Qatar’s natural gas to have 'very relevant' role in global energy transition: Iberdrola chairman

Qatar’s natural gas is going to have a “very relevant” role in the context of feasible global energy transition, said Ignacio Galán, chairman and CEO of Iberdrola.
Gas is globally recognised as an “essential energy” in the transition to 'Net Zero', Galán emphasised in an interview with Gulf Times.
“Gas is globally recognised as an essential energy in the transition to Net Zero. The IEA’s Net Zero Emissions by 2050 Scenario shows that gas generation will grow over this decade, to replace coal generation.
“Globally, there is a real urgency to replace coal as quickly as possible. And Iberdrola has been a driving force behind it. We have closed all coal plants and invested significantly in gas-fired power plants, renewables, smart grids and storage to further drive the energy transition. And this has proven to be the solution to drive much-needed energy self-sufficiency in most regions and countries. But, of course, the transition needs to be feasible and must be designed taking into account the resources available in each country. The gas from Qatar is going to have a very relevant role in this respect,” Galán noted.
In the current global context, energy security and autonomy has become a hot topic globally. The good news is that clean energy technologies are the solution to these concerns, as they are to decarbonisation, he said.
So, in reality, we have more reasons than ever to reaffirm and accelerate the energy transition and ensure a sustainable, competitive, and fair economy.
This was the rationale for close to 200 countries, Qatar amongst them, to sign the Paris Agreement.
“And we need to speed up implementation, as the energy transition can create large-scale industrial opportunities, and the investment required will help economies to recover and grow after the current global economic crisis. We have the technologies, the support of society and, as companies, we are ready to play our part, investing and committing all our human and technological resources,” Galán said.
On the main issues that need to be addressed by governments globally to deliver the energy transition, Galán said, “We will always need clarity in policy, respect for the rule of law and supportive regulations. For example, the processes involved in permitting new projects can easily move with greater speed in most countries. If it is possible to build a large solar project in 12 months, it should not take 5 years to obtain all the permits.
“We are seeing positive changes everywhere, and we remain optimistic that many of the hurdles can be overcome quickly, but we need policy makers and regulators to share this sense of urgency. Private sector companies are willing to invest in the energy transition, and move quicker if allowed, as Iberdrola has already demonstrated. We have the ambition. We have the technology. We have access to financial markets. We just need clear policies and stable and coherent regulations.”
Speaking about Iberdrola’s role in driving energy transition, he said, “Today, two-thirds of our business is outside Spain, whereas 20 years ago that percentage barely reached 1%. We are also a larger and stronger company. In the last two decades we have multiplied our size by six times, becoming the company with highest weight on the Spanish stock exchange, the largest utility in Europe and one of the four largest worldwide.
“Our significant investment effort has also led us to be a global leader in clean energy. Our CO2 emissions of just 60 grams per kWh in Europe are almost four times lower than our competitors, having multiplied our renewable capacity by more than four times over this period.
“Looking forward, we are increasing our investments even more to accelerate the transition.”
Galán said, “Beyond the $130bn invested in the last 20 years, we are now planning to dedicate $150bn more in just 10 years, doubling current investment levels. We will continue investing in renewable technologies, with a new focus on offshore wind, a technology we are leading worldwide. We will also invest in transmission and distribution grids, in energy storage, and now also in green hydrogen and other green industrial products.
“The opportunities presented by the energy transition are now becoming more and more global. This will allow us also to expand in new geographies, beyond the US, UK, Continental Europe and Latam. We are already investing heavily in Australia and positioning ourselves in Asian countries like Japan.”
Innovation, he said is the “most important tool” for progress. It is the main driver for more sustainability, more efficiency and more competitiveness.
“This is why it has become a strategic focus for us,” Galán said and noted, “Our innovation centre in Qatar is a case in point. That's why we recently announced a significant expansion of our innovation activities in the country, focused on digitalisation and smart grids, renewable energy integration and energy efficiency. We are aligning our R&D&I capabilities with the needs of industry on Qatar, but as a critical innovation centre for us globally, concepts developed here can be applied in other countries around the world where we are supporting the energy transition.
“Our hub in Qatar has been helping to drive innovation in our business since 2016, and this will continue for many years to come. We aim to keep strengthening our support to develop local engineering talent and increasing our engagement with the Qatar innovation ecosystem – including universities, technology centres and start-ups.”