E-Fuel – Is Porsche Supporting the Right Horse?

If you’ve followed the marketing campaigns of major automakers over the past few months and years, you’ll notice a buzzword in particular: electric mobility. In fact, almost all manufacturers want to switch to electric vehicles in the near future in order to meet political requirements as well.

But this is often overlooked. By no means all car manufacturers are pushing for 100 percent e-mobility for the foreseeable future. Some companies want to leave the back door open for combustion engines.

The same is true for Porsche. Volkswagen’s sports car subsidiary Volkswagen has repeatedly emphasized the advantages of the so-called e-fuel. Before we take a closer look at the Porsche, here’s some background information for you. In short: E-fuel is synthetic fuel – consisting of hydrocarbons.

E-fuels: advantages for the climate?

This means that e-fuels are industrially produced from hydrogen and carbon dioxide. If hydrogen is now generated by electrolysis from electricity from renewable energies, then electric fuels are more climate-friendly than classical fossil fuels – simply environmental fuels.

HOPE: Thanks to e-fuel, combustion cars can see their second spring and won’t have to categorically give way to electric mobility.

Efficiency and cost issues

Of course, everything also has many catches: as described above, the production of electronic fuel is possible only indirectly. So a great deal of energy is lost when electricity is converted to fuel. Experts estimate that the energy required for a 100 km range of e-fuel can drive a battery electric car for 700 km. The bottom line is that the efficiency of synthetic fuels is relatively low.

In addition, electronic fuel is much more expensive than conventional gasoline and diesel. The cumbersome manufacturing process is also responsible for this. In order to reduce these costs, renewable energies must be expanded significantly and made much cheaper.

According to the ADAC, this already applies to Norway, for example. Here, today’s electronic fuels can already be produced at competitive prices due to the high capacities of green electricity. However, this is still a dream for the future in Germany.

Porsche plans to set up a huge e-fuel plant with Siemens

But now back to Porsche: only last fall, in cooperation with the technology group Siemens, it was announced that a huge electronic fuel plant would be built. 130 thousand liters of e-fuel will be produced there this year. In 2024 it should be about 55 million liters and in 2026 up to 550 million liters.

In any case, Porsche sees potential in technology. So you want to make synthetic fuels available for your sports cars of the future. The Volkswagen subsidiary takes the line of the federal government. The recent FDP with this e-fuel must be taken into account in the traffic shift – despite EU actors’ goal to phase out combustion engines in 2035.

my conclusion for you

Of course, the sports car manufacturer also wants to focus on electric mobility. By 2030, 80 percent of new cars made by Porsche should be entirely electric. However, the fact that Porsche is committed to e-fuels should not be a coincidence. Because many wealthy regular customers of the Stuttgart-based company are likely to have difficulties using battery-powered Porsche cars. Not least because of the missing sound.

It is precisely these skeptics that Porsche wants to keep pace with the continuation of combustion engine technology. In addition, there are millions of combustion cars around the world that crown the horse of a Porsche. Abandoning this would be a disaster for a number of clients and therefore also the reputation of Stuttgart.

In principle, e-fuel is a good sign for Volkswagen stocks and the upcoming IPO of Porsche in the last quarter of 2022. Also because Porsche expects that the price of a liter of synthetic fuel will approach the price of fossil fuels in the future.

For this, however, the Volkswagen subsidiary has to invest large sums in order to expand production to an industrial scale. In any case, there has been no shortage of funds in Stuttgart lately. In the first quarter of 2022 alone, the sports car manufacturer generated a staggering €1.47 billion in operating profit.

The stock market is a passion: Marco Schnepp has been analyzing daily events in the capital markets for years. In addition to the technology and gaming industry, it is primarily devoted to the commodity sector. The expert regularly identifies immediate new trends for his readers.

Leave a Comment