Electrification's Impact on Procurement Strategies
Electrification is a major strategy for reducing CO₂ emissions in energy, as highlighted by the International Energy Agency (IEA).
It serves as a vital mechanism to achieve the net-zero carbon emissions target by 2050 in line with the Paris Agreement. Transport electrification and the deployment of heat pumps are pivotal to this transition.
To reach the Net Zero Emissions target by 2050, the IEA estimates that the pace of electrification must double by 2030.
Keisuke Sadamori, Director of Energy Markets and Security at the IEA, says: “The acceleration of global electricity demand highlights the significant changes taking place in energy systems around the world and the approach of a new Age of Electricity.”
Defining electrification in procurement
Electrification entails replacing fossil fuel-based systems with electricity-driven alternatives, which are often more efficient, reduce energy demand and lower emissions as electricity generation becomes increasingly decarbonised.
However, electrification maximises sustainable benefits only when electrical power is predominantly sourced from low carbon or renewable energy sources.
According to the US Department of Energy, electrification within utilities may result in system optimisation, enhanced efficiency and improved resilience-all critical points of reference for procurement professionals navigating the evolving market.
Electrification's potential in industry
The industrial sector remains one of the more challenging areas to decarbonise due to its heavy reliance on fossil fuels and the high cost associated with new technologies. Companies that focus on electrification are taking strides to reduce CO₂ outputs.
ABB's Contribution
ABB, for instance, offers electrification solutions aimed at enhancing energy efficiency and supporting decarbonisation efforts. Its technology supports the electrification of industries, homes, cities and distribution networks.
Collaborating with utility, industrial and commercial clients, ABB is pivotal in managing energy and electrical infrastructures.
Massimiliano Cifalitti, Smart Power President at ABB Electrification, highlights the importance of resilient electrical systems: “As demand for advanced electrification solutions continues to grow, the new SACE Emax 3 will help customers stay ahead of changing power requirements and protect business-critical uptime.”
GE Vernova's Role
GE Vernova emphasises that electrification is a major factor in reducing demand-side carbon emissions.
Through advanced research, they have been developing power conversion systems to enhance power quality across various applications, including marine electric power and microgrid concept development.
Nicolas Gibergues of GE Vernova, says: "With the ongoing emphasis on climate change, we are witnessing the most significant transformation of the grid in over a century.”
Electrification in the Transport sector
The US Department of Energy suggests that electric vehicles (EVs) bring improvements in fuel economy, reduced fuel costs and lessened emissions, all of which can contribute positively to public health and the environment.
Polestar's Advancements
Polestar, founded to revolutionise vehicle electrification, focuses on sustainable design and technological innovation.
It is researching how to eliminate greenhouse gas emissions across its entire value chain.
The Polestar 3 vehicle showcased its extended range capabilities by covering 531 km under challenging conditions, as noted by Michael Lohscheller, CEO of Polestar, who says: "Range is an important criterion for customers – and this result underlines that Polestar 3 is a great choice for everybody seeking a luxury experience in an outstanding SUV.”
General Motors' Initiatives
Supporting the shift towards electrification, General Motors has engaged in diverse initiatives, such as collaborating with Pilot Travel Center and EVgo to expand public charging infrastructure. Its million square foot EV assembly plant and substantial investments into battery manufacturing underscore their commitment to an electrified future.
Kurt Kelty, Vice President of Battery, Propulsion and Sustainability at GM, says: “This achievement is a great example of how far our EV technology has come and the kind of innovation we’re building on every day at GM.”
Fortescue Zero's Impact
Fortescue Zero is notable for electrifying the mining sector with innovations in battery-powered heavy-duty vehicles and fast charging systems, capable of charging a 250-ton haul truck in just 30 minutes.
Ellie Coates, CEO at Fortescue Zero, highlights the efficiency of these chargers, which leverage advancements from motorsport for application in challenging environments.
“These innovative chargers are designed to be a safe, rugged, high power and scalable fast charging solution for multiple different vehicle applications," Ellie says.
“Leveraging our world-class capability in battery and charging solutions from motorsport, the fast chargers have been developed for the challenging conditions of the Pilbara.
“Equipped with robotic connection options, they will be able to power Fortescue’s future 240-tonne Liebherr T 264 battery electric trucks in just 30 minutes.”
