Europe's reliance on E-fuels won't counter Chinese electric vehicle dominance.

author: FutureCar Staff    

Julia Poliscanova, a senior director for vehicles and e-mobility supply chains with the clean mobility NGO Transport & Environment, argues that Europe's focus on synthetic fuels to make combustion engine vehicles carbon neutral is a dangerous distraction. She believes that this focus will lead to EU industry ceding further ground to Asian electric vehicle manufacturers.

At the International Motor Show (IAA) in Munich, two things stood out to Poliscanova: the number of sleek electric models from Chinese brands and the European auto executives who had little to offer except to talk up e-fuels. She points out that European carmakers are at risk of losing ground to Chinese rivals in the electric car market, as Chinese EVs are surging in Europe.

Poliscanova argues that European carmakers are behind because they were too arrogant and slow to invest in electrification. They initially promoted "clean diesel" as the future, but then came Dieselgate. They then turned to plug-in hybrids, which turned out to be "fake electrics" and had their incentives removed by governments.

Now, the industry is promoting synthetic diesel and petrol made from combining hydrogen with carbon as a solution to save combustion engines from obsolescence. However, Poliscanova believes that these e-fuels are simply making fools of the European car industry.

Synthetic petrol and diesel emit the same amount of carbon and many toxic air pollutants as their fossil fuel counterparts when burned in a combustion engine. While the CO2 emissions can be neutralized in the production phase, the pollution part cannot be eliminated. The European Commission has suggested that only 100% climate-neutral fuels should be allowed, but e-fuel proponents are now suggesting a 70% CO2 reduction instead.

Poliscanova questions whether e-fuels can withstand the influx of superior Chinese electric cars. She points out that synthetic petrol and diesel require five times more energy to produce than direct electrification through batteries. Inefficiency comes at a cost, and using e-diesel in trucks would be almost 50% more expensive than operating a battery-electric truck.

Poliscanova warns that Europe risks losing out to US and Asian competitors in the electric mass market if it continues to focus on e-fuels. She believes that the focus should instead be on building up the supply of electric rigs and chargers and developing a competitive EV industry in Europe.

In conclusion, Poliscanova argues that e-fuels are at best a niche solution in road transport and should not be given much political capital. Instead, she suggests that the capital should be spent on industrial policies to deliver battery factories, secure critical minerals supply, and implement smart trade policies to support the growth of the EV industry in Europe.

FutureCar Staff