E-fuels can play a big role in helping the aviation and shipping sectors cut emissions.
IDTechEx, a research firm, says the e-fuel sector is gaining traction as a solution for hard-to-electrify sectors, offering compatibility with existing engines and infrastructure.
Produced by combining green hydrogen and captured CO2, they reduce emissions without requiring extensive modifications to engines or infrastructure.
Despite promising advantages, however they say adoption is slow. High production costs—e-SAF costs up to ten times more than conventional jet fuel—and inefficiencies in the production process pose significant challenges.
Infrastructure bottlenecks, including renewable electricity and green hydrogen supply, add further hurdles.
Sourcing sustainable CO2, especially through expensive direct air capture, remains a critical barrier.
But the research shows some momentum is growing, companies such as Porsche are intersted in scaling e-fuel technologies.
E-methanol leads the charge due to its versatile applications and mature production methods.
By overcoming cost and scaling barriers, they conclude e-fuels could play a pivotal role in decarbonising industries, while maintaining energy security.