WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 101
Member states with ports should also aim to ensure that
RFNBO occupies 1.2% of the total amount of energy
supplied to the maritime transport sector by 2030.
“Ultimately, the transport sector is most regulated by
Europe. The Refuel EU Aviation and Fuel EU Maritime
regulations provide for dissuasive penalty mechanisms for
the maritime and aviation sectors, which have no choice but
to move rapidly towards hydrogen-based fuels (methanol for
maritime and eSAF for aviation).”
2. While deployment challenges remain numerous,
the level of penetration of low-carbon hydrogen
will not be the same across sectors, and the
willingness to pay among industrialists and
consumers will vary
A. Deployment challenges remain numerous, differing between
sectors
Deploying low-carbon hydrogen faces several challenges,
including securing competitively priced low-carbon electricity,
rising interest rates, finding suitable partners—especially EPC
partners—and addressing transportation issues such as costs and
insufficient infrastructure.
This situation differs between sectors. It is indeed easier to obtain
low-carbon hydrogen in a gaseous state, particularly in industry,
compared to the mobility sector. In the maritime and aviation
sectors, it is necessary to convert the hydrogen molecule into
e-fuel (e-methanol/ammonia) to be used as fuel.
2 TIRUERT stands for Taxe Incitative Relative à l'Utilisation d'Energie Renouvelable dans les Transports, which translates to Incentive Tax Relating to the Use of Renewable Energy in Transport. It's a
French mechanism introduced by the 2022 Finance Law to promote the use of renewable energy in the transportation sector. How it works:
• Certificate Generation: Operators of electric vehicle charging stations can generate and sell certi昀椀cates of renewable electricity (called "certi昀椀cats TIRUERT").
•
Certificate Purchase: Fuel distributors are obligated to incorporate a certain percentage of renewable energy into their fuel mix. They can meet this obligation by either:
o Blending biofuels into their products
o Purchasing TIRUERT certi昀椀cates
•
Incentive: If fuel distributors don't meet their renewable energy obligations, they have to pay a tax. By purchasing TIRUERT certi昀椀cates, they avoid this tax, hence the "incentive" aspect.
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B. The willingness to pay is not the same across sectors
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For the transport sector, 5.5% of fuels used in transport shall
be biofuels or RFNBO by 2030, with a minimum 1% RFNBO.
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The economic viability of hydrogen projects depends heavily on
the willingness of industries and consumers to pay a premium for
low-carbon solutions (see table below). Sectors like aviation and
shipping, where alternatives are limited and the cost of carbon
emissions is increasingly factored in, may be more willing to adopt
hydrogen-based fuels despite their higher price. Conversely,
sectors with readily available and cheaper alternatives may be
less inclined to switch to hydrogen.
Low-carbon hydrogen is not sufficiently competitive with fossil
fuels or fossil-based hydrogen, particularly for industrial uses or
road transportation.
Competitiveness is achieved when the price of low-carbon
hydrogen reaches the opportunity cost (i.e., the price of fossilbased hydrogen or equivalent energy, including carbon taxes and
the TIRUERT 2 within road transportation.)
WEMO 2024
Focus hydrogen on hard
to abate industries
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