814. Impacts of incentives on development of power-to-liquid fuels in Europe
Invited abstract in session MB-46: Development and use of renewable fuels, stream Energy Economics & Management.
Monday, 10:30-12:00Room: Newlyn 1.07
Authors (first author is the speaker)
| 1. | Ali Ebadi Torkayesh
|
| Decision Analysis and Socio-Economic Assessment, RWTH Aachen | |
| 2. | Mina Farajiamiri
|
| Chair of Operations Management, RWTH Aachen University | |
| 3. | Grit Walther
|
| School of Business and Economics, Chair of Operations Management, RWTH Aachen University | |
| 4. | Sandra Venghaus
|
| Decision Analysis and Socio-Economic Assessment, RWTH Aachen |
Abstract
Power-to-Liquid (PtL) fuels, synthesized from renewable electricity, water, and CO₂, offer a promising solution for defossilizing the transport sector, aligned with the EU Green Deal and Fit for 55 package. Especially in aviation and maritime transport—where electrification faces technical limitations—PtL fuels are expected to play a crucial role in achieving climate neutrality. Given the significant costs associated with developing these fuels, stakeholders, including investors across various stages of the value chain, need to explore potential financial support, such as subsidies and grants, to facilitate value chain implementation. Therefore, we developed a mixed integer programming model for value chain optimization of PtL fuels, including green hydrogen, ammonia, Fischer-Tropsch fuels, and e-methanol (MeOH) based on total cost minimization. We examined the effects of various direct monetary incentives - covering for resources (biomass, carbon, and electricity), production and storage technologies, operation & maintenance costs and imports - on optimizing value chain design. As renewable electricity and import costs represent the primary burdens of the value chain, extensive scenario analyses were conducted to assess the model's behavior under different incentive programs. Scenario analysis was also extended to include real-world incentive programs, e.g., Innovation Fund.
Keywords
- Energy Policy and Planning
- OR in Energy
- Transportation
Status: accepted
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