The transition to green aviation presents a monumental challenge for policymakers as they strive to reduce emissions in the aviation sector.
A recent study conducted by clean energy group NGO Transport & Environment sheds light on the enormous cost involved in developing a hydrogen supply chain in Europe. While green hydrogen holds promise for powering future aircraft, the study highlights the need for substantial investments and potential taxation of traditional jet fuels to make this transition feasible.
According to the study, Europe would need to invest a staggering €299 billion ($320 billion) between 2025 and 2050 to develop the necessary infrastructure for green hydrogen production, liquefaction, and distribution. These costs comprise a significant portion of the total expense associated with transitioning to hydrogen planes.
The study also examines the financial implications of adopting hydrogen planes. Without taxation on kerosene, hydrogen-fueled aircraft are projected to be 8% more expensive than their traditional jet-fueled counterparts by 2035. However, if kerosene is taxed and a price on carbon emissions is introduced, operating hydrogen fuel planes could potentially be 2% cheaper. The research incorporates a carbon price estimate of €127 per ton of carbon dioxide by 2035, aligning with current proposals put forth by the European Commission.
Airbus, the world’s leading airplane manufacturer, aims to have hydrogen planes in commercial operation by 2035. However, the company believes that taxation alone is not the solution to facilitate the introduction of hydrogen planes. Instead, Airbus advocates for incentives that promote investments in technologies, infrastructure, and market-based measures like carbon pricing, which it considers a more cost-efficient approach to achieve the necessary emissions reduction in aviation.
Carlos López de la Osa, aviation technical manager at Transport & Environment, emphasizes the importance of creating a market for zero-emission aircraft. He suggests that taxing fossil jet fuel and mandating the use of zero-emission planes in the future would be essential for Airbus to translate its commitment into action.
Decarbonizing the aviation industry poses significant challenges. Current battery technology is not advanced enough to power aircraft for long distances, making hydrogen an attractive alternative. However, integrating hydrogen technologies into aircraft comes with its own set of challenges and costs. The study underscores the complexities involved in decarbonizing the aviation sector.
The study’s analysis underscores the magnitude of the task at hand, highlighting the need for a substantial investment of €299 billion and potential taxation of traditional jet fuels to enable the rollout of hydrogen planes in Europe. As policymakers navigate this challenge, balancing the costs, technological advancements, and regulatory frameworks will be crucial to driving the adoption of green aviation.
