E-fuels and SAF ‘still too costly to scale fast’ – Wood Mackenzie

  • Gas
  • March 3, 2025

Electrofuels may have a strong profile in transport decarbonisation, but the stubbornly high cost and the infrastructure challenge is holding things back, according to Murray Douglas, Head of Hydrogen Research at Wood Mackenzie.

“Hydrogen needs to be below $1.50 per kg for e-fuels to work, and we’re nowhere near that,” Douglas told gasworld in interview for gasworld Global’s March issue.

What’s more, aviation fuels are particularly affected by these cost issues. Douglas said that eSAF might not now be commercially viable at scale until the 2040s. That is years behind where SAF adoption needs to be for Net Zero to be hit.

Shipping could see earlier adoption of e-methanol and ammonia, but here Douglas noted that concerns around safety and infrastructure persist.

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