New EU legislation on CO2 emitting vehicles is agreed with the German government effectively arguing the case for E-fuels. Critics say the technology is a “diversion away from the proven case for electric vehicles.

It is well agreed by policy makers that surface transport must adapt in order to reduce its carbon impact. Electric vehicles are seen as the leading solution but some see E-fuels as a better option.
Published
April 4, 2023

The EU agrees new legal framework for the phasing out of carbon producing vehicles

A ground-breaking rule to ban the sale of new CO2-emitting vehicles in the European Union was finally approved on the 28th of March after Germany obtained an exemption for e-fuel vehicles. The primary climate strategy for vehicles in Europe can now go into effect following approval of the energy ministers of EU member states. According to EU regulation, all newly manufactured cars must have zero CO2 emissions starting in 2035 and CO2 emissions that are 55% lower than in 2021 starting in 2030. The goals are meant to encourage Europe's new car fleets to rapidly decarbonise. Nonetheless, the European Commission has promised to establish a legal pathway for the continuation of new car sales that only use e-fuels after 2035 in response to Germany's demand for this exception.[i] The destiny of the tradition internal combustion engine vehicles was still very much up for debate when they left their meeting the week before the agreement, despite a deal between Berlin and Brussels appearing to be close at hand. The previously agreed legislation has been held hostage by Berlin and a number of allies, who have demanded that the Commission create a loophole to permit the sale of some conventional combustion-engine vehicles after 2035, provided that they are powered by synthetic fuels, or e-fuels, which are, in theory, carbon-neutral.[ii] E-fuels, such as e-kerosene, e-methane, or e-methanol, are created by combining hydrogen produced from renewable or CO2-free power with CO2 emissions that have been absorbed. When used in an engine, the fuels emit CO2 into the atmosphere. Yet, the assumption is that these emissions will balance out the amount of CO2 removed from the environment to make the fuel, making the fuel overall CO2-neutral. E-fuel production is not yet scaled up. The first commercial plant in the world, financed by Porsche, debuted in Chile in 2021 with a goal of producing 550 million litres annually. Other plants include Norsk e-Fuel in Norway, which will start producing in 2024 with an emphasis on sustainable aviation fuel.[iii]

Global pilot e-fuel plant Haru Oni in Chile
Source: Porche

E-fuels: dividing opinion

Proponents of E-fuels say that such initiatives support climate protection by displacing fossil fuels and reducing overall CO2 emissions, while also improving the usage of the facilities for the production of renewable electricity. Additionally, they claim that since these synthetic fuels are free of sulphur, nitrogen, and aromatics, they can be utilised to minimise or completely prevent the emission of dangerous gases like sulphur oxides, nitrogen oxides and particulates from combustion engines. In large portions of long-distance and goods traffic (heavy goods, air transport, and maritime transport), for which direct electrification is not practical due to technical or financial considerations, synthetic fuels are particularly suitable for achieving a relatively rapid reduction in emissions.[iv]

In order to put these claims about clean fuel to the test, Transport and Environment (a European transport campaign group) engaged IFP Energies Nouvelles (IFPEN) to conduct a number of lab-based experiments that replicated real-world driving in order to assess the emissions of several e-petrol mixes in an A-class (A180) Mercedes. IFPEN’s methodology mixed three e-fuel blends that are representative of potential future fuel that are compatible with petrol cars because, despite extensive publicity from some car suppliers and the oil industry, the e-petrol needed to conduct the tests could not be purchased due to lack of commercial production. Two different blends of 100% e-petrol and one with a 10% second-generation ethanol and e-fuel were created. The emissions were contrasted with common E10 EU petrol.[v] Their results found that whilst the fuels did see a substantial reduction in particulate emissions of up to 97%, the amount of nitrogen oxide emissions remained the same and the amount of carbon monoxide was 1.2 to 1.5 times higher than traditional fuels.[vi]

Volker Wissing a member of the FDP party who were instrumental in the protection of E-fuels by law said: “The internal combustion engine is not the problem. The fossil fuels that run it are,”… “The goal is climate neutrality, which is also an opportunity for new technologies. We need to be open to different solutions,”.[vii]

Conversely, before the final agreement was reached, Julia Poliscanova, senior director for vehicles and e-mobility at Transport & Environment said: “Europe needs to move forward and give clarity to its automotive industry which is in a race with the US and China. E-fuels are an expensive and massively inefficient diversion from the transformation to electric facing Europe’s carmakers. For the sake of Europe’s climate credibility, the 2035 zero-emissions cars deal needs to enter law without any further delay.”.[viii]

References

[i] Reuters- EU countries approve 2035 phaseout of CO2-emitting cars

[ii] Politico- EU leaders’ summit ends on a car cliffhanger

[iii] Reuters- Explainer: What are e-fuels, and can they help make cars CO2-free?

[iv] RWE- E-fuels: Developing climate-neutral synthetic fuels from water and CO2

[v] Transport & Environment- Magic Green Fuels: Why synthetic fuels will not solve Europe’s pollution problem

[vi] Ibid

[vii] CNN- EU was set to ban internal combustion engine cars. Then Germany suddenly changed its mind

[viii] Transport & Environment- T&E reaction to EU and Germany deal on 2035 zero-emissions cars law

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Oscar Pusey
Research Analyst

Oscar is a recent graduate with a background in earth science. He is currently studying an MSc focussing on disaster responses, emergency planning and community resilience. His postgraduate research project will assess the link between climate crisis risk perception and attitudes to green energy projects. “Adapting to the climate crisis through the pursuit of net zero requires community engagement and understanding. Zero Carbon Academy’s goals closely align with this approach and I’m excited to have the opportunity to research and communicate a variety of topics relating to our environment and sustainability”.

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