Market barriers include high CAPEX and OPEX compared to conventional fuels and competing transportation technologies
BOULDER, Colo., Oct. 13, 2022 /PRNewswire/ -- A new report from Guidehouse Insights analyzes global e-fuel consumption and industry revenue.
Synthetic fuel has been around for almost 100 years, but next-generation synfuels?otherwise known as electrofuels, or e-fuels?present a unique opportunity to decarbonize the transportation sector. According to a new report from Guidehouse Insights, global synfuel demand is expected to grow at a compound annual growth rate (CAGR) of 78.5%, from 1,200 BPD in 2022 to 228,000 BPD in 2031. Global demand for e-fuel for shipping is expected to see the fastest growth of a CAGR of more than 90% and will likely outpace road needs by 2023.
"The right policy and market signals could increase investment in synfuel production facilities, lower costs, and hasten uptake in synfuel consumption," says Peter Marrin, senior research analyst with Guidehouse Insights. "Such signals could include favorable government policies such as blending mandates, monetary support from private investors to expedite early projects, and additional R&D grants to unlock technological advancements, learning rates, and economies of scale through 2030."
Several factors will likely constrict e-fuel supply around the world through 2030, the most noteworthy of which are high CAPEX and OPEX compared to conventional fuels and competing transportation technologies. E-fuel production involves several energy-intensive steps that involve new technologies including water electrolysis to make green hydrogen and direct air capture to grab CO2 from the ambient air, according to the report.
The report, Renewable Synfuels Production and Utilization Market, focuses on e-fuel consumption and industry revenue. E-fuels in this report refer to e-methanol and all products derived from e-crude, but not e-ammonia, liquid hydrogen, or biofuels. The analysis is broken down by three key transportation applications: road transport, shipping, and aviation. This report focuses primarily on the specifics of demand and revenue for these three end-user applications. Analyses are provided for five global regions and cover 2022-2031. An executive summary of the report is available for free download on the Guidehouse Insights website.
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has approximately 16,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Renewable Synfuels Production and Utilization Market, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
SOURCE Guidehouse Insights
These press releases may also interest you