Frontier prepares a study on support design for e-fuels for the German Government
Liquid fuels based on renewable electricity (Power-to-Liquids or e-fuels) have an important role to play in contributing to greenhouse gas reduction in transport - especially in sectors where there is limited capacity to become fully electrified, such as shipping and aviation. Although e-fuels are technically well researched and widely available, lack of economic viability is currently a barrier to industrial-scale production and market take-up.
In order to incentivise investment in e-fuel production facilities, Germany’s Federal Ministry of Transport and Digital Infrastructure (BMVI) is currently developing a funding scheme and has commissioned Frontier to contribute with a comprehensive study.
As part of the study, we will be taking stock of different e-fuel production technologies and their maturity and costs, and analyse various potential funding schemes with the aim to design an appropriate scheme to effectively and efficiently support the market take-up of e-fuels in Germany. We will be supported by the renowned law firm Freshfields Bruckhaus Deringer with legal expertise and the Nova Institute with technical expertise.
A workshop is planned for early 2021, where stakeholders will be able to provide feedback on the main features of the funding system as it is being developed.
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