The fate of Germany and the EU’s climate goals by 2045 and 2050 hinges on the automotive industry. As the electric vehicle sector faces a crisis, innovative fuels are emerging as a potential solution.
Berlin/Rome – In late 2019, officials from EU member states decided that the European Union should become climate-neutral by 2050. Increased extreme weather events across the continent highlight the importance of adhering to EU climate targets. This was underscored recently by the storm “Anett” (internationally “Boris”), which swept through Central and Eastern Europe and has now reached Italy, demonstrating the high cost of neglected environmental protection for EU countries.
To meet the EU-wide climate goals by 2050, decisive action is required. EU countries have been urged to reduce their net greenhouse gas emissions by at least 55 percent by 2030. The European climate strategy also stipulates that vehicles with traditional combustion engines will only be approved from 2035 if they operate emissions-free. This requirement is essential in the fight against climate change, yet it is increasingly being challenged as a political issue. But what is the status of alternative fuels?
E-fuels could gain significant importance due to the electric vehicle crisis
Historically, electromobility was seen as the greatest hope for replacing combustion engines on a large scale. However, the German electric mobility sector is currently in crisis. The Audi plant in Brussels is facing closure due to weak demand for its electric SUV, the Q8 e-tron. Volkswagen is also undergoing a transformation: Earlier this month, the automaker announced plans to further tighten its cost savings measures, which for the first time in 30 years puts job security at risk.
Moreover, the previously clear phase-out of combustion engines is increasingly being challenged from various political directions. The newly designated chancellor candidate of the Union, Friedrich Merz (CDU), expressed his unwavering opposition to the combustion engine ban during the ARD program Farbe Bekennen on September 17, stating, “The answer is clear and unequivocal: yes,” when asked if he would allow combustion engines as a means of propulsion.
Italian Prime Minister Giorgia Meloni even calls for a complete retraction of the ban, describing it in the spring (April 28, 2024) as “suicide,” as reported by the Italian media outlet Quattroruote. This poses a significant setback regarding EU climate targets. ADAC’s technology president, Karsten Schulze, adds, “Millions of combustion engines are on German roads and have a long lifespan ahead. If climate protection goals in transport are to be met, a solution for this existing stock is essential.” Could the transition to synthetic fuels, known as E-fuels, be the solution?
Currently, E-fuel production infrastructure is lagging
It has long been known that E-fuels are necessary to operate traditional combustion engines without fossil fuels. However, the EU’s infrastructure for producing these promising fuels is currently severely lacking. A Porsche facility in southern Argentina is being developed to produce E-fuels, with the first outputs anticipated by mid-2025.
However, there is still one missing component, as reported by Wirtschaftswoche. This involves a Direct-Air-Capture (DAC) facility, which will extract carbon from the surrounding air. CO2, along with hydrogen produced via electrolysis and green electricity, is one of the essential components for manufacturing E-petrol, a hydrocarbon compound.
Currently, E-fuel producers lack investment and planning security
In addition to the production facility in Patagonia, there are currently several planned E-fuel production centers around the world. According to Efuel-alliance.eu, 16 of them are located in Europe, including five in Germany. The remaining facilities are set to be distributed across England, France, Spain, and Scandinavia, excluding Finland but including Iceland. Additional production centers have been announced in Australia, the USA, and Saudi Arabia.
However, as of now, manufacturers still lack the investment and planning security needed to commence industrial-scale E-fuel production. Furthermore, the current high costs associated with producing these promising fuels make it seem unlikely for them to be widely used in the market any time soon. The Efuel alliance could help reduce bureaucratic obstacles to expedite the expansion of E-fuel production sites.
Undoubtedly, synthetic fuels offer immense potential to bring the EU closer to its climate neutrality goal by 2050 and for Germany to achieve its aim of climate neutrality by 2045. Hydrogen, along with all hydrogen-based E-fuels, can be produced in virtually limitless quantities. Additionally, their combustion process is relatively clean compared to conventional petrol or diesel. Another significant advantage is that E-fuels can also be used in petrol or diesel combustion engines, as measurements by ADAC have now confirmed. (fh)
