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E-fuel: the revolution of synthetic fuels

In 2022, the European Union decided to ban the sale of new petrol and diesel cars starting in 2035. This marked the beginning of a historic shift in the mobility sector. While electric vehicles seemed set to dominate the market, Germany pushed for an exception to the ban on internal combustion engines, requesting the inclusion of e-fuels, or synthetic fuels, as a valid alternative.

This move is part of the EU’s broader strategy to achieve climate neutrality by 2050. If produced from renewable sources, e-fuels are considered climate-neutral since the CO₂ released during combustion equals the amount captured during production. In this context, e-fuels provide a sustainable way to preserve combustion engines while keeping them aligned with the EU’s environmental goals.

What are e-fuels and how are they produced?

Many wonder: what exactly are e-fuels? They are synthetic fuels created by combining green hydrogen—produced through the electrolysis of water powered by renewable energy—with carbon dioxide captured from the atmosphere or industrial processes. Unlike biofuels, which require agricultural crops, e-fuels do not compete with food production and have no major impact on land use.

For example, synthetic gasoline allows existing vehicles to run on a low-impact fuel while taking advantage of current infrastructure, such as fueling stations and traditional engines.

Environmental benefits and technological challenges

E-fuels bring significant environmental and logistical advantages:

  • Carbon neutrality: CO₂ released during use is offset by the amount captured in production.
  • Compatibility with existing vehicles: they can be used without modifications, lowering transition costs.
  • High energy density: similar to fossil fuels, making them ideal for long-distance travel.

However, there are also challenges:

  • High production costs: the synthesis process remains complex and expensive.
  • Lower energy efficiency: compared to electric vehicles, e-fuels lose more energy across their production and use cycle.
  • Residual emissions: while carbon neutral, combustion can still produce NOx and particulate matter.

E-fuels vs. electric vehicles: an open challenge

In the debate on sustainable mobility, the competition between e-fuels and electric vehicles is becoming increasingly relevant. EVs are already widespread, supported by a growing charging network. Still, e-fuels allow continued use of existing combustion engines without replacing the entire vehicle fleet.

For sectors like aviation, shipping, or heavy transport—where electrification is more difficult—e-fuels represent a more practical medium-to-long-term solution.

The future of e-fuels in the energy market

The regulatory inclusion of e-fuels beyond 2035 marks a turning point for their industrial development. Once experimental, synthetic fuels are now becoming a concrete part of Europe’s ecological transition.

Their success will depend on lowering production costs, improving efficiency, and ensuring broad access to renewable energy. With the right industrial policies, e-fuels could represent a significant share of the energy mix by 2050, playing a decisive role in decarbonizing transport and achieving global climate neutrality.

European Union decided: https://www.europarl.europa.eu/topics/en/article/20221019STO44572/eu-ban-on-sale-of-new-petrol-and-diesel-cars-from-2035-explained

Green hydrogen: https://www.italgas.it/en/what-we-do/energy-efficiency/

Energy efficiency: https://www.italgas.it/en/what-we-do/gas/renewable-gas/

Ecological transition: https://www.italgas.it/en/about-us/italgas-for-transition/