Starting in 2035, no new passenger cars powered by fossil diesel or gasoline may be registered in the EU. This measure is intended to accelerate the transition to more climate-friendly mobility and reduce emissions in the transportation sector. However, there will be one exception: vehicles powered by e-fuels. These synthetically produced fuels are intended to contribute to climate protection and help shape the mobility of the future. In this article, you’ll learn exactly what e-fuels are and what their advantages and disadvantages are.
Contents
What are e-fuels?
This term encompasses all types of liquid and gaseous fuels that are synthetically produced using renewable energy sources . They are also referred to as synthetic fuels or Power-to-X fuels and are similar in composition to conventional fuels such as gasoline, diesel, natural gas, and kerosene. Unlike conventional fuels, such as gasoline or diesel, e-fuels are not of mineral origin and do not consume finite resources such as crude oil.
How are e-fuels produced?
E-fuels are produced from water and carbon dioxide. First, hydrogen is extracted from water through electrolysis. Electricity from renewable energy sources, such as wind or solar power, is used for this process. In the Fischer-Tropsch synthesis—one of the possible production processes—the hydrogen is combined with CO2 to form a hydrocarbon, which serves as the building block for liquid e-fuels.
In the production of these synthetic fuels, carbon dioxide that is already present is captured directly from the atmosphere. This carbon dioxide can come directly from the air, from industrial processes, or from biomass. When burned in a vehicle, the absorbed carbon dioxide is released again. They are therefore considered CO2-neutral. If green electricity is used in their production, a closed-loop cycle is created. Compared to conventional biofuels, synthetic fuels also do not compete with food production.

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What does E-Fuels-Only mean?
As mentioned at the beginning, the ban on internal combustion engines will take effect in the EU starting in 2035. The only exception: internal combustion engines that run exclusively on synthetic fuels. A “e-fuels only” category is to be created for these vehicles, and the EU plans to finalize its exact definition by 2024. It is conceivable, however, that the vehicles’ engines would not start if they were filled with fossil fuels.

What advantages do e-fuels offer in the vehicle fleet?
Synthetic fuels hold great potential when it comes to a sustainable energy supply. While electric vehicles offer many advantages in city centers and for commuters, electric mobility is still reaching its limits in rural areas without a well-developed charging infrastructure. This is where synthetic fuels offer a promising solution.
Passenger cars with conventional internal combustion engines can be refueled with these fuels without any problems, since the fuels are composed of the same components. It is therefore not necessary to replace existing vehicles with new models designed specifically for alternative powertrains. Fleet operators can continue to use their existing vehicle fleets while still benefiting from the environmental advantages. This means less effort and lower costs when switching to more environmentally friendly fuels.
What are the disadvantages of e-fuels?
Synthetic fuels are often viewed as a stopgap measure, as they are not the most sustainable option for the long-term decarbonization of the transportation sector.
On the one hand, the production of e-fuels involves a significant amount of energy ; in particular, the production of hydrogen from water is a very energy-intensive process. On the other hand, the efficiency is very low, at around 15 percent. This means that only 15 percent of the electrical energy used is actually utilized to power the vehicle. The reason for this is the energy loss that occurs when converting electricity into synthetic fuel. An electric vehicle, by contrast, has an efficiency of about 70 to 80 percent.
In addition, the production costs for e-fuels are currently still relatively high compared to conventional fossil fuels. According to forecasts, the prices for hydrogen produced from renewable electricity, in particular, are expected to rise. Added to this are the high costs of transporting them to Europe, since they are currently produced only—as part of pilot projects—in regions with abundant wind and solar resources, such as a production facility in the southern Chilean desert. Currently, the price per liter—around 4.50 EUR— is not competitive with fossil fuels. As production capacity expands, experts consider a price range of 1.20 EUR to 2.20 EUR to be realistic in the coming years.
Are you considering switching to electric vehicles? If so, we recommend our article on e-mobility in vehicle fleets and how to integrate electric vehicles.
The most important facts about e-fuels
E-fuels are produced synthetically and are considered virtually climate-neutral when produced using renewable electricity.
With the end of combustion engines in the EU from 2035, only combustion engines that run exclusively on e-fuels will be allowed to be registered.
At the moment, the efficiency of synthetic fuels is still very low and production costs are extremely high.
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