E-fueling for the future

The development of carbon-neutral e-fuels enjoyed a major boost from European regulators, but production cost and scale remain issues.

Synthetic and bio-based liquid “e-fuels” have in various forms enjoyed fits and starts of industry attention and R&D investment in recent years. They got the most significant boost ever in March 2023 when a politically charged deal between the European Union and Germany brokered an exemption in the EU's mandate for sales only of EVs starting in 2035. The agreement allows manufacturers to continue selling internal-combustion models after the 2035 deadline - but only if they run on carbon-neutral e-fuels.

In an instant, e-fuels were guaranteed a market all to themselves. It remains to be seen whether e-fuels - at least in their current state of technology - can answer the call. But as some supporters enthused after the EU's escort of e-fuels into the post-EV landscape, developers have more than a decade to address technical challenges and concerns about production cost and scale.