In what can be considered as a landmark achievement, German Car Manufacturer Audi has reportedly invented a ‘carbon neutral diesel fuel’ that is made entirely out of carbon dioxide, water and renewable energy sources such as solar or wind power. The world is desperately searching for cleaner and sustainable alternatives to the conventional fossil fuels in form of renewables. Audi may well have discovered a potential game changer that can power the existing transportation industry while altering the dynamics of global energy sector.
Currently, the German car giant has set up a pilot plant in Dresden where it is being operated by a relatively unknown company called Sunfire. The company currently has the capacity to produce 3000 liters of ‘e-diesel’ in next few months. Related: Range Resources Expects Natural Gas Glut To Even Out By Year End
Image source: Time Magazine
What Is This New Technology?
Sunfire is calling its base product ‘blue crude’ which is created through a three step process. The first step involves harvesting energy from renewables such as solar, wind and hydropower. The second step consists of splitting water into oxygen and pure hydrogen through reversible electrolysis. The final step consists of mixing the resulting pure hydrogen with carbon monoxide at high temperatures thereby creating ‘blue crude’. The resulting ‘blue crude’ is then further refined and converted into an ‘e-diesel’. The resulting e-diesel can then be combined with an existing conventional diesel fuel or used on its own in a more economical way.
Founded in 2010, the Dresden based cleantech firm develops new technologies for efficient and zero carbon energy supply. The firm is supported by business angels, Bilfinger Venture Capitalists, ERP Startfonds at KfW, Total Energy Ventures and Electranova Capital. Related: Oil, The Fed And The Ugly Truth About Capital Markets
According to Sunfire CTO Christian von Olshausen, ““If we get the first sales order, we will be ready to commercialize our technology.” As per their press release, the overall efficiency of the e-diesel is close to 70%. This means that current version of ‘e-diesel’ needs to be mixed with the conventional diesel to produce 100% efficiency.
An Exciting New Possibility That Can Reduce Global Transportation Costs
With its huge potential, there is little doubt as to why the German Government has welcomed this new technology. Johanna Wanka, Germany’s federal minister for education and research who test drove the fuel called it “a crucial contribution to climate protection and the efficient use of resources.”
The biggest advantage for Sunfire is that it is backed by Audi, an auto giant that has decided to produce nearly 800 gallons in next few months as a part of its pilot program. If everything goes well, we can expect a significant ramp up in investment, with lesser CO2 emissions becoming an ever more important priority.
What Are The Potential Benefits Of E-diesel?
Total U.S Greenhouse Emissions in 2013
Total Emissions in 2013 = 6,673 Million Metric Tons of CO2equivalent
One of the major contributors to climate change is the ever-increasing air pollution from conventional vehicles. In US alone, the transportation sector contributes around 27% of the total greenhouse emissions. If something as revolutionary as ‘E-diesel’ becomes practically and commercially viable, then expect these greenhouse emissions to reduce drastically over time. In addition, if the production of e-diesel picks up, it could be selling in the range of $ 1.2 to $1.7 per liter depending on the cost of renewable electricity. Conventional diesel is currently selling above $1.7 dollars a liter in Germany, so it is obvious that e-diesel would be extremely competitive and sustainable.
It will be interesting to track both Audi and Sunfire’s progress over the next few months….
To watch Sunfire’s video on the alternative fuel, click here.
By Gaurav Agnihotri of Oilprice.com
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