The climate business network Climate Leadership Coalition (CLC) has initiated a Power-to-X (P2X) challenge aimed at bringing industrial-scale P2X projects to the pre-engagement phase. The basic idea of P2X technology is to convert electricity into another form of energy, for example to synthetic fuels used in trasportation and industry and, if necessary, back to electricity.
As the first P2X application, CLC and its members Fortum, Gasum, Neste, Stora Enso, St1 and Wärtsilä with Afry and LUT as experts, have started to plan a pre-engagement study on an industrial scale Power-to-Fuel (P2F) project. CLC will invite also other interested members to join the study.
The objective of the study is to find out how P2F technologies can be used to reduce Finnish transport-related CO2 emissions by 15%, around 1.5 million tonnes. In addition to the technical solutions and potential production sites, the aims of the study are to explore how to create demand and markets for synthetic fuels as well as a timeline for possible projects.
P2X technologies are part of a developing branch of industry where carbon dioxide is utilized. These technologies are used to produce hydrogen by splitting water molecule with the help of electricity. After that hydrogen is connected with carbon dioxide to produce hydrocarbons. Carbon dioxide can also be used to produce microbes and nutritional proteins. If carbon free electricity is used in the process the technologies may offer substantial emission reductions. In addition, P2X provides to the main problems connected to increasing intermittent solar and wind power: balancing the power grid and long-term seasonal energy storage.
The study will assess the efficiency of P2F compared to alternative emission reduction measures. The study aims also at identifying the required legal changes and financial incentives in Finland, the other Nordics and in the EU.
”Finland is well positioned to be a world leader in development of synthetic fuels – either part of an extended blending mandate, or a hydrogen infrastructure. The quicker we reach industrial scale production, the bigger the impact of P2F in our commitment to halve traffic emissions by 2030 compared to 2005. At the same time, we can sell another Finnish climate technology innovation to the world”, says Minister of Transport and Communications Timo Harakka.
“According to the EU Commission, P2X technologies will be one of the most important longer term options in climate policy. It is great to get the pre-engagement study to be initiated. We warmly welcome also the support from minister Harakka to the project. I hope that there will be also other P2X applications – from the area of fertilizers, food and metals”, says CLC’s CEO Jouni Keronen.
The P2F-report of the study will be published in February 2021 on CLC’s website.
CLC has 77 members that employ 430,000 people globally. CLC’s corporate members represent almost 70% of the market cap of the Helsinki stock exchange. CLC’s members believe that a transition by society toward sustainable economy and consumption habits is not only possible but also economically viable.
More information: Jouni Keronen, CEO, CLC p. 050 4534881 and Juha Turkki, Development Director, CLC, p. 045 3461925