LOGISTICS OF THE ENERGY REVOLUTION
The energy sector revolution is underway. Oil and gas companies are reshaping business portfolios and increasing investment in green energy and sustainable technologies. At the same time, renewable energy companies are doubling down to meet the increasing demand for alternative energy and deliver the associated infrastructure.
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The Energy Transition
The logistics of the Energy Revolution White Paper co-authored by DHL and Capgemini Invent, explores how companies within the energy sector can transition their networks and infrastructure to net-zero, and why logistics will be a critical enabler of the energy evolution.
Challenges in the Renewable Energy Supply Chain
Today, the renewables supply chain is facing four key challenges:
- More decentralized and distributed power generation is boosting logistics demand.
- The limited availability of logistics assets and services is driving up costs.
- Supply chain complexity is rising and this necessitates better visibility and control.
- Net-zero energy technology requires low-carbon logistics.
Chapter 1 – The time to act is now!
New thinking, capabilities, and solutions are needed now. It will be essential for government bodies, companies in the energy sector, logistics providers, and other stakeholders to work together to shape a more sustainable future.
Chapter 2 – The future of energy supply
This chapter examines the implications of net zero for the global energy sector, a transition that will necessitate both a reduction in energy demand and a reduction in the quantity of greenhouse gas emissions to meet that demand.
Chapter 3 – New business strategies for change
There are profound supply chain implications for large-scale renewable energy deployment. This chapter looks at the approaches of IECs, NOCs, and major utility companies and assesses the impact on logistics of renewable energy investments, particularly in wind and solar power generation.
Chapter 4 – Innovative logistics for the energy revolution
Ready to use maintenance drones? To manage the rapid increase in scale demanded by the net-zero transition, the renewable energy sector must innovate. This futuristic chapter explores visibility and digitalization in logistics, innovation in service and support, and sustainable logistics
Chapter 5 – The new net-zero energy system
As the energy sector shifts towards electrification, there are five key areas of logistics focus: (i) Adopt an end-to-end perspective on logistics systems (ii) focus on visibility and digitalization (iii) identify transferrable skills from adjacent industries (iv) pursue sustainable logistics solutions (v) collaborate to power the world together.
Building End-to-End Supply Chain Visibility
The smooth operation of complex, decentralized, and often global renewable energy supply chains will necessitate full visibility of the end-to-end supply chain. And the foundation of supply chain visibility is digitization. Energy companies are increasingly investing in smart digital platforms, capabilities, and tools to manage logistics execution and optimize supply chain design – smart connected sensors, drones, digital twins, and more – so they can collect, analyze, and act upon digital supply chain information.
Pursuing Sustainable Logistics Solutions
Logistics is an energy-intensive business and some challenges remain to be solved – for example, commercially available alternatives to fossil fuels for heavy trucks, long-distance ships, and air transportation. Forward-looking energy companies are collaborating with logistics service providers to develop early use cases for emerging technologies. They are also cutting costs and supply chain emissions through operational changes such as route optimization and improved utilization of transportation assets.