Decarbonisation Technology February 2026 Issue

Energy demand continues to grow, and coal, oil, and gas together still account for 80% of the world’s energy supply. Some observers use this to suggest that the energy transition is ineffective. We would rather highlight the progress made, while recognising the enormous scale of the task, which will now extend beyond 2050. The energy transition aims to achieve net zero by 2050. The first phase, over the past 20 years, was the switch from coal to more sustainable fossil gas, led by the US and the EU. Going forward, industry leaders are investing to reduce gas flaring and methane emissions during gas production and distribution. The UNFCCC considers carbon capture and storage (CCS) to be vital. CCS is already viable for enhanced oil recovery. Increasingly, it will be used to reduce carbon emissions from the combustion of hydrocarbons and, via direct air capture (DAC), to draw down carbon dioxide from the atmosphere. Yes, CCS does allow the extended use of hydrocarbons, but it is also key to the longer-term transition, supporting the switch from fossil to renewable hydrocarbon sources, along with the expansion of sustainable electricity generation. The IEA reports that electricity consumption comprised the highest growth in energy demand in 2024, with China making up more than half of that. Increases in cooling, the electrification of transport, and the rise of data centres all contribute to growing demand. However, IEA’s analysis also shows that 80% of the growth in global electricity generation was from sustainable sources, including solar, wind, and nuclear power. The balance between fossil fuel and renewable energy sources varies considerably. Electricity generation in several countries, particularly those blessed with hydroelectric power, is more than 90%. In other countries, fossil sources continue to prevail. Even then, China, India, and many emerging economies are investing heavily in renewable power for electricity generation. In countries along the East African Rift and elsewhere, geothermal energy is a viable option. Growth in renewable electricity is also critical for the transport sectors, which continue to rely on a chemical energy carrier, increasingly renewable hydrocarbons, ammonia, or hydrogen. IATA and IMO are pursuing ‘net zero by 2050’ strategies for sustainable aviation and shipping, respectively. Aviation requires energy-dense hydrocarbons, with IATA initially reliant on carbon offsets, while aviation fuels suppliers are investing in ‘drop-in’ renewable hydrocarbons for the longer term. In marine, LNG is available as a transition fuel, with methanol and ammonia emerging as longer-term, more sustainable options. Electrification of road transport is progressing in many advanced economies, but requires greater investment in transmission and charging infrastructure. In developing economies, the cost of electric vehicles is prohibitive; often, the priority for expanding electricity production is to power homes. Dr Robin Nelson

Managing Editor Rachel Storry

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Robin Nelson robin.nelson@ decarbonisationtechnology.com Editorial Assistant Lisa Harrison lisa.harrison@emap.com Graphics Peter Harper Business Development Director Paul Mason info@decarbonisationtechnology.com tel +44 844 5888 771 Managing Director Richard Watts richard.watts@emap.com

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