The global community is racing ahead to reduce its carbon emissions by 2050. But for Power-to-X, carbon is an essential feedstock. This means that, as green hydrogen and PtX markets grow, carbon will become a globally traded commodity. The value of carbon will rise when demand for it increases as fossil fuels are phased out. We are not talking about carbon pricing or carbon emissions allowances through emissions trading schemes, but carbon as a very real feedstock, which is captured and then fed into production plants, such as for Sustainable Aviation Fuels (SAF).
This is a fundamental paradigm shift that has already taken place in Uruguay. There, the state-owned company ALUR was the first to auction biogenic carbon and sell it to private companies that need it for their production processes.
It is essential to start thinking now about where and how to source carbon to ensure the ramp-up of PtX production, trade, and use. And what is our role as the PtX Hub in this? We are researching where and which carbon sources are available in different countries. And we advise on the policies needed to create an enabling environment for carbon sourcing and use. In this issue of RE:PtX, you will find multiple studies and tools on carbon, as well as some highlights from our work in India, South Africa, and Uruguay. Enjoy the read.
Torsten Schwab and Frank Mischler, Directors of the International Power-to-X Hub |