AI could unlock substantial production savings

Honeywell, in collaboration with the MIT Center for Sustainability Science and Strategy, has released new research indicating that digital technologies and artificial intelligence could dramatically improve the efficiency of global energy production while reducing operating costs across both conventional fuels and liquefied natural gas (LNG).

The report, Accelerating Energy Expansion, concludes that AI-enabled technologies could reduce annual global production costs for oil-based fuels by up to US$55 billion within five years of implementation and by as much as US$225 billion annually by 2050. For LNG production, the study projects annual savings of up to US$15 billion within five years and as much as US$80 billion by mid-century.

A chart on page two of the report illustrates the projected increase in annual production cost savings over time for both oil-based fuels and LNG, highlighting the growing economic impact of digital technologies through to 2050.

Improving existing infrastructure

Rather than relying solely on the construction of new generating capacity, the research argues that improving the performance of existing energy infrastructure offers one of the fastest routes to increasing available energy supply.

The report highlights the role of AI, automation and digital monitoring in improving operational efficiency, increasing throughput and enhancing asset reliability across existing facilities. It also points to growing demand for on-site power generation and energy storage as operators seek to support expanding electricity requirements driven by artificial intelligence infrastructure and industrial growth.

Emerging technologies, including fuel-cell-based systems and intelligent battery energy storage, are identified as potential solutions that can be deployed more rapidly than conventional gas turbine installations while improving grid flexibility and reducing emissions.

Implications for aviation

Although the report addresses the wider energy sector, several findings are relevant to aviation.

The study identifies sustainable aviation fuel (SAF) as one of the alternative energy sources that will need to scale more rapidly to support future energy security and emissions reduction. It also notes that digital technologies can help optimise production from a wider range of locally available feedstocks, including biomass, waste oils and non-edible crops, potentially strengthening regional fuel resilience while reducing dependence on imported energy supplies.

For aviation, improvements in production efficiency and greater diversification of fuel sources could contribute to more resilient SAF supply chains and lower long-term production costs as the industry continues its transition towards lower-carbon operations.