The debate to abolish the combustion engine completely rather than use the synthetic fuel for better control in the pollution department is increasing the chance for the synthetic fuel to be in the market. And combustion engines did not just become some absolute past.
The global synthetic fuel market is valued at US$ 3.25 Bn. The market is expected to grow at a CAGR of 28.7%. Synthetic fuels are composed of carbon monoxide and hydrogen. The fuel is not found in nature but is created with renewable energy sources.
In the first stage of the synthetic fuel, hydrogen is extracted from the water and then carbon is added to hydrogen for liquid fuel creation. The carbon can be recycled with industrial operations. It can be captured by the filters also.
The market is expected to be 14.8 USD billion in 2027 with the Asia Pacific being the dominant region. The debate here is about the fate of the combustion engine that has been strongly opposed by the battery-electric motor to store energy and control the emission of the pollutants while the vehicle is quiet and driving.
With such strong conviction in the electric battery, carmakers are hugely investing to electrify their vehicles. As per Reuters reports, $11.7 billion will be spent by Daimler to build 10 all-electric and 40 hybrid models.
Around 300 or more models are to be electrified by Volkswagen AG. Ford Motor Co’s are doubling their electrified vehicle. GM has electrified its new models with Chevy Bolt and getting rid of the combustion engine. China’s Volvo is releasing only electric models from 2019.
As per Ford Motor Executive Chairman Bill Ford, Jr with the company’s investment of $11 billion “We’re all in”. “The only question is, will the customers be there with us?”
So, why should we use Synthetic fuel?
One of the major areas the experts are targeting is what is happening before the battery is charged in the chain of effects in terms of emissions and energy losses in power stations and substations or rectifiers.
Even the CO2 emission releasing during the battery production. It is also argued the higher energy density is observed only during the new battery system development.
The other reasons countered are the high oil prices, government, and energy businesses placing more attention on the oil price, political unrest in countries with oil reservoirs, and the depletion of natural resources. The fuel is also considered to be releasing fewer emissions and the pollution is equivalent to conventional gasoline.
However, the cost is high, and also the customer demand for an electric vehicle is overshadowing the possibility of using such fuel in the conventional vehicle.
Synthetic fuel can be used in petrol and diesel-based conventional vehicle and it is even cleaner than petroleum fuel. It is helping to reduce the energy crisis as well as carbon emissions by eliminating the impurities in the process.
The key players are Sasol, Indian Oil Corporation, Royal Dutch Shell Plc., Phillips 66, Exxon Mobil Corporation, SG Preston Company, Petrochina International, Jinzhou Petrochemical, Reliance Industries Ltd., Robert Bosch GmbH, and Red Rock Biofuels.
By Bosch, 2.8 gigatons of CO2 can be saved by 2050 with the use of synthetic fuels.