Amsterdam-headquartered automaker, Stellantis, is betting on synthetic fuels, also known as e-fuels, to keep combustion engines alive, even as the world looks to electrify transportation in the near future.
Formed only in 2021, Stellantis is a merger of two legacy carmakers, the Italian Fiat Chrysler and French Peugeot S.A. Even as the merger has plans in place to comply with the European Union mandate to sell only battery electric vehicles by the end of the decade, Stellantis isn’t giving up on the combustion engine vehicles just yet.
What are e-fuels and how do they help?
E-fuels, short for electro fuel, are envisioned as a replacement for conventional fossil fuels. E-fuels are synthetic in origin and are manufactured by combining captured carbon from industrial processes and hydrogen made using renewable energy sources.
Since the carbon released when the fuel is burnt is not more than the carbon captured, it is considered a low carbon footprint solution. The hydrocarbon nature of the fuel makes it convenient to be used as a drop-in replacement for fossil fuel, especially for long-haul transport, marine, and air transportation.
Representative image for synthetic fuel Ivan-Balvan/iStock
E-fuels have been in the pipeline for over a decade and many companies have previously invested in the technology. Stellantis interest in the technology stems from the fact that it has 14 different brands under its wing, where it has already supplied more than 28 million vehicles.
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