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Audi’s Strategy to Enable Carbon-Neutral Driving

Scott Shepard — February 16, 2014

Audi recently announced that results from testing of the company’s synthetic liquid fuels, or e-fuels, indicate that e-fuels perform significantly better than conventional fuel counterparts in conventional vehicle internal combustion engines.  The company subsequently announced that it will broaden its e-fuels initiative through its partnership with French biofuels company Global Bioenergies.  Audi’s e-fuels initiative is unique, as no other major automaker has pursued the development or distribution of gaseous or liquid fuels – carbon-neutral or not – for the transportation market.

Audi plans to produce e-gas and, through a partnership with Joule, e-diesel and e-ethanol.  The company also intends to produce e-gasoline through a partnership with Global Bioenergies.  The purpose of this initiative is to provide drivers of Audi vehicles with carbon-neutral driving options as a selling point for its gasoline, diesel, and/or compressed natural gas (CNG)-powered vehicles.  However, Audi drivers worldwide may be physically unable to fill up with the carbon-neutral synthetic fuels developed by Audi due to a lack of refueling stations.  The automaker will enable Audi drivers to indirectly contribute to increased amounts of carbon-neutral synthetic fuels into the overall fuel pool through what amounts to offsets.

Powered by E-Gas

An example of how Audi’s strategy works is its production of e-gas, the e-fuel closest to market.  E-gas is produced from the electrolysis of water, which produces hydrogen, which is then combined with waste CO2, producing methane as a synthetic natural gas substitute.  The e-gas production facility is powered by wind turbines and uses concentrated waste CO2 from a nearby biogas plant.  The production and consumption of e-gas using this system generates no new carbon emissions.  The e-gas is then piped into the greater natural gas network at the e-gas production facility in Werlte, Germany.

Early adopters of Audi’s forthcoming CNG- and gasoline-powered vehicle, the A3 G-Tron, will be able to buy quotas of e-gas upon purchasing the car.  This allows them, through an accounting process, to say their Audi is powered by the carbon-neutral e-gas produced at the plant.  This offset option will only be available to European customers though, as light duty CNG vehicles have failed to catch on outside of Europe primarily due to a scarcity of CNG refueling stations.

Outside of Europe, similar programs are expected to emerge alongside Audi’s development of liquid e-fuels.  The end markets for these fuels are significantly greater than those for e-gas, since the vast majority of vehicles worldwide are powered by liquid fuels.  However, these e-fuels are still far from reaching the market.  Actual implementation of Audi’s carbon-neutral strategy outside of Europe is therefore limited in the near term, barring a significant increase in CNG infrastructure options.   But the promise of Audi’s and its partners’ work on liquid e-fuels may significantly speed development and adoption of carbon-neutral fueling options, holding  significant implications for the vast majority of vehicles in use powered by conventional petroleum-based liquid fuels.

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