Purpose, Objectives, and Key Question

The focus within Task 64 was an informative exchange on the production and application of different e-fuels as well as the corresponding regulatory framework and standards. The output of the Task is a concise report addressing the following topics:

• Demo sites/pilot programmes: Consideration of different demo sites in different countries that focus on the development and improvement of e-fuel production technologies, including consideration of technology pathways, technological maturity, and case studies.
• CO₂ and H₂ resources: The availability of CO₂,water resources, and electricity sources in different countries, with assessment of national feedstock potential for e-fuel production.
• Application side: Experiences and challenges in the application of e-fuels, especially with regard to the use of e-fuels in aviation, maritime, and road transport.
• Regulations and standards: Norms, standards, and/or regulations for the use of e-fuels in various countries. Incentives and regulations that promote the production and use of e-fuels.
• Life-cycle assessments (LCA)/well-to-wheel (WTW): Methods for LCA and WTW in the different countries/regions (e.g., REDII in the EU). Typical and expected net GHG effects as well as other environmental impacts (e.g., water consumption) of e-fuel production and use.
• Techno-economic assessments (TEA): Costs of the different e-fuel production value chains in various countries, and methodology for economic calculation. Costs on the application side of the switch to e-fuels.
• Stakeholders: Actors from research, industry, and administration along the value chain (raw material supply, conversion technologies, e-fuel suppliers, e-fuel consumers) as well as bioenergy research centres and academic institutions.

Based on these questions and topics, workshops were organised in which key messages and joint conclusions were formulated. These were incorporated into a final report, which provides an overview of ongoing activities worldwide as well as past and present technical, economic, and regulatory challenges and best-practice examples. Next to information sharing, the report is to support increased awareness concerning the importance and the global activities in the e-fuels field.

Background

The net-zero policy of most countries requires actions to reduce and replace the use of 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 other “hard-to-abate” sectors, which cannot easily be electrified for long distances and involves difficulty to obtain low 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 means that new technologies are 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. At the same time, there is still little experience in the use of these new fuels, as their production is still in infancy..

Key Findings

• E-fuels and biofuels will play an important role in the energy transition and to reach net-zero targets. There will be an increase in the technology diversity (see table 1).
• Some e-fuels can be produced with mature technologies, but the combination of several technologies in an e-fuel 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 leads to the discussion as to whether they should primarily be used for applications that are difficult to electrify. These hard-to-abate sectors are the aviation industry, maritime applications, 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 production costs depend primarily on electricity prices, which depends on the geographical location, and capital costs. 
   

Major Conclusions

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.