The energy industry is working to balance energy security with growing stakeholder demands for low-to-no-carbon energy systems and a lower emissions future.

2022 marked a dramatic change in the perception of the energy market, namely that the provisioning of reliable and affordable energy is essential for the economy and preserving the living standards of our communities. Disrupted supply chains and surging demand for liquified natural gas (LNG) and fuels led to new price dynamics and discussions about the future of energy.

The energy business continues to focus on innovation, technology, digitization of processes, new business models, and expanding the energy product portfolio. Industry continues to support the energy transition and deliver solutions to reach society’s net-zero ambition. Ultimately, opportunities must be provided for energy companies to adapt, shape new alliances with other industries, and remain resilient.

How can energy companies answer the call and, in doing so, take advantage of the opportunities that today’s unique market dynamics present?

To answer this, energy industry leaders have joined SAP to launch the Innovation Center for Energy, based in Houston, Texas, to collaborate and advance new cloud technology solutions in support of industry efforts to reduce greenhouse gas emissions. For phase one, representatives from Chevron, ExxonMobil Global Services Company, an affiliate of Exxon Mobil Corporation, Phillips 66, and Shell are participating to discuss challenges, validate ideas, provide feedback, and remain involved throughout SAP’s software development process, including deploying new technology solutions.

Through the innovation center, SAP expects to develop and bring to market cloud-native, industry-specific, market-standard solutions with key focus areas including:

• Leveraging machine learning to streamline supply chain workflows
• Improving asset utilization
• Reducing non-productive time of personnel
• Increasing worker safety

“We are extremely proud and excited to be working with leaders in industry to develop the next innovations that will become the new market standards in sustainable energy transition,” said Daniela Haldy-Sellmann, global vice president of the Energy and Utilities Business Unit at SAP. “We expect the entire industry to greatly benefit from these new, cloud-based, market-standard solutions to drive out costs and allow companies to focus on new business models needed to successfully transition to a carbon-neutral future.”

Innovations resulting from the program will be delivered by SAP and its ecosystem.