Clifford Chance

Transport

E-fuels and green ammonia – the solution for decarbonising shipping and heavy transport?

Electro-fuels, or e-fuels, have a carbon footprint of almost zero compared with hydrocarbons and are likely to play a key role in supporting the global energy transition. They are a promising alternative to fossil fuels in the transport sector, particularly shipping and aviation, and are attracting growing interest from stakeholders looking to limit CO2 emissions and meet decarbonisation targets. Why shipping and aviation in particular? These sectors are responsible for a large proportion (around 20%) of global CO2 emissions and need to reduce their dependence on fossil fuels. Also, longdistance commercial ships and aeroplanes cannot, at the moment, easily be powered solely by electric batteries for reasons of cost, volume and the energy density of electricity, unlike light transport such as cars and vans, most of which can be electrified. For these reasons, e-fuels are seen as viable, at least in the medium term, to decarbonise these sectors