Now the energy sector faces one of its toughest challenges ever: how to provide more energy to a growing world population, while also reducing the greenhouse gas emissions that contribute to climate change and to air pollution, which affect people around the world.
Governments took a great stride forward in 2015, when they came together in Paris to reach a landmark agreement to tackle climate change. FinCo welcomes and supports the Paris Agreement and the ambition to limit the global rise in temperatures to well below two degrees Celsius (2°C) above pre-industrial levels.
The world currently emits 37 billion metric tons of energy-related CO2 each year. To limit the rise in global temperature to 2°C CO2 emissions need to fall to around 18 billion metric tons a year by 2040. FinCo plans to keep pace and catch up with society’s progress towards realizing these Paris goals.
There is a growing recognition of the role of renewable fuels as Europe tackles climate change and poor air quality. The European Renewable Energy Directive (RED) sets targets for the use of renewables in transportation fuels. All EU countries have to meet a 10% renewables target in transport by 2020. And in 2030 at least 14% of transportation fuels have to come from renewable sources. Hydrocarbons will still play an important role in the decades to come. FinCo wants to be frontrunner in offering its customers a portfolio of fuels with a reduced carbon footprint. As we believe that our long-term success depends on our ability to anticipate the types of fuels and energy carriers our customers will need in the future.
By blending sustainable renewable fuels, the carbon footprint of our end products diesel, gasoil and gasoline is brought down while making use of today’s combustion engines and existing fuel infrastructure. In this way, we support companies in improving carbon emissions and local air quality at an affordable price and lower total cost of ownership.
Examples of the renewable fuels we are currently delivering and targeting are advanced ethanol, advanced FAME, hydrotreated vegetable oil (HVO), waste-plastic fuels, biomass-to-liquid (BTL) and the enzyme-based fuel ChangeXL.
Besides the renewable fuels we are currently using, other low carbon options like renewable electricity and hydrogen might also start to play a role as low carbon transport fuels. In the transition towards a lower-carbon energy system we need to have a strategy that is flexible enough to also keep in step with these changes as they unfold.