The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
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Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
Rethinking decarbonization: The case for energy addition
As global energy demand and carbon emissions soar to record levels, fresh approaches to decarbonization are urgently needed.
Achieving net zero by mid-century will require more than simply swapping fossil fuels for wind and solar in power generation. Instead, a diverse mix of local solutions and innovative technologies must be developed. From building self-sustaining local microgrids and developing green hydrogen energy hubs to using the excess heat from data centers to warm homes, cutting carbon means going way beyond the idea of energy transition. “The term 'energy transition' suggests a straight swap of fossil fuels for renewables, but that will take too long,” says Alan Brookes, Chief Executive of the global design, engineering, and consultancy firm Arcadis. “Instead, we need to reframe the narrative as energy addition – which means greatly expanding, diversifying and adding to the energy mix,” he adds.
Protecting rainforests with microgrids
This is the approach that Arcadis is using to help design the Daintree microgrid project in Australia, a solution to local energy needs that bypasses central electricity generation. A remote town in Far North Queensland, Daintree is cut off from the main electricity grid by the Daintree River and World-Heritage-listed rainforest. Local energy needs are met mainly by diesel generation. However, diesel fuel risks polluting the rainforest and harming the region’s biodiversity. Building an integrated, renewable energy microgrid for the local area is more efficient and environmentally preferable to ripping up the rainforest to connect to the main grid.
Alan Brookes CEO, Arcadis
“We need to reframe the narrative as energy addition – which means greatly expanding, diversifying and adding to the energy mix.”
Cranes operate at Wilhelmshaven port in Germany, part of a green energy hub distributing hydrogen-based fuels
From ports to homes: Europe's energy hub revolution
Arcadis is also working on Germany’s Wilhelmshaven Green Energy Hub. This is transforming the North Sea port into a hub for importing, storing and distributing green hydrogen, a clean energy source which produces electricity, heat and water through a fuel cell. Green hydrogen – which is derived from renewable sources–is transported in the form of green ammonia and electronic natural gas, e-NG. Extensive infrastructure is required to support this emerging clean fuel. “This is a pioneering project–it's the first of its kind in Germany, but it's also expected to provide 10% of Germany’s primary energy demand by 2050, so it's a massive asset,” says Mark McKenna, Global Sustainability Director at Arcadis.
Alan Brookes CEO, Arcadis
“This is what energy addition is about - instead of a one size fits all approach, you create a mix of options.”
A significant challenge is keeping the public, politicians and businesses informed about these complex energy infrastructure projects. Arcadis is providing stakeholder communications for the Wilhelmshaven development. “The reality of a non-linear, messy transition is that it can be disruptive, and people want to know how that's going to affect them, their communities and mobility in their area. Effectively communicating with all these groups is vital,” says McKenna. He believes that Arcadis is well-positioned to take a key role in managing diverse clean fuel projects, as it offers skills in areas such as design, engineering, communications, planning and data analysis.
Global energy demand and carbon emissions are rising amid the expansion of AI infrastructure
Everything is going up
Those skills are in great demand given the urgent need to rethink decarbonization. With the spread of power-hungry AI data centers and rapid global development ramping up demand for electricity, C02 emissions hit record highs in 2024, according to the Energy Institute’s annual review. Global energy demand rose 2% to 592 Exajoules. Renewables increased strongly, with wind and solar growing by 16%. But fossil fuel usage also rose to an all-time high, with coal, oil and gas usage increasing to record levels. Wind, solar and other renewables accounted for 17% of global electricity generation in 2024, hydro accounted for 14%, nuclear for 9% with fossil fuels accounting for nearly 60%. As delegates prepare to attend COP30 in Belém, Brazil in November, discussions on progress towards carbon reduction goals are top of mind. Some believe that the goal of tripling renewables by 2030, agreed by 133 nations at COP28, looks hard to achieve, though most are committed to hitting net zero by 2050.
Mark McKenna Global Sustainability Director, Arcadis
“This is a pioneering project–it's the first of its kind in Germany, but it's also expected to provide 10% of Germany’s primary energy demand by 2050, so it's a massive asset.”
An example of a public/private partnership, the Antwerp District Heating Project will use heat generated by industrial businesses to heat up to 35,000 homes by 2030. This is part of a broader drive to create sustainable urban heating systems bringing together a variety of stakeholders. There are schemes in Paris to use heat from data centers to heat homes and public buildings. The Equinix PA10 data center, with design and sustainability features created by Arcadis, uses heat capture for its rooftop greenhouse while further excess heat goes to heat a local swimming pool. “Having a more holistic and collaborative approach will really help. I think there's a great future for balancing sustainability, availability, reliability and affordability at the start of projects to make a sound business case,” says Bakhuizen. He adds that a crucial aspect of decarbonization is updating the energy infrastructure needed for transmission and distribution of renewable electricity coming on the grid. Existing and sometimes creaking grid connectors, power lines and pylons need new investments to make the system future proof and reliable. Developing energy hubs, microgrids and decentralized electricity generation has the advantage of taking the pressure off electricity distribution in centralized grids.
A view of Antwerp, Belgium, where the District Heating Project aims to supply heat to thousands of homes using industrial waste heat
Strange bedfellows make the best energy partners
Arcadis’s Global Energy Transition Director, Hendrik-Jan Bakhuizen, says it is crucial for progress towards these goals that we move beyond government-led transition finance. Imaginative forms of funding and development will be needed for investments in diverse energy projects, with partnerships between public, private and industrial investors. For instance, local energy hubs combining a variety of clean energy sources and storage are being built with input from multiple stakeholders and sources of investment. “We are involved in feasibility studies looking at opportunities to build energy hubs in different parts of the world, and I expect this will increase,” says Bakhuizen, “because producing and transporting energy from one place to another place is expensive and complex.”
Hendrik-Jan Bakhuizen Global Director, Energy Transition, Arcadis
“We are involved in feasibility studies looking at opportunities to build energy hubs in different parts of the world, and I expect this will increase.”
Ensuring global energy security through addition
Green energy diversification comes against a background of growing energy insecurity worldwide, with outages, supply disruption and the threat of cyberattacks. Creating diverse energy sources helps make energy systems more resilient. “There is no single solution to decarbonization. We need a holistic, system-wide strategy to speed things up rather than slowing them down,” says Brookes. “I hope we'll see more of these types of integrated projects coming together over the next five to ten years. They will cut carbon emissions drastically and we’ll be able to accelerate towards net zero faster than ever.”
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Such an approach means designing system-wide solutions, bringing together everything from integrated urban energy provision and mobility to battery storage, nuclear, green hydrogen, solar and wind generation. “It’s about making the best choices for the available budgets. With greater variety in electricity generation, we can strengthen the resilience of our energy supply and cut carbon emissions at the same time,” he says.
Aerial view of the Daintree Rainforest in Queensland, Australia, where a microgrid project supplies renewable energy to the remote region
The microgrid uses solar generation and hydrogen storage technologies and will save around four million liters of diesel fuel a year, slashing carbon emissions and protecting the rainforest. The microgrid is backed up with a battery energy storage system (BESS) to store electricity in the absence of sunshine. The overall system will provide a steady and dependable stream of energy for the community, so buildings will no longer need their own diesel generators, local nature will be protected and carbon reduction achieved. “Our Daintree partnership delivers electrical and civil design for solar and hydrogen power and underground cabling to cut out polluting diesel fuel,” says Brookes. “This is what energy addition is about–instead of a one size fits all approach, you create a mix of options.”
Alan Brookes CEO, Arcadis
“There is no single solution to decarbonization. We need a holistic, system-wide strategy to speed things up rather than slowing them down.”
Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
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Alan Brookes CEO, Arcadis
Hendrik-Jan Bakhuizen Global Director, Energy Transition, Arcadis
Mark McKenna Global Sustainability Director, Arcadis
Alan Brookes CEO, Arcadis
Alan Brookes CEO, Arcadis
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
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