The Challenge of Sourcing Sustainable CO2 for e-Fuels

(European Federation for Transport and Environment (T&E)) T&E commissioned ERM to carry out a study looking at CO2 transportation for e-fuels production in Europe

T&E commissioned the consultancy ERM to look at the critical role of CO2 sourcing and transport infrastructure for e-fuels production in Europe.

They undertook a comprehensive analysis of CO2 sourcing for e-fuels in Europe. The study outlines different sourcing strategies, opportunities to unlock more suitable CO2, and the potential role of policy.

The analysis shows that Pulp & Paper, Biomass Power, EfWs, Ethanol, and Biogas Upgrading are particularly attractive CO2 sources. They offer significant accessible biogenic CO2 volumes across Europe, along with low-to-moderate capture costs. Pulp & Paper is particularly attractive and many current e-fuel projects are located near Pulp & Paper sites. READ MORE

Excerpt from European Federation for Transport and Environment (T&E): Why do we still need to capture carbon for the future green transport system?

To achieve its net-zero target by 2050, Europe must decarbonise all of its transport sector. While direct electrification is rapidly scaling in the road sector, sectors such aviation and shipping remain harder to electrifyand continue to rely on energy-dense fuels. For these sectors, e-fuels are one of the preferred options available. But not all e-fuels are produced the same way and not all carbon sources are eligible as sustainable under EU rules.

What are the different types of e-fuels?

In the aviation sector, the flagship e-fuel is e-kerosene, often termed e-SAF, which can be blended into fossil jet fuel and used directly into existing aircraft engines. Producing e-kerosene requires large quantities of green hydrogen and a steady supply of CO₂. For each ton of green hydrogen required, around 8 tonnes of CO₂ are needed.

Shipping has more e-fuels options available. Two e-fuels options are e-methanol and e-ammonia. While the latter is carbon-free, e-methanol is a carbon-based fuel, like e-kerosene, requiring around 7 tonnes of CO₂ per tonne of green hydrogen.

Why does the source of carbon matter?

In carbon-based fuels, the CO₂ becomes embedded in the fuel molecule and is released back into the atmosphere when combusted. Unlike other CO₂ utilisations, e-fuels do not store carbon temporarily. They only delay its release. The EU RFNBO rules correctly factor in this, with all fossil CO₂ becoming ineligible from 2041 (with a deadline already from 2036 for carbon from fossil power generation), obliging e-fuels producers to turn towards sustainable carbon sources.

In the short and mid-term, biogenic CO₂ is the easiest and cheapest CO₂ option. DAC will be essential in the long-term but currently the technology cannot yet supply the volumes required at economically viable cost.

What is the availability of biogenic CO2 for e-fuels in the short to medium term?

Europe has a diverse set of biogenic CO₂ sources but only some are truly sustainable for e-fuel production. The ERM report commissioned by T&E identifies 92 Mt per year of sustainable and accessible biogenic CO₂ in Europe in 2022. ‘Sustainable’ excludes bioethanol fermentation and biomass power plants that rely on unsustainable feedstocks. Sustainable sources include amongst others, pulp and paper mills, energy-from-waste, and biogas upgrading plants.

... (T)he sustainable biogenic CO₂ availability in Europe is more than enough to supply first of a kind e-kerosene and e-methanol projects, which require around 300 kt per year of CO₂ each. READ MORE