E-fuels in Cars: Unaffordable for Drivers

A recent independent study commissioned by Transport & Environment (T&E) and conducted by consultancy Ionect has evaluated the technical feasibility and near-term costs of producing e-petrol for cars. The findings reveal that by 2030, the production cost of e-petrol could reach around €4 per litre, which would translate to a pump price of approximately €7 per litre. This starkly contrasts with current fossil petrol prices of less than €2 per litre, making e-petrol an economically unviable option for most drivers, especially when compared to the more affordable electric mobility alternatives. The study also scrutinises claims that e-petrol could benefit from co-products generated during aviation e-fuel production, which some proponents argue could reduce costs and increase availability for road transport. However, Ionect’s analysis challenges this assumption, indicating that e-petrol derived from aviation co-products would actually be more expensive than dedicated e-petrol production. Furthermore, T&E estimates that even if these co-products were utilised, they would only cover less than 3% of the fossil petrol consumed by European cars in 2035, limiting their potential impact on the market. In addition to cost and volume concerns, the study highlights environmental and policy implications. Co-products from aviation e-fuel production can be avoided with only a modest increase in production costs, or alternatively redirected to other sectors such as chemicals and plastics. Importantly, e-petrol does not contribute to reducing tailpipe air pollution, which further undermines its case as a sustainable fuel for cars. T&E therefore argues that there is no credible justification for promoting e-petrol in the automotive sector, especially given the clear advantages of electric vehicles in terms of affordability and emissions reduction. On the regulatory front, the European Commission’s proposal to include a compensation mechanism in car CO₂ standards that rewards carmakers for biofuels and e-fuels is strongly criticised by T&E. The organisation warns that such fuel credits would increase decarbonisation costs for both industry and consumers, potentially delaying the transition to electric mobility. T&E urges policymakers to remove this mechanism to avoid unnecessary financial burdens and to support a more straightforward shift towards sustainable transport solutions.