Make this 'the decade of energy efficiency’ urges Baker Hughes boss
Kelvin Ross
Posted on: 5 February 2024
Chief executive says energy efficiency must be seen as a decarbonisation pillar alongside sustainability, security and affordability.
Chief executive says energy efficiency is as important as sustainability, security and affordability
The chief executive of Baker Hughes has issued a rallying call to make energy efficiency the fourth pillar of decarbonisation.
“This is the decade of efficiency,” said Lorenzo Simonelli. “We know sustainability, security and affordability is key – but efficiency is very important.”
“Today we improve energy efficiency about 2% a year. If we are able to double that, we can drive 50% reduction in CO2 emissions by 2030, per the Paris Climate Accord.”
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Delivering the keynote speech at Baker Hughes’ annual meeting in Florence, Italy, Simonelli said 2023 had been about “balancing the energy trilemma and maintaining momentum".
Energising change through energy efficiency
He added: "2024 is about energizing change. Energising change through efficiency. Being able to reduce our carbon footprint by improving our operations.”
And Simonelli stressed that “it is essential that we look at our time horizons. It is not about 2050: it is about the next decade and what we do between now and 2030”.
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He called for sustainable energy development for this decade, and then posed the question: what does sustainable energy development mean?
“It means growth that meets our needs without compromising the ability of future generations to meet theirs. It means providing the energy that we need today and allowing it to be there in the future for others.”
Simonelli has been president and chief executive of Baker Hughes since the company’s formation in 2017, where he oversaw the merger of GE Oil & Gas with Baker Hughes Inc.
He told a packed audience in Florence Opera House that Baker Hughes “had for some years held three hard truths, and they continue to be foundational to the energy transition”.
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“The first is that we need to scale technology that’s available today to reduce and abate emissions. We need to move faster with the technologies that are capable of having an impact today.
Secondly, he said “there is no world without the use of hydrocarbons over the next few decades. It’s not about the fuel source: it’s about emissions. Gas is both a transition and a destination fuel.”
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And thirdly, he stated that to achieve a successful energy transition “requires all of us to come together in an ecosystem of partnerships”.
Energy efficiency gets 'immediate hit'
The call for a renewed and increased focus on energy efficiency was echoed elsewhere in the annual meeting conference by Dr Pratima Rangarajan, chief executive of Climate Investment, which aims to fast-track financing to decarbonise heavy-emitting sectors.
Speaking in a panel discussion that focused on the most promising ways to deliver rapid decarbonisation across the energy system, she said: “With energy efficiency you get a hit immediately. It’s low-hanging fruit.”
Stating that energy efficiency’s problem is that it is not viewed as “sexy” compared to new technologies, she added that “two-thirds of the primary energy we create today is wasted… and that’s even before we turn on the lights”.
