Tag

E-Fuels

Energy taxes: Council postpones decision

Climate-friendly e-fuels will continue to be taxed at the same level as petrol. The agreement on the Energy Tax Directive sought by the Council Presidency was removed from the agenda of the meeting of finance ministers on Wednesday.

By Manuel Berkel

E-fuels are increasingly being discussed as a potential solution for the decarbonization of road transport, especially for the continued use of combustion engines. But what exactly are e-fuels, how are they produced and what advantages and disadvantages do they have? Read all the news about e-fuels from the Table.Briefings editorial team here. What are e-fuels? E-fuels (electrochemical fuels) are synthetic fuels that are produced using renewable energy. In contrast to conventional fossil fuels, e-fuels are not obtained from crude oil, but through chemical processes in which hydrogen and carbon dioxide (CO₂) are converted into liquid or gaseous fuels. The key advantage of these fuels is that the required CO₂ is extracted from the atmosphere or other sources. As a result, the CO₂ cycle remains theoretically climate-neutral. E-fuels production E-fuels production is based on the use of green hydrogen, which is produced by electrolysis of water using renewable energy. In a further step, this hydrogen is combined with CO₂ to synthesize hydrocarbons, which can then be further processed into liquid fuels such as petrol, diesel or kerosene. The entire process is energy-intensive and requires large amounts of electricity from renewable sources to be truly climate-friendly. Can any car run on e-fuels? E-fuels are designed so that they can be used in conventional combustion engines without having to adapt the engine or other components of the vehicle. This means that both existing and new vehicles that run on gasoline or diesel could benefit from e-fuels. This makes e-fuels particularly attractive, as the existing fleet of combustion engines does not have to be immediately replaced by electric vehicles. Advantages of e-fuels The advantages of e-fuels include the following points: What are the arguments against e-fuels? Despite the many potential benefits, there are also arguments against e-fuels. Here are some of the main criticisms: E-fuels and the combustion engine A major advantage of e-fuels for the combustion engine is that they allow existing vehicle technologies to continue to be used. This is particularly interesting for countries or regions where rapid electrification of transport is not possible. There are therefore discussions in the automotive industry about using e-fuels as a bridging technology to bridge the transition period to emission-free vehicles. This is a positive development for many owners of classic cars or vehicles with combustion engines, as they can continue to use their vehicles in a low-carbon future without having to rely on expensive conversions or the purchase of a new electric vehicle. When will e-fuels come onto the market? Various e-fuels projects are currently still in the development and testing phase. However, it is expected that e-fuels will become increasingly available over the next few years. The first commercial production plants are being planned or are already under construction in Chile, Germany and other countries. Widespread availability of e-fuels could be achieved towards the end of the decade, around 2030, provided that the technical and economic challenges are overcome. E-fuels price: what can consumers expect? The price of e-fuels is another important factor for future acceptance. Currently, the cost of producing e-fuels is significantly higher than that of conventional petrol or diesel. Experts assume that the price will fall as production capacity increases and the technology is scaled up. In the initial phase, however, e-fuels could be significantly more expensive for the end consumer than fossil fuels or even electricity for electric vehicles. A crucial point will be whether government subsidies or tax breaks make the costs competitive for consumers. E-fuels offer a promising opportunity to reduce CO₂ emissions from combustion engines while continuing to use the existing vehicle and infrastructure. Despite the advantages, such as use in existing combustion engines and potential climate neutrality, e-fuels face significant challenges. High production costs, the immense energy requirement and the efficiency issue compared to battery-powered vehicles are points that need to be considered critically. While e-fuels could play a role in sustainable mobility in the long term, it will be several years before they are available on a large scale and at competitive prices.