Honeywell (NASDAQ: HON), in collaboration with the MIT Center for Sustainability Science and Strategy, has released a new report, Accelerating Energy Expansion, highlighting how digital and AI-enabled technologies can help increase energy supply while significantly reducing fuel production costs.
According to the research, AI-driven solutions could lower annual production costs for traditional oil-based fuels by up to $225 billion and for liquefied natural gas (LNG) by up to $80 billion by 2050.
Focus on Energy Security and Affordability
The report outlines three key priorities for strengthening energy security and affordability:
- Increasing energy supply
- Managing energy demand more efficiently
- Diversifying energy resources and feedstocks
Ken West, President and CEO of Honeywell Process Technology, said that meeting rising global energy demand will require both investment in new technologies and more efficient use of existing infrastructure. He added that AI, automation, and digital solutions can help improve reliability, throughput, and overall operational efficiency.
AI Can Deliver Significant Cost Savings
Based on Honeywell’s analysis and modelling by the MIT Centre for Sustainability Science and Strategy, the study found that AI-enabled technologies could reduce global annual production costs for oil-based fuels by up to $55 billion within five years and as much as $225 billion by 2050.
Similarly, LNG production costs could fall by approximately $15 billion annually within five years of implementation and reach savings of up to $80 billion by 2050.
Upgrading Existing Infrastructure Can Meet Growing Demand
As electricity demand rises, improving the performance of existing infrastructure offers one of the fastest ways to increase available energy supply.
Jim Masso, President and CEO of Honeywell Process Automation, said on-site power generation and energy storage can help organizations add capacity faster, improve reliability, and support the growing energy needs of AI infrastructure.
As per the press release, emerging technologies such as fuel-cell-based systems are becoming increasingly attractive because they can be deployed more quickly and produce lower carbon emissions than conventional alternatives.
Diversifying Energy Sources Will Strengthen Energy Security
The report also stresses the need to accelerate the adoption of alternative fuels, including sustainable aviation fuel (SAF), to meet growing energy demand.
By leveraging local feedstocks such as biomass, waste oils, and non-edible crops, regions can build more resilient energy systems, reduce dependence on imports, and better withstand geopolitical disruptions.
Honeywell released the report during its 2026 Future of Energy Summit, which brings together industry leaders, policymakers, and technology experts to discuss strategies for improving energy security, affordability, and competitiveness.
