This article was originally posted on IMPACT magazine, issued by American Chamber of Commerce in Azerbaijan.
The world has entered into a new phase that is going to reshape the way of doing business. The reality is working safely and efficiently is not just enough – it needs to be done sustainably. Businesses need to make sure that while pursuing their objectives they don’t compromise the opportunities of the future generations to follow their goals. In other words, while doing business, on top of economic interests, businesses should also meet environmental and social requirements.
Given the importance of sustainability for the world, all major players, governments and businesses have been increasingly joining the forces to tackle one of the biggest threats the world has ever faced – climate change.
While this huge threat to the world is chiefly caused by the excessive amounts of greenhouse gases into the atmosphere, another big reason is overexploitation of resources.
The challenge here is that the world needs more energy to support continued global economic growth and increasing prosperity, while considerably reduce carbon emissions. In order to address this dual challenge, energy companies, as well as many other big businesses are transforming.
Nobel Energy wants to help businesses turn their ambition into action, as well as be part of the solutions. For that reason, the company is transforming to help all its stakeholders get affordable and reliable energy, while reducing environmental impacts.
Nobel Energy is laying out a new strategy that will support the business transform from an Oil and Gas Services company to an Integrated Energy Production, Development and Services company, concentrated on delivering safe, agile, efficient and sustainable solutions for customers.
Nobel Energy wants to be a catalyst for meeting the changing energy needs of the world and customers by increasing its focus on people, technology, and innovation. The good news is that the company has many years of multi-segment experience and the right ingredients – visionary approach, proven expertise, and integrated solutions – to meet the needs of all stakeholders.
In order to support the company’s enhanced approach to sustainability, the new strategy is built around three key areas of activity: add sustainable energy line, become diversified, and keep innovating.
Nobel Energy is confident that in addition to reducing the climate change risks, renewable energy sources will offer some tangible economic benefits too, by providing energy security (through reliable power supplies and fuel diversification) and economic development (via injecting new capital investments and creating new jobs).
As part of its new sustainable energy line, Nobel Energy is set to develop renewables business to help its customers and the world achieve safe and cleaner energy solutions.
Nobel Energy is planning to further diversify its business by setting up new services and products in targeted markets. Providing advisory services in the energy transition context will be among them.
It is expected that the diversification will generate values both for customers and societies, as well as expand Nobel Energy’s business horizons to scale revenues.
Nobel Energy is well aware that to achieve substantial results on sustainability we are highly dependent on innovative digital and computer technologies. The company is also assured that technology alone will not be enough to achieve the desired outcomes and it is therefore will be placing even greater importance on people development – the driving force behind all possible technological breakthroughs.
To support these activities, Nobel Energy will count on two of its key enablers – integrated systems and strategic partnerships.
For many years, the company’s established integrated services model has helped Nobel Energy to optimise end-to-end service delivery, and provide effective and efficient solutions to its customers. To achieve its transformation objectives and deliver overarching and agile solutions for customers, Nobel Energy will build on this successful business model and pull together all the Group resources and expertise.
Needless to say that partnering with technology companies is highly beneficial in many ways, offering more cost effective solutions and helping further develop organization’s technical expertise on top of other proven benefits. To this end, Nobel Energy will partner with tech giants who can help the company drive progress, provide skills it may not have to deliver agile and sustainable results.
Plans vs actions
Nobel Energy is on its way to building innovative and sustainable energy business over the next 10 years with a goal to achieve 5GW of installed mix of thermal and renewable energy generation capacities. The company aims to put these into action through investments, partnerships and Build-Own-Operate / Build-Operate-Transfer models starting geographically in Azerbaijan and expanding to Eastern Europe and Americas regions.
Nobel Energy has started stepping into the renewable and alternative energy pathway by looking at its own group-wide operations through increase of the sustainability in its own business operations and improving the business model through an innovative approach. The next step is to work across its Group of companies by developing and where possible introduce electrification, waste reduction and decarbonisation initiatives.
These various scale projects will demonstrate the ability of Nobel Energy to exercise and demonstrate what can be done with the built-in strengths.
Nobel Energy also committed to several initiatives announced by the government of Azerbaijan, such as participating in the auction for wind power plant installation in the liberated Kalbajar and Lachin regions announced by the Ministry of Energy and a gas powered thermal power station under build-own-transfer model. The company is ready to use its competitive advantages but importantly has established necessary partnerships to bring the knowhow and technical capability for these projects.
At the same time, there is a conceptual study under the development for a Renewable Energy Hub in partnership with foreign co-investors. This is expected to service industrial customers in the Absheron region resulting in the increase of sustainability of operations and supporting our country in achieving the Paris Climate Agreement and COP26 goals. This major study will be completed by the end of 2023 and will be a major contributor driving Azerbaijan’s energy transition.
Nobel Energy’s network allows the company to build a robust energy projects’ pipeline that goes beyond borders and gain access to the markets of Georgia, Ukraine, UK, Kazakhstan, USA, and Turkey where we have had presence, and other geographies through the strong relationships with Nobel Energy’s local and globally operating business partners.
Currently there are up to 1GW of project capacities under review for feasibility and investment with a goal to reach and wherever possible exceed targets.
All in all, starting 2021, Nobel Energy has been actively seeking and developing partnerships inside and outside of the country, jointly with the governments and private corporations, to unlock their potential for energy transition and will continue to do so.'