Yesterday I had the opportunity to present our work on the role of #efuels in #decarbonizing #transport at the World Hydrogen Summit organized by Leadvent Group. Our key results and recommendations are:
🚢✈ For the foreseeable future, efuels will be indispensable for advancing climate protection in #aviation and #maritime transport, as well as in parts of the #chemical industry (no-regret applications).
💧🔋 Liquid fuels will still be needed in air and sea transport in the long term, but #hydrogen and direct #electrification will be part of the future energy mix.
🚘🚛 For #road transport, direct electrification is the most efficient and future most cost-effective option.
🌍📈In order to reduce emissions in aviation and maritime transport, an ambitious ramp-up of e-fuel production with a focus on these difficult-to-decarbonize sectors must take place quickly.
Therefore, we need:
♻️ Internationally aligned comprehensive #sustainability criteria,
⚖ Regulatory clarity (on international and at least at European level),
💰 Financial security to enable the massive investments required.
Find out more about this in our recent Agora Verkehrswende publication “E-fuels: Separating the substance from the hype”: https://lnkd.in/dNfbieSc
I was glad to see that most of these aspects were shared by most of the participants and have also been addressed in many other presentations during the event. My personal key takeaways were:
✔️ Most projects presented focus on aviation or shipping as main offtakers, rather seeing road transport as a market for by-products.
✔️ Sustainable carbon sourcing will be challenging, especially due to competition with CDR credits from BECCS and DACCS.
✔️However, especially in these sectors long-term offtake certainty is needed for projects to be bankable. Thus, the consumer market / fuel sourcing has to evolve in this direction.
✔️For banks to finance efuel projects risk minimization (both technological and financial) and reliable offtake agreements are needed.
✔️Overall, there must be long-term reliability regarding current regulations, such as ReFuelEU Aviation eSAF quotas.