Renewable Electricity in the Tank—Fact or Fiction?
摘要
This paper provides an overview of HIF’s international expansion strategy for renewable hydrocarbons (electricity-based fuels or eFuels), and the key challenges for global market take-up. The paper highlights policy challenges, such as the low level of ambition for eFuels in Europe and the impact of stringent EU criteria on eFuel production, particularly in non-EU production locations. The latter act as a de facto barrier to imports into the EU, as obtaining “EU green certification” is very complicated and very limited in many parts of the world, such as the MENA region. Crucially, the role of the customer is often underscored. Electricity-based fuels are highly capital intensive. Their uptake depends on long-term off-take contracts of 15 years or more, which are common in the electricity sector. Only if prospective customers are willing to commit to these long-term contracts will the market take off. It is in the hands and the will of the customers.