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dimensions (energy security, integration of the European market, energy efficiency, decarbonisation and research, innovation and competitiveness), CCS and CCU in power and industrial sectors are supported as part of the solutions to reach 2050 climate objectives in a cost-effective way, needing further specific development. In the SET Plan communication "Towards and Integrated Strategic Energy Technology (SET) Plan: Accelerating the European Energy System Transformation" (9) the European Commission points out the need of research and innovation activities on the application of CCS and the commercial viability of CCU. The regulatory context, in particular, the Emissions Trading System and the Innovation Fund (10) and the recent amendment (11) to the Renewable Energy Directive (12) and the Fuel Quality Directive (13) with regard to CO2 utilisation for transport purposes, may have an effect on the use of CO2 to produce chemicals and fuels in Europe. At present, however, CO2 fuels and products are not yet fully defined in any directive. As for Research and Innovation, the Horizon 2020 Programme has launched several calls relevant to CCU or CDU (14): under the work programme for 2015-2016 and the "Secure, Clean and Efficient Energy" area, the utilisation of captured CO2 as feedstock for the process industry aims for technology demonstration in relevant scale and environment; the Sustainable Process Industry through Resource and Energy Efficiency (SPIRE) 08 targets to support the production of added value chemicals and the synthesis of cost-effective materials for Power-to-Chemical technologies for material aspects. The EC Horizon Prize for CO2 reuse (2016) awards EUR 1.5 million in late 2019 to the most innovative product resulting from CO2. The product will have to demonstrate a significant reduction in net CO2 emissions while overcoming the commercialisation barriers: technical, commercial and financial. Thus, this is a challenge for industry with products that are already at advanced TRLs (15). Different CO2 utilisation projects have been already granted in Framework Programmes 6 and 7, and during the 2014-2015 call of Horizon 2020 Programme. Overall, Europe has an important role in the commercialisation of CO2 utilisation processes worldwide. For instance, Germany and UK have implemented their own funding programmes. 1.2.2 Hydrogen production and consumption Fuels synthesis from CO2 usually needs H2 as a raw material. Hydrogen market is growing due to regulations in transport fuel desulphurisation, among others. It is estimated that its global demand will increase in the next years [31]. Transport is a key area for hydrogen, and growth will not be confined to road transportation, but also other transport means and the stationary sector. See for instance the European project Cryoplane [32], that studied the use of H2 to replace kerosene in airplanes. Hydrogen is produced in large quantities, both as main product and as by-product. Nearly 96 % of all H2 is derived from fossil fuels: natural gas is the fossil fuel most frequently used to synthesise H2 through steam reforming (about 48 % of the production by fossil fuels), followed by liquid hydrocarbons (30 %), coal (18 %) and electrolysis, and by-product sources, such as gasification (4 %) [33], [34]. Hydrogen has the potential to achieve near-zero CO2 performance when used [34]. As such, its production has to be carbon-free sources to reduce the life cycle CO2 emissions. It is therefore imperative to synthesise H2 from "zero" CO2 emissions sources, like biomass gasification or 9 https://ec.europa.eu/energy/sites/ener/files/documents/1_EN_ACT_part1_v8_0.pdf 10 http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2015:337:REV1 11 http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32015L1513 12 http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32009L0028 13 http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0030 14 http://ec.europa.eu/research/participants/data/ref/h2020/wp/2016_2017/main/h2020-wp1617-energy_en.pdf 15 https://setis.ec.europa.eu/publications/setis-magazine/carbon-capture-utilisation-and-storage/spurring-innovation-carbon 18PDF Image | evaluation of CO2 utilisation for fuel production
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