Exhibit 1 The opportunity in green capital expenditures is massive; investment needs to triple by 2050 to reach decarbonization goals. Global annual capacity required to decarbonize Renewables deployed, gigawatts CO2 captured, million metric tons (Mt) The opportunity in green capital expenditures is massive; investment needs to triple by 2050 to reach decarbonization goals.
$9.2 trillion per year Global capital investment required to meet decarbonization goals between now and 2050
1,000
7,600
4×
190×
250
2020 40
2020
2050
2050
Hydrogen production, million metric tons (Mt)
Battery demand, terawatt-hours
14
530
6×
70×
90
2020 0.2
2020
2050
2050
Source: International Energy Agency; “The net-zero transition: What it would cost, what it could bring,” McKinsey Global Institute, January 2022
McKinsey & Company
energy production, particularly in transport, which is expected to account for more than 50 percent of demand growth by 2050.
In an accelerated scenario, clean hydrogen could account for approximately 95 percent of total supply by 2050, helping to meet the anticipated fivefold increase in demand driven by the road transport, maritime, and aviation industries.8 Thus, significant scale-up in renewable-energy production, electrolyzers, and CCUS is needed to make hydrogen, renewable fuels, and other clean technologies cost competitive with conventional-
The path forward: Rethinking capital project costs Considering the starting points of technologies such as hydrogen, batteries, and CCUS, their
8 Global Energy Perspective, April 26, 2022.
Accelerating the journey to net zero
149
Made with FlippingBook Online newsletter maker