What are synthetic fuels?
Synthetic fuels, also known as e-fuels or synfuels, are artificially produced alternatives to traditional fossil fuels like gasoline, diesel, and natural gas. These fuels are created through chemical processes that combine carbon dioxide (CO₂) or carbon monoxide (CO) with hydrogen to form hydrocarbons, which can be used in existing combustion engines and industrial processes. Unlike fossil fuels, which are extracted from the earth, synthetic fuels are manufactured using renewable energy sources, making them a potentially sustainable and carbon-neutral alternative. They offer the promise of compatibility with current infrastructure while addressing the need for cleaner energy solutions in sectors that are difficult to electrify, such as aviation and shipping.
Benefits
- Carbon Neutrality: If the CO₂ used is captured from the atmosphere and the process is powered by renewable energy, synthetic fuels can be nearly carbon-neutral.
- Compatibility: These fuels can be used in existing internal combustion engines, infrastructure, and industrial applications without major modifications.
- Energy Storage: Synthetic fuels act as an energy storage medium, converting intermittent renewable energy (e.g., wind, solar) into a storable and transportable form.
Challenges
- Cost: Producing synthetic fuels is currently more expensive than extracting and refining fossil fuels due to the energy-intensive processes involved.
- Energy Efficiency: The conversion processes are less efficient compared to direct use of renewable energy or battery-electric systems.
- Infrastructure: While they can be used in existing infrastructure, scaling production and distribution of synthetic fuels would require significant investment.
Overall, synthetic fuels are a promising solution for sectors that are hard to electrify, like aviation, shipping, and heavy industry. However, they are still in development and not yet widely available at scale. This availability drawback is an issue that we at Equinox are working hard to solve in partnership with technology leaders seeking to develop world-class utility scale production facilities.