E-fuels poised to transform hard-to-abate global industries
Sustainable fuels are emerging as a critical solution for decarbonising industries that are difficult to electrify, including aviation, shipping, and manufacturing. According to UNIDO, these fuels could cut emissions by 60 - 90% through CO2 capture in biofuel feedstocks or the production of synthetic fuels, while simultaneously enhancing energy security and stimulating regional economies.
Global coordination between governments and industry is vital. Key measures include carbon pricing, blending mandates, and financial mechanisms like subsidies or tax credits. These instruments are critical to making sustainable fuels both economically viable and widely accessible.
Decarbonisation of heavy industries and hard-to-abate sectors remains one of the defining challenges of our age.“We need to be pragmatic. The clock is ticking”, emphasized Marco Alverà CEO & Co-Founder of TES, a global green energy company leading the way in the production of e-NG (electric natural gas derived from green hydrogen).
The role of e-fuels
According to Alverà, despite the enormity of the task, the right combination of technologies and investment will enable the first at-scale e-fuels: “The technologies are there. I think we're getting to the first at-scale e-fuels.”
He highlighted that while e-fuels will eventually dominate due to their cost and environmental advantages, the transition cannot happen overnight. “I don't know if it's 20 years, 30 years, 40 years. I think the technologies are there. I think we're getting to the first at-scale e-fuels.”
Existing technologies need to be assembled, scaled, and brought to market cost-effectively. Early-stage projects, including LNG terminals and integrated energy systems, are key steps toward achieving large-scale e-fuel deployment.
"We risk to slow things down with the excuse of pragmatism. We need to be optimistic. We need to be pragmatic about the journey, but bold about the ambition and the opportunity.”
Marco Alverà, CEO & Co-Founder of TES
Challenges and pathways in shipping
The transition to e-fuels presents unique challenges, especially in shipping. Steve Esau, Chief Operating Officer of SEA-LNG noted that low-carbon fuels for shipping must meet strict safety and energy density requirements to be commercially viable: “Any fuel that shipping uses needs to have a high energy density”. While LNG is already proven and supported by infrastructure, the industry will need a gradual pathway from biofuels to e-fuels. Esau also stressed the importance of staged approach: “Yes, we can have a beautiful, green, e-fuel destination, but it's a pathway to get there. Shipping, he noted, demonstrates that while biofuels are a good first step, scaling requires e-fuels: “Biofuels are great for initial steps, but for scalability, we need to move to E”.
Regulation, mandates, and market incentives
Regulatory clarity and long-term off-take agreements are essential to support this transition.
“It’s better leave the market do than unclear regulation”, said Fabio Fritelli, Managing Director of NEXTCHEM. He argued that “a wise regulator should be driven by a path towards technology development which is not killing good ideas”.
Marco Alverà reinforced the importance of mandates to stimulate investment: Mandates is a way forward. If you start saying 1% of shipping, 1% of aviation goes to E, that's already triggering enough investment. We have no more room to play with taxes. And I think where the public comes into this is the number one obstacle.”
Meanwhile, Andrew Woods, CEO of Catagen, a pioneering green emissions testing facility, highlighted the value of intermediate steps: “We see an intermediate step between out-and-out biofuel to advanced biofuel before you can get to full E”.
Global opportunities
Woods added that cross-border projects and collaboration are key: “Cross-border projects, partnerships, and engagement from operators are opening new ecosystems for clean energy solutions. We started developing 15 years ago. evolved business in getting in production of e-fuels and hydrogen. We were the first company to submit e-fuels to EU.”
Ultimately, the panel underscored the importance of a balance between pragmatism and optimism. “We risk to slow things down with the excuse of pragmatism. We need to be optimistic. We need to be pragmatic about the journey, but bold about the ambition and the opportunity,” concluded Alverà.
