By: Cesar G. Romero - Philippine
Daily Inquirer / 05:02 AM July 30, 2018
More energy, but cleaner and more
affordable. This is the challenge that the world faces as climate change
dictates a transition from fossil fuels to renewable sources of energy to meet
an ever-increasing demand from a growing population.
Some 176 countries, including the
Philippines, have ratified and signed the Paris Agreement, each one committing
to limit the global rise in temperatures to below two degrees Celsius above
pre-industrial levels and to strive for a limit of 1.5 degrees Celsius.
Shell supports this commitment to
reduce global warming by reducing the net carbon footprint of our energy
products by around half by the middle of the century. This means reducing
emissions from our own operations and changing the mix of products we sell to
our customers.
In the Philippines, we support the
government’s pledge to achieve by 2030 a 70-percent cut in carbon emissions to
be taken from the energy, transport, waste, forestry and industry sectors.
Energy transition
The pledge can be ambitious given
that coal-fired power plants continue to account for a significant share in the
Philippines’ energy mix. As of end-2017, the Philippines had a total installed
capacity of 22,728 megawatts (MW), of which coal has remained the dominant
energy source with 8,049 MW (35.4 percent), followed closely by renewable
energy (RE) sources at 7,079 MW (31.1 percent), oil-based energy sources at
4,153 MW (18.3 percent) and natural gas at 3,447 MW (15.2 percent).
Note, however, that there are plans
to increase RE capacity to 15,304 MW by 2030 under the National Renewable
Energy Program.
One thing is apparent: the energy
transition will require unprecedented collaboration among governments,
companies and society.
Different solutions
Solutions will vary by economic
sector. Those that require low temperature processes and mechanical
activities can be powered by low and zero carbon sources of power, including
renewable energy. However, iron, steel, cement, plastic, chemical
industries and certain types of transport currently rely on the unique ability
of hydrocarbons to provide extremely high temperatures, chemical reactions or
dense energy storage.
Geography is also a factor.
Different countries have different needs depending on local circumstances,
their development priorities, types of economy, domestic energy resources,
ability to invest and national energy policies.
We foresee the transformation of the
energy system will move at different paces and produce different outcomes and
different energy mixes in different sectors and countries. It will require
tradeoffs by energy consumers, companies and governments. It will require
willingness to make hard choices.
Low-carbon future
Shell is committed to do its part in
working toward a low-carbon future. The Shell group of companies continues to
push for the use of liquefied natural gas (LNG) and renewables in areas where
it is present to create lower carbon opportunity.
In the Philippines, Shell is in
continuous discussions with the government on LNG development. The company is
also talking with prospective Filipino partners on a planned venture into
renewable energy.
Since January 2016, all Shell diesel
and gasoline fuels in the Philippines have been Euro IV-compliant, per
Philippine National Standards specifications. The fuels have a sulphur content
of 50 parts per million (ppm) from the 500 ppm under the previous Euro 2
standard. Benzene content of gasoline is also reduced from 5 percent to 1
percent.
We constantly innovate on our fuels
in response to changing consumer needs and preferences and to evolving vehicle
engine technologies.
In June 2017 for example, we
introduced Shell V-Power Diesel with Dynaflex Technology, which effectively
restores up to 100 percent of engine performance.
As part of the global transition
into new energies, we have also successfully completed solar installations in
15 of our retail stations to date, and we plan to add more.
Powering communities
Also last year, we partnered with QEV
Philippines Electromobility Solutions and Consulting Group, Inc. to put up
electric vehicle (EV) fast-charging posts in an initial 100 of its 1,044 retail
stations.
As we continuously study and
understand the value of technology in sustainability and renewable energy
sources, Shell continues to collaborate with local communities and NGOs to
transition to efficient sources.
Efforts include the introduction of
viable grid systems to provide power in areas around the island of Palawan.
We’ve also partnered with Liter of Light, a movement that encourages people
across the country to reduce waste and carbon emissions by donating PET bottles
that will be converted to light sources, illuminating the homes of many small
Filipino communities.
To further push our cause for
cleaner fuels, and sustainable and smarter solutions, we engage people through
advocacies like the Shell Eco-Marathon, a platform for students and young
engineers to hone their skills in designing, building and driving
energy-efficient cars.
Creating a sustainable world is not
the job of one company or one network. Shell will continue to work with
businesses, governments and civil society to serve its fuel and energy needs
while ever mindful of the greater responsibility to society and the planet.
This is how we make the future.
