E-fuels offer a long-term solution for key transport sectors, report says
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According to a report by Wood Mackenzie (WoodMac), e-fuels could provide a solution for powering essential transportation sectors like ships, long-haul aircraft, and heavy-duty commercial vehicles. The report emphasizes the need to commence this journey immediately.
The report highlights that the widespread development and adoption of e-fuels, also known as electrofuels and synthetic fuels, are expected to take at least a decade and hinge on the successful deployment of complementary technologies. However, companies that strategically position themselves now will be poised for future success.
WoodMac explained that e-fuels are produced by combining electrolytic (green) hydrogen generated through the electrolysis of water using renewable electricity with captured carbon or nitrogen.
An e-fuel can be considered carbon-neutral if the emissions released during its combustion are equal to or less than the captured CO₂ used in its production.
Read more: Synhelion launches world’s first solar-powered synthetic fuel plant
The report pointed out commercial viability as the key challenge in scaling up e-fuel production since costs associated with producing green hydrogen and capturing CO₂ are both significantly high.
Murray Douglas, Vice President of Hydrogen Research at Wood Mackenzie, said, “There is no shortage of off-takers seeking low-carbon fuels, but the gap between the cost of production and willingness to pay is sizeable.”
Producers who can combine low-cost renewable energy sources with biogenic CO₂ will gain a first-mover advantage. However, establishing this complex, technology-intensive production model is a lengthy process that must begin now to achieve large-scale production by the mid-2030s.
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