The German federal state of Baden-Württemberg has set itself the goal of achieving climate neutrality by 2040.

The use of synthetic fuels and feedstocks produced from renewable energy sources (reFuels) is a key element in this transformation – particularly in the transport, industrial, and refinery sectors. As an energy-importing region, Baden-Württemberg is dependent on reFuel imports to meet this goal. At the same time, companies based in Baden-Württemberg are well positioned to play an important role in exporting the technologies required for reFuel production.

Against this background, the Ministry of Transport of Baden-Württemberg commissioned Frontier to conduct a study as a basis for developing targeted measures to ensure the supply of reFuels. The key findings of the study are as follows:

■        The EU's regulatory framework presents a barrier to reFuels imports and requires revision. This is particularly true of the provisions regarding eligible carbon sources for reFuels production, which are highly restrictive and represent a significant obstacle to importing reFuels from non-EU countries. Against this background and based on this study, the state government of Baden-Württemberg together with science, industry, business and associations, formulated the reFuels Action Plan, a catalogue of demands addressing the European Commission.

■        Many countries around the globe in principle have favorable conditions for producing reFuels. However, in the short to medium term, the current regulatory framework limits the pool of potential exporting countries to various European nations (e.g. those in Scandinavia and the Mediterranean region), the United States and Canada, some South American countries, and Australia.

■        Thanks to its industrial structure – particularly its strength in mechanical engineering – its export orientation, and its pioneering role in reFuels research, Baden-Württemberg is well positioned to emerge as a global provider of key technologies for reFuels production, even though the federal state will remain dependent on imports to meet its own reFuels supply needs.

■        To support the development of international reFuels supply relationships – both with regard to the import of reFuels and the export of related technologies – the state of Baden-Württemberg can implement accompanying measures, including the following:

□        Continue to promote the networking of producers, fuel suppliers, and potential buyers to facilitate the conclusion of private-sector supply agreements;

□        Explore and leverage opportunities for cooperation with other federal states;

□        Provide bundled and easily accessible information on potential reFuels supplier countries and available support instruments – for example by establishing of a central reFuels coordination office.

Click here to read the full report (in German)