Today, Jens Perner, Associate Director at Frontier Economics, presented a study on the future of Power-to-X (the development of synthetic fuels from renewable energies) at the energy day organised by the World Energy Council Germany (WEC Deutschland). The aim of the study commissioned by WEC Germany is to develop a dedicated roadmap for establishing a global PtX industry over the course of the future decades. In the report, Frontier explains the need for international PtX production and trade on a global scale, explores potential PtX producing and exporting countries worldwide and identifies the major pillars and milestones of a roadmap towards a global PtX market.
The study analyses the possible share of synthetic fuels (hydrogen, ammonia, methane, methanol, diesel, gasoline, kerosene etc.) produced by Power-to-X (PtX) technologies and their role in a post-fossil energy system. Without these carbon neutral energy carriers, it would be impossible for governments worldwide to realistically achieve their highly ambitious climate goals. In principle, these renewable fuels can be applied across all sectors, such as transport, heating, industry, power generation – to replace conventional fuels from hydrocarbons as the primary energy source and feedstock.
Importing synthetic fuels from countries with favourable PtX production conditions and developing a global PtX market can help to reduce costs considerably and to sustainably support the energy transition. In the long term, there will be a sizable global PtX market with excellent prospects for both technology exporters and potential PtX sites.
However, this development requires there to be an appropriate energy and climate policy framework in the near future. Enhancing and supporting the scaling up of technologies, the development of markets and a reliable demand structure as well as establishing international co-operations to implement the markets should be in the focus of political decision-making.
Frontier regularly advices on the global energy transition and renewable energies.
For further information please contact Miriam Rau on firstname.lastname@example.org or telephone +49 (0) 221 337 131 00
You can find the technical annex for this report here.