Macroeconomic challenges
Complex Economic and Regulatory Challenges
The development of alternative fuels represents an opportunity for reindustrialization and job creation in Europe, while reducing the carbon footprint of transportation.
However, this sector faces several challenges:
- Competition for land use with the food sector, particularly for biofuels, requires strict control over the origin of raw materials. Sourcing biomass used oils or forest waste remains complex and depends on collection networks that are still being established.
- Globally, regulations vary widely. Some regions, such as Europe, are ahead in the deployment of these fuels.
- Their cost remains significantly higher than that of fossil fuels - sometimes up to ten times higher—due to the price of inputs and production processes. This difference directly impacts the cost for the end user, raising questions about their accessibility on a large scale.
Technological Challenges
A Lack of Maturity in Certain Technological Building Blocks
These alternative fuels are already incorporated into certain jet fuels, but not all production pathways are yet mature. Some, currently in the industrialization phase, need to be accelerated to meet market needs at competitive costs.
E-fuels rely on two key technological building blocks: CO₂ capture (biogenic or atmospheric) and hydrogen production via electrolysis. These processes remain costly and require advanced technologies to improve their efficiency and cost-effectiveness.
The challenge is twofold: validating industrial feasibility and reducing costs to enable large-scale deployment in the aviation and maritime sectors.