United Kingdom (UK) E-Fuel Market Research Report, 2029

The UK e-fuel market is becoming an important player in the global effort to decarbonise the transport and aviation sectors. E-fuels, also known as electrofuels, are synthetic fuels made by combining green hydrogen with atmospheric carbon dioxide, resulting in a carbon-neutral alternative to traditional fossil fuels. They have received attention for their ability to reduce carbon emissions from difficult-to-decarbonize industries such as aviation, heavy transportation, and shipping. The notion of e-fuels gained ground in the United Kingdom in the 2010s, in line with the country's goal of reaching net-zero emissions by 2050. As part of larger efforts to tackle climate change, the government and industry began looking into alternate fuels. However, it wasn't until the mid-2020s that the sector realised tangible results. The UK government vowed in 2022 to phase out petrol and diesel cars by 2030, which has boosted research and development into alternative fuels. Partnerships between the UK Department for Transport (DfT) and private enterprises to construct synthetic fuel manufacturing plants are among the most significant breakthroughs. Furthermore, the government has set aggressive goals, such as lowering aviation emissions by 15% by 2050 through the use of alternative fuels, including e-fuels. The Renewable Transport gasoline Obligation (RTFO) requires suppliers to blend renewable fuels into the UK's gasoline supply, providing a considerable boost to e-fuel uptake. This is supplemented by broader EU requirements, despite Brexit, that mandate carbon neutrality across businesses, causing sectors such as aviation and shipping to investigate alternatives such as e-fuel. According to the research report "UK E-Fuel Market Research Report, 2029," published by Actual Market Research, the UK E-Fuel market is anticipated to grow at more than 23.98% CAGR from 2024 to 2029. Several significant businesses in the UK e-fuel sector are leading the charge to drive this shift. Norsk e-Fuel, Infinium, and Zero Petroleum are among the major businesses producing synthetic fuel. Zero Petroleum, in particular, earned news for supplying synthetic fuel for the Royal Air Force's first carbon-neutral flight in 2021. In terms of suppliers, ITM Power, a UK-based green hydrogen manufacturer, is critical in delivering the hydrogen needed for e-fuel production. The UK e-fuel market is mostly concerned with local manufacturing, but there are increasing potential for import and export, particularly within the European Union and neighbouring markets. The UK's proximity to Germany, a leader in e-fuel technology, creates opportunities for cross-border collaboration. One significant collaboration is between the UK government and ZeroAvia, which focusses on building hydrogen-electric aircraft and integrating e-fuels into the aviation industry. The UK has also collaborated with international organisations, such as the International Civil Aviation Organisation (ICAO), to guarantee that e-fuels fulfil global aviation requirements. Public awareness campaigns, such as the Jet Zero Council initiative, have highlighted the importance of alternative fuels in reaching net-zero aviation by 2050. The government is also providing incentives for companies who invest in e-fuels, such as grants and tax cuts. The UK Climate Change Committee (CCC) is also assisting with promotional activities, advocating for the quick adoption of e-fuels to meet long-term decarbonisation targets.

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The UK's e-fuel market is expanding into new sectors such as transportation, industry, and power generation, spurred by the country's net-zero emissions targets. The most common application of e-fuels in the UK is transport, particularly aviation and shipping. Aviation, one of the most difficult industry to decarbonise, has made great progress with synthetic fuels. The Royal Air Force utilised e-fuels for its first carbon-neutral flight in 2021, and more commercial airlines are looking into their potential. In the industrial sector, e-fuels provide an alternative to high-temperature processes that formerly relied on fossil fuels. Steel, cement, and chemical industries use e-fuels to satisfy strict carbon reduction targets while maintaining high energy demands. E-fuels are also being used in power plants as a storage medium for renewable energy. By turning excess wind and solar power into synthetic fuels, they provide a means of storing energy that can be converted back into electricity during periods of low renewable generation. E-methanol and e-kerosene are the most common e-fuel kinds due to their use in aviation and heavy transportation. E-kerosene is especially important in aviation since it can directly replace jet fuel without requiring any modifications to existing aircraft. ITM Power, a key domestic supplier in the UK, provides green hydrogen, which is a critical component in e-fuel generation. Zero Petroleum is a key local player in synthetic fuel production, and Norsk e-Fuel is extending its presence in the UK market. In the UK e-fuel market, synthetic fuels such as e-kerosene, e-diesel, e-gasoline, and e-methanol are gaining interest due to their ability to replace fossil fuels while utilising existing infrastructure. E-kerosene is the most popular e-fuel in the UK, particularly in the aviation sector. E-kerosene now leads the UK e-fuel market, owing to the aviation sector's urgent need to decarbonise. It is a direct substitute for conventional jet fuel that requires no major changes to existing aircraft, making it a cost-effective and practical solution. The UK aviation sector, supported by government efforts such as the Jet Zero Council, has prioritised e-kerosene to reach net-zero emissions by 2050.E-diesel is largely employed in heavy transportation industries such as trucks and shipping, which are difficult to electrify. E-diesel is also garnering interest in off-road machinery and military applications, where the deployment of electric cars is less viable. E-gasoline is another alternative being researched for the automotive industry. While electric vehicles (EVs) dominate the decarbonisation discourse in this sector, e-gasoline offers a way to extend the life of internal combustion engines, especially in locations where full electrification may take longer. E-methanol is emerging as a versatile e-fuel, especially for shipping and industrial uses. It functions as both a fuel and a chemical feedstock. E-methanol is a solution for shipping firms looking to cut sulphur and CO? emissions. Domestic suppliers such as Zero Petroleum, ITM Power (for green hydrogen), and Coryton Advanced Fuels are major players in e-fuel production and distribution in the UK. Several innovative technologies are supporting the UK e-fuel business, allowing for the creation of carbon-neutral synthetic fuel. The Fischer-Tropsch process, Reverse-Water-Gas-Shift (RWGS) processes, and hydrogen production (mostly by electrolysis) are all important technologies. Hydrogen is an important component in the creation of e-fuels, particularly green hydrogen, which is created through the electrolysis of water with renewable electricity. ITM Power is a key player in green hydrogen generation in the United Kingdom, supplying hydrogen mixed with carbon dioxide to produce e-fuels. The Fischer-Tropsch (FT) method is commonly employed in the e-fuel industry to transform syngas (a combination of hydrogen and carbon monoxide) into liquid hydrocarbons like e-diesel, e-gasoline, and e-kerosene. This technology is crucial for manufacturing e-fuels that can substitute regular fuels in engines without requiring modifications. The RWGS response is another significant technology in the UK e-fuel sector. It converts carbon dioxide to carbon monoxide, which is then utilised in the Fischer-Tropsch process to produce hydrocarbons. RWGS helps capture and recycle CO? emissions, making the manufacturing of e-fuels carbon-neutral. This technology is gaining traction as the UK focusses on decreasing industrial emissions through carbon capture. Among these technologies, hydrogen dominates the UK e-fuel market. This is due to the increasing need for green hydrogen as a vital component in e-fuel manufacturing. The UK government supports green hydrogen development as a key step towards reaching net-zero emissions.

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Kripa Shah

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Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • E-fuels market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By End-use • Aviation • Marine • Industrial • Railway • Automotive • Others

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By Application • Transportation • Industrial • Power Generation • Others By Type of E-fuel • E-kerosene (Synthetic Aviation Fuel) • E-diesel • E-gasoline • E-methanol • Other Hydrocarbons By Technology • Hydrogen technology (Electrolysis) • Fischer-Tropsch • Reverse-Water-Gas-Shift (RWGS) The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the E-fuels industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry. ?