The global shift in energy generation, supply, and demand entails technological, economic, and social changes to create a sustainable, secure and reliable energy system. This involves modifying energy production, consumption, and distribution to improve security and enhance efficiency, while recalibrating the energy mix to include both fossil and non-fossil fuels.
Energy security: Aligned imperatives in an uncertain future
Energy and resources are amongst the most heavily impacted by geopolitical events. And with energy at the heart of everything we do, the increased focus on global security and national resilience brings a renewed focus on alternative energy sources and the need for adaptability.
How the defense industry reacts will be heavily impacted by political agendas, nationalism, and energy security. But in a world where global defense budgets are increasing at the largest rate since the Second World War, there is clear overlap between the increasing prominence of national security and the need for energy resilient infrastructure.
For the civil aerospace industry, a key focus is on energy efficiency and carbon emission reduction. Whether through more efficient aircraft engines, or alternative fuels such as sustainable aviation fuel (SAF), industry participants are making significant investments in energy technologies. Furthermore, advancements in space will necessarily rely upon the use of nuclear energy sources.
Transition strategies
- Supply chain recalibration and energy contingency planning.
- Investing in alternative, sustainable, technologies and energy sources.
- Recalibrating power generation and distribution networks from a national security perspective.
Navigating risks and opportunities
The energy shift is transforming the aerospace and defense industry through regulatory developments, demand for alternative energy sources to power new technologies, and the need for secure sources of supply.
Risks include technological challenges, high development costs, conflicting global regulations and regulatory uncertainty, supply chain disruptions, and intense competition.
Navigating these risks requires careful strategic planning and industry-wide collaboration to leverage technological advancements.
How we can help
- We help businesses horizon spot regulatory developments impacting investment strategies. We have the most comprehensive regulatory team of any global law firm, including deep expertise across the energy, defense and aerospace landscape.
- We help recalibrate long and complex supply chains for more sustainable and efficient operations. We work with the world’s largest businesses on supply chain issues.
- We advise on cutting edge technology investments, collaborations and partnerships. We have advised on more than US$740bn in M&A transactions worldwide.