1
Introduction
1.1
The Definition of the Problem Statement
The author proposes to investigate the policy frameworks for renewable energy
projects and renewable hydrogen production and how they contribute to the decarbonisation of industries using fossil fuel-based hydrogen as feedstock in targeted
APAC markets.
There is a global trend to allocate renewable energy projects with the auction
mechanism (IRENA 2019). Low auction price is an important criterion to win
auctions. Moreover, the nature of the support provided to renewable energy project
developers is changing. In Europe, generous feed-in tariff policies are gradually
fading out and let renewable energy project developers exposed to the merchant
risk (Heiligtag et al. 2018). In a context of fierce competition, renewable energy
project developers start integrating new technologies to overcome issues such as
curtailment or production intermittency and to maximise the revenues from their
assets. One of those technologies is the production of hydrogen from electrolysis
of water, otherwise called power-to-gas. Concurrently, 115 Mt yr −1 of hydrogen
is used globally as feedstock in the petrochemical sector. Less than 0,7% of this
hydrogen is produced from renewables or from fossil fuel plants equipped with
CCUS (IEA 2019).
Form an academic perspective, grey and scientific literature covers in length
the topic of hydrogen as the enabler of the energy transition, in the transportation
sector, but also in the energy, heat and industry sectors. However, there is little
research available on the underpinning policy frameworks and how those may
influence the use renewable hydrogen for decarbonising industry sectors using
fossil fuel-based hydrogen.
© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH,
part of Springer Nature 2021
M. Jaunatre, Renewable Hydrogen, Business Analytics,
https://doi.org/10.1007/978-3-658-32642-5_1
1
Introduction
1.1
The Definition of the Problem Statement
The author proposes to investigate the policy frameworks for renewable energy
projects and renewable hydrogen production and how they contribute to the decarbonisation of industries using fossil fuel-based hydrogen as feedstock in targeted
APAC markets.
There is a global trend to allocate renewable energy projects with the auction
mechanism (IRENA 2019). Low auction price is an important criterion to win
auctions. Moreover, the nature of the support provided to renewable energy project
developers is changing. In Europe, generous feed-in tariff policies are gradually
fading out and let renewable energy project developers exposed to the merchant
risk (Heiligtag et al. 2018). In a context of fierce competition, renewable energy
project developers start integrating new technologies to overcome issues such as
curtailment or production intermittency and to maximise the revenues from their
assets. One of those technologies is the production of hydrogen from electrolysis
of water, otherwise called power-to-gas. Concurrently, 115 Mt yr −1 of hydrogen
is used globally as feedstock in the petrochemical sector. Less than 0,7% of this
hydrogen is produced from renewables or from fossil fuel plants equipped with
CCUS (IEA 2019).
Form an academic perspective, grey and scientific literature covers in length
the topic of hydrogen as the enabler of the energy transition, in the transportation
sector, but also in the energy, heat and industry sectors. However, there is little
research available on the underpinning policy frameworks and how those may
influence the use renewable hydrogen for decarbonising industry sectors using
fossil fuel-based hydrogen.
© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH,
part of Springer Nature 2021
M. Jaunatre, Renewable Hydrogen, Business Analytics,
https://doi.org/10.1007/978-3-658-32642-5_1
1