Energy Security Starts with Sustainability
In a world of geopolitical uncertainty, businesses must rethink energy as a core strategy for resilience, cost control, and long-term growth
Two weeks ago my colleagues and I enjoyed the latest in a series of breakfast briefings arranged by Cork Chamber featuring keynote speaker David Kelly CEO of Gas Networks Ireland, a timely event for a room full of business leaders working in the county affected most by the recent protests.
While the global energy landscape has always been sensitive to the tremors of geopolitics, the recent escalation of conflict in the Middle East and blockades at critical points in Ireland has sent a shockwave through the system that cannot be ignored. It was interesting to hear from David as to what Ireland is doing, driving towards net zero by developing multiple AD sites and taking the lead from other countries throughout Europe such as Sweden and France.
Prior to the current administration in the US the conversation around sustainability was often framed through the lens of corporate social responsibility or environmental altruism. Today, that has changed. Sustainability is no longer just a green initiative; it is a fundamental strategy for survival and sovereign risk management.
The Changing Energy Landscape
While the global energy landscape has always been sensitive to the tremors of geopolitics, the recent escalation of conflict in the Middle East and blockades at critical points in Ireland has sent a shockwave through the system that cannot be ignored. It was interesting to hear from David as to what Ireland is doing, driving towards net zero by developing multiple AD sites and taking the lead from other countries throughout Europe such as Sweden and France.
A Shift in Sustainability Thinking
Prior to the current administration in the US the conversation around sustainability was often framed through the lens of corporate social responsibility or environmental altruism. Today, that has changed. Sustainability is no longer just a green initiative; it is a fundamental strategy for survival and sovereign risk management.
Ireland’s Energy Potential
The Saudi Arabians of the wind industry is how many leaders have described Ireland’s potential, this phrase coined by the late Dr Eddie O’Connor highlights our great natural resources but also our complete inability as a country to develop an infrastructure fit for purpose. Years after we were first compared to Saudi Arabia we seem to be at a standstill. For a long time, the prevailing wisdom suggested that a slow, measured transition away from fossil fuels was the safe path for the economy but as Dr O'Connor pointed out relying on a fuel source that is subject to the whims of regional conflicts and volatile dictatorships is the ultimate risk.
Decarbonisation as Business Strategy
For manufacturing companies when we talk about reducing reliance on fossil fuels, we aren't just talking about carbon footprints; we are talking about de-risking the balance sheet. Every unit of energy produced via wind, solar, or recovered waste heat is a unit of energy that doesn’t require a global navy to protect its supply line. In this climate, failing to diversify your energy mix isn't just bad for the planet, it’s dangerous for your business continuity.
Climeaction’s Role and Customer Impact
Climeaction's mission is decarbonize industry, we support and advise leading organizations nullify risks by transitioning to self-sustaining or high-efficiency systems. Our FAST (Footprint, Audit, Strategy & Targets) program has enabled major players to decouple their growth from fossil fuel volatility.
The following examples show some of the recent wins our customers have experienced since partnering with Climeaction.
• MedTech (Georgia, US): Across a multi-building campus, we identified over 25 decarbonization opportunities. By focusing on waste heat recovery to displace boiler-driven steam, this site is targeting 18.8 GWh in fuel savings and an estimated NPV of $11.2 million.
• Global FMCG Company (Ireland): We implemented seven major capital projects to electrify low-temperature heat, supplanting over 11 GWh of fuel use per year. Additionally, a new solar PV system was proposed to cover more than 51% of a facility's annual electricity consumption.
• Food Manufacturer (Ireland): To support a 30% facility expansion while reducing emissions, we installed a 1.2 MW Ammonia Heat Pump to recover heat from evaporator coolers. This transition contributed to €3,036,000 in annual cost savings.
Support and Policy Frameworks
In Ireland, the government and state agencies have finally recognised that the transition is an economic necessity. For Irish businesses, there is a robust framework of supports designed to de-risk the capital expenditure required to go green.
• SEAI Grants (Sustainable Energy Authority of Ireland): The EXEED grant scheme is a standout, providing up to €1 million per project for businesses that embed energy-efficient design into their processes.
• Enterprise Ireland & IDA Supports: For manufacturing and exporting firms, the Green Transition Fund offers significant capital to help companies move away from fossil fuels and toward carbon-neutral processes.
• Support Scheme for Renewable Heat (SSRH): This is a crucial tool for Irish industry, providing ongoing operational support for companies that switch from oil or gas boilers to biomass or heat pump systems.
Across the Atlantic, the United States has entered a new era of energy policy. According to our colleagues in our Boston office the Inflation Reduction Act (IRA) represents the most significant climate legislation in history, offering a carrot-heavy approach to sustainability.
• Investment Tax Credits (ITC) and Production Tax Credits (PTC): These have been expanded and extended, providing massive offsets for companies installing solar, wind, or standalone battery storage.
• The USDA REAP Grant: The Rural Energy for America Program is particularly potent for small businesses and agricultural producers, offering grants covering up to 50% of total project costs for renewable energy systems or energy efficiency improvements.
• Section 179D Deductions: For commercial building owners, this allows for significant tax deductions for energy-efficient building envelopes, HVAC, and lighting systems.
Investment and the Road Ahead
As I’ve noted previously, energy projects are winning the battle for capital. In a world of rising interest rates and geopolitical instability, investors are looking for certainty. Fossil fuel projects carry the risk premium of war as we have seen in the US and carbon taxes as we’ve seen so extravagantly in Ireland in the last 2 weeks. Sustainable projects carry the certainty of fixed fuel costs (zero) and government backing.
The conflict in the Middle East is a tragic reminder that the old energy world is fragile. To plan for the future, companies must look toward local, sustainable, and resilient energy sources. The technology is here, the grants are available, and the geopolitical clock is ticking. Who is paying for it? Well ironically enough, in Ireland, it’s the Tech Companies with the deep pockets who are pushing for advances in infrastructure and technology so that they can continue to house their data centres here while at the same time supporting our utility companies to keep the lights on.
