What are renewable fuels?
Renewable fuels are of biogenic (biofuels) or synthetic (e-fuels) origin, unlike conventional fuels made from petroleum. Produced from waste, sustainable biomass*, renewables and biogenic** or captured CO2, renewable fuels emit no or very limited additional CO2 during their production and use. In fact, renewable fuels have the same chemical structure as petroleum gasoline or diesel.
First blended with conventional fuels, renewable fuels will progressively replace fossil-based fuels. The carbon intensity of the fuels will depend on the share of renewable fuels blended in the end-product. Only once the fossil component in the fuels sold at the pump is completely replaced by renewable fuels, will these fuels be carbon-neutral.
*Biomass is organic matter from forestry, agriculture and waste.
**Biogenic CO2 is CO2 released as a result of the combustion of biomass.
There are two main types of renewable fuels
BIOFUELS
There are two categories of biofuels: 1st generation biofuels and advanced biofuels.
The difference between those two categories of biofuels is related to the feedstock and the technological process used for their production. 1st generation biofuels feedstocks could be in competition with food production, and the economic attractiveness of biofuels has triggered land use changes. As a result, the list of sustainable feedstocks has been reviewed and the use of these biofuels capped by European legislation at 7% of the total energy of fuel.
Advanced biofuels’ feedstocks are non-food-crop based and include residues from forestry, agricultural residues (straw and stover) and or waste materials (e.g. waste from industry, waste oil & fats – e. g. waste cooking oils). Their proven sustainability has allowed not to set any limit on their use as fuels.
E-FUELS
E-fuels are produced with electricity from renewable sources such as wind, solar or hydro, water and captured CO2. The electrolysis process to make hydrogen is complemented with the help of the Fischer-Tropsch synthesis* adding captured CO2 and converting it into a liquid fuel.
*Industrial process that transforms hydrogen and carbons into liquid hydrocarbons.
The technologies driving the transition
Capitalising on our technological know-how and flexible infrastructures, we will increasingly switch to new feedstock to progressively reduce net carbon emissions of liquid hydrocarbons.
Advanced Biofuels
Hydrotreated Vegetable Oils/Biodiesel, Biomass-to-Liquid and Waste-to-Liquid
Feedstock: Non-food-crop based such as lignocellulosic biomass including wood and residues from forestry, agricultural residues (straw and stover) and energy-crops or waste materials (e.g. waste from industry, waste oil & fats – e. g. waste cooking oils – or solid waste);
Technology: Multiple routes, including fermentation (Ethanol), hydrogenation (HVO) or transesterification of waste oils & fats (FAME), thermochemical conversion routes such as BTL (gasification and Fischer-Tropsh synthesis) or pyrolysis/hydrothermal liquefaction (HTL).
E-Fuels
Power-to-Liquid synthetic fuels:
Feedstock: Renewable electricity produced from wind, solar or hydro and captured CO2.
Technology: Water electrolysis + fuel synthesis (e.g. Fischer-Tropsch; methanol route).
E-fuels are synthetic fuels, resulting from the synthesis of green hydrogen produced by the electrolysis of water, using green electricity and carbon dioxide (CO2) captured either from a concentrated source (flue gases from an industrial site) or from the air (Direct Air Capture).
The Commission Communication “A hydrogen strategy for a Climate-neutral Europe” of July 2020 outlines the need for other forms of low-carbon hydrogen in the short and medium term, primarily to rapidly reduce emissions from existing hydrogen production and support the parallel and future uptake of renewable hydrogen. This low-carbon hydrogen, also known as blue hydrogen, is produced from gas and Carbon Capture & Storage (CCS)/ Carbon Capture & Use (CCU).
Myth-busters
Are low-carbon liquid fuels a counterproposal to electrification?
No, low-carbon liquid fuels and electrification are complementary.
They will live side by side, as there is no silver bullet, no single technology that will address the challenge of decarbonising the entire transport sector. Low-carbon liquid fuels are part of the energy mix in their own right. The global demand for liquid fuels will remain strong, notably for commercial transport, aviation, marine, petrochemicals, where electrification is not technologically possible.
No, low-carbon liquid fuels and electrification are complementary.
They will live side by side, as there is no silver bullet, no single technology that will address the challenge of decarbonising the entire transport sector. Low-carbon liquid fuels are part of the energy mix in their own right. The global demand for liquid fuels will remain strong, notably for commercial transport, aviation, marine, petrochemicals, where electrification is not technologically possible.
Are low-carbon liquid fuels sustainable?
Yes, low-carbon liquid fuels are sustainable.
They are produced from new feedstocks, notably biomass, renewables, waste and captured CO2, which are compliant with EU sustainability standards and are close to zero CO2 content. However, as long as they are blended with fossil fuels, low-carbon liquid fuels cannot be labelled as zero-carbon fuels, even if they reduce their CO2 intensity.
Yes, low-carbon liquid fuels are sustainable.
They are produced from new feedstocks, notably biomass, renewables, waste and captured CO2, which are compliant with EU sustainability standards and are close to zero CO2 content. However, as long as they are blended with fossil fuels, low-carbon liquid fuels cannot be labelled as zero-carbon fuels, even if they reduce their CO2 intensity.
Can the carbon intensity of fuels be reduced?
Yes, the carbon intensity of fuels can be significantly reduced.
The production of low-carbon liquid fuels implies emissions (Scope 2) which we will compensate by the use of clean hydrogen and Carbon Capture Storage (CCS), ultimately enabling negative emissions by 2050. The switch from fossil-based to non-fossil feedstock in using low-carbon liquid fuels (Scope 3) will allow further cuts in carbon intensity.
Yes, the carbon intensity of fuels can be significantly reduced.
The production of low-carbon liquid fuels implies emissions (Scope 2) which we will compensate by the use of clean hydrogen and Carbon Capture Storage (CCS), ultimately enabling negative emissions by 2050. The switch from fossil-based to non-fossil feedstock in using low-carbon liquid fuels (Scope 3) will allow further cuts in carbon intensity.
Are e-fuels climate neutral?
Yes, e-fuels are climate-neutral.
They are made from solar, wind and hydro, all renewable energy sources. The CO2 component of these fuels is captured from the atmosphere, and released when the fuel is used. This net-zero CO2 cycle makes e-fuels climate-neutral. E-fuels made from low-carbon hydrogen, produced from gas and Carbon Capture & Storage (CCS)/ Carbon Capture & Use (CCU) can also be labelled as climate-neutral fuels.
Yes, e-fuels are climate-neutral.
They are made from solar, wind and hydro, all renewable energy sources. The CO2 component of these fuels is captured from the atmosphere, and released when the fuel is used. This net-zero CO2 cycle makes e-fuels climate-neutral. E-fuels made from low-carbon hydrogen, produced from gas and Carbon Capture & Storage (CCS)/ Carbon Capture & Use (CCU) can also be labelled as climate-neutral fuels.
Are low-carbon liquid fuels compatible with my current car?
Yes, low-carbon liquid fuels are compatible with existing car engine technology.
The refinery of the future will become a hub where all these different fuels will be processed in a way that complies with the automotive industry’ specifications.
Yes, low-carbon liquid fuels are compatible with existing car engine technology.
The refinery of the future will become a hub where all these different fuels will be processed in a way that complies with the automotive industry’ specifications.
Are low-carbon liquid fuels already available on the market?
Yes, low-carbon liquid fuels already exist at small and industrial scale, and in pilot plants, well beyond laboratory stage.
The industry stands ready to start building the first commercial operating plants at scale as soon as the enabling policy framework is implemented.
Yes, low-carbon liquid fuels already exist at small and industrial scale, and in pilot plants, well beyond laboratory stage.
The industry stands ready to start building the first commercial operating plants at scale as soon as the enabling policy framework is implemented.
Are low-carbon liquid fuels more expensive than fossil fuels?
Yes, low-carbon liquid fuels are more expensive than fossil fuels, but it does not have to be that way.
Liquid fuels are highly taxed, regardless of their carbon intensity. This needs to change. We need an enabling policy framework, achieving the double objective of keeping fuel prices socially acceptable and making a business case for investments, hence providing incentives comparable to other low-carbon technologies, such as electrification.
Yes, low-carbon liquid fuels are more expensive than fossil fuels, but it does not have to be that way.
Liquid fuels are highly taxed, regardless of their carbon intensity. This needs to change. We need an enabling policy framework, achieving the double objective of keeping fuel prices socially acceptable and making a business case for investments, hence providing incentives comparable to other low-carbon technologies, such as electrification.
Do low-carbon liquid fuels have an impact on air quality?
No, low-carbon liquid fuels have no negative impact on air quality.
Air quality is not determined by the fuel, but by the vehicle. The latest EURO 6d and EURO 7 vehicles are extremely clean. Recent tests under real driving conditions have shown that EURO 6d vehicles are fully compliant with EU emission level limits (for PMs & NOx), whereas existing emission-control technologies will enable the offset of the remaining emissions.
No, low-carbon liquid fuels have no negative impact on air quality.
Air quality is not determined by the fuel, but by the vehicle. The latest EURO 6d and EURO 7 vehicles are extremely clean. Recent tests under real driving conditions have shown that EURO 6d vehicles are fully compliant with EU emission level limits (for PMs & NOx), whereas existing emission-control technologies will enable the offset of the remaining emissions.
Contributing to reducing the CO2 emissions of all existing and new vehicles
Renewable fuels as they come on the market will enable to progressively decarbonise the entire car fleet, existing and new vehicles, on the road. Alternative technologies such as battery electric vehicles or hydrogen fuel cells will require insteada progressive replacement of the car fleet.