WEBVTT 1 00:00:00.780 --> 00:00:01.950 Welcome to the forefront 2 00:00:01.950 --> 00:00:04.020 of the energy transition. 3 00:00:04.020 --> 00:00:06.900 Integrated energy technologies are gaining traction, 4 00:00:06.900 --> 00:00:11.310 enabling lower carbon energy systems at a lower cost. 5 00:00:11.310 --> 00:00:14.520 However, only 4% of integrated energy projects 6 00:00:14.520 --> 00:00:16.410 reach the final investment decision 7 00:00:16.410 --> 00:00:19.140 due to major challenges such as technology 8 00:00:19.140 --> 00:00:22.080 and infrastructure uncertainty, nascent markets 9 00:00:22.080 --> 00:00:25.230 and offtake, complex business cases, 10 00:00:25.230 --> 00:00:27.930 emerging and ambiguous regulations, 11 00:00:27.930 --> 00:00:30.063 and a lack of required expertise. 12 00:00:31.260 --> 00:00:35.610 Energy Transition Optimizer by BCG X is a cutting edge AI 13 00:00:35.610 --> 00:00:37.320 and advanced analytics solution 14 00:00:37.320 --> 00:00:40.443 designed to revolutionize large-scale energy projects. 15 00:00:41.400 --> 00:00:43.980 The solution explores a variety of designs 16 00:00:43.980 --> 00:00:46.620 considering different technologies, asset sizes, 17 00:00:46.620 --> 00:00:48.690 weather patterns, and market conditions 18 00:00:48.690 --> 00:00:50.910 to optimize each design on an hourly 19 00:00:50.910 --> 00:00:53.190 and minute-by-minute basis. 20 00:00:53.190 --> 00:00:56.850 Finally, the solution shares full lifetime asset operations 21 00:00:56.850 --> 00:00:59.700 and the associated pro forma profit and loss, 22 00:00:59.700 --> 00:01:01.290 which can be used to assess financial 23 00:01:01.290 --> 00:01:04.200 and operational KPIs such as IRR 24 00:01:04.200 --> 00:01:07.350 or percentage of off-take contract fulfilled. 25 00:01:07.350 --> 00:01:08.550 Let's take a closer look at 26 00:01:08.550 --> 00:01:11.850 how Energy Transition Optimizer supports a pre-feasibility 27 00:01:11.850 --> 00:01:15.900 study of a green methanol project for decarbonized shipping. 28 00:01:15.900 --> 00:01:18.090 The client's initial pre-feasibility study 29 00:01:18.090 --> 00:01:20.760 yielded a baseline design with a set of technologies 30 00:01:20.760 --> 00:01:22.906 and asset-sizing choices. 31 00:01:22.906 --> 00:01:26.790 Leveraging the Energy Transition Optimizer user interface, 32 00:01:26.790 --> 00:01:30.000 the business analyst can build the methanol project layout 33 00:01:30.000 --> 00:01:32.700 and configure the optimization, starting with parameters 34 00:01:32.700 --> 00:01:36.540 such as the project's lifetime, the optimization criteria, 35 00:01:36.540 --> 00:01:39.270 and the income statement options. 36 00:01:39.270 --> 00:01:42.120 Next, by clicking on an asset or a market, 37 00:01:42.120 --> 00:01:44.010 they can define the exploration space, 38 00:01:44.010 --> 00:01:46.860 including the range of possible capacities, technologies, 39 00:01:46.860 --> 00:01:49.620 costs, and contract types. 40 00:01:49.620 --> 00:01:52.221 Once ready, they can launch the simulations. 41 00:01:52.221 --> 00:01:54.660 During and after the optimization, 42 00:01:54.660 --> 00:01:57.360 the business analyst can explore the results page 43 00:01:57.360 --> 00:01:59.610 and download the simulated financial reports 44 00:01:59.610 --> 00:02:01.860 and operational metrics. 45 00:02:01.860 --> 00:02:03.420 They can also draw rapid insights 46 00:02:03.420 --> 00:02:05.550 from the visualization page. 47 00:02:05.550 --> 00:02:07.500 Here the analyst selects CapEx 48 00:02:07.500 --> 00:02:11.670 and levelized cost of methanol as KPIs to compare designs. 49 00:02:11.670 --> 00:02:14.160 The plot quickly reveals an optimal design 50 00:02:14.160 --> 00:02:17.013 with lower methanol costs for the same CapEx. 51 00:02:18.000 --> 00:02:19.680 When choosing to shrink the electrolyzer 52 00:02:19.680 --> 00:02:22.620 and increase renewables, the business analyst can cut costs 53 00:02:22.620 --> 00:02:26.040 by 25% and increase production by 13% 54 00:02:26.040 --> 00:02:28.590 compared to the baseline design. 55 00:02:28.590 --> 00:02:31.620 The identified design reduces the project's overall risk 56 00:02:31.620 --> 00:02:34.650 of producing negative returns by 20%. 57 00:02:34.650 --> 00:02:36.960 The ability to rapidly test many designs 58 00:02:36.960 --> 00:02:39.570 with technical confidence saves thousands 59 00:02:39.570 --> 00:02:41.910 of billable engineering hours. 60 00:02:41.910 --> 00:02:44.430 Energy Transition Optimizer has been deployed 61 00:02:44.430 --> 00:02:47.220 to aid the investment decisions of leading energy companies 62 00:02:47.220 --> 00:02:49.580 and auction authorities worldwide. 63 00:02:49.580 --> 00:02:52.410 (soft music) 64 00:02:52.410 --> 00:02:54.360 Are you ready to transition with confidence 65 00:02:54.360 --> 00:02:55.740 to a greener tomorrow 66 00:02:55.740 --> 00:02:58.023 with Energy Transition Optimizer? 67 00:02:59.217 --> 00:03:01.634 (soft music)