On November 7, 2024, we hosted our second SPIN DAY in Schlieren, an interactive event that emphasized learning, collaboration, and solution-oriented discussions. It was the second of the Power-to-X Days. This year’s event attracted policymakers, financiers, industry leaders, scientists, and aviation experts to tackle the most pressing challenges in scaling Power-to-X (PtX) technologies.
While during the 2022 SPIN DAY the word “collaboration” was most heard, this year’s word of the day was “trust” – trust as the critical foundation for upscaling the production of molecular, chemical energy carriers. Here, we delve deeper into the rich outcomes of the World Café workshops, which focused on five key areas: politics, production and technology, finance, science, and aviation.
World Café Highlights: Challenges and Solutions
1. Politics: Building Fact-Based, Forward-Looking Frameworks
Participants emphasized the role of policymakers in creating stable, fact-based environments to drive PtX adoption. Key discussion points included:
• Challenges:
• Customs barriers and inconsistent import strategies hinder global PtX trade.
• Ideologically biased studies distort policy decisions, such as misrepresentations of eFuels’ production efficiency.
• Political frameworks are often misaligned with the realities of PtX investment cycles.
• Solutions:
• Introduce “book and claim” models to streamline trade globally.
• Establish regulatory impact assessments to ensure policies are based on measurable effects, not technologies.
• Policies should be made based on use cases and not on theoretical “studies” which are often the product of lobby think tanks.
• Strengthen bilateral agreements with neighboring countries for trade and technology cooperation.
2. Finance: Unlocking Capital for PtX Growth
Access to finance emerged as one of the most significant barriers for start-ups and SMEs in the PtX sector. Discussions highlighted:
• Challenges:
• Banks and investors lack expertise in evaluating PtX technologies, leading to hesitancy.
• Long approval processes and regulatory complexities delay critical investments.
• High initial capital requirements deter private investors.
• Solutions:
• Establish cooperative financing models, pooling resources from utilities and leveraging partnerships.
• Provide specialized training for financial professionals to better understand PtX technologies and business models.
• Develop government-backed guarantees to reduce investment risks and stabilize the market.
3. Industry: Enabling Investment Security and Technological Diversity
Industry participants stressed the importance of creating a roadmap that ensures security for investors while embracing technological openness. Key points included:
• Challenges:
• Investment insecurity caused by regulatory instability and slow adoption of new technologies.
• Resistance to adopting alternative energy solutions due to established industry norms.
• Solutions:
• Develop a Swiss hydrogen and/or PtX masterplan combining federal oversight with cantonal implementation.
• Promote equal treatment of all energy solutions to foster innovation.
• Build infrastructure for hydrogen and eFuels, leveraging international markets to scale quickly.
4. Science: Bridging Research and Commercialization
Scientific discussions revolved around the role of research in supporting the transition from pilot projects to commercial-scale PtX plants. Participants noted:
• Challenges:
• Scientific models are often misunderstood or misrepresented in policy and industry decisions.
• Scaling from research to commercial applications is hindered by a lack of interdisciplinary collaboration.
• Solutions:
• Improve transparency in scientific studies, requiring clear documentation of boundary conditions and funding sources.
• Establish lighthouse ecosystems to demonstrate PtX scalability across varying technology readiness levels.
• Strengthen partnerships between leading universities (ETH, EPFL) and applied research institutions to optimize technologies.
5. Aviation: Scaling Sustainable Aviation Fuels (SAFs)
The aviation sector is a critical application for PtX technologies, with synthetic aviation fuels (SAFs) identified as a priority. Discussions included:
• Challenges:
• Supply chain risks, including material availability and double-counting of emissions savings.
• High production costs and lack of economies of scale for SAFs.
• Regulatory inconsistencies across countries undermine investor confidence.
• Solutions:
• Implement blending quotas for SAFs to ensure demand and incentivize investment.
• Establish “Contracts for Difference” to mitigate price risks and stabilize markets.
• Promote international collaboration to harmonize SAF regulations and unlock global investment.
Key Takeaways: Trust as the Catalyst for Change
SPIN DAY 2024 revealed that trust is the missing ingredient across all areas:
• Trust in Policy: Transparent, consistent regulations are needed to give investors and innovators confidence.
• Trust in Finance: Educating financiers about PtX technologies will bridge gaps in understanding and unlock capital. But also, politics makers need to have trust in the finance industry to allow them the freedom necessary for making investment decisions in this area.
• Trust in Science: Transparent research and collaboration will ensure that PtX solutions are credible and scalable.
• Trust in Industry: Clear commitments and equal opportunities for all energy solutions will foster innovation.
Switzerland, with platforms like SPIN, is uniquely positioned to lead this effort, creating a global model for collaborative, trust-based energy transitions. The discussions at SPIN DAY 2024 serve as a roadmap for turning ideas into action, paving the way for a sustainable, PtX-powered future.
Let’s build on these insights to foster trust, drive investment, and create lasting solutions for a greener world. Be a part of the solution by becoming a member of SPIN. For detailed information, drop us a message.
The report can be downloaded in German here and in English here.