POLE POSITION: is Formula 1 leading an e-fuel revolution?

Whilst watching the first two Formula 1 Grand Prix of the year (and what looks set to be another Max Verstappen-dominated season), it was hard to ignore the ‘Formula 1 Net Zero 2030’ signage throughout the paddocks. In answer to their climate critics, Formula 1 have pledged to reach net zero carbon emissions by 2030, and they are not alone in the world of motoring. Sustainability in the midst of climate change is a key goal for the automotive industry, and it has been at the forefront of automotive development for decades. There is a spotlight on this industry due to its inevitably high output of carbon emissions and as such, it comes as no surprise that there is pressure to cut these emissions. So, what are its options? Well, Battery Electric Vehicles (BEVs) are currently leading the race, but we are seeing an emergence of e-fuels coming to the forefront as a sustainable solution to keeping ICE cars on the road. With industry giant Formula 1 backing them, will e-fuels soon be in pole position in the race to carbon zero?

In 2022, an agreement was reached to end the sale of new ICE cars in the EU by 2035. This was then mirrored in the UK. However, in March 2023, just before the vote by national governments on the EU 2035 decision, the German Government (backed by Italy, Bulgaria and Poland) declared last-minute opposition, demanding that sales of new cars with ICEs be allowed after 2035, if they run on e-fuels. Automotive giants Porche and Ferrari were at the centre of this EU debate, as a ban on ICE cars would cause huge knock-on effects to their heritage, sports and race car sectors. The European Commission agreed and is now creating a new EU vehicle category for cars that can only run on carbon-neutral fuels. With these automotive powerhouses backing e-fuels, questions are being raised about whether alternative fuel solutions also have a role to play in reducing transport emissions, alongside electrification.

The name ‘e-fuel’ is short for ‘electrofuel’, and it is an alternative to petrol and diesel for use in a car with an ICE. Electric cars are expensive to make and, despite themselves not being cheap to produce, e-fuels could provide a real life long-term solution to extending the life of ICE cars, of which there will still be millions on the road. E-fuels are made by separating hydrogen and oxygen from water using electricity. The next step is then capturing CO2 from the air and combining it with hydrogen using chemical synthesis. The important thing to note is that this process takes a huge amount of electricity, a fact which comes with its own challenges and critics. Other car manufacturers and ambitious start-ups have already looked to e-fuels as the future, for example Porsche have invested over $100 million into an e-fuel venture located in Chile, which saw its first commercial shipment of e-fuels transported in November of last year. Because of how much energy is required to create the e-fuel, the venture is located in Chile as it has an abundance of wind turbines and in order to make this fuel process 100% carbon-neutral, the fuel must be pumped and even transported only using renewable energy. This demonstrates how there is still a long way to go.

One organisation that is pushing e-fuels is Formula 1. F1 has been a frontrunner in innovation for over 70 years, and for decades we have seen F1 technology lead and road cars follow. From hybrid drivetrains and carbon fibre chassis to adaptive suspension and paddle shifting; F1 cars have been continually adapting to get the best level of performance, and it is only natural that road cars have followed in their slipstream. However, with the shift of road cars to electric vehicles representing an existential threat to F1, and the increasing pressure on them to cut their carbon emissions, maybe this is the one notable time in history whereby F1 does not lead the way in road car development?

Their answer? To produce their own sustainable e-fuel which is completely carbon neutral. F1, together with petroleum and natural gas company ARAMCO, are developing an 100% sustainable fuel that can be used in F1 cars from 2026. F1 CTO Pat Symonds is leading the team working on an e-fuel whereby no carbon dioxide is added to the atmosphere. The current generation of F1 cars are running on ‘E-10’ fuel which is a 90% fuel and 10% renewable ethanol blend. But by 2026, all F1 cars will be run on this new 100% sustainable e-fuel. This has the potential to not only benefit F1 cars, but the fuel has been designed in such a way that it can be dropped into almost all of the near-two billion cars on the planet. If achieved, this fully sustainable e-fuel would revolutionise the car industry.

However, as more and more research is put into e-fuels, it is looking like their uses may be limited to the racing and heritage car markets only. They are incredibly expensive to produce. A research and development executive at Porsche estimates that it costs £37.24 per imperial gallon at present, which is much more than regular unleaded petrol. They also require a large amount of renewable energy to make the carbon cycle neutral, a capacity which countries like the UK just do not have at present. If you are wondering how these electric requirements compare to BEVs, it is argued that on a mile-per-mile basis, e-fuels require more energy than is needed to power an electric car. For these reasons, it is looking unlikely that we will see the widespread adoption of e-fuels in all areas of the automotive industry any time soon. Some in the industry are also concerned that an e-fuel exception, even if limited to only sports cars, could hinder the impact of a clear 2035 ban on combustion engines.

There are other sustainable fuels, such as biofuels and synthetic fuels, that are being explored as part of both the racing and road car sectors. German Manufacturer, P1 Fuels, uses a combination of carbon capture and biomass to create its fossil-free fuel that has fuelled karting, racing, and even the World Rally Championship. In 2022, P1 Racing Fuels was selected as the official fuel supplier for the FIA Karting Championships. This aligns with the adoption of the FIA’s 2020-2030 Environmental Strategy and its commitment to leading motorsport into a low carbon future to reduce its environmental impact. Whilst we are seeing some sustainable alternatives such as these thrive, other proposed solutions, such as hydrogen, have fallen by the wayside. Toyota created the Mirai Sedan which runs on hydrogen, but due to the small number of hydrogen fuelling stations, and the eye watering expense of this car, those who have tried this car have found it unsuccessful. However, start-ups such as Hyperion, who created the XP-1 hydrogen electric supercar, are still continuing with hydrogen as they believe it is the way forward.

So, in which position does e-fuels cross the line? That is still to be determined. Despite their uptake in Formula 1, unless e-fuel infrastructure improves to make it easier and cheaper to produce, it doesn’t look like road cars will be following any time soon. Nonetheless, these new innovations are moving the automotive industry steps closer towards a carbon net zero future. This transition is accelerating through new regulatory targets and increasing societal pressure, and it is important for car manufacturers and household sporting names such as Formula 1, to be exploring all of their options to achieve these targets. By setting their ‘Net Zero 2030’ initiative, Formula 1 is aligning itself with the wider industry in its attempt to cut its emissions… something which is no mean feat for a sport where 10 teams of people and equipment are sent to 24 races across the world. However, their commitment to making their race environments sustainable and their ICE-hybrid cars run on e-fuel by 2026, is something to be praised. It comes as no surprise that BEVs are by far the Government and automotive industry’s current answer to achieving net zero, but they demonstrate a path that Formula 1 simply cannot follow. However, with a recent report by the Transport Select Committee accusing the UK Government of ‘putting all its eggs in one basket’ by mandating a transition to BEVs from 2035, coupled with no financial support to incentivise the uptake of electric cars in the Chancellor’s 2024 Spring Budget, is there scope for e-fuels to overtake BEVs as the preferred carbon zero future? Watch this space…