2021 Energy Trend #1: Renewables
This is the first in a series of brief articles outlining trends rapidly moving the energy industry.
European Union decarbonization initiatives, new Biden administration policy, and advances in wind technology and logistics are accelerating the fielding and scaling of renewable energy. Unlike the initiatives of 2010–2020, renewable energy in 2021 brings the low energy costs and high capacity factors needed to produce green hydrogen and green ammonia at costs comparable to fossil fuel-derived alternatives. Production of low-cost green hydrogen and green ammonia will enable states to decarbonize their economies beyond electricity, including their cement, steel, and manufacturing industries, and meet their 2050 targets for decarbonization.
2021 Energy Trend #1: Renewables. Large energy companies, including those who had not previously shifted into renewables are moving rapidly into renewable energy. Attracted by the lower costs and steadier power delivered by the newest large wind turbines needed to produce green hydrogen and green ammonia, traditional energy companies now see the financial opportunities and policy support needed to pivot into carbon-free energy products and supply chains.
The shift of large energy companies from fossil fuels to renewables brings the renewable energy industry the large capital investments needed to scale renewable power generation to decarbonize industries beyond electricity. Only 27% of U.S. carbon emissions today are from electrical production. To meet the Biden administration’s new goal of achieving net-zero emissions by 2050, the U.S. will also need to decarbonize the majority of the energy economy beyond electricity. Large-scale production of green hydrogen and green ammonia by traditional large energy companies will an important part of this energy transition.
Further articles in this series will highlight 2021's energy of trends of large-scale, high-capacity, and resilient renewable energy production, and the important role that green ammonia will play in connecting the new green global energy system.
