The global move towards clean energy, driven by climate change concerns, is creating vast opportunities. Techint Engineering & Construction has established an energy transition department, leveraging its 75 years of expertise to venture into this evolving sector.
According to Hernán Milberg, Energy Transition Manager at Techint E&C, participating in the energy transition is not a choice but a necessity in today’s landscape. The focus now is on how to capitalize on this transformative opportunity.
Over the last three years, Milberg and his team have progressed from discussing the need for decarbonization to conducting feasibility studies and conceptual engineering for various projects. The Energy Transition Department, formally initiated in 2023, comprises a seasoned team operating globally, exploring opportunities in Europe and Latin America while monitoring future business trends in the United States.
Renewable energy is a significant growth area in the energy transition, but Techint sees an even larger opportunity in natural gas as a transition fuel. Gas is viewed as an essential element in moving from the current emission-intensive state to an emission-free scenario within the next 30 years. While the company is involved in several renewable energy projects, including liquefied natural gas (LNG) initiatives, it sees natural gas playing an immediate role in the transition due to its production and logistics capacity.
Milberg emphasized that while hydrogen, synthetic fuels, and carbon capture technologies hold promise, their technologies and scale are still evolving, creating bottlenecks. For instance, the International Energy Agency notes a current capacity of nearly 10 GW per year for manufacturing electrolyzers, expected to reach 600 GW per year by 2030. However, immediate bottlenecks could slow down projects.
Despite the challenges, Milberg stressed the urgency of initiating energy transition projects now, as these endeavors often take a decade from inception to completion. He expects LNG projects to kickstart the transition in Argentina and Mexico, with hydrogen and carbon capture initiatives to follow in Latin America before 2030. Overall, he anticipates a surge in energy transition projects in the 2030s as companies position themselves to navigate the changing energy landscape.