Unlocking Productivity to Deliver the Infrastructure That Will Underpin Our Net Zero Future
Net Zero is perhaps the greatest challenge facing humanity. The need to transition from Hydrocarbon-based energy to renewable and sustainable sources is critical to the future survival of the planet. This has been accelerated by Geo-Political events that are highlighting the inherent supply risks around reliance on hydrocarbons and pushing governments across the world to speed up their net zero targets.
Net Zero is a grand challenge that requires a fundamental shift in the energy supply and demand mix. The energy transitions commission estimate that USD50 trillion in incremental investments is required by 2050 to transition the global economy and energy systems to net-zero emissions.
Outdated, inefficient and unproductive delivery models are simply not going to enable this challenge to be met. In a world of constrained resources – skills, the current models are unable to deliver at the scale and pace required. We need to embrace all of the productivity enhancing tools and processes at our disposal to meet this unprecedented challenge. In 2004 it was reported that 57% of project resources are wasted. There has been little improvement since. We simply cannot continue to waste precious resources on ineffective approaches to project delivery.
The solutions are tried and tested – collaborative contracting, embracing technologies, employing manufacturing-based approaches, utilising effective tools and processes. These are critical to improve productivity significantly, and free-off resources for deployment elsewhere. These have been trialled extensively – so we know the potential – but we now need to move from the trial phase to the widespread implementation phase if we are to stand a chance of delivering Net Zero.
It’s often said that clients get the industry they deserve. Traditional approaches of transferring risk down the supply chain is proven time and again to be ineffective and counter-productive. A different approach to risk distribution is essential.
In addition to energy transition project complexities, the scale and pace of change required is creating a VUCA environment with energy prices, material costs and government policies changing apace to meet the net zero challenges and keep the lights on in a changing energy environment. The only solution for the industry is to collaboratively embrace better ways of working.
About the community
Constructing Excellence and ECI have long been champions of collaborative working and contracting. We propose to establish a community of practice involving the broadest spectrum of Net Zero participating organisations focussing on driving continual productivity improvement in the delivery of energy transition projects.
The community will bring together existing approaches, signpost the great work being done by groups focussed on skills, technology and innovation and consider how these can be harnessed to unlock the productivity gains that are crucial to achieving Net Zero.
This is a great opportunity to bring together our members and stakeholders who are currently delivering in this area or are keen to apply their expertise building on the body of work in ECI, CE Nuclear and Hydrogen. This is an opportunity to focus our existing activities in this space around a common, critical topic.
The community will focus on sharing best practice, experience, knowledge and insight on how to implement these solutions in project delivery. Participants will jointly explore how these solutions can be applied on Net Zero projects and how to convince sceptics to come on board in the making the transformational change to how projects are delivered.
******* Join us on 10th January to help us shape this community *******
Things to Consider
Where do you see the greatest opportunities for energy transition?
What challenges will need to be overcome for the successful delivery of energy transition at scale?
What change is needed for successful capital project delivery?