Armed with CA, Utkarsh Gupta is currently Director of Sales of Nexgen Energia, a fastest growing clean fuel energy company, with more than a decade of experience in Finance and Accounting methodologies, customer sales support, and services, planning, and implementation of proactive procedures and systems. His robust process-centricity, decision-making capabilities, and strategies have made him a trusted and result-oriented professional in his organization.
The supply of natural gas, coal, and other energy resources is not meeting the demand sufficiently, leading the global natural gas market to face an energy crisis.
The rising conflicts between global nations triggered a spike in global energy prices, notably, the price of importing coal and other fossil fuels is increasing which has had prolonged impacts on the global energy system, disrupting the energy supply. In 2021, the demand of natural gas in the Europe increased by 4.3% compared with 2020, but availability of gas production continued its decreasing trend, falling by 7.6%.
The global energy crunch pushed up the prices that fracturing many enduring trade relationships around the world results in throbbing entire economies.
Are increasing energy prices affecting economic decisions?
Natural gas prices have risen from $4 to $55 in Europe, while several factories in china have closed due to power disruptions linked to the short supply of coal. The U.K meanwhile has witnessed many of its fuel pumps running dry.
The World Bank’s energy price index increased by 26.3 per cent between January and April 2022, on top of a 50% increase between January 2020 and December 2021.
Since energy prices impact economic decisions across the supply chain, the rise in prices has had a significant impact on economies with many companies in Europe closing down unable to bear high energy costs.
According to the Fitch ratings, high natural gas prices will add to the pressure on margins cash flows of European companies, which are already at risk for natural gas crisis, rising inflation, and fading market sentiment on slower economic growth. Prices remain heavily influenced in the near term by decreased Russian gas supplies to Europe.
Mostly European countries currently burn gas to help support the electricity grid when production from renewable is low. Since Russia’s latest moves to squeeze natural gas flows to Europe, combined with other supply disruptions, are a red alert for EU. The European Union requires increasing its storage capacity by 2030 to shift to a green transition effectively. The crisis is expected to worsen if a severe winter boosts energy demand further.
However, India plays very safely in the market. Since our country is the world’s third biggest oil importing and consuming nation, India dealt with Russia to ramp up oil imports at much-discounted prices, when global energy prices have been escalating. Currently, this short-lived collaboration may be helpful for our country but we should think of a long-term solution.
The worldwide governments plan to switch to a fast transition to clean energy, install more renewable energy plants, and leverage green energy storage capacity in order to meet the global emission target.
The number of biogas plants in Germany has doubled to nearly 9,000 plants from 4,136 plants in 2010. The total biogas production capacity of the plant is 8.98 Billion Cubic Meter, equivalent to 6.6 Million Metric Tonnes.
What lies ahead?
Transitioning to renewable and green energy will help the country not only deal with rising energy costs and combat climate change but will also help to boost job opportunities. Biogas and other green energy technologies are more labor-intensive. Furthermore, switching to sustainable energy sources can support new and local business ventures and also increasing economic development as well.
According to the World Bank report, India produces 277.1 million tonnes of solid waste every year.
With the aim to curb greenhouse gas emissions and make our nation environment-friendly, currently, many giant marker players plan to invest in Bio CBG manufacturing plants focusing on major parts of India to create a sustainable future ahead.
Biogas is an environment-friendly renewable energy source. The gas is produced naturally through a process that breaks organic matter like a segregated municipal solid waste (MSW), sugarcane press mud, industrial bio-waste, and agricultural biomass, and converts it into BIO-CNG, which can be used as automobile fuel, industry gas, and electricity in the market.
The Bio CNG market is poised to play a key role in supporting the government and our country to adopt clean fuel energy efficiency which will help to achieve the health and well-being of everyone.