The decarbonization of aviation and maritime transport in the European Union (EU) will depend to a great extent on the availability of alternative fuels. Renewable hydrogen and e-fuels are critical alternative fuels to achieve deep decarbonization.
Major EU transport policies, including the Renewable Energy Directive (RED) III and ReFuelEU Aviation, set transport-wide or sector specific targets for renewable synthetic fuels. However, the climate benefit of these fuels will only materialize if they are produced using 100% renewable electricity and do not lead to indirect emissions.
This study assesses the economic costs and climate impacts of importing renewable hydrogen and e-fuels into the European Union. It focuses on Brazil and Egypt, where the European Union has recently expanded engagement to facilitate renewable hydrogen and e-fuels imports.
The findings of the paper “The economics and greenhouse gas emissions of renewable hydrogen and e-fuels imported in the European Union” by the International Council on Clean Transportation show that:
- Importing renewable hydrogen as ammonia may be more expensive than producing it within Europe.
- E-diesel produced in any country will likely remain substantially more expensive than fossil diesel until 2030.
- The European Union has additionality and geographic and temporal matching requirements to help prevent indirect emissions when sourcing renewable electricity for hydrogen production.
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