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In an increasingly interconnected global economy, supply chains have evolved beyond isolated, industry-specific structures. Instead, they operate as part of a broader, dynamic ecosystem known as the “citizen supply chain.” In the first of two conversations, CGI Vice-Presidents Charlotta Wark (Global Industries) and Helena Jochberger (Global Industry Lead for Manufacturing) join Peter Warren to explore how this concept redefines traditional supply chains by emphasizing their collective role in sustaining daily life and ensuring economic stability.

The concept of the "Citizen Supply Chain" examines how various industries must collaborate to support the everyday lives of citizens, looking beyond individual company supply chains to see how they interconnect to power modern society. Our discussion explores how supply chains are evolving in response to global uncertainties, with trends like friend-shoring and re-shoring reshaping manufacturing and other sectors.

• Every company has a unique supply chain, but they all must work together to support citizen needs
• The citizen supply chain considers what industries must collaborate for daily life to function seamlessly
• Manufacturing faces particular challenges with complex global networks—car manufacturers and aerospace companies managing thousands of suppliers
• Data transparency and sharing between ecosystem partners is crucial for anticipating and responding to disruptions
• 94% of economists predict increased supply chain fragmentation leading to friend-shoring and re-shoring
• Companies like Apple are already moving production to "friendly" countries like India from China
• Supply chains and citizens have a reciprocal relationship—companies need stable societies, and societies need functioning supply chains

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The evolving landscape of quantum computing

In a recent episode of the Energy Transition Talks podcast, Maida Zahid sat down with quantum computing expert Curtis Nybo to explore the challenges, benefits and future of this emerging technology. In this second instalment of the conversation, Curtis moves from theory to practice, focusing on energy optimization, logistics, cybersecurity and business applications for quantum computing across industries.

Overcoming challenges: The race to stable qubits

Quantum computing faces several hurdles, with coherence times being one of the biggest. Qubits, the building blocks of quantum computers, remain stable only for a limited time before randomly collapsing into a 0 or 1 state. This leads to unreliable results, making error correction and shielding from radiation critical in quantum hardware development.

Another challenge is the limited number of qubits available today. While large-scale quantum solutions require thousands of qubits, the most advanced machines currently operate with only a few hundred, restricting their problem-solving capabilities.

Optimizing supply chains with quantum computing

Quantum computing is revolutionizing supply chain logistics and optimization. Curtis highlights that quantum annealing computers are being used to optimize complex logistical processes, such as:

· Route optimization – Determining the most efficient way for delivery trucks to distribute fuel or goods while factoring in weather conditions and constraints.

· Demand forecasting – Predicting where materials need to be and at what time to prevent supply chain disruptions.

· Electricity distribution – Although not yet implemented, quantum computing could optimize energy distribution as effectively as logistics routing.

"From optimizing supply chains to predicting energy demand, quantum computing gives us the ability to solve problems we never could before." – Curtis Nybo

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This episode dives deep into the world of quantum computing and its transformative power beyond classical computing methods. Understanding quantum properties like superposition and entanglement not only excites but also invites practical applications in various fields, especially energy.

• Exploring the foundational principles of quantum computing
• Comparing classical computing to quantum computing
• Discussing real-world applications, particularly in energy sectors

You can check out more on our entire podcast series at cgi.com and subscribe on your favorite podcast platform!

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Unlock the secrets of the hydrogen revolution with us as we chat with industry visionaries Magalie Amiel and David van der Ploeg. This episode promises a deep dive into how ports are transforming into indispensable hubs for the hydrogen economy. Discover the unique market opportunities that hydrogen presents over the next decade, especially for intercontinental supply chains and sectors that are tough to electrify. We tackle the environmental implications of ramping up hydrogen production, focusing on sustainability challenges like water usage and lifecycle emissions, and the high investments required. Listening to this conversation, you'll gain valuable insights into how ports and their strategic collaborations are crucial for enabling a sustainable energy transition.

Join us as we unravel the complexities of the hydrogen supply chain and explore the pivotal role of government policies in this emerging landscape. Our discussion highlights the indispensable strategies for managing supply chain risks, drawing parallels with the well-established crude oil industry. We emphasize the importance of international collaboration and the alignment between businesses and government to make hydrogen a viable alternative in the global energy mix. Magalie Amiel and David van der Ploeg shine a light on how port authorities are poised to lead the charge in global decarbonization efforts. This episode is a must-listen for anyone interested in the future of energy and the strategic initiatives that are shaping our path toward a greener tomorrow.

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In part two of our Energy Transition Talks conversation with Helena Jochberger, CGI’s Global Industry Lead for Manufacturing, she and Peter Warren share insights from their industries, emphasizing the advantages of cross-industry collaboration, the need to integrate renewable energy sources and the evolution of ESG principles in business strategy. Organizations worldwide face sustainability challenges, but this discussion reveals that innovative thinking and networks that transcend traditional industry boundaries are driving collective progress.

The convergence of energy and manufacturing industries is increasingly evident as both sectors embrace sustainability and technology innovation to address global challenges. As these industries align their strategies toward decarbonization and efficiency, valuable opportunities emerge to identify shared learnings, goals and practices for a more sustainable future.

Material passports: The key to transparency

Helena highlights the significance of tools like material passports in tracking CO2 emissions and resource origins, which aids in achieving shared sustainability goals across industries. These passports provide transparency in emissions reporting, similar to energy certificates that track energy provenance.

Collaboration in the automotive sector

The automotive industry, particularly in Europe, exemplifies this trend through initiatives like Catena-X, which fosters collaboration among diverse stakeholders to enhance supply chain traceability and drive innovation in electric vehicle (EV) production and battery localization.

Decarbonizing steel: A renewable revolution

Looking at the steel industry's decarbonization journey, Peter and Helena highlight the importance of integrating renewable energy sources. Helena notes that steel manufacturers are not only producing metal products but are also investing in upstream energy solution, such as acquiring wind farms and hydrogen production facilities, to secure clean energy. This approach reflects a shift towards broader adoption of sustainable practices in response to global challenges.

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In the latest episode of our Energy Transition Talks series, Peter Warren and Daren Rudd discuss the critical role of the insurance industry in supporting low carbon energy projects. They explore how innovative insurance solutions can help manage risks associated with new technologies, the importance of data sharing between the energy and insurance sectors, and the potential for future collaboration to enhance risk management and reduce costs.

The transition to sustainable energy depends on major investment in innovative technologies including wind farms, solar, and hydrogen and battery storage. The success of these types of capital-intensive projects often depends on having insurance in place to help manage the inherent risk of financing large low carbon energy projects.

The insurance industry has a long history of innovation that aligns with the way the energy market is transitioning. Lloyds of London, explains Daren, was originally established to insure trade ships travelling to India. Likewise, in the late 1890’s the company that insured the Chicago World Fair—the first to be fully powered by electricity—established the standards and the analysis for energy and electricity assets going forward.

“For a couple hundred years, we've been very innovative in terms of coming up with new mechanisms and ways of working to insure and allow these big programs and these innovative new industries to grow…Insurers and the industry can work together to deliver a better result, particularly where innovative new things are working.”

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Shaping the future of the hydrogen economy: Ports, collaboration and sustainability

In the latest episode of Energy Transition Talks, Derek Marinos discusses the critical role of ports in the hydrogen economy with experts Dr. Magali Amiel and David van der Ploeg. They explore the current state of hydrogen as a low carbon energy source, the supply chain challenges in production and distribution, and the infrastructure developments being implemented by port authorities. The conversation highlights the importance of collaboration among stakeholders and the impact of market forces and geopolitical considerations on hydrogen's growth and adoption.

The promising potential of hydrogen for decarbonization

Hydrogen has long been recognized as a low-carbon energy source and now is considered crucial for decarbonizing hard-to-abate sectors, including heavy industry and transportation.

Significant investments are being made to scale hydrogen deployment in these challenging industries, plus successful proof of concept (POC) projects and trials in both sectors are leading to tangible impacts in the transition to hydrogen solutions. Sustainability remains a key driver of the global demand for hydrogen.

The key roles of ports and infrastructure in the hydrogen ecosystem

Ports are vital in the hydrogen ecosystem, addressing transportation, storage and distribution, and logistics and infrastructure challenges. From a storage perspective, ports are already well-positioned to serve as regional and international hubs for hydrogen supplies, thanks to their expert solutions developed via handling oil and other commodities.

[Wow factor: The European Union has set ambitious targets for hydrogen adoption with ports projected to account for more than 40 % of annual hydrogen demand by 2050. ]

Establishing a hydrogen supply chain is essential for transitioning to a low-carbon economy, especially for sectors difficult to electrify, like shipping and heavy transport. Key challenges include:

• Production Costs: The location of hydrogen production relative to ports affects transportation logistics.
• Storage Requirements: Hydrogen's low energy density necessitates larger storage facilities, which can be complicated by urban proximity and safety regulations.
• Distribution Infrastructure: International collaboration is needed to create effective pipelines and transport systems for hydrogen.

To build the necessary infrastructure, advancements in technology are vital, as existing pipelines for crude oil cannot be used for hydrogen. Regulatory consistency across regions is also essential to facilitate international trade. A notable initiative is the Hydrogen Alliance between Canada and Germany, aimed at establishing a robust international hydrogen supply chain by July 2024.

The need to forge alliance to shape the future

The hydrogen economy is poised for significant growth, driving the need to unite all players in the hydrogen ecosystem to share information, build trust and collaborate with industrial users for effective integration, especially in the current geopolitical climate. The quality of the hydrogen and the quality of relationship between the stakeholders will significantly shape what is possible in the future.

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Data-driven futures: Revolutionizing energy infrastructure

CGI’s annual Voice of Our Clients (VOC) global research gathers insights from both existing and potential clients, revealing key priorities for executives across industries. In the latest episode of Energy Transition Talks, Peter Warren sits down with Helena Jochberger to discuss the overlapping areas of focus revealed by data for both the Energy & Utilities and Manufacturing industries.

The Energy and Utilities framework—specifically in the upstream, midstream and downstream segments of oil and gas—often includes the chemical industry. However, Peter shares, CGI classifies it as part of Manufacturing, due to its process-driven nature.

Helena agrees, highlighting that in the chemical sector, where various recipes and ingredients are involved, effective Manufacturing Execution Systems are essential for managing complex processes that rely on numerous formulas. In the Manufacturing sector, she says, it's important to distinguish between two terms:

· Discrete Manufacturing: Involves producing physical products that require energy.

· Process Industry: Comprises energy-intensive sectors like metals, mining, and chemicals.

Focus on sustainability: Climate change impact on industries

One significant insight from the CGI 2024 Voice of Clients (VOC) report Helena highlights is that, like Energy & Utilities, industries such as metals, mining and pulp and paper are notably prioritizing energy transition, climate change and sustainability initiatives.

Specifically, the mining industry has a particularly high impact rate at 89% and the pulp and paper sector follows closely at 80%. Helena notes that the pulp and paper industry historically uses biofuels like black liquor for energy, showing a commitment to decarbonization despite ongoing climate challenges.

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