SFOE Subsidy framework for enhancing the H2 economy in CH

Partners: ETHZ (FEN), Compass Lexecon
Duration: 04/2022 - 11/2022
Funding: SFOE
Project Leader: Compass Lexecon
Project Team: Dr. Alexander Fuchs, Dr. Adamantios Marinakis, Dr. Turhan Demiray, Dr. Jared Garrison

The first part of the study models supply and demand in the future Swiss hydrogen market in order to estimate the promotion needs of locally produced green hydrogen compared to substitutes. Based on this, the second part analyzes different support systems to efficiently achieve the required market penetration of hydrogen. For this purpose, different demand- and supply-side promotion instruments, as well as their combination, for the promotion of hydrogen are modeled and evaluated against each other with respect to effectiveness and cost efficiency, with a special focus on consumer burden.

In summary, the result of the study is a quantitative assessment of different support schemes based on a detailed modeling of the future Swiss hydrogen market.

ETHZ-FEN will perform the quantitative analysis, using FlexECO to determine the hydrogen production costs for different scenarios, compare the price to alternative fossile sources and assess different combinations of subsidy schemes regarding the multiple objectives.

Green hydrogen is a key to the comprehensive decarbonization of Switzerland. Its future use is described in the scenarios of the Energy Perspectives 2050+. However, even taking into account cost degressions for electrolysers and renewable energies, the marketability of green hydrogen is not expected before 2030.

With this background, the Swiss Federal Office of Energy (SFOE) is currently developing a hydrogen roadmap for Switzerland. An important element of this work is the development of a subsidy strategy for green hydrogen.

  • Coordination with SFOE on scenarios, assumptions and criteria
  • Hydrogen demand
  • Hydrogen supply
  • Costs of the substitutes
  • Advantages and disadvantages of different support (subsidy) systems for Switzerland
  • Quantitative analysis of the hydrogen promotion framework for Switzerland
  • Recommendations
JavaScript has been disabled in your browser