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Facts for Prelims (FFP)


Source: Economic Times

 Context: The International Energy Agency (IEA) report on “The Role of E-fuels in Decarbonising Transport” anticipates that biofuels will constitute 6% of road transport energy demand by 2030.


Key Highlights of the report:

  • In 2022, road transport accounted for nearly all liquid biofuel use, but this is projected to marginally decrease to 98% by 2030.
  • Biofuels represented 5% of road transport demand in 2022, amounting to 2.2 million b/d of oil demand.
  • Global biodiesel demand is expected to exceed.
  • While biofuels will play a crucial role in the future of transport, the report acknowledges the contributions of electric vehicles (EVs) in displacing oil demand.


About E-fuels: 

E-fuels, also known as electrofuels, are a type of synthetic fuel that can be used to power vehicles, ships, and aeroplanes. They are a sustainable alternative to fossil fuels and can be used in existing infrastructure


E-fuels are made from captured carbon dioxide or carbon monoxide, and hydrogen obtained from water split by sustainable electricity sources. The process uses hydrogen to bind with the CO2 under high pressure using a catalyst

E-fuels are climate-neutral and can be used to reduce CO2 emissions in the transport and heating market.