Efuels ‘need policy support’
Tax regimes in some countries means low-carbon efuels are treated as fossil fuels, Tokyo conference hears
Hydrogen-based synthetic fuels need more policy support in Europe to drive wider development as they have been overshadowed by the move towards electrification, delegates heard at an energy and climate tech conference in Tokyo. Hydrogen-based synthetic fuels are low-carbon or carbon-neutral alternatives to traditional petroleum-based fuels that are produced from CO₂ and green hydrogen. Also known as electrofuels, or efuels, they can be used as direct substitutes in existing fossil fuel infrastructure and internal combustion engines. They are targeted to supply 5.7pc of Europe’s transport sector by 2030 under the European Commission’s Renewable Energy Directive. Efuels have struggled to build
Also in this section
4 February 2026
Europe’s largest electrolyser manufacturers are losing patience with policymakers as sluggish growth in the green hydrogen sector undermines their decision to expand production capacity
2 February 2026
As a fertiliser feedstock, it is indispensable, but ammonia’s potential as a carbon-free energy carrier is also making it central to global decarbonisation strategies
28 January 2026
The development of hydrogen’s distribution system must speed up if the industry is to stand any chance of grabbing a meaningful slice of the low-carbon energy market
14 January 2026
Continent’s governments must seize the green hydrogen opportunity by refining policies and ramping up the development of supply chains and infrastructure






