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E-fuels: Introduction

  • E-fuels/electrofuels are type of advanced fuels that are produced with the help of electricity from renewable energy sources and water & carbon dioxide from air. The production process of e-fuels involves production of hydrogen using renewable electricity followed by mixing of hydrogen with carbon dioxide to get a hydrocarbon with zero net greenhouse gas emission.
  • E-fuels are similar to petroleum-based fuels, but they can burn more cleanly and efficiently. Petroleum-based fuels are derived from refining of crude oil. Production of petroleum-based fuels emits more hydrocarbons into the nature. This leads to depletion of ozone layer and thus encourages global warming phenomenon. On the other hand, e-fuel can act as a complete climate-neutral energy source.
  • E-fuels are in danger of being replaced by the advent of electric vehicles. In present scenario more than 90% of the total energy required for propulsion in the transport sector is derived from liquid fuels. Millions of vehicles are in operation. The main challenge facing electric vehicles is the absence of the necessary infrastructure for charging of batteries. It is also very expensive. E-fuels would not require any other infrastructure, as they can utilize the existing infrastructure, including tank farms, pipelines, vehicle fleets, and filling stations.
  • Thus, rise in usage of e-fuels as the complete climate-neutral energy source and lack of additional requirement of infrastructure for storage and distribution are expected to boost the demand for e-fuels in the near future.

Key Drivers and Restraints of E-fuels Market

  • Compared to other energy sources such as lithium batteries, liquid fuels derived from crude oil such as petrol, diesel, and kerosene possess higher energy density. These liquid fuels can also be kept under room pressure and at room temperature. These qualities make liquid fuels favorable over other types of energy sources. E-fuels have similar chemical composition as that of liquid fuels; hence, the advantages mentioned above also apply to e-fuels. Batteries used in electric vehicles are not only costly to produce, but also require large amount of lithium sources as raw materials. Lithium mining can pose a serious threat to the environment through the damage to the landscape and via emission of greenhouse gases. Thus, limitation of batteries as electric sources in electric vehicles is anticipated to boost the demand for e-fuels in the near future.
  • Production of E-fuels is a complex process. Operating cost associated with the production is on a higher side, as production of e-fuels has not yet reached a sufficient state of maturity. Conversion losses during the electrolysis process are higher. This impacts the production efficiency of e-fuels, thus hampering the e-fuels market.

COVID-19 Impact Analysis on Supply Chain

  • Governments of several countries across the globe have imposed stringent lockdowns to limit the spread of the coronavirus. Movement of individuals and economic activities related to goods and services came to a halt because of lockdowns. Many automotive players halted the production of motor vehicles. Temporary closure of public transport services led to a drop in consumption of liquid fuels. Decline in production of motor vehicles as well as closure of public transport services adversely affected the usage of e-fuels.

E-fuels Market Segmentation

  • The global e-fuels market can be segmented based on type, conversion process, source of carbon, and end-user
  • In terms of type, the global e-fuels market can be divided into e-diesel, e-gasoline, e-kerosene, e-jet fuel, ammonia, hydrogen, methane, methanol, and others
  • In terms of conversion process, the global e-fuels market can be segregated into power-to-X (PtX), power-to-gas (PtG), and power-to-liquid (PtL)
  • In terms of source of carbon, the global E-fuels market can be classified into non-biogenic origin, biomass based, and direct air capture
  • Based on end-user, the global e-fuels market can be divided into road transport, shipping, aviation, heating, industry, and others

E-fuels Market: Regional Segmentation

  • In terms of region, the global e-fuels market can be split into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
  • North America is anticipated to dominate the global e-fuels market during the forecast period. According to the Reuters Agency, consumption of petroleum and other liquid fuel in the U.S. is expected to rise by 1.49 million bpd and reach to 19.61 million bpd by the end of 2021. Thus, use of e-fuel as an alternative to other conventional liquid fuels is anticipated to rise during the forecast period in the region.
  • Asia Pacific is expected to be a highly lucrative region of the global e-fuels market during the forecast period. China, Australia, Japan, and India are key countries in terms of consumption of liquid fuels around the world.
  • Europe is one of the key regions of the global e-fuels market. The region has strict government regulations regarding greenhouse gas emission. Growth of sustainable practices in countries such as Germany, Russia, Poland, and Turkey to protect the environment is expected to drive the e-fuels market in Europe in the next few years.

Key Players Operating in Global Market

  • Nordic Electrofuel AS
  • Sunfire GmbH
  • ENEOS Corporation
  • Siemens Energy
  • Neste
  • Norsk e-Fuel AS
  • Ørsted A/S
  • Repsol S.A

Global E-fuels Market: Research Scope

Global E-fuels Market, by Type

  • E-diesel
  • E-gasoline
  • E-kerosene
  • E-jet fuel
  • Ammonia
  • Hydrogen
  • Methane
  • Methanol
  • Others

Global E-fuels Market, by Conversion Process

  • Power-to-X (PtX)
  • Power-to-Gas (PtG)
  • Power-to-Liquid (PtL)

Global E-fuels Market, by Source of Carbon

  • Non-biogenic Origin
  • Biomass-based
  • Direct Air Capture

Global E-fuels Market, by End-user

  • Road Transport
  • Shipping
  • Aviation
  • Heating
  • Industry
  • Others

Global E-fuels Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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E Fuels Market