Aviation will need E300b for EU green hydrogen switch, study finds
The roll out of hydrogen planes in Europe will need E300b of investment and require a tax on traditional jet fuels, a new study by a clean energy group finds, showing the scale of the challenge for policymakers in driving green aviation. Airbus, the world’s largest plane maker, has said it aims to fly a zero-emissions hydrogen-powered aircraft by 2035 but has cautioned about the pace of development of the necessary infrastructure. The study published by the NGO Transport & Environment on Monday, found that the cost of developing the hydrogen supply chain in Europe would be E299b between 2025 and 2050, largely made up of the cost of green hydrogen production, liquefaction and distribution. The high cost would make hydrogen planes 8% more expensive than jet-fuelled aircraft in 2035 unless kerosene was taxed, it estimated. If jet fuel was taxed and a price on carbon emissions introduced, however, hydrogen planes could be 2% cheaper to operate, the study found. The research factored in a carbon price of E127 per tonne of carbon dioxide by the year 2035. Carbon is now priced at just under E85 per tonne, after touching a high of just over E100 a tonne in February, on the EU exchange traded system that allows companies to trade carbon emission permits. Kerosene taxation has not yet been introduced but the T&E group based its calculations for a tax in line with current proposals put forward by the European Commission. This estimates a tax of about E0.37 per litre. The price of jet fuel, which roughly tracks crude oil, is now about E0.55 per litre. “If we want Airbus to walk the talk, we’ll need to create a market for zero emission aircraft, by taxing fossil jet fuel and mandating zero emission planes in the future,” said Carlos López de la Osa, aviation technical manager at T&E. Airbus said it was “committed to bringing to market the first hydrogen-powered commercial aircraft by 2035 but taxation is not the solution to get there”. “Incentives which promote investment in technologies and infrastructure, as well carbon pricing and market-based measures, provide a more cost-efficient way to deliver the necessary reduction in aviation emissions,” it added.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-05-23/general/aviation-will-need-e300b-for-eu-green-hydrogen-switch-study-finds
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Aviation will need E300b for EU green hydrogen switch, study finds
The roll out of hydrogen planes in Europe will need E300b of investment and require a tax on traditional jet fuels, a new study by a clean energy group finds, showing the scale of the challenge for policymakers in driving green aviation. Airbus, the world’s largest plane maker, has said it aims to fly a zero-emissions hydrogen-powered aircraft by 2035 but has cautioned about the pace of development of the necessary infrastructure. The study published by the NGO Transport & Environment on Monday, found that the cost of developing the hydrogen supply chain in Europe would be E299b between 2025 and 2050, largely made up of the cost of green hydrogen production, liquefaction and distribution. The high cost would make hydrogen planes 8% more expensive than jet-fuelled aircraft in 2035 unless kerosene was taxed, it estimated. If jet fuel was taxed and a price on carbon emissions introduced, however, hydrogen planes could be 2% cheaper to operate, the study found. The research factored in a carbon price of E127 per tonne of carbon dioxide by the year 2035. Carbon is now priced at just under E85 per tonne, after touching a high of just over E100 a tonne in February, on the EU exchange traded system that allows companies to trade carbon emission permits. Kerosene taxation has not yet been introduced but the T&E group based its calculations for a tax in line with current proposals put forward by the European Commission. This estimates a tax of about E0.37 per litre. The price of jet fuel, which roughly tracks crude oil, is now about E0.55 per litre. “If we want Airbus to walk the talk, we’ll need to create a market for zero emission aircraft, by taxing fossil jet fuel and mandating zero emission planes in the future,” said Carlos López de la Osa, aviation technical manager at T&E. Airbus said it was “committed to bringing to market the first hydrogen-powered commercial aircraft by 2035 but taxation is not the solution to get there”. “Incentives which promote investment in technologies and infrastructure, as well carbon pricing and market-based measures, provide a more cost-efficient way to deliver the necessary reduction in aviation emissions,” it added.<br/>
