Business leaders say that the energy transition is on an “unstoppable” trajectory because of rising energy demand, mass electrification and the low cost of wind and solar energy.
Speaking at Aurora’s Spring Forum in London, Rio Tinto CEO Jakob Stausholm (pictured) told delegates that despite the current geopolitical uncertainties, the “direction of travel” of the transition is clear.
“We take a long-term view in our business and it is clear that the energy transition is happening,” Stausholm said.
“We need access to competitive and firm renewable energy – this is critical to our future.”
Wind and solar are the “cheapest sources” of energy and are the “right thing for our business”, especially as “traditional sources of energy become more expensive”, Stausholm said, citing 2024 power purchase deals sealed by the mining giant to source energy from over 2GW of solar PV and wind capacity for its Gladstone aluminium operations in Australia.
He added that world population growth and increasing GDP are driving energy demand and “mass electrification”, and that continued falling prices for battery technology are also supporting the adoption of clean energy sources.
“The direction of travel is unstoppable because (renewables) make economic sense.
“We must invest in a way that ensure clean energy remains cost competitive.”