Hello everybody and welcome to another edition of C&F Talks. Today, it's a great pleasure to have with me Camilo Mejia, who's the CEO of Enovate Ai. And Camilo is going to be speaking at our upcoming International Carbon Markets Summit on the 29th of May in London. Camilo, welcome.

Well, thank you very much for the opportunity and invitation.

It's great to have you with us today. Let's turn to our first question.

How do you see digital engineering accelerating progress towards net zero goals, particularly in carbon intensive sectors?

Yeah, Maurice, that's a great question. I think digital engineering is a game changer. I think it's about enabling real-time visibility, faster decisions, smarter design.

In carbon intensive sectors, this means that we can model environmental footprint in real time, which is really critical in order to achieve net zero. Most of the time we are looking at factors after the fact. With digital engineering, AI technologies, we can go into a real-time domain, optimise processes, pinpoint hotspots, implement low-carbon systems from day one.

We just finished a job in the US, in West Texas, where we supported a customer with AI technologies and the customer achieved basically three times production and reduced emissions by 70%. So, in sectors like oil and gas, more oil doesn't mean more emissions. What we are doing with technology and digital engineering is more energy, less emissions.

Yeah, so that's impressive, a 70% reduction.

In what ways can data and automation bring integrity and scalability to carbon markets, do you think?

That's a really great question and I think we are in a totally new phase of the carbon markets. Integrity in carbon markets is really about trustworthy processes and data. I think we are lacking data when it comes down to carbon markets.

So digital engineering is really about transparency. So, what we do at Enovate Ai is pretty much building full-stack systems that can integrate instrumentation, automate processes, insurance, compliance, alignment. So, it's all about the data to support the claims.

So, this really allows emissions reductions to be verified at scale, like really fast, minimise human intervention, avoid human mistakes and obviously build confidence with the buyers. So, what we do at Enovate Ai is really following international standards like ISO 14064 or GMP 2.0. So, we want to align carbon markets with regulatory and insurance requirements. So, our platform is basically about enabling that kind of visibility in the process, ensuring long-term monitoring and reporting from the assets where we are generating carbon assets from. So, it's really about data.

Yeah, it's all about data.

Enovate emphasises transferring oil and gas expertise to low-carbon industries. What are some of the real-world examples of how this cross-sector knowledge has improved outcomes in CCS or renewables perhaps?

Absolutely. So that's a great question, especially for us. We have a really long background in oil and gas, and I think that discipline really helped us to transfer principles of modelling, infrastructure optimisation, operational discipline to the new energy systems across the board, power generation, carbon sequestration.

In the oil and gas industry, we operate really highly remote operations that really delivers a lot of data that is similar, probably more complex than the new kind of energy systems today. So, what we are doing here in the power generation side, and the power generation side is about increasing uptime, reducing costs, that is really impacting the economics of the project. That's really where power generation can try. We can improve economics. I think renewables have a significant future. Obviously, we need all types of energies going forward.

So, a real case is we just finished a project for a basically a customer where we were leading the engineering analysis to repurpose offshore oil and gas infrastructure into geothermal hubs. We were delivering the economical design, economical modelling. We were managing a stakeholder engagement with regulators, executives, the power generation consumers.

And this kind of energy convergence can only work when digital systems can bridge between the legacy assets and the future assets.

Yeah, which I suppose can be a challenge.

But can you walk us through how your digital platforms help energy operators uncover hidden efficiencies or emission reductions?

Yeah, obviously, there are many cases. It depends what kind of operations we are talking about. But high-level, Maurice, our AI-driven platform kind of consumes data, operational, emission, environmental maintenance.

And what we do with the system is to quickly and accurately identify gaps. So, whether it's a compressor that has low efficiency or it's a flaring system that is, you know, out of control. So, for example, in one deployment, we identified 12% emissions reduction by simply managing the compressor operations and aligning the compressor to a real-time pressure inside.

So, there are so many operations, but it's about the capacity to make decisions in real time. So, you have a proactive response towards the environmental footprint.

Yeah, yeah. I understand.

And how should institutional investors, shareholders, think about digital engineering and carbon as part of their ESG or energy transition strategies?

Absolutely, Maurice. That's a great question. And I'm going to give you an answer from a technology standpoint. We are scientists, technologists. I think digital engineering fundamentally changes the equation. I think it's about the risk and sustainability commitments. It's about increasing carbon reporting precision. Again, it's about data. It's about unlocking monetisation pathways through high-integrity carbon credits.

So, we see carbon as an asset. It's no longer just footprint. It's a metric of operational excellence.

It's a leading indicator of transition to smart operations. So, Maurice, equally important, digital engineering delivers what climate has been missing for a long time. It's scalable, high-integrity outcomes per dollar or pounds deployed.

So, every dollar that is invested in this kind of a smart energy system is not only reducing emissions, it's also delivering data that produces transparency. So, you can validate the outcomes and that trustability really increases confidence.

You can apply compliance frameworks. You can drive liquidity. As a result, we have a better climate impact per dollar, tangible ROI, not only financially, but also as a stakeholder trust, policy alignment, market access. So, this is a new phase, Maurice.

We believe carbon will become a value-generating asset class and the smart capital is flowing in that direction. So, in conclusion, I think institutional investors should look at high-integrity carbon as both a transition multiplier as well as an alpha generator, where there is infrastructure, private equity, credit. I think digital carbon assurance can dramatically improve confidence and accountability when it comes down to ESG-focused capital flows.

Yeah, very interesting. Clearly, AI has a major role to play in the future of the international carbon markets.

For our viewers, we'd very much like for you to come along to the conference itself to learn more about this and related issues. The event is being held again in London on the 29th of May. Further details available on our website, that's www.cityandfinancial.com. For those of you based in the US, there are virtual tickets available as well.

So, Camilo, we very much look forward to seeing you in London very soon.

Thank you very much. Looking forward to it. Appreciate it.