The Federal Ministry of Transport and Digital Infrastructure (BMVI – Bundesministerium für Verkehr und digitale Infrastruktur) is launching the market ramp-up of electricity-based liquid fuels (power-to-liquid, PtL) with a call for non-binding project outlines, with a special focus on PtL kerosene. The call is part of a market test for the development of a funding guideline currently being drafted by the BMVI. In this way, the BMVI is implementing the PtL roadmap for air transport and triggering the sustainable production of PtL kerosene in Germany in order to make a more pronounced contribution towards the reduction of greenhouse gas emissions in the transport sector. The submission of non-binding project outlines is possible from now until 15 October 2021.
Greenhouse gas emissions are to be reduced both directly through the supported PtL production quantities that will be brought into circulation and in the long term, in that the funding will contribute to the reduction in costs of the innovative PtL technology, so that further PtL production quantities can be provided more cost-effectively in the future. The focus of the funding is particularly on the production of PtL kerosene, as there is currently a lack of climate-neutral technology alternatives for fuel in the aviation sector. By-products of PtL kerosene production are intended for use in shipping and heavy-duty road transport.
Kurt-Christoph von Knobelsdorff, Managing Director of NOW GmbH: “In order to achieve climate neutrality, it is essential to use electricity-based fuels for many areas of application. Long-haul air travel in particular will continue to rely on liquid fuels in the future. Sustainably produced power-to-liquid kerosene will make flying climate-friendly possible. With the start of funding, the first step towards achieving this is now being taken. NOW GmbH is looking forward to actively supporting the BMVI in developing an optimally coordinated PtL funding programme.”
Procedure for PtL kerosene funding:
- Stage 1: Non-binding market test procedure: The market test as a preliminary stage has a consultative character. The aim here is to create a common basis of information between the funding agency (BMVI) and potential funding recipients: With this non-binding call for proposals, the BMVI communicates preliminary information, such as the conditions for participation and funding. On this basis, potential funding recipients have the opportunity to form corresponding collaborative partnerships and submit project outlines for their projects. This information is evaluated by the BMVI, with the support of the federally owned NOW GmbH as the programme management organisation, and is used, among other things, to specify the final funding design, i.e. the competitive funding procedure (stage 2).
- Stage 2: Binding competitive funding procedure: The aim of the competitive funding procedure is a cost-efficient allocation of funding and the highest possible contribution to the goals of the funding guideline (cost reduction, market ramp-up, reduction of carbon emissions in the transport sector with a focus on aviation). The binding competitive funding procedure is scheduled to commence at the beginning of 2022.
Detailed information can be found in the non-binding call for project outlines (in German).
The outlines can be submitted using the online form on the NOW GmbH website: Outline submission (in German)
Information on the BMVI’s funding measures for renewable fuels can be found on the funding support programme page.