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E-Fuel

D6. Decarbonization, emissions and alternative fuels

Definition

Synthetic fuel produced from renewable electricity and CO2 or N2.

E-fuels, also called electrofuels or power-to-X fuels, are synthesized from green hydrogen and a carbon or nitrogen source using renewable electricity: e-methanol, e-ammonia, e-LNG, and e-diesel. As renewable fuels of non-biological origin they earn the FuelEU double-counting reward from 2025 to 2033 and are central to long-term net-zero pathways because their well-to-wake carbon depends only on the electricity and CO2 source. The constraint is energy: each conversion step loses energy, so e-fuels demand large amounts of cheap renewable power to be affordable.

Source: EU Regulation 2023/1805