The report “The Role of E-fuels in Decarbonising Transport” by IEA focuses on the low emissions fuel for accelerating the decarbonisation of the transport sector. Significant reductions in fossil fuel demand are possible in road transport through fuel efficiency improvements and surging sales of electric vehicles. At the same time, the aviation and marine sectors continue to be more reliant on fuel-based solutions for their decarbonisation. Sustainable aviation fuels are increasingly becoming part of the aviation fuel mix, while orders for new ships are showing a trend towards alternative fuels.
Fuels obtained from electrolytic hydrogen, or e-fuels, could be a viable pathway and scale up rapidly by 2030, underpinned by a massive expansion of cheaper renewable electricity and anticipated cost reductions of electrolysers. This study is not a scenario analysis, but a techno-economic assessment of a family of emerging e-fuel technologies. It assesses the implications in terms of needed cost reductions, resources and infrastructure investments of an assumed ambitious goal of achieving a 10% share of e-fuels in aviation and shipping by 2030.
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