Have you heard of e-fuels? A carbon neutral fuel made from air and water. Almost as dense as the real stuff. Requiring zero modifications for your car to slurp it up and keep that internal combustion box purring. This synthetic go-juice has to be the future. Well the automotive industry and big oil sure seem to think so. But is the topic as cut and dry as they would have you believe?
A quick history of synthetic fuel
The idea of synthetic fuel goes back over a century, to the early 1910s, a time of Titanic Voyages, Charlie Chaplin, and oh yes, World War 1, or The Great War, as it was so optimistically labelled. A German chemist and Nobel Laureate by the name of Friedrich Bergius came up with the basic carbon/water principle for the production of synthetic fuel.
By the time the Second World War came around, this coal-based synthetic fuel based on Bergius’ ideas was quite literally keeping the Nazi’s in the air. In the height of the war, synthetic fuel accounted for over 90% of the aviation fuel consumed. What’s more, during the entire year of 1943, over half of Germany’s oil supply was synthetic.
What are E-fuels?
Today, a specific synthetic fuel, called e-fuel, is garnering much attention in the automotive world and amongst environmental activists. Without getting too technical, here’s the gist of how they’re made. E-fuels are created by splitting water into hydrogen and oxygen using renewable energy e.g. solar, wind; and then combining the hydrogen with captured carbon dioxide, resulting in the creation of hydrocarbon chains, forming liquid. The carbon capture method used to make these e-fuels theoretically creates a closed loop of carbon emissions, as an equal amount goes into, and is later emitted from use.
Porsche leading the E-fuel charge
German brand Porsche are at the forefront of the e-fuel movement, having partnered with HIF (Highly Innovative Fuels), and Siemens Energy, to open a production plant in Southern Chile powered by wind turbines that are kept busy with strong gusts 270 days of the year. An initial investment from Porsche of $24 million has gotten the project off the ground, a number that has now risen to over $100 million. Forecasts indicate 55 million litres will be produced in 2024, jumping up to 550 million in 2026. Costs are touted to drop to $2/litre, which would be a massive barrier cleared for e-fuels. Porsche looks at the 1.3 billion internal combustion engine vehicles (ICEs) on the road today, and sees a huge opportunity in this space, to create a bridge to a decarbonised future.
E-fuels over Electric Vehicles?
However, Porsche’s pursuit of e-fuels has attracted sceptics who question their motives, suggesting that the company is using this as a way to avoid the transition to electric vehicles (EVs). And this is somewhat true. Yes, Porsche benefits from the introduction of e-fuels into regulatory plans. We have already seen the EU announcement that production of ICEs will be permitted past 2035, under the condition that they run off e-fuels.
This amendment was put forward by Germany last year, with support from Italy among other EU countries. This makes a lot of sense when you think of all the luxury car brands from these countries, who would rather not part ways with their ICE roots. High performance sports cars have complex power and weight variables which make transitioning from engine to battery tricky to say the least. The car engine is embedded in these cultures, and they feel that if it can be done in an environmentally responsible way, these cars should be allowed to remain on the road. The sentiment is shared by Ferrari and McLaren, and even BMW see e-fuels as worth investigating for the existing fleet of ICEs.
Despite what many in the opposing camp believe, Michael Steiner, the Head of Porsche R&D, emphasises that Porsche remains committed to their goal of achieving an 80% EV lineup by 2030 and striving for a carbon-neutral balance sheet throughout their value chain. It’s hard to look past the obvious biases playing a part here, but the EU seems to be convinced.
Challenges with E-fuels
There are downsides to this new tech that Porsche and the e-fuel yay-sayers tend not to mention.
The biggest: Efficiency.
Studies have examined the performance of e-fuels in terms of energy efficiency, with the findings indicating a range of 8-18% of energy used in the steps we covered actually making it to the wheel. For EVs, the number is 70%. This is worrying, borderline shocking. Additionally, this labour-intensive process causes e-fuels to cost $10/litre to produce, and regulation struggles aren’t helping. Future estimates of $1-5/litre are more promising, but it remains to be seen whether this reduction is achievable.
This may be causing you to wonder why anyone would look at e-fuels as a promising business venture. Markus Speith, lead developer of the e-fuel project at Siemens, makes the point that the wind energy harnessed in remote places such as the plant in Chile would otherwise go to waste, given that there is no grid connection possible to transport it, so converting into hydrogen is the only option to harness this cheap clean energy. This is true, but environmentalists argue that it would still be more efficient to stop at the hydrogen extraction step, and use it to create EV batteries, which is where his point falls a little flat.
Another downside highlighted by Transport & Environment (T&E) tells of how current estimates have e-fuels able to supply just 2% of the world’s vehicles by 2035. Yet again, a worrying statistic for the suits at Porsche. However, as has been seen in the EV industry, technological advancements and improved infrastructure can bring huge changes in production potential.
E-fuels can’t compete with EVs on efficiency, that much is clear. Members of the e-fuel camp will point out though, that globally, less than 30% of electricity comes from renewable sources. So ironically, EVs are mostly harnessing dirty power to generate their clean energy. Projects such as the wind farms in Chile make e-fuels 100% renewably sourced. Additionally, in the case of larger transportation vehicles like planes and ships, things are looking increasingly promising. A plane being run off of a lithium battery would be too heavy to take off. In this arena, e-fuels can dramatically reduce carbon emissions, and your favourite celebrities can whizz around in their private jets without killing the planet (as quickly). No, but seriously. Emissions from large vessels have always been a difficult fix, but e-fuels bring hope.
The future of E-fuels
At this moment in time, it looks like an uphill battle for e-fuels. It seems illogical, however, to write them off, considering their undeniable environmental benefit as a replacement for traditional fuels. One thing they have going for them is an ability to seamlessly integrate with existing infrastructure e.g. filling stations and car fuel tanks, while availability of EV charging points continues to pose challenges. I don’t think anyone who is looking at the current state of e-fuels is thinking they can replace EVs as the eco-friendly option. The efficiency argument is too strong. However, the environmentalist/realist can surely recognise the challenge facing the EV industry to replace all ICEs on the road. This will not happen overnight, and there is promise that e-fuels may be able to serve as the bridge technology it is being marketed as, if they can reach the required output in a more cost-efficient way.
As the world moves towards decarbonisation, this issue will only be pulled more into the spotlight. It is hard to know at this early stage whether e-fuels are all they’re hyped up to be, but surely even the biggest sceptic can see some merit in an almost carbon-neutral fuel, regardless of its efficiency questions. After extensive research, I landed somewhere in the middle. No, e-fuels are not this environmentally perfect solution to the fuel problem, but they are a solution. We have dug ourselves quite a hole, and any technology that has potential to help us in the battle for the planet is surely worth exploring.
FAQs
What are e-fuels made of?
E-fuels are synthesized from electricity and carbon dioxide (CO2).
Are e-fuels renewable?
Yes, if the electricity used to create them is sourced from renewable energy.
Can e-fuels be used in existing engines?
Yes, e-fuels can be used in existing engines without significant modifications.
Why aren’t we using e-fuels widely yet?
High production costs and energy efficiency concerns are among the challenges currently faced by e-fuels.
What are the environmental impacts of e-fuels?
While e-fuels can achieve a neutral carbon footprint, their production can still have an environmental impact depending on the source of CO2 and energy used.