Producing e-fuels remains more expensive than fossil fuel refining, primarily due to the cost of renewable electricity, electrolysis and CO₂ capture. But there has been notable progress.
The Port of Açu in Brazil has launched a green shipping corridor with the Port of Antwerp–Bruges in Belgium, which could be one of the first large-scale e-fuel exports routes by 2030.
Several e-fuel demonstration facilities have already shown that production is technically viable. One example is the HIF Haru Oni e-fuel facility in southern Chile. It has been operating for three years, producing green hydrogen and synthesising it with recycled CO₂ to make e-methanol, e-gasoline and e-liquid gas. The carmaker Porsche has tested Haru Oni’s e-fuels at various events.
They show that synthetic fuels can meet demanding technical and operational requirements, which should encourage other sectors to consider low-carbon fuels as well.
In recent years, electrolyser plant standardisation and pre-engineering innovations have been developed that promise cost reductions as well as lower project construction costs due to modularisation.
Tapping into existing industrial clusters can also help capture infrastructure efficiencies and large quantity equipment orders through economies of scale.
“The next frontier of cost reduction is expected to come from competition and efficiency breakthroughs in CO2 capture, and more co-ordinated co-development with host countries seeking developing of new industries,” notes a World Economic Forum paper, coinciding with the Davos annual conference which starts today.
“Policy that is simple, certain and creates investible opportunities will help e-fuels – and all clean fuels – to achieve scale. Globally, interoperable policy that priorities least-cost production is essential, including harmonised standards, lifecycle-based rules and demand-creation mechanisms. This will help reduce uncertainty for investors and producers and enable viable long-term offtake agreements.”
The European Commission announced a €2.9bn investment for sustainable fuels by 2027 last November.
The market is gaining momentum with Danish electrolyser firm Topsoe and UK-based Carbon Neutral Fuels partnering to advance eSAF using solid oxide electrolyser cell technology.
Reducing emissions in hard-to-abate sectors is one of the most challenging parts of the global decarbonisation challenge.
Clean molecules such as e-fuels provide a practical option to accelerate emissions reductions in areas where few alternatives exist.
“The technical foundations are in place, early lessons have been learned and momentum is building. Now the focus must shift to scaling e-fuel solutions,” the paper concludes.
The position is somewhat at odds with others that have painted a picture that e-fuels will come through, but not in big volumes until the 2040s. If green hydrogen-enabled e-fuels are to scale, it will come about through ultra-low-cost renewable electricity, abundant biogenic or DAC-sourced CO2 feedstock, and smart infrastructure choices, according to Wood Mackenzie. Driving down costs is paramount.
“Hydrogen needs to be below $1.50 per kg for e-fuels to work, and we’re nowhere near that,” said Murray Douglas, Head of Hydrogen Research. “Even in places with ultra-cheap renewables, we’re looking at costs that just don’t make sense.”
The forum will host a dedicated session on e-fuels on Wednesday.
Extracted in full from: https://www.gasworld.com/story/can-e-fuels-begin-to-scale/2171412.article/
