E-fuel support design: what should this look like?

E-fuel support design: what should this look like?

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.

For further information, please email media@frontier-economics.com or call +44 (0) 20 7031 7000.