E-fuels hold promise, and could become part of the transportation energy mix.
By Joe O’Brien
As a possible fossil fuel replacement, e-fuels have tremendous potential as both a bridge fuel and long-term decarbonization solution. But until recently, they have been a bit of an outlier in the clean energy race. As new developments reshape the energy landscape, e-fuels have begun to garner increased attention for their unique role in sustainable transportation.
Here’s what you need to know about this promising—albeit complex—source of transportation energy.
Q: What are e-fuels and what aren’t they?
A: E-fuels (also called eFuels) are synthetically produced alternatives to fossil fuels. Notably, liquid e-fuels are compatible with today’s internal combustion engines (ICEs) and distribution equipment without the need for any modifications.
The “e” in e-fuel is a reference to the electricity needed to produce them. Unfortunately, in this moment in the fueling industry, “e” is also associated with other low-carbon or zero-emission alternatives taking center stage—namely electric vehicles (EVs) and ethanol (E10, E15, E20 and E85).
The repetitive naming, coupled with electricity’s role in both EVs and e-fuels, can make it a challenge to quickly identify which decarbonization solution is being addressed.
Q: How are e-fuels made?
A: To create e-fuels, the chemical molecules that make up hydrocarbon fossil fuels are created synthetically.
HIF Global, a company at the forefront of e-fuel development, describes its process this way:
- Use renewable energy to produce green hydrogen via electrolysis.
- Capture CO2 from the atmosphere or from an industrial or biogenic source.
- Combine the green hydrogen with the CO2 through a process called synthesis to create the fossil fuel substitute.
Even though burning e-fuel in ICE engines still produces carbon dioxide pollution because it is chemically equivalent to fossil fuels, e-fuels are considered CO2-neutral over their overall lifecycle because carbon dioxide is captured from the environment and recycled as an ingredient to create the fuel.
Q: What are some of the perceived benefits to e-fuel adoption?
A: E-fuels have the potential to accelerate decarbonization. Compared to climate change mitigation strategies that rely heavily on EVs, e-fuels don’t require the vehicle fleet to change over—which could take decades to achieve—in order to decarbonize. Additionally, e-fuels provide a pathway to decarbonization for scenarios in which EV adoption rates may stall due to financial barriers.
Furthermore, as “drop-in” fuels that are completely interchangeable with petroleum-derived gasoline, diesel and jet fuel, e-fuels can be mixed with fossil fuels. This capability makes it possible to gradually bring fossil fuel consumption down as low-carbon and zero-emission solutions ramp up.
E-fuels are also easy to store and transport. And, like fossil fuels, e-fuels have a high energy density, which is necessary for aviation, rail and marine applications.
E-fuels also circumvent at least one EV-related supply chain concern: sourcing and processing the minerals needed to produce EV batteries.
Q: What are some of the perceived drawbacks to e-fuel adoption?
A: E-fuels are in their infancy and not yet produced at scale. As such, they are expected to be expensive—at least initially. The International Council on Clean Transportation estimated that e-fuels produced at a commercial scale would cost more than $25 per gallon.
Additionally, similar to challenges facing a nationwide conversion to EVs, there are gaps in the infrastructure. Renewable electricity is essential for achieving the low- or no-emission production goals that are necessary to make e-fuels carbon neutral over their lifecycle. As such, renewable electricity would also need to be scaled up.
Finally, e-fuels are said to waste a lot of energy during production. One report suggested that due to the electricity needed to produce e-fuels, a car running on e-fuel would burn through significantly more electricity than an EV would use to go the same distance.
Q: What progress is being made to expand e-fuels?
A: Financial backing for e-fuels is starting to take off. BMW has invested $12.5 million in e-fuel startup Prometheus Fuels. Porsche holds a stake in e-fuel producer HIF Global, which is taking steps to become one of the largest e-fuel producers in the world. HIF aims to produce 140,000 barrels per day and transform 5 million vehicles to be carbon neutral by 2030. In support of that goal, the company is planning to bring new production facilities to Texas and Australia.
Q: What regulatory and policy factors could impact the expansion of e-fuels?
A: At least two significant developments on the global stage will pose challenges for e-fuels in comparison to EVs:
- EVs have received tremendous government support.
- A trend to ban ICEs began in Europe and has spread to other areas of the world, including California.
The European Union proposed banning ICEs in 2035. Just prior to adoption of the ban, Germany lodged opposition to it. The EU commission then announced that ICE vehicles could still be sold after 2035 if the vehicles are powered by net-zero fuels.
In the United States, California adopted a 2035 ban of ICEs in new vehicles, and states aligned with California’s environmental regulations are expected to follow. China, the largest automotive market, is mandating all new vehicles be powered by “new energy” by 2035.
Shaping the Future
Addressing climate change stands as a paramount concern, and e-fuels could be instrumental in the pursuit of this mission. In the short term, they represent a bridge toward zero-emission vehicles. Long term, e-fuels could be a critical component in a portfolio of transportation energy options that help the U.S. improve its overall energy security.
That notwithstanding, if consumers are presented with the choice between buying EVs and retaining ICE vehicles, their preferences are likely to be a deciding factor in the future of transportation energy in the U.S.
Joe O’Brien is vice president of marketing at Source North America Corporation. He has more than 25 years of experience in the petroleum equipment fuel industry. Contact him at [email protected] or visit sourcena.com to learn more.
