Why Aren’t We Embracing Carbon-Neutral Fuel?

The rise of electric vehicles (EVs) is undeniable. Governments, automakers, and environmental groups have all heralded them as the future of sustainable transport. But is the switch to EVs truly the silver bullet for reducing our carbon footprint? For many classic and performance car enthusiasts, the answer is a qualified no.

 

Take, for example, my own 1994 Jaguar XJ81 (left). A beautifully engineered machine, still capable of gliding through miles with dignity and poise. If I continue driving it for another ten years, the carbon footprint of that usage is arguably lower than the footprint created by building a brand-new EV from scratch. Manufacturing an electric vehicle involves mining rare earth elements, complex battery production, and energy-intensive processes that contribute significantly to upfront emissions.

All of this before the car has even touched the road.

Then there’s the question of battery lifespan and disposal. EV batteries degrade over time and will eventually need replacement—a costly and environmentally problematic process. Recycling lithium-ion batteries is still a developing technology, and the ecological risks of improper disposal are high.

So why are governments in Europe so focused on EVs, while largely ignoring or under-promoting carbon-neutral fuels?

The Untapped Potential of Carbon-Neutral Fuel

Carbon-neutral fuels, often referred to as e-fuels or synthetic fuels, offer a compelling alternative. These fuels are created by capturing carbon dioxide from the atmosphere and combining it with hydrogen obtained through electrolysis (ideally using renewable energy). The result is a fuel that, when burned, releases only as much CO2 as was taken from the atmosphere to make it. This means that existing internal combustion engines (ICEs) could theoretically operate without increasing net carbon emissions

 

—a dream scenario for car lovers who don’t want to scrap perfectly good vehicles.

While governments have been slow to act, motorsport is showing the way forward. Porsche has been running their race cars on synthetic fuels developed in collaboration with Siemens Energy and other partners. Their pilot plant in Punta Arenas, Chile, takes advantage of abundant wind power to produce green hydrogen and then combines it with captured CO2 to create synthetic methanol-based fuel.

Formula 1 has announced it will adopt 100% sustainable fuel by 2026, with active development already underway. The aim is not only to reduce F1’s carbon footprint but also to demonstrate the viability of these fuels for the broader public.

Other motorsport categories embracing carbon-neutral fuels include:

 

 

• • World Rally Championship (WRC): Now runs on a sustainable hybrid fuel blend.
  • MotoGP: Dorna has announced plans to use sustainable fuels across all classes by 2027.
  • Le Mans (FIA WEC): Has integrated biofuels and is moving toward full carbon-neutral fuel adoption.

Who Is Making Carbon-Neutral Fuels?

A growing number of companies are taking the lead in producing these innovative fuels:

 

• • Porsche & HIF Global: Their eFuel facility in Chile is among the first commercial-scale operations.
  • Prometheus Fuels (USA): Focused on converting atmospheric CO2 into gasoline using renewable electricity.
  • Carbon Clean & Infinium: Partners working on industrial-scale e-fuel production.
  • Sunfire (Germany): Specializes in high-temperature electrolysis for hydrogen production, a key e-fuel input.

A Missed Opportunity?

Carbon-neutral fuels may not be the only solution, but they certainly deserve a more prominent place in our roadmap to sustainability. By continuing to support EVs while also investing in carbon-neutral fuel technologies, we could provide a broader, more inclusive path to decarbonization—one that doesn’t force the premature death of millions of perfectly usable combustion engine vehicles.

It’s time for policymakers to recognize that sustainability isn’t about choosing one technology over another—it’s about leveraging all the tools we have. And carbon-neutral fuel is a powerful tool that remains woefully underused.