According to an analysis report released by the environmental organization Transport & Environment (T&E) on July 30th, there are currently 69 electric synthetic fuel projects in Europe that can be used for shipping. However, only 6 of these projects are actually operational. In contrast, China has only 3 such projects in operation, but their capacity is already ten times that of all the European projects operating together.
T&E warns that if Europe continues to lag behind in terms of progress, it may lose its competitive edge in this strategic market.
Electric synthetic fuels generally refer to liquid hydrocarbon fuels that can be synthesized through catalytic reactions using green H2 produced by water electrolysis and captured CO2. Examples include synthetic methanol, synthetic gasoline, synthetic kerosene, and synthetic diesel.
The agency warns that China’s green fuel production capacity is expanding rapidly. In the future, without local competition from Europe, China may enter the European market in large quantities, repeating the situation that once occurred in Europe’s solar industry.
The report also shows that after the EU introduced its shipping fuel reduction policy in 2023, several European countries have started to develop projects for the production of synthetic fuels. Currently, Spain has the largest number of such projects, followed by Denmark, Finland, and France. If all these projects can be launched as planned, by 2033 Europe could produce up to 4.09 million tons of synthetic fuel per year, which could meet about 14% of Europe’s shipping fuel needs.
However, T&E believes that large-scale projects in Europe still face difficulties. More effective financial support and targets for the use of clean fuels at the EU level are needed to promote industrial development.
"When Europe was still hesitating, China had already started to promote the application of power synthesis fuels in the maritime field." said Constance Dijkstra, T&E maritime policy head.
She said that if Europe wants to become a leader in green fuel production, it is necessary to reduce the price gap between the electronic fuels produced in the EU and fossil fuels, and to encourage shipping companies to use these fuels instead of importing liquefied natural gas or biofuel.
