E-fuels early movers can win, but need to tread carefully
A decade ago, scepticism about renewable natural gas (RNG) was everywhere. The fuel derived from organic waste sources cost far more than conventional natural gas, raising
serious doubts about its viability. Amir Ghasdi Sub Sector Lead, Energy and Resources, GHD T hese days, companies are lining up to buy it, with the global market expected to grow by two-thirds to CAD 25 billion by 2032 as the cost gap with regular gas narrows.¹ It turned out they were willing to pay more to decarbonise to stay in compliance with mandates, meet net-zero targets and tell a better, cleaner story to their investors and customers.
out, correctly, that they are expensive and hard to scale. However, e-fuels are on a trajectory similar to the one that took RNG from a novelty product to a vital and growing part of the energy mix for industry. It’s a niche technology on the verge of becoming a vital component of the decarbonisation solution for hard-to-abate sectors such as shipping and aviation. As with RNG, the market will ultimately reward early movers among developers and end users. Still, industry pioneers face many challenges. It’s so Nexus Magazine | GHD | 23
Today, we hear very similar doubts about e-fuels — synthetic fuels made from captured carbon dioxide (or biogenic CO₂) and low-carbon hydrogen. Critics point
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