AoT Pathways for Airports to Develop into Energy Hubs April 2024

Ground service equipment (GSE) –Airlines –Airports –Ground handling companies –Fixed-base operators –MRO providers –Cargo-handling companies –Technology: Hydrogen refuelling infrastructure, hydrogen storage and distribution systems –Policy: Streamlined permitting and licensing frameworks, incentives and subsidies to scale hydrogen solutions –Economics: Cost-reduction strategies, competitive TCO, funding and financing options (e.g., Public Private Partnerships (PPP), green bonds) –Education: Technical training for staff, awareness and outreach, certification programmes for technical operators –Partners: Governments, manufacturers, airlines, infrastructure providers Buses –Airport authorities –Airlines –GSE providers –Car park operators –Car rental companies –Local transit agencies –Technology: Fleet development, refuelling infrastructure, storage and distribution systems, safety systems –Policy: Standards and safety codes, incentives and subsidies to scale hydrogen solutions –Economics: Cost-reduction strategies, TCO analysis, funding and financing options (e.g., PPPs, green bonds) –Education: Technical training for staff, awareness and outreach, certification programmes for technical operators –Partners: Federal agencies, airlines, local transit agencies, car rental companies, car park operators Note: PtL SAF is another key use case for hydrogen at airports; however, SAF is not in scope for this analysis Conditions and actors that must be in place for airports to successfully serve as energy hubs Ten levers related to demand and supply can help airports develop into energy hubs. Adjacency to and critical mass of “offtakers” of likely energy products (i.e., H2, SAF, electricity) and ability to adopt to new technologies for future takersCapabilities to generate utility-level energy on-airport or adjacency to energy producers off-airport Regional demand for centralized green energy with willingness to pay green premium vs fossil fuels Competitive unit economics for production and/or distribution of green energy vs local alternatives, including a defined “last-mile” premium Signed commercial partnerships with operators using sustainable fuels (e.g., SAF) and other potential ecosystem players (e.g., OEMs)Competitive advantage in non-production elements of the value chain (e.g., energy storage, transmission) Existing logistics infrastructure (e.g., access to maritime port, rail lines, capacity for truck traffic) with ability to scaleCapabilities and funding to scale to meet regional needs before market is saturated by other players Solutions to space constraints at international and regional airportsIncentive and policy regime that enables the required unit economicsDemand levers Supply levers