How e-fuels are powering the energy transition
Jeffrey Goldmeer
April 22, 2025
18-minute read
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The reality of climate change and avoiding irreversible damage to the planet is no longer a distant threat. After decades of emitting greenhouse gases like carbon dioxide into the atmosphere, global leaders are working to course-correct the negative impacts on the planet.
A full energy transition with net-zero emissions is the ideal outcome globally, but because of challenges like cost, infrastructure and scale, we are decades away from achieving this goal. And while renewables are the most obvious solution in the eyes of the public, there are several fossil fuel sources that we still very much rely on in our daily lives. Think about the natural gas or fuel oil that heats your home, the gasoline that powers your car, or the fuels that power the planes, trains, trucks, and ships responsible for transporting billions of tons in goods each year.
This presents a challenge in how we address a widespread reliability on fossil fuels without dismantling our current systems. Scientists are looking at producing e-fuels—or electrofuels—to help us decarbonize without the need to alter or create new downstream infrastructure. The e-fuel value chain starts with cleaner sources of electricity (i.e., solar, wind, hydro, and nuclear) to power the processes (i.e., electrolysis and direct air capture) that can provide the hydrogen and carbon building blocks for producing synthetic fuels.
At GE Vernova, our dedicated team of energy experts are developing technology solutions to help enable this energy transition.
Today’s fuel dilemma
How hydrocarbons power the world we live in
The basis of today’s electrical power and vehicle fuel sources originate from hydrocarbons commonly found in fossil fuels. (Hydrocarbons are molecules consisting of hydrogen and carbon.) Fuel sources like gasoline and diesel needed for common modes of transportation, for example, come from crude oil, and the natural gas (which is mostly methane) needed to power the electrical grid are hydrocarbons. The challenge then, is finding alternative sources for hydrogen and carbon from both existing or new processes to make these fuels with a hope to replace, or at least curb, our dependence on fossil fuels.
In the United States today, around 95% of hydrogen is produced from natural gas and other fossil fuels, with a large portion allocated for ammonia production, a major ingredient in fertilizer. Providing key nutrients to the soil, fertilizer is essential for crop growth and helps prevent global food shortages. Although critical for quality of life, hydrogen is mainly produced through steam methane reforming, a process that releases carbon dioxide (CO2) into the atmosphere which impacts the environment. How we produce, transport, and store hydrogen all play a role in the many moving parts of the hydrogen economy and present various challenges and opportunities as we look to decarbonize our society.
Breaking down the hydrogen economy
Naturally occurring sources of hydrocarbons, like crude oil and natural gas provided easy paths to fuels and feedstocks for decades. However, finding alternative, near-zero carbon intensity methods to create equally effective fuels requires hydrogen extraction through renewable energy. Experts created a color-coded system to provide a simple classification of hydrogen production methods. This is shown in the table along with the associated carbon intensity and technology readiness level.
Using a machine called an electrolyzer, electricity is used to split the hydrogen and oxygen molecules in water. Green hydrogen utilizes wind, solar or hydro-based electricity, although yellow is sometimes used specifically for solar power, and pink uses nuclear energy.
Although we sometimes think of electrolysis as a new technology, it is not. Electrolysis was already known in the late 1800s and Jules Verne, the famed science fiction author wrote about water being decomposed into its primitive elements using electricity in his 1874 novel The Mysterious Island.
The challenge of capturing carbon
Using electrolyzers to extract hydrogen molecules (from water) only addresses part of the fuel dilemma. Since the most common energy sources come from fossil fuels, which are composed of hydrocarbons, scientists need to find other sources of carbon to integrate with hydrogen for the creation of synthetic fuels, i.e., e-fuels. Installing capture systems on industrial plant exhaust stacks, obtaining gases from the decomposition or combustion of biomass, and utilizing direct air capture (DAC) are all pathways for gathering CO2.
The technology behind direct air capture works by gathering and isolating CO2 molecules directly from the atmosphere while letting other molecules in the air like oxygen and nitrogen pass through. The CO2 can then be compressed and liquefied for underground storage or pipeline transfer. One of the major upsides to DAC is that it not only applies to newly created carbon molecules, but it can also capture historic emissions, further cleaning the atmosphere and lowering our carbon footprint.
Traditional methods of carbon capture work similarly, however the carbon dioxide is extracted from long-established, less clean sources like fossil fueled power plants at the point of emission. In hard-to-abate industries where decarbonization is currently unavailable, i.e., cement production, carbon capture offers a solution to help decrease emissions.
What about biomass?
Alternatively, scientists have looked to agricultural waste as a source of carbon due to its abundance in some regions. Materials like wood, animal waste, and plant waste can all be harvested for their carbon. In fact, biomass was the largest source of energy consumption in the U.S. until the mid-1800s. As of 2023, that number fell to around 5%.
Many people reading the above might wonder why we no longer depend as heavily on biomass today as we did in the 19th century. Although this sounds like an easier solution than direct air capture or other forms of carbon capture, finding enough biological material is unrealistic to support the increased population and current industrial needs. The amount of biological material—whether it be agricultural waste, human waste, or plant material—needed to help create power is far more than we can produce naturally. Something else to note is that 19th century America relied on wood as their biomass source to create power, but the devastating effects of deforestation no longer make this a viable option.
The role of policymakers
Overcoming cost and infrastructure hurdles
With technologies like DAC and alternative hydrogen sources becoming more widely known, why are fossil fuels still so prevalent? The answer is cost and infrastructure. Without government support to offset the financial challenges, it makes little sense for power companies to make the switch themselves. But it doesn’t mean it can’t or won’t happen. Policies like the 2015 Paris Agreement, for example, share the common goal of limiting the global temperature increase to below 2°C above pre-industrial levels, with a concerted effort to keep global temperature increases below 1.5°C above those levels. With nearly 200 countries pledging their decarbonization efforts, policymakers and power companies can work together to achieve a common goal.
The path to decarbonization has been slow moving. Aside from cost, changes need to be made to existing infrastructure. To implement direct air capture, for example, DAC plants need to be built, requiring sizable land masses, labor, and power generation. All of these factors revert back to the issue of cost, where billions of dollars are required to get these projects off the ground.
Another roadblock is the amount of air required to extract usable amounts of carbon. As of 2023, the global average concentration of carbon dioxide in the atmosphere stood at approximately 419 parts per million1, or ~0.042%, and is rising steadily. For direct air capture to be successful, a massive volume of air needs to be moved through these machines, requiring a lot of power. This opens the debate on how “clean” these carbon molecules really are (i.e., their carbon intensity), if the power behind the plant comes from traditional fossil fuel sources instead of renewables. In the current energy transition, leveraging renewables for the power grid stands at the forefront of conversation and takes priority over other applications like e-fuels. Wind and solar farms are becoming increasingly prevalent, but many places are still scaling these operations for use in the power grid. Nuclear power could also be used to power DAC systems, although current and planned new plants are focused on powering the grid. Even with all these technologies, it will take years before there is enough excess nuclear and/or renewable energy to use as a regular source of large-scale e-fuel production.
Forging a pathway to decarbonization is evidently complicated and requires a several factors to align. Working with government agencies to offset cost, building the infrastructure, and working to ensure smooth operations are a small piece of the puzzle. Replacing the need for fossil fuels through cleaner hydrogen and carbon molecules to then synthesize into everyday fuels involves several moving parts that challenge operations.
How GE Vernova is helping in the energy transition
It takes more than just power plant operators to be ready for this kind of transition. It’s the types of partnerships in areas like machinery, transport, storage, and consulting that will enable a much-aimed greener future. At GE Vernova, we embody an end-to-end approach in the energy industry and throughout the lower carbon fuel value chain. We’ve been working on over 14 direct air capture projects2, several of which are in collaboration with U.S. government departments and agencies, with a few directly linked to e-fuel production.
Ongoing e-fuel projects
In an ongoing project with the U.S. Department of Energy (DOE), a team at GE Vernova’s Advanced Research Center conducted a feasibility study on the use of direct air capture and solid-oxide co-electrolysis (SOCC) to create a syngas for synthetic methanol (MeOH) production. The concept of co-electrolysis works by combining two chemical reactions. In the case of SOCC, the electrolysis system operates at a higher temperature for an increased efficiency and can extract hydrogen and carbon molecules simultaneously from the inputs of water (H2O) and carbon dioxide (CO2). If powered by nuclear power generation, low-carbon intensity steam and heat can be provided by the power plant and used to power the co-electrolysis process. This study aims to demonstrate the feasibility of creating hydrocarbon fuels with lower-carbon intensity that have the potential to be competitive with traditional fossil fuel generation.
Additionally, GE Vernova worked on a similar initiative with the Idaho National Lab that looked toward nuclear energy for cost-effective and carbon neutral synthetic jet fuel and diesel production. The logistics are similar to that of the work we’re doing with the DOE, utilizing solid-oxide co-electrolysis and nuclear power to create a syngas, which is then converted to a synthetic fuel using Fischer-Tropsch synthesis or similar processes. The cost of the synthetic fuel is estimated to be less than $4 per gallon, proving the affordability of e-fuels, especially when created at scale. To start, the project plan is to work with a 50 kW SOCC system using simulated nuclear power to create a syngas at an expected price point of ~30% less than its renewable counterparts3. The hope is to scale to 2-5 MW system in the future. Over time, this initiative hopes to highlight a pathway to cleaner and more affordable jet fuel.
GE Vernova’s involvement in projects like the ones highlighted above are just two examples of how we can help in the energy transition. With over 130 years of experience, our expertise has evolved across the power industry. Our relationship with Hitachi, for example, allows us to build and implement nuclear technology to power cleaner energy and fuel production. The infrastructure we’ve developed and scaled in the wind, gas, hydro, nuclear and steam power sectors can be used in creating alternative fuel and energy sources. About 25% of the world’s energy comes from the technology we’ve developed, making us major players across all energy sectors with a specialized interest in helping to enable the energy transition.
Aside from the physical technology we provide, we offer our expertise as an extension of your team. Our Consulting Service business, for example, helps its customers in areas like technology integration and economic problem solving. And our Advanced Research Center tackles and strategizes today’s power sector challenges, concentrating on areas like renewables, decarbonization, and AI and robotics software. Today’s energy industry is more interconnected than ever, with multiple sectors and partnerships required to enable a full energy transition. The decades we’ve spent developing our technologies, advancing our research, and extending our reach all play a hand in an integrated, end-to-end approach in accelerating the energy transition.
The positive impact of long-term energy planning
Decreasing our fossil fuel consumption is just one facet of moving toward a cleaner planet. Changing how we create our fuels for everyday use will have a major impact on carbon emissions over time without changing the way consumers engage with the technologies and transportation methods they’ve always relied upon. While electric vehicles (EVs) may provide an appealing solution, a major increase in prevalence may lead to new stresses on the electrical grid.
Alternatively, e-fuels have the potential to positively affect our carbon footprint without changing how we power a large portion of the transportation sector including trucking, rail, aviation, and marine shipping. But we still have a long way to go to get there. Building direct air capture plants powered by cleaner energy sources and manufacturing and installing electrolysis solutions all take time. The thousands of calculations behind powering an electrical grid are also something to consider; providing power to millions of homes and business is not as simple as flipping a switch. Preparing and transporting hydrogen and carbon for fuel creation requires advanced infrastructure and the financial means to do so, which is unlikely to move forward without public funding. All of these factors present their own set of challenges, but the good news is that the technology and science exist today to move these initiatives forward. And GE Vernova is well-positioned to help your team accelerate its effort across every facet of the energy transition.
To learn more about GE Vernova’s role in advancing the energy transition, please fill out the “contact us” form at the bottom of this page, and one of our team members will be in touch.
[1] US National Oceanic and Atmospheric Administration (NOAA), "Climate Change: Atmospheric Carbon Dioxide," https://www.climate.gov/news-features/understanding-climate/climate-change-atmospheric-carbon-dioxide
[2] "Direct Air Capture," GE Vernova, https://www.gevernova.tm/gas-power/future-of-energy/direct-air-capture
[3] U.S. Department of Energy, “ARD-22-28700 Abstract,” May 2023, https://www.energy.gov/sites/default/files/2023-05/ne-abstract-ARD-22-28700.pdf
Jeffrey Goldmeer
Senior Director, Technology Strategy & H2 Value Chain
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