Germany is the largest economy in Europe and the third largest export nation in the world. Like many other European countries, Germany finds itself in a so-called trilemma: the increasing importance of energy security, especially since the wars in Ukraine and the Middle East, on the one hand, meeting climate change objectives on the other hand and then handling the situation in an affordable way. Especially with the current economic downturn. That’s the third objective.
Although we have seen a welcome growth in renewables over the past decade, Germany is still reliant on gas and oil to keep everybody warm, keep the lights on and keep people moving. Around 95 percent of the oil and natural gas it needs is imported.
Rapid market developments can be observed when it comes to critical raw materials for the energy transition. In the global race for lithium, cobalt or rare earth elements, including those used in e-mobility, Europe and Germany are currently trying to catch up.
I not only believe but am certain that Neptune Energy can help with these challenges. We don’t just want to be part of the change. It is our mission to proactively shape it. In order to get there, we want to be a leading German energy producer, by meeting local needs for natural resources with a low carbon footprint and contributing to the energy transition with innovative projects.
Absolutely. The German onshore business, with its long tradition, has always differed from the international portfolio. Especially in recent months and years, we have been able to show that our German team is ready for the future. We have a gas-weighted portfolio and deep industry expertise offering strong opportunities for growth. Our domestic lithium extraction project may supply German and European car and battery manufacturers in the mid-term future and offers great innovation potential. Independent experts have determined the proven reserves amount to 43 million tons of lithium carbonate equivalent (LCE). This means that our deposit in northern Saxony-Anhalt has one of the world's largest project-related lithium resources. Unusually it can be developed with a very low environmental impact as the Lithium is in solution and does not require mining or large evaporation ponds which are required in other parts of the world. If developed a deposit of this size would bring huge benefits to the German economy with locally sourced lithium as well as being an important business for Neptune.
Of course, as a pure oil and gas producer it is impossible to become climate neutral in terms of so-called Scope 3 emissions, which are indirect emissions generated in the value chain. However, there are two things we can do:
We will reduce our carbon footprint as much as possible, for example through the electrification of facilities. Domestic production generally has a significantly lower carbon footprint than all LNG imports. For this reason, local production close to consumers makes sense as long as oil and gas are still needed in Germany.
Secondly, we will push ahead with our transformation. Based on our expertise, our existing infrastructure, and our subsurface data, business areas such as geothermal energy or Carbon Capture and Storage (CCS) offer interesting options for the future. Of course, social and political acceptance is essential in the field of onshore CCS. However, this would allow us to use our expertise to even reduce emissions.
Neptune's path to the future therefore remains exciting. And I am certain the Neptune team is well prepared.