In an unexpected turn of events, Germany has raised opposition to a groundbreaking European Union legislation aimed at phasing out the sale of CO2-emitting cars by 2035. The country is now pushing for the allowance of new cars with internal combustion engines (ICEs) post-2035, provided they run on e-fuels.

The proposed EU regulation mandates that all new cars sold after 2035 must boast zero CO2 emissions, effectively rendering the sale of new fossil fuel-powered vehicles implausible. While this legislation doesn't outright prohibit internal combustion engines, it is perceived as a decisive blow to the technology due to the scarcity of viable options enabling ICE cars to function without emitting CO2.

E-fuels, such as e-kerosene, e-methane, or e-methanol, are synthesized by capturing CO2 emissions and utilizing hydrogen produced from renewable or CO2-free electricity sources. When used in engines, these fuels emit CO2 into the atmosphere. However, the concept revolves around ensuring that the emissions released are offset by the amount of CO2 extracted from the atmosphere during the fuel production process, essentially making it CO2-neutral.

Germany and Italy are pressing for clearer assurances from the EU regarding the continuation of sales for new ICE cars beyond 2035 if they are powered by CO2-neutral fuels.

While most major car manufacturers are heavily investing in battery-electric vehicles as the primary solution for reducing CO2 emissions from cars, suppliers, oil majors, and several carmakers reluctant to integrate heavy batteries into their vehicles are advocating for e-fuels.

At present, e-fuels are not produced on a large scale. The world's inaugural commercial plant, supported by Porsche and operating in Chile since 2021, aims to produce 550 million litres annually. Other ventures, like Norway's Norsk e-Fuel scheduled to commence production in 2024, focus primarily on aviation fuel.

One of the main advantages of e-fuels is their compatibility with existing ICE vehicles and their seamless integration into established fossil fuel logistics networks. This is welcome news for manufacturers of ICE components and companies involved in petrol and diesel transportation. Proponents argue that e-fuels offer a pathway to reduce CO2 emissions from the current passenger car fleet without necessitating a complete shift to electric vehicles.

However, critics emphasize the considerable expense and high energy consumption associated with manufacturing e-fuels. According to a 2021 paper in the Nature Climate Change journal, using e-fuels in an ICE car demands roughly five times more renewable electricity than operating a battery-electric vehicle.

Some policymakers also contend that e-fuels should be prioritized for sectors challenging to decarbonize, such as shipping and aviation, as these industries cannot readily transition to electric batteries like passenger cars can.

Source: Reuters