BENGALURU,India – Honeywell in collaboration with the MIT Center for Sustainability Science and Strategy, today released new research titled Accelerating EnergyExpansion, which shows that digital and AI-enabled technologies can significantly reduce the cost of fuel production annually, citing applications across traditional oil-based fuels and LNG.
The report addresses three focus areas and the supporting policies needed to help achieve energy security and affordability: increasing energy supply, efficiently managing demand, and diversifying energy resources and feedstocks.
“Meeting the world’s growing energy needs will require both investment in new technologies to broaden feedstock options and more efficient use of today’s energy infrastructure,” said Ken West, President and CEO of Honeywell Process Technology. “Honeywell is helping customers apply AI, automation, digital and connected solutions to help get more out of their existing assets while also increasing reliability and throughput. The MIT analysis highlights the significant cost-reduction opportunities AI-enabled technologies can unlock in fuel production, which is top of mind for consumers and policymakers alike as we navigate increasingly complex geopolitical dynamics.”
“Energy demand is rising quickly, and many organizations are looking for practical ways to add power without waiting years for new generation to come online,” said Jim Masso, President and CEO of Honeywell Process Automation. “On-site power generation and energy storage can help operators add capacity where it’s needed most, helping to support the growing demands of AI infrastructure and reduce reliance on already stretched grids. As a result, this enables them to scale more quickly and efficiently.”
Based on Honeywell analysis and modeling by the MIT Center for Sustainability Science and Strategy, key themes and findings revealed through the research include:
DigitalTechnologies,IncludingAI,HelpIncreaseEnergySupplyandReduceProductionCosts
- EnergyproducersareincreasinglyusingphysicalAIto improve efficiency, reliability and performance across existing infrastructure.
- When applied to traditional oil-based fuels, AI-enabled technologies can reduce global annualproductioncostsbyupto$55billionwithinfiveyearsof application, and up to $225 billion by 2050.
- For LNG, global production costs could be reduced by $15 billion annually after applying AI-basedtechnologiesforfiveyears, and up to $80 billion by 2050. If applied in the U.S. alone, for example, this could help reduce LNG prices by 1.1% by 2050; and, if applied globally, long-term LNG prices could be reduced by 4.5%.
ScalingPowerforaNewEraofEnergyDemandBeginswithImprovingExistingInfrastructure
- With rising electricity demand creating new challenges for energy infrastructure,improvingthe efficiency and performance of existing infrastructure may be one of the fastest ways to add available energy supply while enabling improved affordability and energy security as longer-term fuel generation projects are developed.
- On-siteenergyproductioncanhelpheavyenergyusersincreasesupplyby addingpower faster, improving reliability and supporting AI infrastructure growth. Conventional gas-turbine solutions for this purpose currently face permitting and equipment delays, making emerging technologies like fuel-cell-based systems more attractive, as they can be deployed quickly and with lower carbon emissions.
- Intelligentenergystoragetechnologycanalsohelpaddressenergydemandandresilience through improving grid flexibility and reliability by managing periods of peak demand. By shifting energy to align with periods of high demand, battery energy storage can reduce the need for costly incremental grid and additional fuel generation investments while helping operators manage growing electricity loads more effectively.
Achieving Regional Energy Security by Diversifying Energy Resources with Alternative Fuels
- Meetingrisingenergydemandandaddressingenergysecuritywillrequireaddingnew sources, such as sustainable aviation fuel, to the energy mix at a faster rate.
- Technologywillplayacentralroleinadvancingregionalenergysecurity. By creating fuels from a broad range of local feedstocks, regions can make good use of abundantly available biomass, waste oils and non-edible crops for scalable fuel solutions.
- Developingresilientregionalenergyinfrastructurehelpscountriesreducerelianceon imports and protects against geopolitical volatility.
TheAcceleratingEnergyExpansionreportwasreleasedatHoneywell’s2026FutureofEnergySummit, an annual event that brings together industry leaders, policymakers and technology experts to discuss strategies for strengthening energy security, affordability and competitiveness while meeting growing global energy demand.
