Author: Aspectus Group

By Catherine Hunter

There’s increasing demand for sustainable transport, from electric cars and bikes to hydrogen buses and trains. However, of all the new cars registered in 2018, less than 4% were plug-ins. It’s a real challenge for the industry. People say they want electric vehicles (EVs) but they’re still not buying them.

So, what should the automotive industry do about it? Marketing is one piece of the puzzle. But it’s more complicated than that.

Polling shows that the public is more aware of climate change than ever. And the Extinction Rebellion movement shows that there are huge numbers committed to doing something about it. So, you could argue that marketing is doing one of its most important jobs in highlighting the problem.

Now, it’s time for the market to deliver viable solutions.

There have been a raft of developments, enhancements and modifications in EVs. Everything from how batteries are cooled, to better integration of renewables with charging infrastructure and adding charge points to existing urban furniture is being explored. Promisingly, Tesla reported record sales last quarter, but the market still has space to accelerate.

Range anxiety, lack of infrastructure and vehicle choice are all still common complaints. And questions remain over the sustainability of EVs, particularly around cobalt and lithium.

So, while there is a desire for change, there are also obvious areas for improvement:

Infrastructure investment

The UK lags behind the rest of Europe in terms of ability to fast charge. For those unable to charge easily at home, having a near “petrol station” experience is key to encouraging people to make the switch. Essential investment across the country in infrastructure is needed to keep the sector on the right track. Currently, there is a piecemeal approach to charging points. It’s vital, regardless of what vehicle I drive, that I’m able to charge at the next charge point. This investment in the infrastructure also needs to include maintenance so charge points remain functionable.

Financial incentives

Cars aren’t cheap, that’s especially true for electric vehicles which can be a barrier to entry. Coupled with their fledgling status there aren’t many second hand vehicles on the market, further stalling uptake. To break through in the market, incentives need to be given to encourage people to get on board with the EV journey. Norway celebrates high EV uptake due to a strong incentive programme – over 10% of vehicles on the road in Norway are plug-ins – compare this to less than 1% in the UK. While the costs of running an electric car might be cheaper, the upfront cost can be prohibitive.

Shorter lead time for vehicles

Increasing demand needs to be matched with a strong supply of vehicles. This isn’t happening. Long lead-in times of months between order and delivery will also put people off jumping into the driving seat of an electric vehicle. Manufacturers across the spectrum from Bentley to Renault are investing in electric vehicles and building up their supply chains. This is encouraging, but with warnings about battery production capabilities in the UK being raised, more can and should be done.

Transport is the most polluting sector in the UK today, so continued commitments from government and manufacturers will be needed to keep this embryonic sector heading in the right direction. Once these commitments and fundamental improvements have been made the marketing machine can ramp up once again. Effective communication activity, highlighting their value and sustainability credentials, could put EVs in pole position when drivers are making their next vehicle purchase.

But first, we need inventors firing on all cylinders.

By: Louise Douglas

Is anyone ever really ready for Offshore Europe? A journalist said this to me ahead of this year’s event in Aberdeen. I dare say, there was many an exhibitor or speaker who felt the same, but the bigger question, and one that was on the lips of many at the event this year was, who is ready for the energy transition?

Rewind five years and the main challenge for the oil and gas industry certainly wasn’t climate change. This new reality was heard loud and clear this year as climate activists staged a choreographed ‘die-in’ outside the conference to “send a message” to oil and gas majors.

But as many of us in the energy sector know, there isn’t just an off switch. This was a message echoed and strongly put by Sir Ian Wood. We have to be realistic about how much energy the world demands and where we get that from and the ultimate reality is that oil and gas will be part of the energy mix for a long time.

The struggle is real

That said, Europe’s oil giants account for around 70 percent of the sector’s renewable energy capacity and nearly all the capacity under development today. In recent years, these energy titans have accelerated spending on wind, solar as well as battery technologies.

But it’s not easy to jump from producing oil or gas to producing something like offshore wind power. Lamprell is a clear example of this, losing $10m due to mistakes on the 714MW East Anglia 1 offshore wind farm. Of course, there will always be risks associated with any project but moving steadily can mean the reward is much greater in the long term than the risks involved in the short term.

If Offshore Europe is anything to go by, the sector clearly wants to evolve and it is doing some fantastic things. From using empty North Sea gas fields to create Carbon Capture Storage projects to developing floating offshore wind projects. But who knows about it? I’m not quite sure the activists on day three of the event were quite up to speed.

Get a voice

I was at another conference recently where a young girl stood up and said she wanted to work for an oil company who was thinking about its environmental impact as much as its profit. She urged companies to communicate their energy transition work to the younger generation, as many deem the industry as outdated and dirty. Communication is absolutely key and it’s not happening as much as it should be.

Now more than ever, it’s important that the energy sector refreshes itself. Be bold and be heard. How are you going to attract the next digital twin mastermind if it looks like your business is behind the curve? Make sure your audience knows the energy transition is not just a bunch of words but a bunch of real people trying to make a difference.