Renewable energies in the transport sector: Costs and possibilities

Amela Ajanovic and Reinhard Haas, Vienna University of Technology, Vienna, Austria

Keywords

road transport, alternative fuels, hydrogen, biofuels, costs, scenarios

Abstract

Alternative fuels based on renewable energy sources, such as biodiesel, bioethanol and hydrogen from RES, have potential to reduce greenhouse gas emissions, climate change, to increase supply security and energy diversity. Transition from a fossil fuels based transport to future sustainable and clean transport is a long term and cost intensive process, especially for hydrogen use in transport. Hydrogen infrastructure is missing and most of hydrogen technologies are still at developing stage.

This paper examines the economics of biofuels (bioethanol and biodiesel) and hydrogen production from renewable energy sources. The current and future costs of alternative fuels as well as the costs of the provided energy services are analysed in a dynamic framework till the year 2050. The goal is to identify the market chance of alternative fuels in a long term (till 2050).

A rapid increase of fuel cell vehicles with hydrogen on the market is not expected before 2030, mainly because the costs of the fuel cells are still very high and because their efficiency, as well as the travelling range, is rather moderate.

However, the use of alternative fuels in transport sector is very dependent on the political will. If political preferences, like e.g. zero-emission-vehicles, gain strong relevance this new fuels could accelerate its market penetration significantly.

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