Top 5 Industries Impacted by the Energy Transition

It’s difficult to avoid talk of the energy transition these days. With ever-increasing pressure to move away from thermal fuels such as oil, coal, and gas, every industry has to have renewable fuels on their short and long-term roadmaps.

Protecting the environment is key to the future of our planet, so industry and society alike will have to accept and embrace change as the energy transition progresses. But which industries will be most affected?

Energy

Naturally, as the producers of power for everyone, the energy industry will see huge changes in the coming decades. While there have been significant investments in new renewable energy production, such as wind, thermal, biofuel, solar, and waste, they still only make up 4% of global energy. Fossil fuels account for 80% of global energy with the rest being made up of hydro and nuclear power.

So clearly, there is much more to be done, which is why double-digit growth in renewable energy is expected for the foreseeable future. A Bloomberg report projects that the global offshore wind market alone will grow by six times by 2030.

As we progress through the transition there will be drastic changes in the energy industry workforce. Of the majority who currently work in fossil fuels, some may be able to shift to related emerging areas such as CO2 recovery and efficiency enhancement for legacy coal plants. For the rest, it will be a case of retraining on a massive scale, or huge recruitment drives to replace those who leave the industry.

We also expect to see a move from large, centralized power plants to regional power generation thanks to the availability of interactive grids. And also the use of high-capacity storage facilities near major power users.

Transportation

Road users still have a long way to go to catch up with the electrification enjoyed by the railways for decades. However, progress is accelerating. Electric vehicles currently make up just 3% of worldwide car sales, but this is projected to reach 10% by 2025, 28% by 2030, and 58% by 2040.

Commercial road transportation is also going to see significant change with truck manufacturers such as Volvo and Daimler setting a goal of reducing their CO2 emissions by 80% by 2050. As battery capacities increase and costs reduce, the global electric truck market is estimated to grow from 69,597 units in 2021 to almost 1.5 million units by 2030.

And don’t ignore what’s happening in the air. Batteries capable of powering jet engines might be a long way off but the aviation industry is already experimenting with renewable biofuels in commercial, cargo, and military flights. Boeing has set an ambitious target of running planes on 100% biofuel by 2030.

At the same time as the changes in fuel, there are also advances being made in digital technology and autonomous vehicles. These will improve the scheduling of passenger and cargo routes, allowing for more efficient energy usage and reducing wasted capacity.

Construction

As the energy transition forces changes in other industries, construction will benefit. With public transportation evolving, new construction will be needed around it, and as city infrastructures require high-speed data networks, wireless charging, and other new digital innovations, there will be rebuild projects aplenty.

With governments across the world adopting policies of zero net energy consumption for buildings there will be an increasing demand for solar power installations. The smart building market will undoubtedly grow, along with zero-carbon concepts as building owners become more conscious of their energy usage. 

All in all, the energy transition will create a myriad of opportunities for the construction industry to evolve and support those affected by it.

Manufacturing

Uninterrupted power is vital to the manufacturing industry so as the transition progresses it will focus on how to continue to guarantee this. With supply from renewable energy potentially irregular, more businesses will turn to onsite or near-site energy storage to keep operations running smoothly.

Manufacturers will also use the latest digital technology to reduce energy consumption on a second-by-second basis across lighting, HVAC, plant operations, and workflow.

And as new pollution policies are adopted each year, manufacturing will have to constantly stay ahead of the curve. As well as carbon emissions there are likely to be controls imposed on industrial heat output so they will need to develop waste heat to power systems.

Agriculture

Companies will be able to increase their energy efficiency as digital technology helps create quicker routes for products to get from the farm to the consumer. There will also be an increasing shift towards food security, sustainability, and diversity. This will be particularly key in areas where high energy costs have previously forced producers to focus on cash crops. 

Purely by providing clean-burning biofuels, the agriculture industry could avert the millions of annual deaths attributed to indoor cooking fires. Whilst farmers may see a reduction in livestock as the pressure to reduce emissions grows, they will have opportunities to become energy producers as biomass and renewable biofuels become more popular.

Who will help you through the transition?

Aggreko has decades of experience in renewable energy and is committed to protecting the environment by helping companies make the transition to the right energy source at the right time. 

Whether it’s a temporary solution to help you through a short-term power shortage, or a long-term partnership to move you towards cleaner fuels, we have the expertise you need. Get in touch today to find out what Aggreko can do for you.