Aggreko: Construction Working Towards Net Zero Goals

November 15, 2024

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Aggreko states that European industry is integral to accelerating the energy transition

Research from Aggreko shows CEOs across key European countries are changing net zero timelines and goals due to fluctuating energy supply and costs

Aggreko’s latest report, “Rebalancing the Energy Transition,” finds that:

95% of surveyed leaders have adjusted their net zero timelines due to energy supply and pricing challenges
12% prioritise rapid decarbonisation, the majority focus on reducing energy costs and gaining commercial advantages
80% still plan to increase investment into their energy transitions over the next year

Chief executives from high-revenue companies across key European cities, including those in the construction sector, are adjusting strategies to achieve net zero goals, a recent Aggreko report says. The study highlights the balancing act between maintaining profitability and adhering to sustainability amidst a volatile energy scenario.

Aggreko works closely with the construction industry, providing tailored solutions around power, heating, cooling, energy storage and dehumidification.

It also offers low-carbon solutions for construction sites, including biodiesel, double-walled fuel tanks, renewables, hybrid power, and low-noise generators, for sites in urban areas.

Its report, entitled Rebalancing the Energy Transition, draws from insights of 400 CEOs, each leading firms generating more than €200m annually, spanning the UK, Germany, France, and Italy. This mix of viewpoints provides a comprehensive outlook on the hurdles and strategic pivots necessary during the energy transition.

Aggreko offers bespoke power solutions to the construction industry

Navigating through energy transition complexities

European industries, as emphasised by Aggreko, are crucial catalysts in accelerating the move towards greener energy utilisation. The urgency to revamp sustainability approaches becomes evident, considering the spectrum of factors influencing such a significant shift.

An overwhelming 95% of surveyed CEOs acknowledged the need to adjust their timetables for reaching net zero targets, primarily due to the fluctuating costs and availability of energy resources. Despite these challenges, rapid decarbonisation is not at the forefront of concerns for the majority, with just 12% flagging it as a primary worry.

The primary focus for these business leaders rests on curtailing energy costs and fetching commercial advantages. Nonetheless, a robust 80% have plans to elevate their investments towards energy transition over the forthcoming year, though these increases are expected to be modest, according to Aggreko's analysis

Robert Wells, Aggreko’s President of Europe

Robert Wells, Aggreko's President of Europe, underscores the sentiment across the sector: "It is not surprising that our research has uncovered leaders across Europe are looking for change when it comes to their energy supply chain. In a tough economic landscape, grid instability and connection delays, price uncertainty and looming ESG targets are impacting many businesses' energy transitions."

“In a tough economic landscape, grid instability and connection delays, price uncertainty and looming ESG targets are impacting many businesses’ energy transitions.”
Robert Wells, President Europe & Managing Director at Aggreko Event Services

With the growing inclination towards decentralisation and alternate power agreements, Aggreko released this report to aid leaders in navigating the evolving market landscape and adopting effective procurement strategies.

"Key to this is providing access to solutions that ensure that high energy using industries can remain profitable during their energy transition without compromising on ESG commitments," Robert adds.

Supporting the digital backbone

Data centres, anticipated to rank among the top energy consumers partly due to the AI boom, face substantial operational challenges. Emphasising cooperation along the supply chain is deemed crucial for entities striving to meet the timelines of the energy transition while balancing profit margins with ESG objectives.

Aggreko's Energising Change framework is crafted not only to streamline its energy strategies but also to support sectors such as manufacturing, construction, and utilities in achieving their greenhouse gas emission reduction goals.

"We are a strategic supply chain partner to organisations across Europe. Working closely with many customers from energy intensive industries, we have already been working to develop renewable energy developments, establish alternative power agreements and make technologies available for projects imminently," Robert elaborates.

With capital becoming a more precious resource, maintaining control over costs and ensuring a reliable energy supply are pivotal for a seamless transition, as noted by Robert.

As demand for AI and cloud services surges, posing significant challenges to Europe's data centres, a McKinsey report projects that EU data centre needs may triple by 2030, anticipating the demand to reach 35 gigawatts by the decade’s end. Hyperscalers, including leading cloud service providers, are poised to drive 70% of this anticipated growth by 2028.
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