This chapter explores the challenges and opportunities associated with the market introduction and ramp-up of power-to-liquid (PtL) fuels, essential for achieving climate neutrality in the transport sector. The focus is on the political and regulatory landscape in Europe and Germany influencing PtL fuel deployment. Challenges include technical and economic factors, including the current status of PtL fuel production technologies, high production costs, and the global scope of the future PtL fuel market. The need for certification of renewable and sustainable PtL fuels, crucial for ensuring environmental and climate integrity as well as for defining PtL production standards, is also addressed. The importance of long-term investment security, incentive schemes for PtL production and use, and a stable regulatory framework is emphasized. The regulatory and policy design in Europe and Germany is scrutinized, focusing on policies such as the Renewable Energy Directive, the German GHG Emission Reduction Quota, ReFuelEU Aviation and FuelEU Maritime Regulations, Emission Trading System 2, and the funding mechanisms H2Global and European Hydrogen Bank. The analysis concludes that while power-to-liquid (PtL) fuels are vital for a climate-neutral society, significant scaling in the transport sector faces major market barriers. Ambitious and long-term quota systems, supplemented by funding mechanisms for the first production plants, are essential to incentivize PtL fuel development. The ReFuelEU Aviation and the FuelEU Maritime Regulation are identified as suitable tools for a future market for PtL fuels in aviation and maritime transport, due to their long-term outlook. However, the RED and, consequently, the GHG quota in Germany are lacking in these long-term market incentives. The analysis also emphasizes the need for stable certification systems for PtL fuels that are transferable between global markets, to ensure seamless global PtL fuel markets.

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Market Introduction and Ramp-Up of Powerfuels under Political and Regulatory Aspects

  • Peter Kasten

摘要

This chapter explores the challenges and opportunities associated with the market introduction and ramp-up of power-to-liquid (PtL) fuels, essential for achieving climate neutrality in the transport sector. The focus is on the political and regulatory landscape in Europe and Germany influencing PtL fuel deployment. Challenges include technical and economic factors, including the current status of PtL fuel production technologies, high production costs, and the global scope of the future PtL fuel market. The need for certification of renewable and sustainable PtL fuels, crucial for ensuring environmental and climate integrity as well as for defining PtL production standards, is also addressed. The importance of long-term investment security, incentive schemes for PtL production and use, and a stable regulatory framework is emphasized. The regulatory and policy design in Europe and Germany is scrutinized, focusing on policies such as the Renewable Energy Directive, the German GHG Emission Reduction Quota, ReFuelEU Aviation and FuelEU Maritime Regulations, Emission Trading System 2, and the funding mechanisms H2Global and European Hydrogen Bank. The analysis concludes that while power-to-liquid (PtL) fuels are vital for a climate-neutral society, significant scaling in the transport sector faces major market barriers. Ambitious and long-term quota systems, supplemented by funding mechanisms for the first production plants, are essential to incentivize PtL fuel development. The ReFuelEU Aviation and the FuelEU Maritime Regulation are identified as suitable tools for a future market for PtL fuels in aviation and maritime transport, due to their long-term outlook. However, the RED and, consequently, the GHG quota in Germany are lacking in these long-term market incentives. The analysis also emphasizes the need for stable certification systems for PtL fuels that are transferable between global markets, to ensure seamless global PtL fuel markets.