Climate & Environment
Synthetic Fuel / E-Fuel
Definition
Synthetic fuels (e-fuels) are liquid or gaseous hydrocarbon fuels produced by combining green hydrogen (from renewable-powered electrolysis) with captured carbon dioxide — via Fischer-Tropsch synthesis or methanol routes — yielding e-kerosene, e-methanol, e-diesel or synthetic methane chemically identical to fossil fuels. Because they are drop-in compatible with existing engines and infrastructure, they are a leading decarbonisation option for aviation and shipping, where direct electrification is impractical.
References
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This reference provides supporting context for how “Synthetic Fuel / E-Fuel” is defined and used.
Overview
How it is used
The technology structures aviation and shipping decarbonisation policy, power-to-X project development, and the design of fuel mandates and carbon pricing exemptions.
Why it matters
Some sectors cannot run on batteries; e-fuels are how renewable electricity reaches them — expensive, but increasingly unavoidable.