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The energy transition is in jeopardy from the soaring cost of electricity and insufficient regulations, Repsol CEO Josu Jon Imaz said on Tuesday.
Developing and implementing clean hydrogen is among the energy sources that are in jeopardy due to high electricity costs and regulations, according to Imaz, but carbon capture technology is still cheap enough to justify large-scale construction in some places, Reuters said on Tuesday.
Repsol’s CEO took the opportunity at the World Petroleum Congress in Calgary to lash out at regulators for their subpar performance. “We need an open-minded regulator, not banning (some products), not promoting with a stick, promoting with a carrot.”
The oil major has plans to develop wind, solar, and hydropower plants totaling 20 GW by 2030, splashing billions into renewables. According to Imaz, an orderly energy transition requires access to diversified sources of energy—including hydrocarbons. And those diversified energy sources should be in adequate supply to meet not just the present demand, but future demand as well.
“Our goal must be energy transition rather than energy disruption,” Imaz said earlier this year, adding that “The need to incentivise all technological solutions is especially clear to continue driving the energy transition in a fair and just manner.”
“The EU has built up a complex system of rules and regulations that does not facilitate rapid progress in the energy transition. In many cases, regulations overlap and are often accompanied by restrictions and even prohibitions of technologies and solutions that could help us reduce emissions faster. We need policies that create clear incentives for investment by promoting all decarbonisation solutions on a level playing field. What we are seeing in the US with the Inflation Reduction Act is better,” Imaz said in May.
Repsol is a platinum sponsor of the Petroleum Congress.
By Julianne Geiger for Oilprice.com
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.