The energy value chain is changing rapidly and increasingly digital in nature, requiring new competencies and acting with insight. A strong commitment to sustai...
Shaping the future of the hydrogen economy: Ports, collaboration and sustainability
Send us a textShaping the future of the hydrogen economy: Ports, collaboration and sustainability In the latest episode of Energy Transition Talks, Derek Marinos discusses the critical role of ports in the hydrogen economy with experts Dr. Magali Amiel and David van der Ploeg. They explore the current state of hydrogen as a low carbon energy source, the supply chain challenges in production and distribution, and the infrastructure developments being implemented by port authorities. The conversation highlights the importance of collaboration among stakeholders and the impact of market forces and geopolitical considerations on hydrogen's growth and adoption.The promising potential of hydrogen for decarbonizationHydrogen has long been recognized as a low-carbon energy source and now is considered crucial for decarbonizing hard-to-abate sectors, including heavy industry and transportation. Significant investments are being made to scale hydrogen deployment in these challenging industries, plus successful proof of concept (POC) projects and trials in both sectors are leading to tangible impacts in the transition to hydrogen solutions. Sustainability remains a key driver of the global demand for hydrogen.The key roles of ports and infrastructure in the hydrogen ecosystemPorts are vital in the hydrogen ecosystem, addressing transportation, storage and distribution, and logistics and infrastructure challenges. From a storage perspective, ports are already well-positioned to serve as regional and international hubs for hydrogen supplies, thanks to their expert solutions developed via handling oil and other commodities.[Wow factor: The European Union has set ambitious targets for hydrogen adoption with ports projected to account for more than 40 % of annual hydrogen demand by 2050. ]Establishing a hydrogen supply chain is essential for transitioning to a low-carbon economy, especially for sectors difficult to electrify, like shipping and heavy transport. Key challenges include:Production Costs: The location of hydrogen production relative to ports affects transportation logistics.Storage Requirements: Hydrogen's low energy density necessitates larger storage facilities, which can be complicated by urban proximity and safety regulations.Distribution Infrastructure: International collaboration is needed to create effective pipelines and transport systems for hydrogen.To build the necessary infrastructure, advancements in technology are vital, as existing pipelines for crude oil cannot be used for hydrogen. Regulatory consistency across regions is also essential to facilitate international trade. A notable initiative is the Hydrogen Alliance between Canada and Germany, aimed at establishing a robust international hydrogen supply chain by July 2024.The need to forge alliance to shape the futureThe hydrogen economy is poised for significant growth, driving the need to unite all players in the hydrogen ecosystem to share information, build trust and collaborate with industrial users for effective integration, especially in the current geopolitical climate. The quality of the hydrogen and the quality of relationship between the stakeholders will significantly shape what is possible in the future. Read more more on Visit our Energy Transition Talks page
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Data-driven futures: Revolutionizing energy infrastructure
Send us a textData-driven futures: Revolutionizing energy infrastructureCGI’s annual Voice of Our Clients (VOC) global research gathers insights from both existing and potential clients, revealing key priorities for executives across industries. In the latest episode of Energy Transition Talks, Peter Warren sits down with Helena Jochberger to discuss the overlapping areas of focus revealed by data for both the Energy & Utilities and Manufacturing industries. The Energy and Utilities framework—specifically in the upstream, midstream and downstream segments of oil and gas—often includes the chemical industry. However, Peter shares, CGI classifies it as part of Manufacturing, due to its process-driven nature.Helena agrees, highlighting that in the chemical sector, where various recipes and ingredients are involved, effective Manufacturing Execution Systems are essential for managing complex processes that rely on numerous formulas. In the Manufacturing sector, she says, it's important to distinguish between two terms: · Discrete Manufacturing: Involves producing physical products that require energy.· Process Industry: Comprises energy-intensive sectors like metals, mining, and chemicals.Focus on sustainability: Climate change impact on industriesOne significant insight from the CGI 2024 Voice of Clients (VOC) report Helena highlights is that, like Energy & Utilities, industries such as metals, mining and pulp and paper are notably prioritizing energy transition, climate change and sustainability initiatives. Specifically, the mining industry has a particularly high impact rate at 89% and the pulp and paper sector follows closely at 80%. Helena notes that the pulp and paper industry historically uses biofuels like black liquor for energy, showing a commitment to decarbonization despite ongoing climate challenges.Visit our Energy Transition Talks page
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Empowering energy decisions: AI meets Data Mesh
Send us a textEmpowering energy decisions: AI meets Data MeshIn part two of their Energy Transition Talks conversation, Doug Leal and Peter Warren dive deeper into the concept of Data Mesh and its impact on organizational structure. Specifically, they examine how Data Mesh enables business agility and AI innovation while necessitating a cultural shift, robust data governance and collaboration between IT and the business. Data Mesh represents a significant cultural shift in how organizations manage and use data. Traditionally, data ownership has resided within IT departments, but Data Mesh advocates for decentralizing this ownership to various lines of business teams. Doug highlights the four key principles of Data Mesh:Domain-Oriented Decentralized Ownership: Data is no longer solely owned by IT; instead, it allows teams closest to its creation to take ownership and responsibility for its quality and reliability.Data as a Product: Organizations are encouraged to treat their data sets as products, prioritizing data quality, usability, and timeliness, while focusing on how they can create value from them.Self-Service Data Platforms: With multiple domain-oriented data platforms emerging, automation is key, and teams need to ensure these platforms are user-friendly and efficient. The goal is to remove bottlenecks and accelerate data sharing and collaboration.Federated Computational Governance: This model supports governance tailored to specific domains rather than a one-size-fits-all approach, allowing for more relevant oversight.The transition to decentralized ownership empowers business teams to take control of their data, fostering agility and responsiveness to market needs. However, it also increases their responsibility. Data governance is paramount for Data Mesh! It ensures data quality and security across decentralized domains, fosters trust and consistency in data usage, and balances autonomy.Importance of data quality in Data Mesh“Data quality is still a cornerstone of a Data Mesh platform,” Doug says, explaining that developing this domain-based data architecture requires a robust data quality framework. This involves ensuring data traceability and conducting rigorous quality checks for accuracy, completeness and consistency so organizations can build trust in their data. Collaboration between technologists and business stakeholders is essential for identifying the most accurate truth as organizations integrate multiple source systems into their Data Lakehouse. This foundation is also critical for future advanced analytics, machine learning, and AI initiatives.Read more on cgi.comVisit our Energy Transition Talks page
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Unlocking data strategy success: Practical AI, robust governance and agile management
Send us a textIn the latest episode of our Energy Transition Talks series, CGI Vice-President, Consulting – Data and Analytics Doug Leal discusses with Peter Warren the evolving landscape of data use in the energy and utilities sector, particularly in light of new AI applications. In the first instalment of this two-part conversation, they explore the challenges of scaling AI models, the move away from experimentation toward practical solutions and two key approaches to data management: the Data Lakehouse and the Data Mesh—both of which are shaping the future of data strategies’ success.Utility organizations are facing increasing pressure to leverage data effectively for decision-making. This involves the integration of various data sources, such as Advanced Metering Infrastructure (AMI) and outage management systems, to enhance operational insights. While some organizations are already progressing in this area, Doug says, many are still in the early stages of their data journey.Doug and Peter discuss two distinct approaches to AI: one that treats it as a novel tool to explore, and another that focuses on practical problem-solving. The latter, Doug says, is essential for developing a strategic approach to AI implementation, ensuring that solutions are not only effective for immediate challenges but also adaptable for future developments“We need to be able to build a model or any type of AI solution in a way that will enable the organization to scale—not only scale that model for production, but also for everything that comes after that model, the innovation that comes after that model.”The challenge of transitioning from proof of concept (POC) to productionTypically, a business unit recognizes the potential of a technology or model and decides to invest further. However, without a well-defined operational process to transition from proof of concept (POC) or proof of value to full production, this can create significant challenges and bottlenecks. As Doug shares, only 53% of models successfully progress from POC to production, making it an expensive endeavor when roughly half fail to deliver results.Shifting focus to Minimal Viable Products (MVPs) and practicalityPeter agrees, citing a current client’s approach that skips the POC entirely, jumping ahead to develop minimal viable products (MVPs) right away. He explains their strategy involves creating solutions that are aligned with their organizational goals and can be effectively scaled. This ensures that the IT team can support the growth of these products and that the business can derive tangible value from them.Doug has also noticed a shift in mindset among clients. As he sees it, there’s a growing emphasis on how to effectively transition ideas into production rather than just experimenting, reflecting an increased understanding of the importance of assessing the real value and return on investment for these initiatives. Given the substantial costs associated with infrastructure, data scientists and machine learning engineers required for model development, organizations are increasingly cautious about treating these efforts as mere experiments.Read more in cgi.comVisit our Energy Transition Talks page
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Building resilient, sustainable healthcare with digital twins and innovation
Send us a textIn the latest episode of our Energy Transition Talks series, CGI Global Industry Lead for Health and Life Sciences Ben Goldberg joins Peter Warren to discuss the interdependence between healthcare and energy systems, emphasizing the need for a balanced approach to ensure a healthy society. Specifically, they examine the interplay between ecosystems and supply chains, the emergence of smart, “green hospitals,” and how data innovation and digital twins are driving sustainable, resilient healthcare. Digital twins and “triplets” in healthcareWhile hospitals play a vital role in healthcare, they often contribute significantly to emissions due to aging infrastructure and inefficient buildings. For example, Ben points out that many hospitals have been around for decades, and while some modernization efforts have been made, they are still not energy friendly. This, he says, is an opportunity for new technologies to enter the mix.Notably, digital twins—which create digital representation of physical assets—have gained traction in healthcare. Moving beyond just monitoring energy consumption, digital twins offer compelling use cases, such as providing visibility into the patient journey and help address outcomes. As Ben highlights, the ability to mirror the physical world digitally through digital twins has numerous facets and opportunities within the healthcare sector. Sharing a term coined by Diane Gutiw, a leader in AI and digital twins at CGI, Peter raises the use cases for “digital triplets,” referring to using three interconnected digital twins: A twin modeling the patient’s health and wellbeing A twin modeling the operations of the healthcare facility itself (energy use, HVAC systems, etc.) A third twin analyzing the causes and effects between the first two twins.This model allows for optimizing not just patient care, but the facility's energy efficiency and sustainability as well. For example, Ben and Peter discuss the fact that "green hospitals" are being built globally to produce their own electricity and hydrogen fuel, while using digital twins to intelligently control heating, cooling, lighting, and more based on patient occupancy levels.Visit our Energy Transition Talks page
The energy value chain is changing rapidly and increasingly digital in nature, requiring new competencies and acting with insight. A strong commitment to sustainability and the energy transition is essential to attracting and keeping customers and growing the business.https://www.cgi.com/en/energy-utilities The Energy Transition Talks podcast series by CGI covers a wide range of topics related to the energy sector's transition towards sustainability and digital transformation. Here are some of the key themes explored in the episodes:Hydrogen Economy: Discussions on the role of ports in the hydrogen supply chain, including infrastructure challenges and sustainability strategiesData and AI Integration: Episodes focus on how data-driven approaches and artificial intelligence (AI) can revolutionize energy infrastructure, enhance decision-making, and support agile management practicesDecarbonization Strategies: The podcast addresses various pathways to decarbonization, including the adoption of electrification, renewable energy sources, and the integration of digital technologies in traditional energy sectorsMarket Dynamics: Insights into market fairness, decentralization, and how these factors are shaping the priorities of energy and utilities executivesSustainable Practices: The series emphasizes the importance of sustainability in energy choices, exploring how organizations can align their operations with environmental, social, and governance (ESG) goalsEmerging Technologies: Topics include the use of generative AI, digital twins, and space data to optimize asset management and operational efficiency within the energy sectorIndustry Challenges: The podcast also delves into challenges faced by hard-to-abate industries and discusses innovative solutions that leverage data and technology for a sustainable futureThese topics reflect a comprehensive approach to understanding the complexities of the energy transition and highlight the critical role of innovation in achieving a low-carbon future.
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