E-fuels and End-use Perspectives

The net-zero policy of most countries requires actions to reduce the use of and replace fossil fuels. These fuels are energy carriers that are currently used for mobility, industry, heating, and other purposes. There are some applications, such as aviation or international shipping and others “hard-to-abate” sectors, which cannot easily be electrified for long distances and where it is difficult to obtain low-carbon emission fuels. Therefore, demand for fuels will remain and these fuels will need to be produced from renewable energy or lower carbon intensity sources in the coming decades. The energy transition leads to new technologies being tested and deployed to replace the fossil fuels. One option for fuels with low-carbon emissions could be e-fuels. The technologies for e-fuel production and application are being developed around the world. Task 64 on “E-Fuels and End-use Perspectives” was set up in the AMF TCP to assess their significance at international level. The aim was to gain an overview of the status of e-fuels in the various countries involved. The application of these fuels, some of which are new, is relevant for AMF TCP as they can be used for motorized processes. Currently, there is still little experience in the use of these new fuels, as their production is still in infancy. Several countries have launched strategic programs to increase the production of e-fuels. These initiatives provide incentives, support research or enact regulations that mandate a certain percentage of e-fuel use. Due to the energy-intensive production of e-fuels, it is being discussed that their use should be prioritized in sectors that are difficult to electrify, such as aviation, shipping, heavy duty road transport and industry. Water electrolysis, which is crucial to produce e-fuels, has a significant impact on production costs and carbon intensity.

The key findings of task 64 are:
• E-fuels and biofuels will play an important role in the energy transition and to reach netzero targets. There will be an increase in the technology diversity.
• Some e-fuels can be produced with mature technologies, but the combination of several technologies in a production plant can have a low overall technology maturity level.
• Strategic programs to support e-fuel production have been implemented in several countries. They consist of incentives for e-fuel production, support for research projects and/or regulations that make the proportionate use of e-fuels mandatory.
• The energy-intensive production of e-fuels raises the question of whether they should primarily be used for applications that are difficult to electrify. These applications can be found, e.g., in aviation, maritime transport, heavy goods traffic and industrial processes.
• Hydrogen production via water electrolysis has the largest impact on the carbon intensity of the product. Life-Cycle Assessments results show that using renewable electricity is key to having low-carbon e-fuels.
• The most important cost driver in the production of e-fuels is hydrogen production by water electrolysis, and e-fuel production costs depend primarily on electricity prices, which depend on the geographical location, and capital costs.
The collaborating countries in Task 64 are Brazil, China, Denmark, Finland, Germany, Japan, Switzerland, and the United States. Furthermore, collaboration and exchanges with IEA Bioenergy TCP, IEA Hydrogen TCP, IEA HEV TCP, IEAGHG and the International Transport Forum took place. The task was managed by Zoe Stadler, OST Eastern Switzerland University of Applied Sciences. In the task, workshops were organized on various e-fuel specific topics, during which the task participants formulated key messages and joint conclusions that served as the basis for the final report. These topics were: demo sites and pilot programs, resources, application, regulations, life-cycle assessments, technoeconomic assessments, and stakeholders