Discussion Paper

What are powerfuels and why are they relevant?

Chapter 3 - Summary

1. Powerfuels are synthetic gases and liquid fuels produced from Power-to-X processes using renewable electricity.
2. Powerfuels will be a missing link for reaching climate targets due to following key reasons:

  • They are climate-friendly solutions to applications with no viable alternatives.
  • They can reduce the cost of energy transition by utilising existing infrastructures and provide long-term storage options.
  • They can utilise the worldwide renewable electricity production potential as they can be transported and traded globally.
  • They could accelerate the de-fossilization of existing consumer end-use equipment since they are green drop-in alternatives to fossil fuels.

3. Electricity costs are the largest portion of powerfuel costs followed by carbon capture costs. There is considerable scope for future cost reductions through economies of scale.
4. Individual technologies for production of powerfuels are already available, however they are yet to be integrated in complete commercial value chains.

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