Energy

Around US$2.2 trillion is expected to go to grids, storage, low-emissions fuels, nuclear, renewables, efficiency and electrification in 2026. (Image source: Adobe Stock)

Global energy investment is projected to reach US$3.4tn in 2026 as countries continue to strengthen electricity systems, expand clean energy deployment and invest in more resilient energy infrastructure, according to the International Energy Agency's (IEA) World Energy Investment 2026 report

The report forecasts that around US$2.2tn will be directed towards grids, energy storage, low-emissions fuels, nuclear power, renewables, efficiency measures and electrification this year. Investment in oil, natural gas and coal is expected to total approximately US$1.2tn.

Electricity-related spending remains the dominant theme in global energy markets. Investment in electricity supply and infrastructure is set to reach nearly US$1.6tn in 2026, rising to almost US$2tn when end-use electrification is included. Spending on electricity grids is expected to approach US$550bn, while battery storage investment is projected to exceed US$100bn.

Renewable energy continues to attract significant capital, with investment in renewable power projects expected to reach US$665bn, including US$365bn for solar energy alone. Nuclear energy is also gaining momentum, with annual investment exceeding US$80bn and close to 80GW of new nuclear capacity currently under construction across 15 countries.

However, the report notes that energy security has become an increasingly important factor in investment decisions following the latest disruption to global energy markets.

The ongoing conflict in the Middle East and the effective closure of the Strait of Hormuz have triggered fresh concerns over the reliability of energy supplies and international trade routes. According to the IEA, the resulting supply shock is prompting governments and companies to reassess risk and accelerate diversification strategies.

The impact has been particularly pronounced in Asia and the Middle East, where disruptions to shipping flows through the Strait of Hormuz have affected energy markets and reinforced the need for alternative supply routes and domestically available energy resources.

"We are in the midst of the largest energy security crisis the world has ever faced – and I believe this will reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s," said IEA executive director Fatih Birol.

"We are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources – such as advancing new pipelines and other supply infrastructure, on the one hand, and turning more to domestically available resources, on the other. These range from renewables and nuclear to coal, oil and gas, in some cases – as well as broader measures to strengthen electricity systems, expand electrification and accelerate energy efficiency."

While oil prices remain elevated, upstream oil investment is expected to decline for a third consecutive year, falling below US$500bn. The report attributes this to uncertainty over the duration of the price spike, long project lead times, supply chain constraints and tighter offshore rig markets.

Natural gas investment, meanwhile, is forecast to reach US$330bn, the highest level in a decade, supported by new LNG export developments, particularly in the United States and Qatar.

The report also points to rising investment in energy efficiency, with approximately US$350bn being invested globally each year. More than 20 countries have already announced new efficiency policies in response to the current crisis.

At the same time, increased market volatility linked to the Middle East conflict is raising financing costs and slowing investment decisions in some regions. The IEA warns that higher financing costs could disproportionately affect capital-intensive energy projects, particularly in emerging and developing economies.

As governments and industry respond to another major energy shock, the report suggests that diversification, electrification and stronger energy security measures will remain central to investment decisions in the years ahead.

Read the full World Energy Investment 2026 report for a comprehensive analysis of global and regional energy investment trends here

Industrial heat pumps are emerging as a cornerstone of the global energy transition, offering manufacturers and utilities a highly efficient alternative to fossil fuel-based heating systems as pressure mounts to cut carbon emissions and improve energy security.

More than 70% of industrial process heat worldwide is still generated using fossil fuels, making industrial heating one of the largest contributors to global energy consumption and greenhouse gas emissions. However, the growing adoption of electrified heat technologies is beginning to reshape the sector.

Industrial heat pumps can upgrade ambient and waste heat into usable temperatures of up to 150°C, enabling factories and district heating networks to reduce reliance on conventional gas and coal-fired systems. Because heat pumps generate several times more thermal energy than the electricity they consume, they are considered among the most efficient technologies for industrial decarbonisation.

When powered by renewable electricity, the systems can virtually eliminate CO₂ emissions linked to industrial heating operations.

German drive technology specialist Innomotics is expanding its role in the sector by supplying high- and low-voltage motors alongside medium-voltage drives for industrial heat pump compressors. The company says its systems are engineered for continuous operation of up to five years without scheduled shutdowns, while delivering system availability rates of up to 99.9%

The technology is already being deployed in several landmark European energy projects.

In the Netherlands, a major district heating scheme operated by Eneco uses heat recovered from 65 million litres of treated wastewater daily to provide sustainable heating to approximately 20,000 households in Utrecht and Nieuwegein. The system generates 27 MW of thermal energy, covers around 15% of Utrecht’s heating demand and cuts annual CO₂ emissions by roughly 30,000 tonnes.

Meanwhile, at BASF’s Ludwigshafen site in Germany, Innomotics is supplying key drive technology for what is described as the world’s most powerful industrial heat pump. The installation is expected to generate up to 500,000 tonnes of steam annually, helping reduce industrial emissions while supporting large-scale electrification of manufacturing processes.

Further projects include wastewater-powered district heating in Amiens, France, where nearly 26,800 households are supplied with renewable heat, and an industrial paper mill installation in Finland designed to recover and reuse process heat to improve operational efficiency.

Michael Reichle, chief executive officer of Innomotics, said industrial heat pumps were becoming “a key technology for the energy transition”, enabling industries to lower emissions while maintaining cost-effective and reliable operations.

ENOC Group has signed a memorandum of understanding with Allied Biofuels Holding to evaluate opportunities for the supply and distribution of Sustainable Aviation Fuel (SAF) and electro-synthetic SAF (e-SAF) across regional and international aviation markets.

The proposed collaboration will focus on fuels expected to be produced at Allied Biofuels’ upcoming integrated production complex in Uzbekistan. Under the agreement, both companies will establish a joint working group to study the commercial and operational viability of creating a long-term supply and distribution framework for the alternative aviation fuels.

The initiative forms part of wider efforts within the aviation sector to reduce carbon emissions through lower-carbon fuel alternatives. SAF is increasingly viewed as one of the most practical short-term options for cutting emissions from air travel, although global supply remains limited compared with rising demand from airlines and regulators.

As part of the assessment process, ENOC and Allied Biofuels will review logistics, certification requirements and distribution channels before determining the potential for a formal long-term supply arrangement once the Uzbekistan facility becomes operational.

Hussain Sultan Lootah, Group CEO of ENOC, said the development of a sustainable aviation fuel ecosystem requires coordination across the entire value chain, including production, transportation, certification and fuel distribution.

He noted that the agreement supports the UAE’s Sustainable Aviation Fuel Roadmap 2030 and the country’s broader Net Zero 2050 ambitions, while also reinforcing efforts to position the UAE as a leading hub for cleaner aviation solutions.

Allied Biofuels’ facility is being designed to manufacture both SAF and e-SAF, reflecting growing industry interest in multiple pathways for aviation decarbonisation. Electro-synthetic fuels are produced using renewable electricity and captured carbon dioxide, and are considered a potential long-term solution for reducing lifecycle emissions from aviation.

Alfred Benedict, Managing Director of Allied Biofuels Holding, said the agreement with ENOC represents an important step towards creating a scalable and commercially viable supply platform for sustainable aviation fuels.

He added that ENOC’s regional fuel distribution capabilities and aviation sector expertise could help accelerate market access for SAF and e-SAF produced at the Uzbekistan project.

The partnership highlights increasing momentum across the Middle East and wider aviation industry to expand sustainable fuel infrastructure as airlines and governments seek practical pathways towards lower-emission air transport.

DEUTZ presented its new 24-litre engine for the first time, specifically designed for installation in power generation units. (Image source: DEUTZ)

DEUTZ, a provider of innovative and sustainable mobility and energy solutions, has presented its new G-Drive lineup as part of an exclusive customer event at Motorworld Cologne

The new lineup, designed for power generation units, offers a comprehensive and scalable range of G-Drive engines across multiple power classes. It combines high power density, robust performance and global applicability, making it ideal for demanding applications. The range comprises two new product lines, each consisting of an engine with a matched radiator, with a continuous power range: from 30 to 800 kVA for unregulated applications and from 30 to 600 kVA for EU Stage V gensets.

Entry into higher power segments

As a highlight, DEUTZ showed the TCD 24.0 V12 GDU-L engine at the event for the first time: with this 24-litre power package, DEUTZ is opening up a new higher performance class for its customers for installation in power generation units, enabling the system to handle high loads and complex duty cycles with ease.

At the same time, the portfolio is designed to be scalable, offering solutions that can be precisely tailored to growing energy demands and adapted as requirements evolve over time.

The lineup delivers maximum output from a compact displacement, enabling high energy generation with a small footprint. At the same time, it ensures stable power quality even under peak and highly dynamic local conditions and is engineered for maximum availability wherever machine uptime is critical.

Highly economical

The new G-Drive models are designed to be highly economical, helping operators significantly reduce their total cost of ownership. The engines feature efficient fuel consumption to lower day-to-day operating costs and are built with a robust design that ensures long-term durability. Extended maintenance and service intervals further reduce downtime and service expenses. The engines are optimised in terms of displacement and architecture to keep overall lifecycle costs low, including a Stage V-optimised design that avoids unnecessarily high TCO and reliably accepts low-load operation, ensuring that exhaust after-treatment works efficiently even at low load. All relevant emissions standard are met, the entire range is HVO-ready, and overall the lineup is engineered from the ground up to deliver economic performance, regulatory compliance and a consistently low total cost of ownership.

Supported by the proven worldwide DEUTZ 24.7 service network, the new G-drive range offers dependable, efficient power solutions that push the boundaries of performance, innovation and efficiency, the company says.

Markus Villinger, CEO Business Unit Engines at DEUTZ, explained, “Highly reliable, high-performance engines are in demand, especially in the field of emergency power systems and generators. These qualities distinguish our engines and the associated global service. With the new DEUTZ G-Drive lineup, we are now systematically providing our customers in the genset market with an engine portfolio that is perfectly tailored to their specific requirements.”

Growing market

The market for decentralised energy supply is growing worldwide. Rising electricity demand, the increasing share of volatile renewable energies, and the expansion of digital infrastructure, especially data centres, are driving demand for gensets in all regions.

That includes the Middle East and Africa, where the company sees strong potential for the new range, particularly in backup power for data centres, hospitals and the rental sector, where reliability and fast response are critical. To support customers in these regions, the company offers fast and reliable spare parts availability worldwide as well as expert technical support to ensure maximum uptime. A dedicated G-drive team – including technical specialists, product management and local sales experts – focuses specifically on these markets and actively promotes the portfolio through targeted energy trade shows and customer events. In addition, DEUTZ provides dedicated sales and technical training for its sales and service partners to ensure the new range is specified, installed and serviced to the highest standards.

Customers can identify the product line in the DEUTZ G-Drive lineup for unregulated markets by the suffix GDU-L in the model designation (= G-Drive Unit Low Regulated Markets). The engine sets suitable for EU Stage V analogously end in GDU-H (= G-Drive Unit High Regulated Markets).

Detailed information on the new G-Drive portfolio is available on the website at g-drive.deutz.com.

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