Meeting the new energy reality by strengthening energy supply

The global energy transition is facing a critical trilemma, balancing energy security, affordability and sustainability. In a world shaped by poly-crises, the question we must ask ourselves is: how can we ensure a reliable energy supply while advancing the transition to a sustainable future? 

Building resilient energy systems in a shifting landscape  

Building resilient energy systems is key. From diversifying energy sources to innovating clean technologies, nations around the world are rethinking their approach to energy resilience. In this complex landscape, it is essential to create energy systems that are secure, reliable and sustainable while also addressing supply chain vulnerabilities and geopolitical uncertainties.

Diversifying energy supply: a global imperative 

Global energy demand is projected to grow by 11–18% by 2050, putting increased pressure on existing systems. Diversifying energy sources is critical to mitigating risks of supply disruptions and price volatility.  Renewable fuels and e-fuels, for instance, can transform the way we produce, transport and consume energy. They drive sustainability while improving localized energy production - empowering nations to meet their energy needs independently. 

To truly strengthen our energy supply, we must embrace diversification across energy production and value chains. 

Tackling supply chain vulnerabilities 

Diversification must also address vulnerabilities in clean technology supply chains. Single sources supply or over-reliance on a few nations creates exposure to geopolitical risks and potential supply disruptions. 

Efforts to localize production are already underway. For example, both Europe and the United States are investing in domestic clean technology manufacturing to limit reliance on imports. These initiatives are vital to reducing risks and ensuring a stable supply of critical components like electrolyzers. 

India: Advancing green hydrogen and green ammonia for energy independence 

India, too, highlights the importance of diversifying energy supply. The country heavily depends on natural gas imports for fertilizer production, with public subsidies for fertilizers reaching $14.2 billion in 2022/23. As fertilizer production is set to grow from 3 MT to 7.5 MT by 2025, this dependency leaves India vulnerable to price volatility and financial strain. 

To counter this, India is advancing green hydrogen policies to support domestic production of renewable hydrogen and green ammonia. These efforts promise to strengthen energy independence while addressing both economic and environmental challenges. 

Topsoe’s role in strengthening energy supply 

Topsoe is actively helping to shape the future of energy resilience. A prime example is Project REDDAP 1, where we support localized green ammonia production. By integrating a fully dynamic ammonia synthesis loop with renewable energy sources like wind and solar, this project demonstrates how advanced technology can enable efficient, decentralized energy systems. This kind of innovation is essential to meeting the demands of a net-zero future. 

Looking ahead 

As the world confronts the complexities of the energy transition, the path forward demands innovation, unwavering collaboration, and scalable solutions. At Topsoe, we are committed to driving this transformation – delivering proven technologies that enable industries to transition toward net-zero while fueling innovation, economic prosperity, and energy security along the way. 

Explore part 3 of our New Energy Reality series, on boosting economic growth here.