E-fuels: a techno-economic assessment of European domestic production and imports towards 2050

This updated study presents a twofold analysis — techno-environmental and economical — of the different e-fuels production pathways in Europe (northern, central and southern Europe), and the Middle East and North Africa regions, in 2020, 2030 and 2050 with assessments of sensitivities to multiple key techno-economic parameters. The key focus of this update was an assessment of the impact of intermittency and seasonality of renewable energy supply on storage requirements, synthesis plant sizing and production costs. The results provided inputs for the broad assumptions used in chapters 1 and 2 including the mix of solar PV and wind, the amount of renewable curtailment and the size of storage elements. These include electricity storage based on battery systems, hydrogen storage, and  CO₂ storage necessary for e-fuels production, along with the cost impacts of production flexibility.

The updated study presents:

• an assessment of stand-alone units versus e-plants integrated with oil refineries;
•  a comparison of e-fuels production costs versus fossil fuels/biofuels/e-fuels produced from nuclear electricity;
• an assessment of the impact of intermittency and seasonality of renewable energy supply on storage requirements, synthesis plant sizing and production costs;
• an analysis of the context of e-fuels in the future in Europe; and
• a deep dive into the safety and environmental considerations, societal acceptance, barriers to deployment and regulation.

The e-fuels pathways included in the scope of this study are: e-hydrogen (liquefied and compressed), e-methane (liquefied and compressed), e-methanol, e-polyoxymethylene dimethyl ethers (abbreviated as OME3-5), e-methanol to gasoline, e-methanol to kerosene, e-ammonia, and e-Fischer-Tropsch kerosene/diesel (low temperature reaction). The e-hydrogen is considered a final fuel but also as a feedstock for producing other e-fuels.