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en2x: The mineral oil industry wants the molecule transition

At the annual press conference of en2x, it was noted: The transformation towards green mobility is currently lacking the necessary momentum 

There are several levers to provide CO2-neutral energy - for this en2x goes down to the molecular level. | Photo: Terry Vlisdis/Unsplash
There are several levers to provide CO2-neutral energy - for this en2x goes down to the molecular level. | Photo: Terry Vlisdis/Unsplash
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The mineral oil industry is working on its transformation to a CO2-neutral energy supplier: moving away from fossil products to renewable products. In addition to charging infrastructure for electric vehicles, there should also be investments in biofuels as well as CO2-neutral hydrogen and its byproducts. However, numerous hurdles still need to be overcome for this to happen. It is therefore all the more important to quickly initiate a "molecule transition" alongside the energy transition, in collaboration with policymakers. And that's where things get interesting. Felix Faber, CEO of en2x– Wirtschaftsverband Fuels und Energie, explained at the association's annual press conference:

"The transformation of the industry is taking shape. We are on the way to new products and new business models."

However, there are still numerous hurdles to overcome in the implementation. There is a need for action, particularly regarding the acceptance of green molecules as energy carriers in many applications and the development of new global markets.

It is to be expected that the share of liquid and gaseous energy carriers and raw materials will decrease primarily through further electrification. Nevertheless, there will continue to be a great demand for such molecules in the future — and that they must be CO2-neutral is beyond question. Faber added:

"This demand must be met in a CO2-neutral manner in Germany by 2045 at the latest. Therefore, alongside the energy transition, we need a green molecule transition."

This means that CO2-neutral hydrogen, sustainable biogenic and synthetic energy carriers, as well as renewable chemical raw materials — green molecules indeed — must be more prominent in the energy transition. However, according to Faber, many transformation projects are "not economically feasible under current market conditions."

Important: Customers and companies need calculable perspectives for transformation

Currently, many of the technologies for the industrial production of CO2-neutral molecules are still at the beginning of their learning curve. en2x's chief executive Prof. Christian Küchen demanded:

"Companies need calculable perspectives and reliable prospects for business models to be able to invest."

Otherwise, transformation projects are not "bankable," meaning they are not financed by banks due to too high risks. It is also counterproductive to restrict the use of green molecules to certain application areas from the outset. Küchen added:

"Broad application possibilities reduce risks for investors and thus increase the likelihood of investment."

Often Overlooked: The Hydrocarbons

Crucial for the success of the molecular transition are, moreover, the establishment of import structures as well as, alongside a hydrogen strategy, a comprehensive carbon strategy that integratively considers all possible sustainable carbon sources such as biomass, waste and residual materials, recycling, and CO2. Hydrocarbons will be needed in the long term for many applications.

To make renewable molecules competitive with fossil ones in the medium term, "a sufficiently high CO2 price is the most important instrument," says Küchen, adding:

"Especially in road traffic, an amendment to the EU Energy Taxation Directive as proposed by the EU Commission more than two years ago, together with the now nationwide approved emissions trading for the heat and transport sectors, could deliver effective CO2 prices. The prerequisite is that the policy does not intervene when CO2 prices rise due to shortages."

What does that mean?

The petroleum industry is working on the transition to CO2-neutral energy provision – but still struggles with details. To achieve better planning in this area, however, stringent implementation of CO2 pricing and an openness to utilize all available means for CO2 neutralization are needed.

Translated automatically from German.
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