Strategic Technology Investment Decisions for Mozambique Energy Landscape
Genesis, a market-leading advisory company, is committed to assisting energy companies in making the right technological investment decisions to reshape Mozambique's energy landscape. With Mozambique at a critical inflection point, strategic technology investments are essential to unlock value, drive domestic industrial development, and promote energy transformation. Assessing options across strategic and economic variables is crucial for maximizing ROI, understanding market targeting, transportation considerations, and ensuring investment bankability and attractiveness.
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Technip Technip Energies Energies & & Genesis Genesis Strategic Decision Making Strategic Decision Making How to make the right technological investment/ project decisions to reshape MOZ Energy Landscape?
Who are we? Who are we? Providing Deeper Understanding to Energy Companies since 1988 Providing Deeper Understanding to Energy Companies since 1988 Genesis is a market technical and consultancy services to the global energy industry. market- -leading advisory company leading advisory company providing Genesis is committed to facilitating the journey to net zero and the path forward to sustainable global energy forward to sustainable global energy. Yourtrusted advisor trusted advisor on the journey to a sustainable future sustainable future We help clients navigate risks and leverage opportunities navigate risks and leverage opportunities. +32 Years Expertise 9.3/10 Customer Satisfaction Trusted Partner with +70 MSAs 2
Mozambique is at an inflection point Mozambique is at an inflection point The right technology investment decisions will be critical in unlocking value decisions will be critical in unlocking value The right technology investment New Domestic Gas Production (BCM) New Domestic Gas Production (BCM) A growing population (million) A growing population (million) 90 Huge increase in domestic Gas Production 60 Large Population increase 50 Increasing need to provide energy and electricity 60 40 Continuous increase in domestic gas demand in line with population growth / increased local access to energy 30 30 20 ~70% of population without reliable access to electricity (2019) 10 0 2010 2040 2000 2018 2030 2040 Production Stated Policies Population with Access to Electricity in 2019 (m) Population (m) Demand High Case What technology investments can energy What technology investments can energy transformation, monetization and drive domestic transformation, monetization and drive domestic industrial development ? industrial development ? Source: IEA Mozambique Energy Outlook 2019
In order to assess Technology Investment decisions we In order to assess Technology Investment decisions we need to be able to assess options across three variables need to be able to assess options across three variables Strategic & Economic Strategic & Economic How does it fit into a wider economic (energy) strategy? What is the real ROI? Do we have offtake? What markets are products aimed at? How to transport? At what costs? Is the investment bankable, attractive? Green certificates, Loans or Grants? Green certificates, Loans or Grants? Technical Technical Is the technology mature? What is the optimal technological concept? How does it integrate? How does it scale? Technology Investment Decisions License to Operate License to Operate What impact can the project have on the local What impact can the project have on the local economy? Local employment? economy? Local employment? How can impact be maximised? How can impact be maximised? What is the multiplier effect on the economy?
Techno Techno Economic Assessment requires strong Digital Economic Assessment requires strong Digital Tools (e.g. UFE) to identify and optimize concepts Tools (e.g. UFE) to identify and optimize concepts S STRONG TRONG D DIGITAL IGITAL S SUPPORT IS K KEY UPPORT IS EY Need to make efficient, transparent and effective decisions early in the lifecycle For Techno-Economic evaluation and con assessments of technology investments, la amounts of data needs to be processed Near limitless combination of Options Technology concepts Plant sizes Economic assumptions CO2 footprint 6
Any major technology investment needs to showcase its Any major technology investment needs to showcase its value for the local population and the local economy value for the local population and the local economy L LICENSE ICENSE TO TO O OPERATE PERATE M MANPOWER ANPOWER & S & SKILLS KILLS R REQUIREMENTS EQUIREMENTS S SUPPLY UPPLY C CHAIN HAIN L LOCALIZATION OCALIZATION P POTENTIAL OTENTIAL Manpower Requirements over time Total Spend by category Ensure that the localization potential localization potential for any investment is understood is understood Human Capital/ Jobs: Human Capital/ Jobs: Assess across EPC as well as the Operations Phase Breakdown by trade/ discipline Supply Chain Supply Chain Assess total spend that can be localised Assess by Category Local Demand Gap by Discipline/ Trade Category Assessment and Localisation Potential Review possibilities to increase possibilities to increase localisation localisation through Jobs: Jobs: Training, education, etc., or Spend: Spend: Investment, volume guarantees, loans, etc. 7
