E-fuels and the Energy Transition

Jón Heiðar begins the conversation by explaining that e-fuel is a multifaceted fuel with many sources. "Here, we are trying to find a single collective term for fuels that have in common that hydrogen is the main energy carrier," he says, adding that most of the hydrogen in the world is not e-fuel, "because it comes from natural gas, or methane, and is so-called brown hydrogen, which is not environmentally friendly."

"It is a prerequisite that the hydrogen is produced by electrolysis using electricity, and that this electricity is generated with renewable energy, such as wind, hydro, or solar power," says Jón Heiðar.

But how can e-fuels be used and what role will they play in the energy transition? Jón Heiðar mentions that there is a big difference depending on whether we are talking about industrialised nations or not. He notes that the energy transition is much further along in Iceland, for example in industry and home heating. "Abroad, there is therefore a much greater need for e-fuels, for instance, if we look at the steel industry, cement production, and fertiliser production, which currently use coal and brown hydrogen," he says.

Jón Heiðar believes that the opportunities in Iceland for using e-fuels are mainly where direct electricity is not sufficient. He is referring specifically to heavier vehicles where the weight of the battery becomes a limiting factor and charging times are long. He says that even though battery design is constantly improving, it is not enough. Energy-intensive vehicles like large ships and aeroplanes will therefore not be able to use electricity. He confirms this by mentioning that distances are long and there is no way to charge them effectively.

He and Sigurður Svavar raise a number of questions in this concise and informative podcast. Can e-fuels be produced here in Iceland? Is there enough electricity in Iceland? Which areas are best suited for production? Is the country's position globally advantageous for servicing, for example, air transport, and is there an operational basis for it? This and much more in this enjoyable chat about a topic that matters to us all.