EU Tries to Find Middle Ground with Vehicles that Run Only On E-Fuels

The European Commission seeks to create a new vehicle category that’s somewhere between internal combustion engine (ICE) cars and electric vehicles to buy time as it resolves a negotiation with Germany on phasing out combustion engine vehicles.

The commission seeks to allow sales of new ICE cars after 2035 provided that they run only on carbon-neutral or e-fuels and be equipped with technology that would prevent the engine from running when another type of fuel is used, according to a draft proposal seen by Reuters on Tuesday.

E-fuels, which aren’t currently produced at scale, are created through a synthesis of captured CO2 emissions and hydrogen from CO2-free electricity.

Last year, EU countries and the European Parliament agreed on passing a law to begin phasing out ICE vehicles by 2035 after months of negotiations. Germany’s Transport Ministry surprised the bloc when it submitted last-minute objections to the law, just days before the final vote to enforce the law.

Germany’s Transport Ministry’s main demand is that the EU continues to allow sales of new combustion cars in the new e-fuel category after 2035, but the Commission’s condition of adding technology that would recognize e-fuels from fossil fuels might prove problematic as it would mean that carmakers would need to develop new engines to include that capability. 

Sources familiar with the matter told Reuters that Transport Minister Volker Wissing was not interested in rejecting the Commission’s proposal, instead, they would like to make some improvements to it. Talks are ongoing between the Ministry and the Commission, and they are targeting to secure an agreement by the EU summit on Thursday.

According to an EU official, the combustion engine phaseout law beginning in 2035 must first be adopted before any proposal for registering e-fuel engines is made.


Information for this briefing was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

SSR Mining Walks Away From a World Class Gold-Copper Project

Why More Canadians Are Starting to Think About Leaving | Jesse Day

Instead of Waiting, This Gold Developer Went Bigger | Kenneth McLeod – Sonoro Gold

Recommended

Why This Gold Company Keeps Spinning Out Assets | John-Mark Staude – Riverside Resources

Silver at $75 and Why U.S. Silver Ounces Are Getting Hard to Find | Galen McNamara – Silver47

Related News

Germany Invokes Emergency Gas Plan Ahead of Russia’s Ruble Demand Deadline

Germany enacted an emergency plan to help brace for natural gas disruptions from Russia ahead...

Wednesday, March 30, 2022, 05:45:50 PM

Canada Leverages Submarine Deal For Auto Manufacturing Guarantees

South Korean and German officials face an unusual condition in their competition to build Canada’s...

Friday, January 9, 2026, 12:53:00 PM

Brex…In? UK and EU Cozy Up as Trump Turns Up the Tariffs

In what could be a possible love-is-sweeter-the-second-time-around moment, the UK and the EU are poised...

Tuesday, April 29, 2025, 02:12:00 PM

German Economy Minister On Extending Nuclear Power Plants: “It Is The Wrong Decision”

German Economy Minister Robert Habeck said on Sunday that extending the life of the country’s three remaining...

Wednesday, August 24, 2022, 12:17:00 PM

German Prince, Former Soldiers Arrested For Terrorist Plots To Overthrow Government

German federal prosecutors on Wednesday announced that special forces in Germany arrested 25 persons suspected...

Friday, December 9, 2022, 07:23:54 AM