Global e-fuel market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.
Ability to Unlock the Potential of Renewable Energy to Boost E-fuel Market Growth
Growth in global energy consumption has resulted in an increase in greenhouse gas (GHG) emissions, causing the rise in the average temperatures. Consumption of fossil fuels such as natural gas, oil, and coal has driven this scenario, thus prompting the adoption of alternatives that are non-fossil in nature. Such non-fossil substitutes can significantly reduce emissions thus mitigating against climatic changes. This has driven the consumption of e-fuels in several sectors including road transportation, aviation, and shipping. Global e-fuel market is thus expected to observe promising growth in the near future.
Moreover, e-fuels could be produced in regions that are sparsely populated and have superior solar and wind conditions for renewable electricity generation. For instance, according to Fraunhofer IEE (Institute for Energy Economics and Energy System Technology), around 85000 TWh – 88000 TWh of synthetic fuels that are climate neutral can be produced outside of Europe. In 2019, energy consumption worldwide in transportation was around 33603 TWh. This implies that by tapping half of the overall global e-fuel potential, it is possible to make world transportation industry climate-neutral and remaining quantity of e-fuel can be used in other industries to reduce emissions. In this backdrop, making e-fuel available worldwide and using it in different sectors can unlock the potential of renewable energy. This factor remains instrumental in driving the growth of the e-fuel market.
Increasing Preference for Conventional and E-fuel Blends Work to the Advantage of E-fuel Market
As e-fuels provide a crucial opportunity to trim down GHG and CO2 emissions in active fleets, the dependency on fossil fuels could be reduced while retaining the existing infrastructure. E-fuels can be integrated in the existing fleet of vehicles to support climate protection and facilitate speedy decarbonization of transport. These fuels could be blended easily with conventional counterparts such as petrol, maritime fuel or diesel and even may have the potential to completely replace them in the near future. Along with the increasing trend of electro-mobility, e-fuel can be considered as an additional option that is climate friendly and its integration in conventional fuels could significantly save tons of CO2 emissions. For instance, according to E-fuel Alliance, blending of mere 5% e-fuels with conventional fuels could result in the saving of around 60 million tonnes of carbon dioxide that is approximately equivalent to taking off 40 million vehicles from the road for a year. This factor supporting the ability of this sustainable alternative fuel in facilitating climate protection is expected to augur well for the e-fuel market.
Conversion of CO2 to Valuable Raw Material to Provide Ample Opportunities for the E-fuel Market
Apart from reducing carbon dioxide emissions, e-fuels can also support in converting CO2 in valuable raw material. E-fuel producing plants, by capturing CO2 from industrial sources or from atmosphere and synthesizing it with hydrogen, can convert the climate killer to a climate-neutral alternative to conventional fuels. That said, instead of releasing carbon dioxide from industrial sites such as steel, glass, or cement into atmosphere, it can be captured and processed or recycled and reused by e-fuel plants, thus reducing emissions. This advantage can benefit the global economy along with the environment, thus presenting an opportunistic scenario for the e-fuel market.
Europe to Prevail as a Frontrunner in Sustainable and Future Oriented Technologies
Europe can be considered as one of the major regions for the e-fuel market. This can be attributed towards strict government regulations apropos to GHG emissions across industries in the region. In addition, the renewable energy targets set by the EU for transportation relating to GHG emission intensity reduction has promoted the deployment and use of sustainable fuels. According to EU climate strategy, a target of reducing green house gas intensity by 20% in transportation by 2030 has been set. This has paved new pathways for the adoption of non-fossil fuels and blending of e-fuels with traditional ones. Moreover, transportation being the backbone of the EU economy, reduction in emission from this sector will support the EU climate strategy making it carbon-neutral in the forthcoming years.
Furthermore, speeding up the e-fuel production by setting ambitious targets for hydrogen-derived products and green hydrogen can significantly contribute towards sustainable growth while meeting EU climate targets. According to E-Fuel Alliance, EU can benefit from developing PtX (Power – to – X) plants and equipment and exporting the equipment to regions that have good solar and wind exposure for production of e-fuels on large scale. This benefit for the EU economy is projected to amount to around 80 billion Euros. Along with this aspect, development of PtX technology can generate around 1.2 million jobs in the region making it a lucrative opportunity. With this, Europe can position itself at the helm of producing sustainable technologies and incentivise the production of e-fuels, thus staying at par with geographic competitors such as Japan and China. That said, an optimistic landscape prevails for the e-fuel market in Europe in the coming years.
E-fuel Market: Competitive Scenario
A few of the major players in the e-fuel market include Nordic Electrofuel AS, Repsol S.A., Sunfire GmbH, INFINIUM, Neste, Siemens Energy, SFC Energy AG4, The Viessmann Group, and Ceres Power Holding PLC.
Regional Classification of the Global E-fuel Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global E-fuel Market
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