In Feb 2023, the European Commission (EC) published its Green Deal Industrial Plan in response to the US Inflation Reduction Act (IRA). To support the scale-up of EU manufacturing capacity for net-zero technologies, the EU Innovation Fund, through competitive bids, will cover the funding gap with a fixed premium for each kg of renewable hydrogen produced over a period of 10 years (similar to the IRA). Subsequently, the EC published its Delegated Act on Renewable Hydrogen (in the remainder called Delegated Act) defining what is considered a renewable fuel of non-biological origin (RFNBO) for EU production and imports (also called green hydrogen/fuels in the remainder). Combined with the need for decarbonisation of the hard-to-abate sectors, this will facilitate the transition towards green fuels and enable new business opportunities in the EU and beyond.

In this regard, the overall objective of this project is to assess the market potential for hydrogen and green fuels and their implications for the European electricity market. As such, it will focus on both, the short-term operations of PtX assets on different electricity markets (spot and balancing power), as well as the long-term market design, and regulation of green hydrogen/fuels and biofuels to support the deployment of PtX serving the industrial and transportation demands throughout Europe.