Central challenges

Economic and regulatory barriers

The focus aera Market & Regulation deals with the economic and political prerequisites for the successful market ramp-up of reFuels. In particular, the focus is on the lack of planning certainty, high investment risks and the still unclear regulatory structure. The key challenges include the cost gap between fossil and renewable fuels, strict import conditions and competition for the use of scarce raw materials. At the same time, there is often a lack of viable business models and clear standards for CO₂, H₂ and reFuels markets.

How the innovation focus works

Analysis of market barriers and development of solutions

The optimal design of rules and economic framework conditions is crucial for the rapid market ramp-up of reFuels. For example, potential producers urgently need clarity on whether and how renewable electricity-based fuels will count towards the EU's greenhouse gas reduction quotas. Without this clarity, no company will invest in the construction of the infrastructure that is so urgently needed in the near future. The focus area analyzes the current framework conditions, evaluates incentive systems and develops recommendations for action in order to create economic prospects and investment security. In this way, it makes an important contribution to ensuring that reFuels can be introduced in a marketable and regulatory manner in the long term.

The Market and Regulation innovation focus area is led by experts from RheinMain University of Applied Sciences and the consultancy firm Frontier Economics.

"Our contribution is aimed at networking relevant stakeholders to identify, analyze and process the market and regulatory requirements for the generation, distribution and use of synthetic fuels based on renewable energies and the development of solutions."

Prof. Dr. Thomas Heimer, Department of Engineering at RheinMain University of Applied Sciences