While this cost is still higher than that of fossil jet fuel, it is within range of alternative SAFs. Lowering the levelized cost of hydrogen (which includes renewable-electricity input but excludes transport and distribution) to less than $1 per kilogram would reduce the cost of PtL to $1,200 to $1,800 per ton, depending on the carbon source, amounting to a 40 percent reduction in average cost by 2030. Producing low-cost clean hydrogen on-site or close to fuel synthesis facilitiesĪdvances in low-carbon and renewable hydrogen production also will be crucial to the maturity of the PtL value chain. Building solar developments in sparsely populated, nonarable regions on just 1 to 2 percent of desert land would provide enough PtL fuel to decarbonize the entire aviation sector by 2030. Strategies such as combining wind and solar and tapping small amounts of grid energy (where applicable and, ideally, clean) can stabilize generation and reduce costs. This power probably will be stored in the form of hydrogen, at least until battery technology improves enough to reduce costs. A successful system must gather and store enough power to use when the sun isn’t shining or the wind isn’t blowing. Typical PtL providers are likely to build large-scale renewable-electricity production sites to ensure a continuous supply of hydrogen. Fortunately, PtL can be produced far from major electric grids. Optimizing the location and design of PtL production facilities is key to reducing its cost.

Please email us at: Greatly expanding production of low-cost renewable energy If you would like information about this content we will be happy to work with you. We strive to provide individuals with disabilities equal access to our website. Increasing PtL production would require several major changes, as shown in Exhibit 1, but achieving this goal would significantly diversify and expand SAF supply to meet future demand. Given the nascency of the PtL value chain and the complexity of constructing it, no mature, fully integrated PtL player is yet operating at scale. Producing PtL requires several steps: creating renewable electricity and hydrogen, capturing carbon, and synthesizing fuel. Benefits and challenges of the PtL pathway The report, Clean skies for tomorrow: Delivering on the global power-to-liquid ambition, makes the case for using PtL fuel to reduce aviation emissions, describes strategies for overcoming complex technical and operational production challenges, and outlines actions that could help scale PtL regionally and globally. McKinsey and the World Economic Forum have developed a joint report that focuses on power-to-liquid (PtL) fuel, which is produced from captured CO 2 and renewable electricity from wind, solar, nuclear, hydropower, and other green sources. While this momentum is encouraging, major new commitments, investments, and innovation are necessary to reduce carbon emissions significantly. Many of these organizations have committed to accelerating the use of SAF to meet 10 percent of global aviation fuel demand by 2030 and reach the net-zero goal by 2050. The CST initiative, which receives support from the Mission Possible Partnership, involves almost 100 organizations, including leading airlines, airports, fuel suppliers, aircraft manufacturers, frequent corporate fliers, and freight forwarders. The CST public–private partnership works closely with stakeholders across industry, government, and civil society to help the aviation industry use sustainable aviation fuels (SAFs) and other clean propulsion technologies to transition to net-zero emissions by 2050. Because the aviation industry must play a major role in this transformation, the World Economic Forum launched the Clean Skies for Tomorrow (CST) initiative in 2019. Reducing carbon emissions will provide enormous economic and health benefits across industries and societies, improve sustainability, and help preserve the planet’s habitability for future generations.

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