HERE’S HOW PORSCHE’S SYNTHETIC FUEL COULD BE A GAMECHANGER IN THE AUTO INDUSTRY

In April 2022, German automaker Porsche announced a significant investment of $75 million in HIF Global, a Chilean company focused on the development and production of eFuels. eFuels, also known as synthetic fuels, are a class of alternative fuels produced from renewable energy sources. These fuels can be chemically identical to conventional fossil fuels, but with a significantly reduced carbon footprint during their production and use.

There are various types of eFuels, including e-kerosene and e-methanol. E-methanol, for example, has already demonstrably contributed to lowering carbon emissions in the shipping industry. A 2021 report by Yale Climate Connections highlighted that the shipping sector is responsible for approximately three-percent of global carbon emissions, exceeding even air travel.

Porsche's investment in eFuels specifically targets the potential to replace gasoline in automobiles, aiming to contribute to the decarbonization of the automotive industry. This initiative aligns with the company's sustainability goals outlined in its 2030 strategy. Additionally, the development of eFuels safeguards Porsche's involvement in motorsport events, where stricter fuel regulations might be implemented in the future.

While Porsche's investment offers clear benefits for the company, the potential impact of eFuels extends beyond its own operations. If successfully developed and scaled up for commercial use, eFuels has the ability to disrupt the entire automotive industry by offering a low-carbon alternative to traditional gasoline without necessarily hindering the growth of electric vehicles.

Porsche Is Leading The Auto Industry In Developing Synthetic Fuels

Although Porsche aims for over 80 percent of its new vehicle fleet to be categorized as electric vehicles by the end of the decade, Porsche realizes the majority of the company's cars on the road are currently gas-powered. According to various reports, the automaker plans to begin with a focus on its most iconic car, the 911.

Porsche aims to commercialize eFuels by 2030, according to Karl Dums, the company's Senior Project Lead for eFuels. Dums made this statement at the 2023 Munich Motor Show in an exclusive press gaggle with Car Magazine. He also confirmed that Porsche's synthetic fuels will arrive in the United States first.

Porsche Is Committed

Porsche may not seem like the obvious choice. Why not a start-up? However, according to Tatler, sustainability "isn't just a destination for Porsche, it's a holistic commitment." So, focusing on a future fleet of all-electric vehicles like the majority of the auto industry doesn't seem to cut it for Porsche. Rather, the company hopes to create a clean energy solution for its vehicles still on the road today — over 700,000 of those cars being 911s, according to Road and Track.

Along with road cars, Porsche is monitoring the opportunities for sustainable fuels on track as well. The manufacturer's investment could mean big things for its racing teams. Although the company is already involved in electric motorsports series, including Formula E, it aims to look into alternative fuel options for gas-powered and hybrid sports cars as well.

Porsche isn't the only one looking at eFuels. The president of IMSA told The Detroit News in October that "the next step in fuel. Our fuel partner, VP, is currently providing us with 80 percent renewable fuel made from plant waste. But in the future, 100 percent renewable fuel could be in our playbook." Additionally, Shell tested 100 percent renewable fuel in the NTT IndyCar Series last February and will fuel the series' cars in the future.

What Porsche Has Done So Far

Porsche said that the eFuels program will first focus on petrol engines by creating methanol via splitting a hydrogen cell and capturing carbon dioxide in the air. The two react and are then turned into a petrol substance. While testing has only just begun, Porsche aims to inject eFuels into its current gas-powered vehicles in the coming years.

The project is the first of its kind in scale and scope, along with being the "world's first integrated, large-scale commercial plant to manufacture synthetic, carbon-neutral fuels." The energy plant will use Chile's wind and solar power to fuel the creation of eFuels.

eFuels Offer Energy Companies An Entry Into The Climate Conversation

Several "Big Oil" and energy giant executives attended the 2023 United Nations' annual climate summit at the beginning of last December in Dubai. One of the many company leaders in attendance was Darren Woods, the CEO of ExxonMobil, who attended the conference for the first time. While Woods faced backlash after advocating for a "reduction" terminology in the climate conversation rather than entirely phasing out non-renewable energy sources, the company is investing in alternative fuel sources.

The Companies Behind Porsche's eFuels Project Include Big Energy Giants

ExxonMobil is one of seven companies included in Porsche's Haru Oni project to research and test sustainable fuels in Chile. The other companies include Enel, Siemens Energy, and energy providers local to Chile including Gasco, ENAP, and AME. The decision to invest in Chile was heavily influenced by low energy costs and taxes, along with a greater amount of wind turbine power. Chile also aims to be the top producer of the cheapest green hydrogen.

Porsche Leans On The Cost Argument

The decision to invest in Chile was heavily influenced by low energy costs and taxes, along with a greater amount of wind turbine power.

The company went on to say "eFuels will become competitive faster as fossil fuels become more expensive in the years ahead due to regulatory measures such as energy taxes and carbon pricing, as well as measures that make eFuels exempt from such charges."

Fossil fuels are not just set to become expensive for consumers, but also for energy providers. While the Inflation Reduction Act put money in the hands of utility companies to invest in renewable resources, energy companies are still spending more money to produce energy unsustainably. A policy and technology company, Energy Innovation, released a report stating that nearly all the current coal-powered energy processes in the United States would be cheaper if they were instead run by renewable energy sources.

Synthetic Fuels Are One Piece Of The Sustainable Puzzle

Nowadays, it seems that every other company is announcing a deadline to cut carbon emissions. But an interesting argument emerges on how these companies are actually being held to that time frame. Earlier this year, the Sierra Club published a study arguing that utilities and companies that have specific timelines, even ones with dates reaching 25-plus years into the future, are unlikely to reach those benchmarks.

Simply put, the companies aren't acting quickly enough to achieve those goals realistically, according to Sierra. Part of the problem is a lack of a non-renewable transition strategy. Another part of the problem is a "one and done" or "all or nothing" approach. Rather than solar or wind being the sole energy source, renewables can be viewed as a spectrum or collection of energy sources that can work together in order to meet global energy needs. The development and testing of eFuels, although not entirely carbon-neutral, fits into that spectrum.

How Porsche Plans For A Complementary Fuel To Electrification

Porsche stated that the switch to electric mobility isn't happening at a rate quick enough to satisfy the outlines of the Paris Agreement, the global and legally binding United Nations climate action treaty. Although solar, wind, and other renewable energy sources are growing and huge contributors to reducing carbon emissions in the electricity and fuel sectors, the complete switch to green energy will be difficult without a combination of several sources. Sustainable green fuels, like methanol, offer an additional source of nearly carbon-neutral energy.

How Porsche's Investment Will Alter The Energy Sector

The investment in green fuels isn't just set to change the auto industry, but the energy industry as a whole. As utilities and oil companies are slammed with criticism and accusations of "greenwashing" following the global climate summit, Porsche is attempting to make the transition away from fossil fuels smoother by testing and selling the closest thing to gasoline: a liquid substance that acts similar to gas and is simpler to transport compared to gaseous hydrogen.

A Potential Sustainable Alternative To Traditional Fossil Fuels

Porsche's synthetic fuel presents a potential alternative to traditional gasoline and diesel. Unlike these fossil fuels, which are derived from crude oil, eFuel is a synthetic hydrocarbon fuel manufactured from various feedstocks. These feedstocks can include renewable sources like water and captured carbon dioxide (CO2) from the atmosphere, or even biomass from sustainable sources like plant waste. This stands in stark contrast to gasoline and diesel, which are finite resources produced from the extraction and refining of crude oil.

A Multi-Step Process for Renewable Energy

The process of creating eFuel involves converting these feedstocks into usable fuel through a multi-step process. This involves methods like the Fischer-Tropsch process, which utilizes captured CO2 and hydrogen to synthesize a base fuel. However, this conversion process itself requires energy. Currently, in most cases this energy comes from fossil fuels, reducing the overall environmental benefit.

However, when renewable sources like solar or wind power are used to create the energy for conversion, eFuels offer a significant advantage. In a best-case scenario, eFuels are burned in existing engines without releasing new CO2 into the atmosphere, effectively creating a carbon-neutral cycle.

Balancing Efficiency With Sustainability

When it comes to efficiency, there's a trade-off. The process of extracting and refining gasoline and diesel from crude oil is relatively well-established and boasts a high energy output compared to the energy used in the refining process. However, this advantage is offset by the environmental impact of extracting the crude oil in the first place. In contrast, the conversion process for eFuels is less efficient, requiring more energy input to produce the same amount of usable fuel.

Electric vehicles boast significantly higher efficiency than eFuels. A study found that in an electric car, 73-percent of the energy provided is used for driving, whereas for eFuels, the figure plummets to only 13-percent. This translates to eFuels being the least efficient drive technology available by a wide margin. In fact, traveling the same distance with eFuels is said to require five times more energy compared to an electric car.

Challenges Of Synthetic Fuels

Porsche's synthetic fuel, eFuel, offers an attractive option for the auto industry, but significant hurdles exist before it can become mainstream.

• Production Costs: Currently, synthetic fuel production is expensive due to the complex processes involved. This high cost is a major barrier to widespread adoption.
• Energy Consumption: The creation of synthetic fuels is inherently energy-intensive. Even if the process relies on renewable sources like solar or wind power, the conversion of that energy into fuel can be inefficient.
• Infrastructure Challenges: Distributing and selling synthetic fuels will require substantial investment in entirely new infrastructure. This includes not only storage facilities for the fuel itself, but also the development and installation of new pumps at gas stations. The current fueling infrastructure is designed for traditional fuels, and modifying it to accommodate eFuels would be a significant undertaking.
• Potential for Emissions During Use: While eFuels are touted for their potential to reduce greenhouse gas emissions, it's important to acknowledge that there may still be emissions produced during the combustion of the fuel in vehicles.

2023-12-24T13:00:35Z dg43tfdfdgfd