Fuelmakers’ biofuels investments dwarf hydrogen, research finds – EURACTIV.com


Efforts to scale back fossil gasoline use in transport overly focus on ramping up second-generation biofuels, neglecting artificial fuels made with inexperienced electrical energy, in line with a brand new research commissioned by inexperienced group Transport & Atmosphere (T&E). 

The research exhibits that three-quarters of inexperienced investments in refineries go in the direction of biofuels, eight occasions what’s spent on the manufacturing of hydrogen and e-fuels.

As stress will increase to scale back carbon emissions within the transport sector, specialists agree that not all modes might be simply electrified.

Further various liquid fuels will probably be wanted to switch kerosene within the aviation sector and heavy oil within the maritime sector, with some stakeholders calling for a rise of their deployment to scale back emissions from combustion engine automobiles.

A number of choices are at the moment being developed and scaled up, resembling superior biofuels comprised of plant residues, animal fat, and used cooking oil, and artificial fuels comprised of hydrogen and CO2 extracted from the ambiance (so-called e-fuels). 

Nevertheless, a research by environmental consultancy Ricardo exhibits that almost all investments deliberate for refineries give attention to biofuel manufacturing, reasonably than hydrogen-based alternate options.

Whereas the deliberate funding into biofuel refining over the following seven years sums as much as €28 billion, solely €3.3 billion are anticipated to enter e-fuel-making.

T&E accused oil firms of a mismatch between public statements and precise funding choices.

“Oil producers are selling hydrogen as their massive guess for the long run, however in actuality their investments in inexperienced hydrogen are pitiful,” Geert Decock, Electrical energy and Vitality supervisor at T&E, mentioned in an announcement. 

“This isn’t an business pushing the boundaries of unpolluted know-how,” he added.

The eFuel Alliance, an organisation selling using artificial fuels, informed EURACTIV that this may be defined by the shortage of incentives to scale up e-fuels.

“It’s apparent that investments will probably be decrease if no authorized framework is outlined by the EU Fee,” mentioned spokesperson Jan Werhold.

“So long as the delegated acts are lacking and REDIII [the EU’s renewable energy law] doesn’t set clear necessities for inexperienced hydrogen and e-fuels, the investments is not going to materialise,” he added.

Investments in biofuels exceed sustainable capability, T&E says

T&E not solely criticised the shortage of investments in artificial fuels but in addition argued that the quantity of biofuel that oil firms are aiming for would exceed what might be sustainably sourced through the use of waste and residues.

The investments foreseen in fuels primarily based on hydrotreated vegetable oil, for example, would double manufacturing capability in Europe from what it’s now to 10 megatonnes by 2030, in line with the organisation.

“That is 4 occasions increased than what might be sustainably sourced within the EU,” T&E mentioned, including that “it will doubtless result in restricted ‘waste’ merchandise like animal fat being taken from different industries, in addition to mass imports of doubtful used cooking oil from overseas”.

Nevertheless, this declare is disputed by gasoline makers and the biofuel business, which factors to a research commissioned by the business-funded analysis physique Concawe.

This “units out clearly how there may be substantial availability of sustainable biomass, largely within the EU to make superior biofuels as much as 150 million tonnes a yr by 2050,” business group FuelsEurope informed EURACTIV in an emailed assertion.

Marko Janhunen, Chair of the Superior Biofuels Coalition informed EURACTIV: “Superior biofuels feedstock and numerous applied sciences exist as we speak and are readily scalable. Feedstock is often sourced domestically.” 

“They will fast-track our efforts to scale back transport emissions and concurrently cut back our dependence on international oil,” he added, stating that “whereas promising future options, e-fuels and hydrogen, then again, are at a really early stage of growth”.

To take a position or to not make investments?

Advocates of e-fuels, in the meantime, appear perplexed by T&E’s name for extra investments in hydrogen-derived artificial fuels.

“We welcome the truth that T&E is looking for extra funding in hydrogen and eFuels, even when they see it in a different way of their place on the RED,” Wehrhold mentioned.

“There, T&E requires just one.6% inexperienced hydrogen and eFuels in 2030. The Fee proposal is 2.6% and was elevated to five% underneath RePowerEU, which can be our place,” he added.

This was confirmed by Benedikt Heyl of T&E, who argues that e-fuels “must be used the place direct electrification isn’t doable”, resembling delivery and aviation, however there must be “no incentives for using e-fuels in street transport”.

The €3.3 billion invested into the manufacturing of e-fuels to this point nevertheless solely represents 1 / 4 of the manufacturing capability that might be required to satisfy the goal T&E is looking for, Heyl added.

“If a lot of the funding that goes into the (over)manufacturing of biofuels had been redirected to the manufacturing of e-fuels, T&E would very a lot welcome this,” he mentioned.

[Edited by Nathalie Weatherald]

Supply hyperlink