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New Energy World
New Energy World embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low carbon technologies.
Twin-engine strategy for meeting energy transition goals
1/2/2023
8 min read
Dev Sanyal FEI, CEO of Varo Energy, a leading integrated European energy company, and a speaker at International Energy Week 2023*, provides New Energy World with key insights into the company’s strategy regarding the global transition to net zero.
How advanced are your customers in respect of strategies to meet future energy needs in the transition, compared to those which just focus on conventional energies and efficiency?
The tragic war in the Ukraine on the heels of the global pandemic has dramatically changed the energy landscape. The solution to this current crisis is what we refer to as the ‘twin-engines’ – ensuring reliable flows of conventional energy to provide security today while also investing to accelerate the energy transition. The point of the twin-engines is to ensure that both engines [of change] work together.
In July, the One Varo Transformation strategy was announced, which has at its heart the twin-engine strategy. Engine 1 is focused on conventional energies, maximising efficiency and generating high levels of cashflow to reinvest into Engine 2, which is focused on sustainable energies. Engine 2 consists of five Strategic Growth Pillars targeting the most attractive low-carbon growth markets in Europe: biofuels, biomethane and bio-LNG, hydrogen, e-mobility and carbon removal.
We plan to invest about $3.5bn over the period to 2026, with two-thirds committed to sustainable energies. We are targeting sustainable energies to account for over 50% of group earnings by 2026, which are expected to treble over the period. As the current crisis demonstrates, it is paramount that we ensure a smooth transition to ensure reliability, accessibility and sustainability. We are working with our customers in a shared vision through what we call ‘Customer Lighthouses’. Our vision is to be the energy transition partner of choice by helping customers decarbonise using value-adding services.