Energy transition takes center stage at EGYPES 2024, as global aspirations meet practical realities. Under the theme “Driving Energy Transition, Security, and Decarbonization,” the event kicked off on Monday with a strategic conference tackling the complex challenge of balancing ambitious transition goals with growing energy demand and development needs for a rising global population.

“We’re all focused on the future of energy, and the transition from fossil fuels to green alternatives is paramount,” declared Tarek El Molla, Egypt’s Minister of Petroleum and Mineral Resources. However, he cautioned at a panel titled “Industry response – decarbonization and energy transition actions,” one of the key sessions at EGYPES 2024, that “delivering affordable green energy to the market is a very long journey, requiring careful planning and development from the ground up.”

He underscored the importance of developing energy markets in preparation for producing a green energy alternative and keeping a parallel path in order to make sure energy investments will not backtrack.

The Egyptian minister elaborated that Egypt has good potentials for the green hydrogen industry, referring to several deals that have been signed in this field.

He, however, highlighted the important role of the private sector in realizing Egypt’s green energy aspirations.

The minister added that “Egypt’s experience in promoting natural gas as a better choice is a model that can be implemented in African countries that have similar capabilities, challenges and priorities like Egypt.”

Hayan Abdul Ghani Abdul Zahra, Deputy Prime Minister and Minister of Oil in Iraq shed light on his country’s endeavors to reduce carbon emissions.

“In five years, Iraq will reach zero level of burning gas till fully utilizing it in generating electricity,” he told the same session, adding that the two-phase NGL project in the city of Basra, succeeded in stopping the burning of 400 million cubic meters of gas.

The Iraqi minister highlighted an integrated project is being carried out with TotalEnergy to increase natural gas production and to stop the gas burning in five oil fields, and therefore benefiting from the project in producing renewable energy.

Haitham Al Ghais, Secretary General the Organization of the Petroleum Exporting Countries (OPEC) hailed the Iraqi experience as one of the OPEC successful stories.

The OPEC’s official affirmed the importance of investing in gas and oil in the long run in a responsible way along with reaching decarbonization and improving energy efficiency and preserving the environment.

In another panel under the tile, Chasing Green, Clean and Renewable Energies, Nasser Kamel, Secretary General of Union for the Mediterranean (UfM), explained that the region is facing huge geopolitical and economic challenges though rich with potential in terms of renewal energy.

The disruption of oil supply due to the rising tensions in the Middle East, war in Gaza, and tensions in the Red Sea are the main obstacles to generating renewable energy, Kamel said adding that “the region can solve many challenges of energy but need more geopolitical stability.”

However, he still sees that the region has a preference in terms of the cost of producing renewables when it comes to promoting joint projects with Europe.

Houda Ben Jannet, General Director, Organisation Méditerranéenne de l’Energie et du Climate (OMEC), agreed that the region is rich with the best resources of renewables but needed to be put in right frames.

“We need to look for the future and the energy makes the future, so we have to accelerate the energy transition,’ she said.

Through a series of keynote addresses, interactive panel discussions and interviews, the EGYPES Strategic Conference has offered thought leadership on future energy strategies and a deep dive into the industry issues at the top of government and organizational agendas.

The first day agenda covered six panels that delved into the industry issues spanning into Industry response – decarbonization and energy transition actions, chasing green, clean and renewable energies, Securing sustainable, affordable energy for all, Championing low carbon solutions and infrastructure, Shaping a pragmatic and realistic energy future and The energy trilemma and the continued importance of fossil fuels.

The EGYPES 2024 Strategic Conference closed with a powerful message from El Molla, who stressed the critical need for a diversified energy mix, including both fossil fuels and new renewable energies.

El Molla argued that Egypt, along with African and similar developing nations, has the right to leverage its resources to achieve a just and inclusive energy transition. This transition, he emphasized, must prioritize meeting the country’s development goals, population growth, and rising energy demands.

El Molla, underscored the clear need for diverse energy sources, including fossil fuels and new renewable energies, stating, “Investing in the petroleum and gas industry while committing to reducing carbon emissions and improving production processes exemplifies the industry’s dedication to development.”

Minister El Molla emphasized the need for a balanced approach to energy transition at the EGYPES conference. He cited Egypt’s proposal for a “Carbon Removal Day” at the COP27 summit as a testament to their commitment to climate action. Additionally, he highlighted the petroleum and gas industry’s progress in environmental compatibility, energy conservation, and improving production environments, showcased at the Sharm El Sheikh and Dubai summits.

“During the Sharm El-Sheikh and Dubai summits, the petroleum and gas industry highlighted its progress, commitment, and projects to achieve environmental compatibility, energy conservation, and production environment improvement,” El Molla added.

El Molla stressed the importance of natural gas as a clean fuel and a reliable option in achieving the energy transition, emphasizing the state’s commitment to maximizing expenditure on expanding natural gas delivery to citizens’ homes. This effort aims to maximize the Egyptian people’s benefit from this clean cooking fuel, serving as an alternative to butane gas and alleviating financial burdens.

“I want to emphasize the significance of natural gas as a clean fuel and a vital component in our energy transition,” stated El Molla. “We are committed to allocating maximum resources to expand natural gas delivery to our citizens’ homes, aiming to provide Egyptians with a cleaner cooking fuel and an alternative to butane gas, ultimately relieving financial burdens on our citizens.”

Furthermore, El Molla indicated that Egypt aims to increase the contribution of new and renewable energies to 42% by 2035.

“Our state’s commitment to increasing the contribution of new and renewable energies to 42% by 2035,” stated El Molla, adding, “It’s important to note that the success of this plan hinges on the provision of necessary funding. As a result, gas will continue to be our preferred option as a clean and low-emission fuel.”

The second day of the EGYPES strategic conference dove deep into navigating the multifaceted energy transition. A key question lingered: How do we achieve an economically sustainable transition that satisfies consumer needs while harnessing new technologies?

The discussions spanned various angles, exploring energy strategies and methods to meet evolving customer demands before building industry models. Striking a balance between affordability, consumer satisfaction, and technological advancement emerged as a critical challenge.