e-fuels exempted from Europe’s 2035 petrol car ban, Porsche & Ferrari rejoice



With the electrification of vehicles taking place globally, the European Commission plans to phase out new internal combustion engine (ICE) cars by 2035. The phaseout/ban was not welcome by Germany, but both sides have finally come to an agreement. Reuters reports that although the 2035 ban will still take place, cars powered by e-fuels (or synthetic fuels) will be exempted.

Germany’s transport ministry has for weeks blocked the European Union’s plans to ban sales of new CO2-emitting cars in 2035, demanding an exemption for combustion engine cars that run on e-fuels. To circumnavigate the phaseout, the European Commission will create a new EU vehicle category that “can only run on carbon-neutral fuels”.

Following this, the European Commission will present another regulation specifying how these cars can contribute to the 2035 target. This will take the form of a delegated act. Assuring Germany that the exemption will follow through, the Commission said if this law were to be rejected, it would “follow another legislative path” to allow e-fuel car sales.

So far only e-fuels/synthetic fuels have been successful in seeking an exemption. Biofuels (which were proposed by Italy), weren’t successful. There were no reports on using hydrogen as a fuel in internal combustion engines.

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The news of the exemption is great for companies like Porsche which has been working on synthetic fuels for its high-performance models. According to Automotive News Europe, Volkswagen Group said the e-fuels deal will help low-volume models such as the Porsche 911 sports car. The automaker said, “E-fuels from renewable energies are a contribution to sustainable mobility — the agreement gives manufacturers and above all consumers a clear perspective for planning.”

Italian carmaker Ferrari has also welcomed the new decision. The brand has never set a roadmap for full electrification but has produced hybrid models. Ferrari CEO Benedetto Vigna said, “The good news for us as a company is that on top of electric cars, we will also be able to go on with our internal combustion engines ones. This decision is very interesting for us because it allows ICEs to go beyond 2036.”

E-fuels, like e-kerosene, e-methane, or e-methanol, are made by synthesizing captured CO2 emissions and hydrogen produced using renewable or CO2-free electricity.

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