FID) stage. Only 14% of respondents believe their country will meet 2030 climate goals, down from 16% in last year’s report. Globally, 5% believe interim targets will be met, compared to 11% a year ago.

A key issue is financing, with investors cautious about backing new clean technologies, particularly in sectors such as hydrogen, carbon capture and storage, and grid infrastructure. Executives say that while the private sector is willing to invest, the absence of long-term, stable policies creates financial risk.

The report points out that rates for clean energy projects remain very low. Despite ambitious targets, only 10% of offshore wind projects and 9% of hydrogen projects have reached FID, compared to 21% for upstream oil and gas. In the UK offshore wind sector, for example, lengthy permitting processes, grid access constraints and an uncertain investment climate are factors behind the slow pace of new projects moving from planning to construction.

Supply chain vulnerabilities

The report also highlights concern about supply chain vulnerabilities, particularly in clean technology manufacturing and logistics, pointing out that the reliance on China for many renewable energy project components raises concerns about energy security, trade policy, and supply chain resilience. There are also concerns about manufacturing capacity and skills availability.

“The energy industry is facing real challenges in turning pledges into projects,” said Stuart Broadley, EIC CEO. “Business leaders are not seeing the level of policy certainty or investment required to deliver net-zero ambitions. We need a lot of immediate reforms that speed up licensing processing and cut other red tape, ensure consistent policy and regulation, have the right financial incentives.”

“The data leaves no room for optimism—confidence in net-zero targets is collapsing across the energy sector,” said Mahmoud Habboush, author of the Net Zero Jeopardy II report. “Industry leaders are not merely expressing frustration, they are passionately warning about fundamental barriers, including unstable policy, weak investment appetite, and slow project approvals. And these barriers, if left without tackling, will no doubt derail the energy transition.”

“For many, one clear path toward net zero is ensuring that energy projects are commercially viable. For that to happen, work needs to be done on the demand side, including facilitating a regulatory environment conducive to creating demand. This will make banks less apprehensive, and more capital will flow.”

It is hoped the collaboration will set the stage for pioneering geothermal energy solutions in Saudi Arabia. (Image source: Adobe Stock)

Geothermal energy development in Saudi Arabia is set to advance with the signing of an MoU by EDF Saudi Arabia and TAQA Geothermal Energy Company to collaborate on geothermal energy technologies

These will include power generation and HVAC applications as well as compressed air energy storage in Saudi Arabia.

Saudi Arabia aims to achieve net zero greenhouse gas (GHG) emissions by 2060, and has set the goal of sourcing at least 50% of its power from renewable energy by 2030. Geothermal energy, which harnesses the heat produced from the Earth's crust and converts it to cooling, heating, desalination, or direct electricity generation, is a renewable and sustainable form of energy. It has the advantage of being a constant and reliable energy source compared to other renewable energy sources such as solar and wind, given it is not affected by seasonal or weather variations. Saudi Arabia has vast geothermal energy resources, in particular along the Red Sea coast, home to volcanic fields and hot springs. TAQA Geothermal, a joint venture between Taqa Energy and Reykjavik Geothermal (RG) is playing a leading role in pursuing opportunities to explore, assess, and develop geothermal resources in the kingdom and the region with the ultimate target of adding 1GW of sustainable geothermally produced energy to the energy mix.

EDF Saudi Arabia operates in the areas of thermal, renewables, district cooling, and energy efficiency, with a focus on aligning its R&D efforts with the strategic objectives of the Saudi Arabian government and Vision 2030.

Omar Aldaweesh, CEO of EDF Saudi Arabia, said: “Over the past decade, we have been actively contributing to the Kingdom’s energy landscape through our expertise in sustainable solutions, and this MoU further strengthens our role in advancing innovative technologies. By collaborating with TAQA Geothermal, we are leveraging our extensive experience to explore new frontiers in geothermal energies and compressed air energy storage. This initiative is fully aligned with both Saudi Arabia’s Vision 2030 and EDF’s Ambitions 2035, reinforcing our shared commitment to sustainability and to the country’s transition to a cleaner energy future.”

Meshary Alayed, CEO of TAQA Geothermal, added, “Geothermal energy utilisation whether via direct heat use or electricity generation is a critical and untapped resource to drive the global transition to clean energy, as it is a reliable, renewable base load resource. The partnership between EDF and TAQA Geothermal in the field of geothermal solutions redefining space cooling, will have tremendous positive impacts on efficiency and carbon footprint reduction. The combined strengths will demonstrate cutting-edge geothermal cooling systems for the Kingdom’s growing energy needs while supporting Saudi Arabia’s Vision 2030 in economic diversification and the Ministry of Energy’s renewable energy mandates.”

It is hoped this collaboration will catalyse pioneering geothermal energy solutions in Saudi Arabia, paving the way for cleaner and more efficient power and cooling technologies.

The partnership marks a significant step forward in the global expansion of green hydrogen technology. (Image source: Siemens)

Technology company Siemens, China-based Guofu Hydrogen and Germany-based RCT GH Hydrogen are collaborating to advance the hydrogen value chain

The partnership is set to accelerate the global expansion of green hydrogen technology as it focuses on the development and manufacture of electrolysers and green hydrogen production. A recent report from the IEA highlights the growing momentum for low-emissions hydrogen, but notes that while global electrolyser manufacture capacity has grown significantly, progress is stalling due to higher prices and tight supply chains. A continuation of cost reductions relies on technology development, as well as optimising deployment processes and moving to mass manufacturing to achieve economies of scale, the IEA says.

The new partnership focuses on three key areas: developing and engineering Guofu’s electrolysers and electrolyser systems, equipping new electrolyser manufacturing facilities starting in Germany, and developing, constructing, and operating new hydrogen production plants.

RCT GH Hydrogen will lead the engineering, procurement, and construction of state-of-the-art hydrogen production facilities, and ensure that the electrolyser manufacturing facilities meet the highest efficiency and safety standards.

Siemens will be the preferred supplier and technology partner across the entire value chain of Guofu Hydrogen's expansion plans. It will deliver products, solutions and services from across its Siemens Xcelerator portfolio, the company’s open digital business platform, including industrial automation and instrumentation, as well as electrification and building technology, industrial communication, and cybersecurity solutions. Siemens will also provide digital services and software for the design, engineering, simulation, optimisation and standardisation of the entire hydrogen value chain, from electrolyser manufacturing to the operation of hydrogen plants.

Global hydrogen partner ecosystem

The collaboration also involves the development of a global hydrogen partner ecosystem to bring together suppliers, technology providers, and end-users to accelerate innovation and standardisation across the industry, supported by the Siemens Xcelerator, which enables seamless integration and collaboration throughout the value chain.

"This strategic partnership exemplifies Siemens' commitment to driving the industrialisation of green hydrogen production," said Axel Lorenz, CEO of process automation at Siemens. "Our portfolio and domain expertise, combined with Guofu Hydrogen's vision and RCT GH Hydrogen’s proven engineering capabilities, will help establish new standards in electrolyser manufacturing efficiency and scalability. Together, we're not just building factories – we're building the foundation for a sustainable hydrogen ecosystem that will play a crucial role in the global energy transition.”

“Partnering with Siemens allows us to leverage world-class automation and digital capabilities,” added Pinfang Wu, board chairman of Guofu Hydrogen. “This collaboration will significantly accelerate our expansion into global markets and strengthen our position as a leading provider of green hydrogen solutions. Together, we're creating a blueprint for the future of hydrogen production.”

68% of methane emissions stem from upstream facilities. (Image source: Adobe Stock)

The energy sector presents the largest and most cost-effective opportunity for methane emissions reduction, with 68% of methane emissions stemming from upstream facilities, according to Momentick’s 2024 Methane Emissions Report

Momentick, a leading emissions intelligence company, which leverages the power of hyper and multispectral satellites to monitor GHG emissions on a planetary scale, detected emissions at 17% of the sites analysed, measuring a staggering 899 million tons of CO2-equivalent emissions, with 10% of assets accounting for 50% of the emissions detected. The highest concentration of methane leaks was detected in Asia, Africa, and North America, while Europe recorded the fewest leaks.

Methane is a colourless, odourless gas, which requires highly sensitive instruments for detection. Methane leaks can manifest as both diffuse, small emissions and large, concentrated bursts, complicating the consistent identification of leaks. Environmental factors, such as wind, temperature, and terrain, further hinder accurate detection and measurement, as methane plumes disperse quickly, making it difficult to trace emissions back to their sources.

Unlike CO2, methane emission reductions have an almost immediate effect on slowing global warming as methane has a relatively short atmospheric lifespan compared to CO2. By urgently tackling methane emissions, the rate of warming could be slowed by as much as 30% before mid-century, according to Momentick.

The International Energy Agency (IEA) estimates that over 75% of the methane emissions in the oil and gas sector could be reduced today using existing technologies, while research conducted by JP Morgan has found that methane abatement is a cost-effective investment, revealing that up to 70% of the expenses associated with monitoring solutions can be offset by keeping methane in the pipe.

Addressing the issue of poor emissions data

The Momentick report notes that evolving regulations and financial incentives have highlighted the critical need to address the longstanding issue of poor emissions data, with accurate and reliable information needed for decision-makers to implement effective methane abatement strategies. The growing need for accurate and actionable emissions data is driving the expansion of space-based methane monitoring satellites, while advanced algorithmic software solutions are leveraging Earth observation satellites to enhance commercial applications and precise point-source methane detection. By analysing historical data captured by these satellites, researchers and decision-makers can track emission trends over time, gaining deeper insights for regulatory planning and climate action. Additionally, with cutting-edge developments in AI, satellite-based emissions data can now be processed in near real-time, delivering timely and actionable insights.

“2024 was an important year on the path to curbing methane emissions,” said Daniel Kashmir, CEO of Momentick in his Foreword to the report. “Governments committed billions to technological upgrades and research, while oil and gas operators accelerated progress towards their net-zero goals. Collaborating with a wide variety of stakeholders across the energy sector, our team at Momentick encountered a strong commitment to action and eagerness to implement our emissions intelligence technology over the last year.

“We envision satellite-based emissions monitoring becoming central to corporate sustainability strategies during the energy transition. The integration of GHG monitoring and MRV practices will become a standard component of operations across industries. Backed by evolving regulations and growing adoption, these technologies will make net-zero goals truly achievable.”