Oliver Zipse, CEO of BMW, has criticized the European Union’s strategy to phase out the sale of new combustion-engine vehicles by 2035, describing it as a misguided approach. Instead, Zipse advocates for a faster implementation of e-fuels, which are essential for maintaining combustion engines in a carbon-neutral framework.
The current EU regulations permit the sale of combustion-engine cars as long as they use carbon-neutral fuels like e-fuels, alongside battery-electric and hydrogen fuel cell vehicles. However, Zipse argues that without a huge increase in the availability of e-fuels by 2035, the legislation effectively constitutes an indirect ban on combustion engines.
Zipse has labeled this approach a “bogus solution,” asserting that a total ban on combustion engines is not the right course of action. The main challenge lies in the limited production of e-fuels, which is energy-intensive because it relies on ‘green’ hydrogen produced from water electrolysis using renewable energy.
A 2019 report from the International Energy Agency revealed that meeting today’s hydrogen production needs from renewable electricity would require 3,600 TWh of electricity, nearly 1,000 TWh more than the EU’s total energy production in 2022, only 39.4% of which was renewable. This energy might be better utilized for directly powering electric vehicles.
Despite these challenges, e-fuels offer a promising route for reducing emissions from the existing fleet of combustion-engine vehicles and for applications less suited to battery power, such as sports cars and heavy goods vehicles.
Porsche has invested in e-fuel production through Highly Innovative Fuels (HIF) at the Haru Oni plant in Chile, while Ferrari supports the development of sustainable fuels. Formula 1 plans to adopt carbon-neutral fuels with new regulations starting in 2026.