Ameer Randolph
E-fuels are carbon-neutral synthetic fuels that can be used in existing internal combustion engines without the need for modifications. They are made by synthesizing captured carbon dioxide emissions and hydrogen produced using renewable or CO2-free electricity. While e-fuels are seen as a potential low-carbon alternative to electrification, they are currently very expensive to produce and emit many of the same pollutants as petrol and diesel.
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What You'll Learn
E-fuels are carbon-neutral
E-fuels, or electrofuels, are synthetic fuels produced through electrolysis, which splits water molecules into hydrogen and oxygen using renewable electricity. This process of using renewable electricity during electrolysis means that the production of hydrogen is free from direct greenhouse gas emissions. The CO2 used in the process can be captured from biomass sources or directly from the atmosphere, balancing out the carbon emissions from combustion with carbon captured.
The use of e-fuels in cars has been touted by the fossil fuel industry and car parts suppliers as a way to prolong the life of the internal combustion engine beyond zero-emissions targets. However, independent emissions testing has shown that cars powered by synthetic fuel emit similar levels of poisonous nitrogen oxides (NOx) and carbon monoxide as fossil fuel engines. While particle emissions are reduced, more than two billion particles are still emitted for every kilometre driven in an e-petrol-powered vehicle.
E-fuels are currently very expensive to produce, with a complex supply chain, and emit many of the same pollutants as petrol and diesel. They are not yet produced at scale, with the world's first commercial plant opening in Chile in 2021. Despite these challenges, some carmakers, such as Porsche and Mazda, have expressed interest in e-fuels, recognising their potential benefits, particularly for existing cars with combustion engines.
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They are expensive to produce
E-fuels are produced using decarbonised power sources such as wind, solar, or wave energy. They can come in gas or liquid form and are considered a better alternative for the environment as the carbon released during their application is captured during production. However, they are expensive to produce.
The production of e-fuels is inherently inefficient, with only about half of the energy in the electricity being converted into liquid or gaseous fuels. The equipment used in the process is also expensive. Electrolyzers, for instance, are used to break water into hydrogen and oxygen and are notoriously expensive. The inefficiency of the process essentially magnifies the cost of power.
The process of producing e-fuels is also very energy-intensive. Using e-fuels in an internal combustion engine (ICE) car requires about five times more renewable electricity than running a battery-electric vehicle. This means that to power Europe's road transport fleet with liquid e-fuels, the EU would have to generate one and a half times more than its current total electricity production.
The high cost of producing e-fuels is reflected in their market price. A research and development executive at Porsche estimates that it costs £37.24 per imperial gallon at present, but he projects an eventual cost of £6.30. This is significantly higher than the cost of fossil fuels. As a result, running a car on e-fuels over five years will cost a driver €10,000 more than running a battery electric car.
Due to their high cost and inefficiency, e-fuels are not seen as a viable solution for decarbonizing the transportation sector. They might have a role for specialist vehicles, but they are not considered a solution for normal cars and vans.
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They are not widely available
E-fuels are not yet widely available due to a range of factors, including production costs, scale, and environmental concerns.
Firstly, e-fuels are currently very expensive to produce, with a complex and energy-intensive manufacturing process. The high costs of e-fuels will make running cars on these fuels significantly more expensive than electric alternatives. For example, a research and development executive at Porsche estimated that e-fuels currently cost £37.24 per imperial gallon, although he projected that costs would eventually decrease to £6.30. However, other estimates suggest that e-fuels could cost more than €2.80 per litre at the pump in Germany by 2030, which is almost 50% more expensive than regular petrol. These high costs will likely make e-fuels inaccessible to many drivers.
Secondly, e-fuels are not yet produced at scale. The world's first commercial e-fuel plant opened in Chile in 2021, with a planned production capacity of 550 million litres per year. While other plants are in the works, such as Norway's Norsk e-Fuel, which is due to begin production in 2024, the current lack of large-scale production limits the widespread availability of e-fuels.
Additionally, there are concerns about the environmental impact of e-fuels. While they are theoretically carbon-neutral, independent emissions testing has shown that cars running on e-fuels can emit equally high levels of toxic nitrogen oxides (NOx) and even higher levels of carbon monoxide and ammonia compared to traditional fossil fuels. As a result, e-fuels may not significantly improve air quality, especially in cities.
Furthermore, some policymakers and carmakers argue that e-fuels should be reserved for sectors such as aviation and shipping, where electrification is not a practical option due to the weight of batteries. This further limits the availability of e-fuels for cars and other passenger vehicles.
Lastly, most major carmakers are investing heavily in battery-electric vehicles as the main route to cut CO2 emissions, rather than focusing on e-fuels. This includes companies such as Ford, Volvo, Volkswagen, and Mercedes-Benz. With their commitment to electrification, the widespread adoption and availability of e-fuels for cars may be further delayed or limited.
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They are supported by the EU
E-fuels are supported by the EU as a means to achieve climate neutrality and meet the goals of the European Green Deal, which aims to make the entire economy climate-neutral by 2050. The EU recognises that e-fuels can play a role in reducing greenhouse gas emissions and transitioning to a more sustainable energy landscape.
The EU's support for e-fuels is evident in its regulatory approach, which promotes the development and adoption of synthetic liquid and gaseous fuels. The EU has also included the fuels industry as a strategic sector in the Clean Industrial Deal, recognising its role in achieving climate neutrality. The EU's binding mandates, quotas, and directives further encourage the integration of e-fuels into the energy landscape.
However, there is some internal debate within the EU regarding the role of e-fuels. Some member states, like Germany and Italy, have pushed to delay the phase-out of combustion engine cars and create exemptions for e-fuels in car CO2 standards. They argue that e-fuels can prolong the life of internal combustion engines and provide a more flexible path to reducing emissions.
On the other hand, critics argue that e-fuels are not a proven technology and that they emit similar pollutants to petrol and diesel engines. There are also concerns about the high costs and complex supply chains associated with e-fuels. Some countries, like the UK, remain committed to the widespread adoption of electric vehicles and do not see e-fuels as a solution for normal cars and vans.
Despite the ongoing discussions, the EU's support for e-fuels is driven by its goal of achieving climate neutrality and its willingness to explore nascent technologies. The EU recognises the potential benefits of e-fuels, particularly in sectors that are challenging to decarbonise, such as shipping and aviation. The EU's approach aims to balance sustainability, innovation, and competition in the transition towards a greener future.
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They are not suitable for new cars
E-fuels are not suitable for new cars for several reasons. Firstly, they are very expensive to produce, with a Porsche research and development executive estimating the current cost to be £37.24 per imperial gallon, almost five times more than the projected future cost of £6.30. This high cost of production is passed on to the consumer, with e-fuels adding an extra €10,000 to the cost of running a car over five years compared to a battery electric car. This makes e-fuels an unaffordable option for most drivers.
Secondly, e-fuels are not yet produced at scale. The world's first commercial e-fuel plant opened in Chile in 2021, backed by Porsche, and aims to produce 550 million litres per year. While this is a significant development, it is not enough to meet the demand for new cars, which would require a much larger scale of production.
Thirdly, e-fuels are not environmentally friendly. While they are carbon-neutral in theory, in practice, they emit as much poisonous nitrogen oxide (NOx) as fossil fuel engines, as well as high levels of carbon monoxide and ammonia. A study by consultancy Cerulogy for NGO Transport & Environment (T&E) found that to power Europe's road transport fleet with liquid e-fuels, the EU would have to generate one and a half times more than its current total electricity production, and all of this electricity would have to be renewable. This is not a realistic option, and as a result, e-fuels are not a sustainable choice for new cars.
Finally, e-fuels are not a proven technology and have complex supply chains. They are also not widely available, unlike battery-electric vehicles, which are already on the market and have the support of major carmakers. Overall, e-fuels are not suitable for new cars due to their high cost, limited production, environmental impact, and lack of proven effectiveness.
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Frequently asked questions
E-fuels, like e-kerosene, e-methane, or e-methanol, are made by synthesizing captured CO2 emissions and hydrogen produced using renewable or CO2-free electricity.
E-fuels are carbon-neutral, meaning they emit the same amount of CO2 emissions as they capture during their production. However, burning e-fuels produces poisonous carbon monoxide and nitrogen oxide, similar to burning fossil fuels.
E-fuels can be used in existing internal combustion engines without the need for modifications, making them a potential substitute for fossil fuels in the transportation sector. They can also leverage existing fuel infrastructure such as refineries, pipelines, and fuel lorries.
E-fuels are currently very expensive to produce and have complex supply chains. They also emit similar pollutants to petrol and diesel.
