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How energy is using digital technology as a key driver of its energy transition

Eni EVP for Global Digital and IT Dario Pagani talks about what the energy major is doing in the digital space to enable its move away from fossil fuels to renewable energy sources. A robust technology infrastructure is key

Technology makes the difference in the energy transition, says Eni

Two trends are reshaping the energy sector: de-carbonization and digitalization. The first one we hear a lot about, because the effects of global warming are clearly visible. The digitalization trend may be less evident, but it is crucial in helping energy company Eni achieve its energy transition in three ways, explains Dario Pagani, Eni EVP for Global Digital and IT.

Eni is playing a leading role in the energy transition, or the switch move from fossil fuels to low carbon energy sources. This switch is crucial to slow the process of global warming which is upsetting the planet’s ecological balance and disrupting economic models around the globe. The EU has pledged to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990, but Eurostat said this summer it was not currently on track to meet this target.

Eni in February 2020 set goals to progressively expand its installed renewable energy capacity to over 55 GW by 2050 and reduce the emissions of its products by 80% by the same year. The revamp calls for splitting Eni’s operations into two new business groups -- Energy Evolution and Natural Resources. Pagani’s role is to support both business groups in reaching their goals with digital technology.

Eni has always seen technology as a business enabler, says Pagani. Digital technology is helping Eni with its energy transition in three main ways.

First, it reduces the business risk involved in the energy transition. Investments need to be based on the certainty that one energy source will prevail over others in the medium and long term. This is riskier than, say, deciding where to drill for a well.

“If I am able to design and realize a project virtually before I do it physically, I am de-risking my project,” he explains. “Today we are starting to the ability with IoT and sensors to have a lot of data, and use calculations to model using AI,  image recognition, or machine learning, that enable us to de-risk our industrial sector. Or to predict its behaviour.”

Dario Pagani

Eni EVP for Global Digital and IT

For example, Eni is using digital technology to create models of carbon capture and utilisation (CCUS) in a project to capture carbon dioxide emissions on an industrial scale using our patents, modelling it digitally. Historically it started using a digital twin on subsurface simulation for supporting exploration activities.

This leads to the second way digitalization is helping Eni’s energy transition by accelerating Eni’s R&D processes. As a consequence, they can make informed decisions much more quickly, says Dario. This is a significant advantage, because the clock is ticking towards 2030, and companies need to move quickly.

Lastly, digitalization is helping Eni’s energy transition by empowering it to give consumers the tools they need to improve their energy management like smart grids and smart building, cutting consumption.

“Digital will play a strong role in the entire value chain, as a technological platform, from producer to consumer,” says Pagani.

The digitalization of the energy transmission relies on communications, and therefore cannot take place without an adequate infrastructure, he points out.  Eni has invested in a secure infrastructure to support the digital evolution of its business. Digital technology and ICT are two sides of the same coin: one is the enabler of the other.

“The opportunities offered by digitalization cannot be achieved without a technological infrastructure that is robust, reliable, resilient and efficient,” he says.