Green molecules will be decisive in reinforcing Europe’s energy security, improving industrial competitiveness and advancing the decarbonization of sectors that are difficult to electrify, according to the report ‘Why does Europe need green molecules?’ published by Moeve in collaboration with PwC and which has been presented in Brussels to institutional officials, business leaders and other key actors.
The report highlights the strategic role of green molecules to reduce Europe’s external energy dependence by up to 50% in 2040, while advancing the objectives that seek climate neutrality, within the framework of the Green Deal and the Fit for 55 and REPowerEU regulatory package.
The name green molecules groups together all chemical compounds produced sustainably and with low carbon emissions, such as renewable hydrogen and derivatives (ammonia or methanol), second-generation biofuels or biomethane.
The analysis, based on public sources and reports from consulting firms, concludes that green molecules can significantly reduce Europe’s energy dependence, by allowing greater use of local renewable energy production. In the Net Zero scenario, by 2050 these solutions could replace between 30% and 50% of the demand for fossil fuels and represent approximately a third of the energy mix of the European Union.
Guarantee energy autonomy
Maarten Wetselaar, CEO of Moeve, said: “In a global context of increasing geopolitical and energy supply chain tensions, Europe’s strategic imperative is clear: to ensure energy autonomy. Green molecules produced in Europe offer a strong roadmap towards a resilient, competitive and energy independent Europe, while positioning the continent as a global leader in the fight against climate change. With the right push, European champions can exponentially develop these clean energy solutions, but the time for action is now. now.”
Green molecules are especially relevant for carbon-intensive and difficult-to-electrify sectors, such as heavy industry, chemicals or long-distance transport, which currently represent between 20% and 25% of primary energy demand. Using green molecules to decarbonize these sectors could reduce Europe’s CO2 emissions by up to 22% in 2050.
Although the report recognizes the current existence of the “green premium”, it concludes that the economic impact is reduced along the value chain, limiting the increase in the final price for the consumer from 2030. For example, transporting 100 euro sneakers by ship from Asia to Europe would only add an additional cost of about 50 cents if renewable fuels are used.
Broadly speaking, the cost gap between fossil fuels and green molecules is expected to narrow as the cost of CO2 emissions rises, renewable energy prices fall, and biomass and hydrogen fuel production becomes more efficient. For example, second-generation biofuels, already used in road transport (HVO), marine or air transport (SAF), are expected to reach cost parity with fossil fuels in the 2030s, followed by synthetic fuels based on green hydrogen in the 2040s.
Coordinated action
Furthermore, to break down the full potential of green molecules, the report highlights the need for coordinated action between public administrations and industry to accelerate the development of these ecosystems. Priorities include: Promoting regulatory frameworks that create markets and clear demand signals, establishing economic support mechanisms that allow closing the cost gap in the initial phases, scaling infrastructure and innovation throughout the value chain (production, transportation and storage) and strengthening public-private alliances to mobilize investment and achieve industrial scale.
The study highlights that the current decade is decisive in laying the foundations that will allow large-scale deployment in the future. Investments in infrastructure, technology and supply chains will be decisive for Europe to be able to deploy green molecules at high speed from 2030 and ensure its long-term competitiveness and economic progress.