Key Takeaways:
- Synthetic fuel offers a practical way to clean up industries that can’t easily go electric.
- Produced from captured greenhouse gas and renewable energy, the fuels are close to carbon neutral and much more sustainable compared to conventional fuels.
- The range of fuels are molecularly modified to replicate existing fuels, meaning they integrate with engines and infrastructure so none of the systems we rely on need to be rebuilt.
- They turn polluting CO2 into a resource, creating a closed carbon loop.
Synthetic fuel offers a practical way to clean up transport that can’t easily go electric. These e-fuels are fuels produced from captured greenhouse gas and renewable energy so they can be close to carbon neutral.
They run in internal combustion engines and use existing infrastructure which avoids replacing everything at once. By creating liquid fuels that replace petroleum based diesel fuel they cut carbon footprint without relying on synthetic crude from the ground.
Our latest article explores 10 leading examples of synthetic fuel with key information about how the solution is developing, what issues it’s facing, and the value it adds to the low-carbon economy.
What Are Synthetic Fuels?
Synthetic fuels (SFs) are not just one green solution in a sea of ideas. They are today’s best workable solution for the hard-to-electrify sectors.
Built artificially instead of dug from the earth, they function the exact same way as existing fuels, just created cleaner.
Because they’re built molecule by molecule, scientists can intentionally produce the exact fuel molecules that fit into existing structures and systems.
As a result, there’s a synthetic version for each of the fuel systems we’re well-versed in that are harmful to the planet. Petrol becomes E-gasoline, diesel becomes E-diesel, jet fuel becomes E-kerosene or FT-jet fuel and so forth.
For most drop-in fuels like E-gasoline and E-diesel, no systems or infrastructure need to be replaced.
Importantly, they turn polluting CO₂ into a resource, creating a closed carbon loop. The CO₂ released when the fuel burns is balanced by the carbon dioxide captured in production.
A huge factor is the tech’s availability. While swapping the world to batteries will take decades, SFs can already be used in many machines today while overarching technologies catch up.
Synthetic fuels reuse today’s infrastructure, protecting jobs by keeping people working while the product changes. Other clean tech like battery-electric vehicles or hydrogen systems often make current fuel roles unnecessary because the whole system changes.
How They Are Produced
When fuels are synthetic, it means they’re made instead of mined.
Conventional fuels come from extraction processes:
- Crude oil is pumped from underground reservoirs
- Coal is dug out through mining
- Natural gas is taken from rock formations by drilling
Instead, most synthetic fuels are created from two main sources:
- Carbon is captured either at high-emitting sites (point source) or directly from the ambient air (Direct Air Capture). CO₂ is grabbed and stored before reaching the air.
- The carbon is then reacted with hydrogen that has been made from renewable energy sources like wind and solar, building new fuel molecules forming the range of SFs.
Some processes output the gas form (synthetic methane, synthetic propane) and some the liquid form (e diesel, e gasoline, e kerosene, synthetic methanol).
The former (gas) is used in heating and industrial uses, replacing natural gas, and the latter (liquid) is used in engines and aviation, replacing petrol, diesel and jet fuel.
Modern synthetic fuel production uses captured carbon monoxide and renewable energy to create renewable fuel that avoids traditional petroleum-based extraction.
Why Synthetic Fuels Matter
While real fuels rely on fossil fuels, synthetic fuels are made of clean energy or captured carbon.
Instead of depleting a finite resource with environmentally devastating methods, SFs innovate a new way of powering transport, aviation, and industry without compromising future generations.
With ideas originating in the 1920s, SFs were well-utilised during wartime shortages until the rise of cheap petroleum after WW2.
Cheap fuel became ubiquitous, and mounting climate pressures finally brought SFs back into focus in the 2010s as climate solutions to replace harmful fuels.
Most crucially today, buses and cars are ditching fuel for batteries, while cargo ships and planes can’t.
The only realistic solution for half the transport industry lies in SFs, or at least it’s the most workable clean solution possible right now.
Moreover, they bridge an important gap. Synthetic fuels keep things moving while we work on building clean infrastructure and energy to power things directly.
These fuels derived from captured carbon show how fuel production can shift toward a low carbon future without replacing existing engines and infrastructure.
Challenges And Limitations
The biggest barrier is the lack of scalability and resources. If we could overcome this, we’d be cutting a truly hefty chunk out of global emissions.
It takes up heaps of energy from renewables, a sector that’s been upscaled continuously over recent decades to replace fossil electricity.
Aviation and shipping are beginning to buy fuel, but the scale remains much smaller than what it needs.
The demand is there, but not the supply, and certainly not at current rates. SFs come in tiny volumes with very high prices, making an industry-wide swap from cheap crude oil financially unfeasible.
With lack of policies, clear guidelines and long-term rules, investors are holding back.
Moreover, while the tech is there and established, it’s inefficient. SFs go from electricity to hydrogen to liquid fuel then back to motion in an engine, with losses of energy at each step of the way.
You need a lot more clean power than you get back in fuel, which itself is limited and expensive.
Types Of Synthetic Fuels
E-Diesel
What it’s made from: Captured CO2 plus green hydrogen
How it’s produced: Electrolysis plus CO2 synthesis power to liquid
Year first developed: Mid 2010s pilot stage
How widely it’s used today: Limited demos aviation and shipping trials
Key advantage: Drop in diesel alternative with lower lifecycle emissions
Main limitation: High cost and big electricity demand
Carbon impact: Can be near neutral if powered by 100 percent renewables
Link: https://www.researchgate.net/publication/375027634_OVERVIEW_OF_E-DIESEL
E-Gasoline
What it’s made from: CO2 from air or industry combined with renewable hydrogen
How it’s produced: Electrolysis plus CO2 synthesis refined to gasoline range liquids
Year first developed: Late 2010s early commercial pilots
How widely it’s used today: Small scale tests in cars and motorsport
Key advantage: Works in existing petrol engines with lower lifecycle emissions
Main limitation: Expensive production and limited supply
Carbon impact: Can be close to neutral with fully renewable power
Link: https://www.sciencedirect.com/science/article/abs/pii/S0360319925053996
E-Kerosene
What it’s made from: CO2 sourced via carbon capture and hydrogen from clean electricity
How it’s produced: Power to liquid synthesis refined to jet fuel spec
Year first developed: Late 2010s aviation pilots
How widely it’s used today: Limited blend use on select flights
Key advantage: Works in existing aircraft helps cut aviation emissions
Main limitation: Very high cost and slow scale up
Carbon impact: Can be close to neutral with fully renewable power
Link: https://www.hy2gen.com/e-kerosene
Synthetic Methane
What it’s made from: Captured CO2 reacted with renewable hydrogen
How it’s produced: Power to gas methanation creating a drop in natural gas substitute
Year first developed: Concept in mid 20th century modern pilots 2010s
How widely it’s used today: Small grid injections and demo storage projects
Key advantage: Uses existing gas networks and appliances
Main limitation: Energy losses in conversion make it pricey
Carbon impact: Can be near neutral if CO2 is captured and power is renewable
Link: https://www.cycle0.com/what-is-e-methane/
Synthetic Methanol
What it’s made from: CO2 captured from air or industry plus renewable hydrogen
How it’s produced: Catalytic synthesis in power to liquid plants
Year first developed: Industrial methanol 1920s synthetic renewable variants 2010s
How widely it’s used today: Growing use in shipping and chemical feedstocks
Key advantage: Versatile fuel and building block for many products
Main limitation: Cost and need for clean energy scale
Carbon impact: Can be low-carbon with captured CO2 and green electricity
Link: https://methanol.org/renewable/index.html
Synthetic Ammonia
What it’s made from: Nitrogen from air plus renewable hydrogen
How it’s produced: Green Haber Bosch process powered by clean electricity
Year first developed: Conventional ammonia early 1900s green variants 2020s
How widely it’s used today: Limited pilots mainly for fertiliser and fuel trials
Key advantage: High energy density option for shipping and long term storage
Main limitation: Toxicity and handling challenges
Carbon impact: Very low if hydrogen is renewable and no fossil feedstock used
Link: https://www.sciencedirect.com/science/article/abs/pii/S2211339820300708
Fischer–Tropsch Diesel
What it’s made from: Syngas made from biomass renewable electricity or captured CO2
How it’s produced: Fischer Tropsch synthesis then refined to diesel range
Year first developed: Process from 1920s sustainable versions 2000s onwards
How widely it’s used today: Niche use in heavy transport and military tests
Key advantage: High quality clean burning diesel alternative
Main limitation: Complex plants and high production cost
Carbon impact: Can be low when using renewable feedstocks and clean power
Link: https://www.sciencedirect.com/topics/engineering/fischer-tropsch-diesel
Fischer–Tropsch Jet Fuel
What it’s made from: Syngas from biomass captured CO2 or waste gases
How it’s produced: Fischer Tropsch synthesis refined to aviation grade kerosene
Year first developed: Original tech 1920s sustainable aviation pilots 2010s
How widely it’s used today: Limited blend use on select commercial flights
Key advantage: Drop in jet fuel that improves soot and sulphur performance
Main limitation: Costly plants and slow scaling for aviation demand
Carbon impact: Low when using renewable feedstocks and clean energy
Dimethyl Ether
What it’s made from: Biomass waste gases or CO2 plus renewable hydrogen
How it’s produced: Catalytic conversion to methanol then dehydration to DME
Year first developed: First commercial DME mid 20th century renewable variants 2010s
How widely it’s used today: Small use as LPG replacement and in clean diesel trials
Key advantage: Very clean combustion with low particulate emissions
Main limitation: Needs new storage and handling kit
Carbon impact: Can be low when made from captured CO2 or bio feedstocks with green power
Link: https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2021.663331/full
Synthetic Hydrogen-Derived Propane
What it’s made from: Captured CO2 combined with renewable hydrogen to form synthetic LPG
How it’s produced: Power to gas synthesis then refined to propane range molecules
Year first developed: Very new tech emerging in the 2020s
How widely it’s used today: Early pilots aiming to replace fossil propane in homes and industry
Key advantage: Works with existing LPG systems and appliances
Main limitation: High cost and limited commercial capacity
Carbon impact: Can be low when powered by fully renewable electricity and CO2 capture
Uses Across Key Sectors
Some sectors can electrify easily, such as those with cars, buses, and smaller vehicles, or homes with heat pumps and short-distance trains.
The sectors benefitting most from synthetic fuels are those that can’t, i.e. needing huge amounts of energy or soaring temperatures (like 2000°C).
These include:
- Transport: SFs can easily replace existing fuels, and work in most cars without needing changes. They’re a solid clean alternative while electrification is scaling.
- Aviation: SFs are the only clean option for long-haul flights, blends into existing fuel and can be used in aircrafts today. It’s starting to be purchased, and hugely reduces emissions without needing to redesign the huge machines.
- Shipping: Ocean-going cargo ships moving goods between continents burn conventional fuels constantly. SFs would allow the essential travel to continue in a much cleaner way.
- Industry and heating: Synthetic methane and propane replaces fossil natural gas, letting industry cut emissions now without the need to rebuild established systems.
Role In A Low-Carbon Economy
Synthetic fuels play a key role in our global journey towards decarbonisation.
Tiny right now, but they’re crucial within a low-carbon economy for the sectors that can’t be electrified.
Whether as a concrete, long-term solution should we overcome the barrier of scalability, or a short-term bridge gap while clean power solutions catch up, they reduce carbon in the parts hardest to decarbonise.
While renewables, hydrogen and full electrification require rebuilding systems and infrastructure, SFs integrate seamlessly with established processes.
In today’s age, it’s about finding solutions that act quickly and efficiently, posing them as an excellent candidate for pushing clean tech as we are able to advance the technologies and make SFs accessible.
In their current state, they’re heavily energy-intensive so they only make sense when the alternative is worse.
With the alternative being fossil fuels for long-haul aviation, heavy industry and shipping, SFs are the best option we’ve got to cut emissions.
More Information
https://methanol.org/renewable/index.html
https://www.iea.org/reports/ccus-in-clean-energy-transitions
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en
https://www.ebrd.com/home/who-we-are/ebrd-values/ebrd-transition/green-transition-concept.html
https://www.eurelectric.org/in-detail/unlocking-the-untapped-potential-of-industrial-electrification
https://www.systemiq.earth/wp-content/uploads/2025/02/CRC-electrification.pdf
FAQs
What are synthetic fuels?
Synthetic fuels are built artificially instead of dug from the earth and function the exact same way as existing fuels, just created cleaner using captured carbon and renewable energy.
Why are synthetic fuels needed?
They are today’s best workable solution for the hard-to-electrify sectors like aviation and shipping, where the only realistic clean option lies in SFs.
Do synthetic fuels work in existing engines?
Yes, SFs can be used in existing infrastructure and internal combustion engines without needing to replace established systems or redesign machines.
How are synthetic fuels made?
They’re created from carbon captured either at high-emitting sites or directly from the air, reacted with hydrogen made from renewable wind and solar power to build new fuel molecules.
Are synthetic fuels low-carbon?
They create a closed carbon loop where the CO₂ released when the fuel burns is balanced by the carbon dioxide captured in production, so they can be close to carbon neutral.