Quest for Energy Security Defines Region’s Energy Priorities
Sharanya Kumaramurthy, market intelligence manager for the Energy Industries Council (EIC), a Breakbulk events global knowledge partner, urges the region’s energy sector to remain resilient amid some formidable challenges.
From Issue 3, 2024 Breakbulk Magazine.
A paradox of progress and hindrance is unfolding in Europe’s energy-scape. The quest for energy security is driving offshore and frontier exploration in the oil and gas (O&G) sector, notably in the North Sea, where geopolitical tensions, inflation and inconsistent policies threaten to disrupt supply chains and delay projects.
Meanwhile, the offshore wind sector, buoyed by mature markets like the UK, Germany, Denmark and the Netherlands, welcomes newcomers such as Poland, Ireland, Norway and Lithuania. Yet, this burgeoning industry faces its trials with inflation, rising supply chain costs and infrastructure deficits leading to anticipated delays and momentum challenges.
The hydrogen market is a potential major player in Europe’s energy mix, driven largely by Germany’s ambition to replace Russian natural gas with European and global hydrogen supplies. Despite the fervor, commercial viability remains nascent, with the EU targeting a production of 10 million tonnes annually by 2030. Similarly, carbon capture and storage (CCS) technologies gain favor, supported by the EU’s Net Zero Industry Act with ambitious goals for 2030. However, the complexity of CO2 transport and storage, particularly in the North Sea, underscores the nascent stage of CCS projects.
Amid this, nuclear power is experiencing something of a renaissance, catalyzed by the Ukraine conflict and a growing recognition of its role in diversifying energy sources. Countries like the UK, France, Poland, and several Eastern European nations are reconsidering nuclear power, exploring both large-scale reactors and smaller modular reactors (SMRs).
The sustainable aviation fuel (SAF) sector is also beginning to capture the European interest, albeit slowly, with the UK leading through financial incentives. This collaborative effort between the energy and aviation sectors promises a gradual but significant shift toward cleaner fuels.
Europe’s energy landscape is at a crossroads, marked by ambitious plans and projects but also marred by formidable challenges. But a keyword here is resilience and the prudent diversification of energy resources.
Breakbulk Europe 2025 is happening on 13-15 May at Rotterdam Ahoy.
PHOTO: Osprey transports reactor for Hinkley Point C NPP, UK. CREDIT: Osprey
