wwhat is eFuels?
eFuels are synthetic fuels created from water and CO2 in the synthesis process using renewable energy sources. eFuels can replace fossil fuels and can be used in most applications that currently involve internal combustion engines. When eFuels are burned, they only release the CO2 that was extracted from the atmosphere to create them. This means that their use is climate-neutral.
The debate about efficiency has done nothing to achieve climate policy goals
Producing eFuels is energy intensive. An estimated 60% of the cost of producing synthetic fuels is spent on the renewable electricity needed to produce hydrogen through electrolysis. Consequently, eFuels are produced in parts of the world where conditions are particularly favorable for generating electricity from renewable energy sources. These are often sparsely populated regions with abundant solar and wind supplies – as is the case with the Haru Oni project, run by HIF Global in Patagonia. On average, a wind turbine built there generates almost four times as many hours at full load as a renewable energy plant in Germany. If eFuels are produced in selected regions outside of Europe, they will not compete with other users of Germany’s even smaller supply of renewable electricity. Instead, the world’s vast, untapped potential renewable energy sources can be tapped and used globally in the form of eFuels. Chile, for example, claims to have 70 times more potential renewable energy sources than it needs to meet its own energy needs. The situation is similar in other regions of North and South America, Africa and Australia. The argument that is often repeated without reflection – that eFuels are less efficient compared to the direct use of electricity – thus hides the question that really needs to be asked: How can we replace fossil fuels as soon as possible, at the lowest possible cost. ? From a global perspective, the world does not lack ways to produce renewable energy in the long term; it is problematic that climate-friendly technologies will not be developed in time to end our dependence on fossil-derived energy sources that cause climate change and threaten our electricity supply.
eFuels are not the expensive “champagne of the energy transition”
There is a lot of research into the basics of eFuels. The technology can be transferred to an industrial scale. Today, our members are able to sell eFuels from suitable regions with a production cost between one and two euros per liter. In the long term, the price will fall below 1 euro per liter. eFuel prices of 4 to 10 euros are a myth and relate to eFuels produced in the lab and pilot research facilities. An important part of the retail price that consumers have to pay is Energy Tax. This is now being revised at the European level. The Commission proposes clear tax advantages for eFuels that cover almost all additional costs. In addition, eFuels can be mixed with fossil-derived fuels; if less is added, the initial higher production costs will have little effect on the retail price. Economies of scale mean that the cost of production will fall in the long term, as we have seen in the case of wind power, photovoltaics and batteries. At last count, citizens will thus always remain able to heat their homes or run their cars at current levels.
eFuels is not a niche solution
Industrial-scale production begins, and many investment decisions are made, or are being made. From 2023, eFuels will be available in large quantities. As part of the Green Deal, the EU plans to bring a mandatory quota of 2.6 to 5.7 % green hydrogen and eFuels in the European transport sector by 2030, which works out as equivalent to 14 to 30 billion liters of diesel.
Fraunhofer IEE studied the potential for green hydrogen and synthetic fuels, determining that up to 88,000 TWh of climate-neutral synthetic fuels could be produced outside of Europe. That corresponds to almost three times the energy demand of the global transport sector (33,603 TWh in 2019).
Combining climate protection and energy security with eFuels
Whether it is in the aviation, shipping, rail, road and off-road sectors, the chemical industry or steel production, eFuels are used in all shapes and forms, from hydrogen to motor fuel, ammonia or naphtha, to achieve ot the climate targets and fight. climate change. This cannot be achieved – which is very clear – with eFuels alone: in some contexts, other technologies are of course used, such as all-electric solutions (battery electric vehicles) or heat pumps. The more technological paths we take, the faster we can cut CO2 emissions and the more options available to users. In addition, the ultimate goal is also to be as cost-efficient as possible, to save resources and keep production or movement as cheap as possible. For that reason, we support an approach that is open to different technological solutions and want to create an environment that allows as much competition as possible and requires some regulatory interventions if necessary to achieve ot the climate targets. Adding 5% of eFuels to the European fuel mix would save 60 million tonnes of CO2. At the same time, 70% of Russia’s crude oil imports can be replaced. No technology has only advantages or disadvantages. A one-sided form of trust is never good, as we in Germany are now painfully aware. eFuels thus help protect the climate while also protecting and diversifying our long-term energy supply.
Source: eFuel Alliance eV
