The transformation process is underway

The future of mobility entails more than the mere introduction of new, less polluting, renewable and alternative energies. Needs with regard to technology transformation and environmental sustainability must be taken into account, in addition to customers´ needs in accordance with the technological solution they have opted for. This, João Pedro Machado argues, means that “hardly any solutions at all meet all consumption needs”. Galp's Head of Offer & Transformation attended the 2021 Apetro (Portuguese Association of Oil Companies) digital conference, where he spoke about Galp's strategy for energy transition (see the excerpt between 1:31:12 and 1:40:58).

The conference, which welcomed the remote presence of John Cooper from Fuels Europe and Filipa Rio from Liquid Gas Europe as keynote speakers, saw João Pedro Machado share the stage with a group of representatives from other Apetro member companies entrusted with the mission of presenting their projects and strategies for this change in the energy paradigm that Europe will be undergoing until 2050. The Galp manager highlights the company´s efforts to meet their decarbonisation goals, more specifically through investment and a commitment to the production of these new energies. “Galp plays an extremely active role in the quest to meet energy goals and is involved in a number of projects within the scope of green hydrogen, the generation of renewable electricity and the production of LPG from biological materials, to quote just a few examples”.

Galp has emphasised its commitment to green hydrogen through the company´s Sines refinery, with plans to install an electrolyser with an initial capacity of 100 megawatts (MW) by 2025, with the possibility of expanding it to 600-1000 MW if the business model is approved. The Head of Offer & Transformation also reinforces the importance of the work to optimise the Galp value chain for the integration of 'new' energies, including the generation of renewable electricity and the production, distribution, transportation, storage, marketing and export of hydrogen.

With regard to biofuels, João Pedro Machado recalls that Galp is the first Portuguese company to be certified pursuant to the International Sustainability Carbon Certification to produce LPG from biological materials. “We have started a process here for the decarbonisation of a source of energy that is already one of the most efficient in our country, and we have begun using this renewable gas in Galp's on-road LPG vehicles, in addition to the natural gas included in our range of solutions for the decarbonisation of the economy”, he explains. “We were the first company to include CNG [Natural Vehicle Gas] in mobility in Portugal through projects executed with Carris in Lisbon and STCP in Porto, and we have three natural vehicle gas stations in Sines, Matosinhos and Azambuja”, he underlines.

YES TO ELECTRIFICATION, BUT NO MONOPOLY

The European Union 2050 carbon neutrality goals leave little room for oil and electrification is at the heart of the Green Deal strategy. However, as John Cooper points out, “electrification will play a highly significant role in achieving the long-term goals, but it won´t be able to resolve everything on its own”. The Fuels Europe official acknowledges the importance of electrification in many sectors, but believes that a sole focus could be a risk for the entire energy transition strategy. “It works well with renewable energy and ensures low carbon emissions, but Europe would have to guarantee the supply of the entire electric mobility value chain in order to electrify its entire fleet of vehicles”, he stresses.

"The future of light vehicles entails electrification, and most vehicles are expected to be electric by 2030”.

The European Union expects the consumption of mobility-related electricity to grow 5 to 10-fold between 2019 and 2040 in the 27 member states as a whole in accordance with the energy transition scenario. As such, adds João Pedro Machado, “it´s safe to say that the future of light vehicles will entail electrification, and most vehicles are expected to be electric by 2030”. The Galp manager believes that Europe is undergoing a major energy transition process and that the electrification of the economy has brought about a series of changes in patterns of use and consumption with regard to mobility. “Furthermore, the mobility sector will change pursuant to the evolution of these technologies”. Alternative sources of energy will continue to emerge as the needs of consumers and markets change, and, he adds, “mobility as we know it will cease to exist”.