Reaching the full potential of power-to-x technologies

The world is undergoing a transformative energy transition. The need to address climate change, reduce carbon emissions and secure sustainable and safe energy has never been more urgent.

It is within this context that power-to-x are key technologies to reshape the energy landscape of tomorrow.

The European Green Deal puts the EU on a pathway to climate neutrality by 2050, which requires significantly higher shares of renewable energy sources in an integrated energy system. Currently, natural gas represents 95% of the gaseous fuels consumed in the EU and accounts for 25% of the EU’s total energy consumption.

While the share of natural gas will decrease progressively, biomethane, synthetic methane and hydrogen are expected to become more relevant. However, to reach the full potential of these alternatives to natural gas, that are some examples of products delivered by power-to-x technologies, there are four key building blocks.

First, we need a clear, ambitious, and shared strategic vision.

For example, the EU’s Hydrogen Strategy and REPowerEU plan have put forward a comprehensive framework to support the uptake of renewable and low-carbon hydrogen to help decarbonise the EU in a cost-effective way and reduce its dependence on imported fossil fuels.

Second, we need a supportive regulatory framework and common standards. In the EU, the Fit-for-55 package resulted in laws that translate the European Hydrogen Strategy into concrete European hydrogen regulatory framework.

This includes a legally binding target to raise the share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030.

It also includes the hydrogen and decarbonised gas market package, which puts forward proposals to support the creation of optimum and dedicated infrastructure for hydrogen, as well as an efficient hydrogen market. Moreover, new European laws also set ambitious targets for the use of synthetic fuels in the areas of aviation and waterborne.

Third, we need massive investments in power-to-x technologies, both regarding research and innovation as well as deployment. To give just one example of what big investments can achieve: thanks to EU investments in R&I of €150 million since 2008, Europe is today the leading producer of electrolysers for clean hydrogen production.

Since then, the electrolyser capacity in Europe has been increased with a factor 200, leading to 20 megawatt per electrolyser today.

The final building block is international collaboration. The EU’s international engagement is essential to accelerate the energy transition of partner countries. In this area, the following actions are just three exemples.

First, the European Commission co-leads the Clean Hydrogen Mission of Mission Innovation, a global initiative to catalyse action and investments in research, development and demonstration to make clean energy affordable, attractive an accessible for all.

Second, through Green Hydrogen Partnerships, the European Commission promotes the import of renewable hydrogen from third countries while incentivising decarbonisation and the development of renewable energy production for domestic use.

Third, the European Hydrogen Bank will also have an international leg aiming to support renewable hydrogen partnerships, to facilitate investments and the development of the necessary regulatory framework.

To conclude, there is not one silver bullet to address the existing barriers for power-to-X technologies.

We must reach a shared strategic vision, supported by a suitable regulatory framework and big investments, while also seizing the opportunities of international cooperation to successfully support and deploy Power to X technologies.

Together we will unleash the full potential of the wide range of Power-to-X processes, turning potential into progress, and energy into a brighter future for all.