As sales of electric cars slow and European an UK mandates get more aggressive, automakers are beginning to feel the pressure. While BMW and MINI are positioned well to pivot in either direction, even they are beginning to formally question the banning of internal combustion cars.

BMW CEO Oliver Zipse recently went on record saying that the European Union’s plan to ban new internal combustion cars by 2035 is the “wrong approach”. Further he believes that the time is right to accelerate the roll-out of synthetic fuel as an alternative. However Europe’s allowance of e-fuels comes with substantial hurdles that seem to be designed to be impossible to overcome.

The EU isn’t outright banning internal combustion engines in 2035 as they are allowing synthetic fuels (or e-fuels as some call them) to be used to power hybrid internal combustion engines. However because of the current state of e-fuels and the cost associated with them, Zipse argues that it “would be a deliberate ban on combustion engines through the back door”.

According to Zipse; “If the Commission does nothing to accelerate the ramp-up of low-CO2 fuels and make their use practicable, this would be a deliberate ban on combustion engines through the back door.” He went on to reiterate, “we continue to believe that a categorial ban on combustion technology in 2035 is the wrong approach.”

What Are Synthetic Fuels?

Synthetic fuels, also known as e-fuels, are liquid or gaseous fuels that can be used in cars that run on diesel or petrol. They are made from renewable energy sources like solar, wind, or hydroelectric power, and are designed to have the same properties as fossil fuels. Synthetic fuels can be carbon neutral and have a number of interesting benefits:

  • Reducing emissions: Synthetic fuels can reduce emissions by up to 85%. 
  • Extending engine life: Synthetic fuels may help extend the life of a car’s engine. 
  • Using existing infrastructure: Synthetic fuels can be dispensed from existing filling stations and used in traditional combustion engines. 

Should the EU (and other countries like the US) support the production of e-fuels lowering the current high cost and allowing for alternatives to EVs? It could be a much more welcome solution for those who live in areas where the EV charging network won’t mature for years if not decades.

It would also current internal combustion engine cars (which are lasting longer than ever) to be materially better for the environment. Finally it could keep costs lower on entry-level models since they could rely on tried and true internal combustion engines vs more expensive battery technology.

As it stands MINI plans to cease production of its last internal combustion models in late 2030 shifting to all electric cars. However policy changes and consumer buying patterns could change that.

What do you think? Should e-fuels be a bigger part of the government’s strategy moving forward or should they continue to focus on EVs?