Context: The report is being prepared and  released by the International Energy Agency.

IEA Report on E-Fuels: Achieving a 10% E-Fuels Share in Aviation and Shipping

• The report gives a techno-economic assessment of a family of emerging e-fuel technologies and assesses the implications in terms of the required cost reductions, resources and infrastructure investments.
• Target: There is a  goal of achieving a 10% share of e-fuels in aviation and shipping by 2030.

Key Findings of the IEA Report on E-Fuels

• Decarbonisation of Transport sector: 
  • Low-emission e-fuels provide a complementary solution to sustainable biofuels.
  • In the aviation sector: e-fuels benefit from their ability to use existing transport, storage, distribution infrastructure and end-use equipment. 
  • In road transport:  Through fuel efficiency improvements and surging sales of electric vehicles (EVs) significant reduction in fossil fuel demand can be witnessed.
• Cost competitiveness: Enabled by the realization of current globally announced electrolyser projects, tapping sites with high-quality renewable resources and optimized project design e-fuels are expected to be cost competitive to other biofuels and fossil fuels driving its demand.
• Concerns: 
• • Standards: To enable widespread adoption and trade, e-fuels will need to meet established technical and safety standards
  • Efficiency woes: Due to several conversion steps and associated losses, the production of e-fuels generally suffers from low efficiency, leading to high resource and  infrastructure demand. 
  • Investment in infrastructure: e- methanol and e-ammonia widespread use as shipping fuels will require significant investments in compatible bunkering infrastructure, refueling infrastructure and vessels in ships and aircrafts.
  • Access to CO₂:  CO2 pipeline infrastructure  has to be built which  would require massive scale up of over 100 times the current capture volumes from biogenic sources, since it is one of the raw materials.

What are e-fuels?

• About: E-fuels are fuels obtained from electrolytic hydrogen. 
  • Example:  e-kerosene, e-diesel and e-gasoline, e-ammonia and e-methanol.
• They are low-emission fuels when their hydrogen is produced using low-emission electricity and any carbon inputs are obtained in a way that leads to low life-cycle greenhouse gas emissions. 
• Process: E-fuels are produced through Electrolysis. It involves splitting water molecules into hydrogen and oxygen with an electric current and separating them into two product streams.
• Steps for Production: Production of hydrogen,capture of nitrogen (N₂) or carbon dioxide (CO₂),conversion of the feed gas into new molecules in a synthesis, and final upgrading of the raw product.

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News source: IEA