Toyota, Nissan, and Honda each are preparing for stricter environmental regulations in 2030 by focusing on research and development of e-fuel, a synthetic liquid fuel made from carbon dioxide (CO2) and hydrogen (H2).
e-Fuel is a liquid hydrocarbon chain fuel made from the catalytic synthesis of H2 and CO2 from the electrolysis of water.
Generated from renewable energy sources, they are “carbon neutral,” which means they emit and absorb the same amount of CO2. The e-fuel can be mixed with gasoline or diesel fuel.
The three Japanese companies each have begun researching efficient synthesis and use methods and business models. The reason for researching e-fuel is that, in addition to complying with regulations, the degree of penetration of e-fuel will have a significant impact on the ratio of EV and HEV sales.
If the use of e-fuel becomes widespread, there is a high possibility that the ratio of HEVs will increase. It influences the direction of powertrain development, which requires huge investments.
One of the first to take the lead in e-fuel research and development was Audi Germany. The company announced in 2017 that it had established an e-fuel research facility in Germany. They believe that it is risky to develop only EVs, which are likely to remain a challenge due to cost and range.
The e-fuel system uses hydrogen in the production process and is compatible with Japan’s energy strategy, which advocates a hydrogen society. Converting gaseous, hard-to-carry hydrogen into liquid e-fuel is a technology that improves the portability of hydrogen energy. The problem with e-fuel is its high cost, which is estimated to be around 500 yen per liter. Considering that the price of gasoline fuel, excluding taxes, is 50-60 yen per liter in Japan, this is nearly 10 times that amount. With the current cost competitiveness, there is little hope for the widespread use of e-fuel.
If a solution to this problem can be found, the next generation of environmentally friendly and low-cost powertrains for vehicles could be a popular option.
Source: Nikkei Cross Tech (The original article has been partially revised by the author.)
PSR Analysis: e-fuel is a fuel produced by a chemical reaction between carbon-free hydrogen, which is produced from water with surplus renewable energy power, and CO2, which is emitted from factories. Waxes and chemicals are produced during the formation of e-fuel, which can also be a carbon minus fuel.
When mixed with gasoline or diesel fuel, it turns a car into an eco-friendly vehicle. This means that you can continue to use existing engines. The e-fuel contains no impurities and is not dependent on crude oil. These elements seem to be exactly the fuel of our dreams, but the challenge is that they are carbon-plus without the use of renewable energy and, as the article mentions, they are expensive.
However, if various studies are carried out in the process of spreading the use of these technologies, we can expect to accumulate technologies that will lead to the suppression of greenhouse gases. However, it is possible that the PHVs and EVs in the vanguard today will be able to overcome the current problems as they mature. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
