Innovators driving decarbonization in heavy industry
The global push for decarbonization has sparked a wave of innovation, particularly in high-emitting sectors such as aviation, shipping, and heavy industry. At RBC’s Energy Transition Conference, experts gathered to discuss the technologies, business models, and financing solutions driving the shift toward a more sustainable future.
Carbon Capture: Transforming Industry in California
Francisco Leon, CEO of California Resources Corporation (CRC), highlighted the role of carbon capture and sequestration (CCS) in decarbonizing industries. CRC is converting depleted natural gas reservoirs into permanent CO₂ storage facilities, a first-of-its-kind initiative in California. With the state’s stringent net-zero goals for 2045, CCS is emerging as a critical solution. “We think we can capture 30-40% of the market, addressing over 400 million tons of emissions in California,” Leon stated.
The company’s innovative approach includes partnering with industries like cement and refineries to create decarbonized products that command premium prices. Leon emphasized that CCS is not just a climate solution but also a profitable business model. “Carbon capture will not only work -it’s a profitable business strategy,” he asserted.
Aviation: The Role of Sustainable Fuels and Hydrogen
The aviation sector, a hard-to-abate industry, is also seeing groundbreaking developments. Florian Greger, Senior VP at OMV, discussed the importance of Sustainable Aviation Fuels (SAF). Regulatory frameworks like the EU’s Refuel Aviation regulation are driving SAF adoption, with targets of 6% by 2030 and 20% by 2035. OMV is investing in a 250,000-ton SAF plant, expected to launch in 2028, to meet these growing demands.
Ian Brown, Head of Banking and Investments at the UK’s National Wealth Fund, explored alternative aviation technologies like hydrogen fuel cells. ZeroAvia, a company backed by a $40 million investment, is developing hydrogen-powered engines for smaller aircraft. While large-scale adoption remains uncertain, these innovations provide a promising pathway for reducing aviation emissions.
“We need to see more money going into earlier, riskier technologies.”
Ian Brown, Head of Banking and Investments, National Wealth Fund
Heat and Geothermal Energy: Tackling the Big Emitters
Heat-related emissions account for approximately 50% of industrial and building emissions. Remi Cuer, Investment Director at Kyotherm, stressed the need for diverse solutions such as geothermal energy, biomass, and heat pumps. “The big challenge is addressing the diversity of projects and technical risks,” Cuer explained.
“The big challenge is addressing the diversity of projects and technical risks.”
Remi Cuer, Investment Director, Kyotherm
Florian Greger also highlighted OMV’s geothermal project in Vienna, which leverages a hot aquifer to supply district heating to over 450,000 households. For areas without such natural resources, innovative closed-loop geothermal systems from companies like Eavor offer scalable solutions.
“Sustainable aviation fuels are the key to decarbonizing the aviation industry.”
Florian Greger, Senior Vice President - Investor Relations & Sustainability, OMV
Bridging the Financing Gap
Despite these technological advancements, financing remains a significant hurdle. Ian Brown pointed out the lack of risk appetite among traditional investors, noting that many focus on established assets like wind and solar. “We need to see more money going into earlier, riskier technologies,” Brown argued. By crowding in lenders and investors, the National Wealth Fund aims to amplify its impact and accelerate progress toward net-zero goals.
The Path Forward
As the discussion revealed, the energy transition is not just about innovation—it’s about collaboration. From regulatory support to private investment, stakeholders across sectors must work together to scale these solutions. Whether it’s CCS in California, SAF in Europe, or geothermal energy in Vienna, the urgency to act has never been greater.
As Francisco Leon aptly summarized, “We’re ready to go. Speed to market matters the most.”
