New market launch program proposed for Power-to-X in Germany

The German news website energate reports on a concrete proposal for a market launch program for Power-to-X technologies. The principal of the paper is the so-called Power-to-X alliance, composed of renowned companies such as Uniper, Ontras, Audi and Airbus, the DVGW and the German Hydrogen Association. According to this plan, plants with a total capacity of 1,500 MW for the production of green hydrogen, synthetic methane and downstream fuels would be subsidized by a certificate system between 2019 and 2027. The total funding volume amounts to almost 1.1 billion euros. Two accompanying reports come to the conclusion that such a program is legally possible and economically viable.

With an eye on the ambitious climate protection goals, the paper argues that hydrogen and synthetic fuels are indispensable in the transport sector. As power-to-gas installations cannot be operated economically yet, the paper proposes that operators should receive a certificate of accreditation for every tonne of CO2 avoided. For these certificates, they can initially obtain 300 euros at the business developmentl bank KFW. By 2027, this amount should decrease to 150 euros. In the long term, the certificates could be traded and offset by industries with high CO2 emissions, for example with ETS certificates, according to the paper. The CO2 savings and thus the financial support would vary, depending on the application. Pure hydrogen for example has a better carbon footprint than synthetic fuels from hydrogen and CO2. Across the various areas of application, the CO2 avoidance of a power-to-gas plant with one MW input power assuming 3,500 full-load hours is around 715 tonnes of CO2 per year. For power-to-liquid systems, it is 511 tons.
The original article can be found here (in German).

November 23rd, 2017 - 09:52h