Achieving carbon neutrality is impera5ve to tackle climate change. All sectors must be decarbonized – even those which are most dependent on fossil resources – using solu5ons that can be deployed rapidly, on a large scale.

OUR GOAL

In recent years, e-fuels have appeared as one of the major alterna5ves to fossil fuels for industry, and air and sea transporta5on. Developing e-fuels requires:

• Insights and support for the public policies which promote e-fuels as a means of decarbonizing industry and heavy transporta@on.
• Public awareness around e-fuels as a solu@on for use cases that are most difficult to decarbonize.
• Educa@on by industry leaders who must take part in the reindustrializa@on of our economy.
  The primary goal is to bring hope to a world overwhelmed by resigna5on and denial in the face of climate disrup5on. An issue oEen perceived as inevitable and even insurmountable.
  To this end, all levers need to be ac5vated and priori5zed according to their merit order. Firstly, energy sobriety and efficiency must be promoted. Secondly, electrifica@on of various energy uses must be developed wherever possible, including in the light mobility sector, the service sector, and the residen5al sector. Finally, new molecules – such as biofuels and synthe5c fuels, also known as “e-fuels” – must provide solu@ons for sectors that cannot be decarbonized in another way. This is the case for heavy mobility (air and sea), due to the energy power they require, and for chemical industries using these molecules as feedstock.
  *Faced with climate disrup2on, the signatories of the Paris Agreement in 2015 set the target of limi2ng global warming to 1.5°C above pre-industrial levels. However, scien2sts es2mate that current commitments would induce a temperature rise of 3 – 4°C by 2100.

REINDUSTRIALIZATION AT THE CROSSROADS OF HYDROGEN AND CARBON

The first e-fuels* projects are beginning to appear around the world. France, like many other countries, is on the star5ng line. Without a strong commitment from the French government, local authori@es, and stakeholders (manufacturers, researchers and investors) during the 2020s, the French e-fuel industry faces the risk of increasing compe55on from imported e-fuels. France would lose the opportunity to export its knowledge and reduce its industrial, and energy, dependency.

France has three compe55ve advantages to be placed at the forefront of this new industry:

• A con@nuous produc@on of nuclear electricity, perfectly suited to the needs of the electrolysers, currently available, complemented by electricity from growing renewable sources (wind and photovoltaic solar power in par@cular).
• Major integrated industrial plaYorms in the region, with the capacity to provide necessary services, equipment, and skills.
• Dynamic aeronau@cal, mari@me, and chemical industries, with players such as Air France-KLM, CMA-CGM, Airbus, Safran, Dassault and ARKEMA commi\ed to decarbonizing their ac@vi@es.
  *E-fuels are molecules produced by combining low-carbon hydrogen, from water electrolysis, with carbon dioxide captured from industrial or biogenic ac;vi;es. The aim is to chemically store low-carbon electricity – nuclear or renewable – in molecules iden;cal to conven;onal fuels derived from fossil resources, ammonia, methanol or kerosene. Depending on their electrical and carbon supply, life-cycle analyses prove that e-fuels can reduce greenhouse gas emissions by 70% to 95%, compared with fossil fuels.

LOW-CARBON ELECTRICITY AT THE HEART OF THE FRENCH E-FUELS STRATEGY
The cost of producing e-fuels lies in the power supply to the electrolysers, totaling 50% to 75% of the final cost.
The compe55veness of French projects will depend on their ability to secure long-term low-carbon electricity purchase contracts at a sufficiently low price.
Subject to the terms and condi5ons of the European electricity market reform, the French government will have an essen@al role to play in two phases:

• Phase 1: ensure that part of the country’s low-carbon electricity produc@on can be allocated to e-fuel projects, to enable a strategic industry that will meet France’s commitments at a European level by 2035 (es@mated need between 15 and 20 TWh).

• Phase 2: launch the massive development of addi@onal low-carbon electricity genera@on resources, both nuclear and renewable, to meet the growing needs arising from the decarboniza@on of the economy aber 2035, including the avia@on and mari@me sectors.

The French industry is eager and ready to go, with 9 projects of over 50,000 tons of produc5on capacity per year under development, reported by the first French e-fuels Observatory, published in July 2023 by the French E-fuels Office. Although substan5al, the electricity, water and carbon requirements remain manageable. These projects can accelerate industrializa5on, s5mula5ng synergies in various regions with a balanced distribu5on across France. They will have a major impact in terms of job crea5on, reducing greenhouse gas emissions and readjus5ng the balance of trade.

E-FUELS OFFICE: AN AMBITION TO SERVE THE ENERGY TRANSITION
This sector plays a crucial role in na5onal and European policies. Thus, the E-fuels Office seeks to roll out a roadmap to ini5ate solu5ons to meet future objec5ves and catch up in our fight against climate change. Hard-to-abate sectors now benefit from mature solu5ons that we must support to achieve carbon neutrality and

promote a virtuous economy. To achieve this, we must:

• Develop the first na@onal e-fuel produc@on projects in our territories.
• Shed light on the technological and industrial improvements required.
• Secure exis@ng and addi@onal low-carbon electricity capaci@es.
• Create an innova@ve industry in France with domes@c references that can be exported
  interna@onally.

Developing an ambi5ous roadmap requires close collabora5on between all players. Manufacturers play a key role by inves5ng in the research and development of technological building blocks and deploying the first industrial-scale projects throughout France. Consumers and CO2 suppliers are equally commi\ed to the development of the sector, as stakeholders of e-fuel projects in both upstream and downstream ac5vi5es.
Finally, public authori5es are responsible for se]ng favorable policies to adamantly support e-fuel produc5on, with mechanisms such as public subsidies, and securing compe55ve electricity purchasing and consump5on schemes, such as cer5fica5on schemes and sector-specific incorpora5on thresholds. By working together, we can decarbonize our economy, which is far too dependent on fossil fuels today.

The E-fuels Office, launched in July 2023, aims to bring together manufacturers, consumers, professors, researchers, suppliers, and financiers to promote a virtuous, compe@@ve, and sustainable e-fuel industry in France. By federa@ng all players of the value chain and beyond, informing relevant audiences, developing knowledge with pedagogy, and highligh@ng key issues, the E-fuels Office will catalyze the energy of its members to promote a na@onal industry that will make France one of the world’s leading producers and consumers of e-fuels.

The E-fuels Office has released the French e-fuels observatory, produced by Sia Partners, which provides a regularly updated review of the e-fuel industry for public authori5es, journalists, and consumers. It includes an outline of projects and technological building blocks, and an evalua5on of input requirements, socio- economic and environmental impacts.

E-FUELS OFFICE (BUREAU DES E-FUELS): MEMBERS
• Frédéric Balligand, Vice-President Renewables Product Line, Axens
• Bernard Hoffait, Ins5tu5onal Rela5ons Director, TotalEnergies
• Jean-Philippe Buisson, Project director CCU, EDF
• Florence Delprat-Jannaud, Centre de Résultats Produits Energé5ques Director, IFP Energies nouvelles
• Paul-Joël Derian, Group VP Innova5on and Sustainable Development, Groupe Avril, Member of the Académie des technologies
• Cyril Dufau-Sansot, CEO, Hy2Gen
• Pierre-E@enne Franc, CEO, Hy24
• Chris@an Gauthier, Transformation & Sustainability EVP, Air France
• Patrice Geoffron, Professor of Economics at Paris-Dauphine University, independent director at Elengy and member of Engie’s Scien5fic Advisory Board
• Geoffroy Cagnet, Head of e-fuel projects, Bouygues Energies & Services
• Gaylord Goulet, Director of Engineering, NEO2
• Daniel Iracane, Member of the Académie des technologies
• Oumar Khan, H2/e-NG Senior Process Engineer, TotalEnergies
• Thierry Lamant, Sustainable Avia5on Fuel – Focal Point, Dassault Avia5on
• Hind Lammari, Director of the Hydrogen Business Unit, Teréga Solu5ons
• Raphaël Lance, Head of Energy Transi5on fund, Mirova
• Emeric Marin, Chief execu5ve K9, évole énergies
• Amine Masnaoui, Business Development Manager, Yamna
• Arthur Parenty, Public Affairs Manager, Hynamics
• Romain Provost, Global Advisor Energy Transi5on, Evolen
• Charlo\e de Lorgeril, Partner Energy, U5li5es & Environment, Sia Partners
• Cedric de Saint-Jouan, Charmain of the Strategic Commi\ee, Elyse Energy
• Nicolas Serrie, CEO, Khimod

Source : French e-fuels office