The announcement of the ban on the manufacture and sale of cars with internal combustion engines in the European Union from 2035 has created a series of uncertainties in the automotive market in this region. It represents a medium-term turning point, and there are doubts as to whether the necessary infrastructure will be sufficiently widespread by that time to serve a large fleet of electric vehicles.

The Concept of E-fuels

However, Germany’s demand to the European Commission to allow the continued sale of internal combustion vehicles beyond 2035, provided they use synthetic fuels or e-fuels, represents a relaxation of the ban. But what exactly are these e-fuels?

E-fuels are synthetic fuels that are carbon-neutral in terms of emissions, as they use water and energy obtained from renewable sources. Their development aims to produce hydrocarbons similar to petroleum-derived fuels from hydrogen—which is present, for example, in water—and carbon dioxide captured from the atmosphere or from an industrial process.

“E-fuels are synthetic fuels that are carbon-neutral in terms of emissions.”

Basically, their production starts with the separation of the oxygen and hydrogen that make up water. Carbon dioxide is then captured from the air through absorption towers. The next step involves the use of catalysts to combine hydrogen and carbon dioxide, generating methanol. This methanol, again through the use of catalysts, is converted into e-fuel. Finally, it is purified to obtain a fuel that can already be used in vehicles.

Emissions Neutrality and Cost

For these hydrocarbons to be truly neutral, the energy used to produce hydrogen must come from renewable sources, such as wind or solar power. This is how green hydrogen is produced. The result is products such as e-gasoline or e-diesel, among others, with net-zero emissions, which are also compatible with the diesel and gasoline internal combustion engines of today’s vehicles.

Another important aspect of e-fuels is their price for consumers. Initially, the price of these fuels is much higher than that of traditional ones. This is because they require a more complex and energy-intensive production process. For prices to become competitive and gradually approach those of current fuels, their use must become widespread and economies of scale must be achieved. According to the Spanish Association of Petroleum Product Operators (AOP), this will only be possible if a regulatory framework is established that provides certainty for the sector and helps support the necessary investments.

“An important aspect of e-fuels is their price for consumers, which is initially much higher than that of traditional fuels.”

E-fuels vs. Biofuels

Although the concept of e-fuels may seem similar to that of biofuels, there are significant differences. Biofuels are also hydrocarbons, as they are based on carbon and hydrogen, but their main difference lies in the fact that they are obtained through the physical or chemical processing of organic or biological waste.

Basically, there are two generations of biofuels. In the first generation, the resulting products come from agricultural crops, such as sugarcane, sugar beet, or palm and sunflower oils. The second generation produces so-called advanced biofuels, which are generated from solid or agricultural waste as well as woody biomass. There is also growing discussion of a third generation, in which algae are used as the feedstock. Biofuels can reduce the carbon footprint by up to 90% compared to current fuels. Therefore, they are not completely carbon-neutral.

For the key year 2035 in the European Union, EU authorities will allow the use of e-fuels in internal combustion vehicles, but not biofuels. This scenario outlines a transition period in which, presumably, traditional fuels should gradually lose importance in favor of electric vehicles, while the use of biofuels should increase. In parallel, the development and scaling-up of e-fuel production would continue, with the aim of achieving more affordable prices. These may be the current projections, but reality and regulatory changes can sometimes bring surprises. In Spain, work is already underway on these future scenarios, and there are development projects for both biofuels and e-fuels.

Haxx’s Actions in These Scenarios

Haxx is a business holding company and one of the leading national players in the import, storage, marketing, and distribution of petroleum products. As a prominent oil operator, it is aware of the potential future scenarios that may emerge within the European regulatory environment. For this reason, it has already taken steps in this direction, and its operations now include the procurement and distribution of biofuels.

For the Group, the importance of this type of fuel is real, evident, and growing. Its commitment to the use of biofuels is highly significant. This commitment is reflected both in the required blending processes, in accordance with regulations governing their use and distribution to end consumers, and in its responsiveness to the increasing environmental awareness of transport companies, which demand these fuels and seek to expand their use.

“The importance of biofuels is real, evident, and growing. We keep them very much in mind in all our future plans,” says Diego Guardamino, Managing Director of Haxx.

The holding company carries out significant port-related activities around biofuels. According to Haxx, the production and use of this type of fuel are essential both to advance the energy transition itself and to boost Spanish industry and the national economy. The Group aims to continue strengthening its position as an increasingly important player within the sector and to further consolidate its brand image, which requires a strong commitment to innovation and to working proactively on potential future scenarios. A first step in this direction is operations involving products such as biofuels, which are set to play a very important role in the transport sector in the coming years.