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Event Summary: “Energy Innovation and Research: the Status Quo and a Look to the Future in Europe and the US”

American Friends of Bucerius Energy + Innovation Initiative

“Energy, Innovation and Research: the Status Quo and a Look to the Future in Europe and the US”

March 31st, 2014

 

Speakers:

Dr. Urban Keussen, Senior Vice President, E.ON SE, Technology and Innovation

Dr. Klaus Lackner, Director, Lenfest Center of Sustainable Energy, Columbia University

Dr. Ferdi Schüth, Director, Max-Planck-Institut für Kohlenforschung

Moderated by:

Dr. Kai Uwe Pritzsche, Partner, Linklaters LLP

 

On March 31^st, 2014 American Friends of Bucerius held their first Energy + Innovation Initiative program, a luncheon with partners DFG (the German Research Foundation) and Linklaters LLP. Dr. Urban Keussen, Dr. Klaus E. Lackner, and Dr. Ferdi Schüth formed a distinguished panel of experts in the field of energy and, moderated by Dr. Kai Pritzsche, presented their views on current developments in energy research and innovation, as well as the current energy debates in Germany and the United States.

Schüth, director of the Max-Plank-Institute for Kohlenforschung and the Vice President of the German Research Foundation, belongs to a group of leading scientific experts on energy issues who advise the German government on this topic. He is leading the way in scientific responses to Germany’s transition to renewable energy sources, the ‘Energiewende’. Implemented in 2010, the Energiewende has received additional momentum from the Fukushima nuclear disaster in 2011. Current legislation intends to eliminate the German production of nuclear power completely by 2022. Schüth pointed out that wind and solar energy are the most important resources in the renewable sector, but even though the technology involved has matured significantly since research on renewables first began, the cost is still not competitive when compared to energy generated from fossil fuels. Furthermore, the issue of reliability has not yet been sufficiently addressed. Nevertheless, Schüth strongly believes that renewable energy is feasible. The technology for it exists, even though costly improvements are unavoidable. The biggest challenges, however, lie not within the technical and scientific fields, but rather within the socio-economic and political spheres.

Lackner, a renowned geophysicist at Columbia University, believes “that it is impossible to stop people [from] using fossil fuels, so we have to develop technologies that will allow people to use them without creating damage to the environment.” Lackner’s research focus is on the central problem connected to the continued use of fossil fuel: the emission of carbon dioxide. He believes that global warming is a serious problem, and as 80 % of the world’s energy consumption is still based on fossil fuels, the accumulation of carbon dioxide in the atmosphere is worrisome. According to Lackner, policies that aim to cut emissions in half are not sufficient to solve the problem, as they would have had to be zero or even negative by now in order to compensate for past and current impacts. He has turned to the possibilities that carbon capture and storage (CCS) offers. Although current CCS methods are expensive, Lackner believes that they still offer the best solution to dealing with the already existing CO₂ in the atmosphere. The necessary technology is available; the next step is to figure out how to reduce the costs and implement policies to that end.

Keussen, who has a background in applied physics, is the Senior Vice President of Technology and Innovation at E.ON, one of Europe’s major energy companies. Keussen highlighted that policies and regulations in Germany and Europe are driven by the concern of global warming, and have the power to create and destroy energy markets. In addition, consumer behavior does not follow predictable patterns, as most consumer decisions are based on emotions rather than economic rationalism, which makes it difficult to predict future consumption demands. Public acceptance also drives certain policy developments, adding additional uncertainty to the energy sector. Methods to produce energy have become more efficient both on small and large scales, however, lowering the barrier into the energy business. Now even individual homeowners can take an active role in the energy supply chain. Taking a global perspective, Keussen emphasized that whatever happens in the US and China as they develop shale and coal resources will also influence the research and development of energy technologies in the future.

In the end, all three panelists agreed that policy and regulation play a crucial role in the implementation of a low-carbon energy supply. Concluding the discussion, Mr. Pritzsche asked each panelist to specify what they would address, if they could change one thing in energy policy in the near future. In Mr. Schüth’s opinion, the German government should formulate clear goals instead of what he perceives currently to be a mix of goals, means, and pathways. He emphasized that without this clarity, it will remain difficult to develop precise policies and therefore support technological innovation efficiently. An advocate of carbon capture and sequestration, Mr. Lackner believes CCS could contribute significantly to fighting global warming, as well as result in a more realistic price of carbon emission permits. While recognizing the need for regulation in the energy field, Keussen stated that the current system of regulations in Europe was too complex and called for more competition. In his opinion, keeping regulation to only what was necessary would lead innovation to thrive.

Overall the program offered a lively discussion on the role of energy technologies for future innovations, and addressed the interplay between energy technology, economics, and politics.

 

The Bucerius Energy + Innovation Initiative

This initiative is designed to create a platform for exchange and discussion among academia, policymakers, and practitioners, while highlighting various aspects of the energy sector to the greater public. The multifaceted program will move beyond the legal and legislative issues to include changes to the “business” of energy and the impact of regulatory decisions on investments in new energy technology. Topics for these discussions, taking place in locations across the US, will be selected by the US Energy Circle, a group of high-level energy experts and representatives who are shaping the debate and informing global leaders.