Eurofuel blog

A Call for Action: Recognising Renewable Liquid Fuels in Europe's Energy Transition

Achieving climate neutrality requires a holistic strategy that considers all energy needs. While electrification and other renewable technologies play essential roles, an exclusive focus on these solutions risks leaving significant gaps, particularly for the 20 million European households that rely on liquid fuels for heating. Many buildings, especially in rural and off-grid areas, are not suitable for electrification due to cost constraints or limited grid connections. Ensuring these communities are not left behind in transitioning to a greener future is crucial.

Eurofuel, the European Liquid Heating Fuels Association, in an open letter, urges Europe's leaders to recognise our sector as a critical and strategic part of the energy transition and to incorporate it into the Clean Industrial Deal.

The Value of Renewable Liquid Fuels

The future of oil-based heating in Europe lies in low-carbon, renewable liquid fuels derived from sustainable and circular raw materials. These fuels, such as Hydrotreated Vegetable Oil (HVO), Fatty Acid Methyl Ester (FAME), and Power-to-Liquid (PtL), do not compete with food production or cause land-use conflicts. They offer up to 100% lower greenhouse gas emissions compared to fossil fuels and are fully compatible with modern boilers and existing fuel distribution infrastructure. This compatibility makes them a seamless and cost-effective pathway to decarbonising heating.

For off-grid regions where expanding electricity or gas networks would be financially and logistically unfeasible, renewable liquid fuels provide a practical and scalable alternative. They also contribute to an affordable, non-disruptive transition to low-carbon heating. Furthermore, these fuels can be hybridised with other renewable technologies, such as solar thermal or heat pumps, to enhance energy resilience and flexibility.

A Call to Action

The primary barriers to scaling up renewable liquid fuels are not technical but legislative. The technology is well-developed, and Europe has ample biomass waste to support large-scale production. However, without clear policy backing, financial incentives, and a solid business case within European legislation, investments in these fuels will stall. This would hinder both emissions reduction efforts and energy security for millions of citizens.

To fully unlock the potential of renewable liquid fuels, we urge the EU to adopt a dedicated action plan that ensures the long-term competitiveness and viability of the sector by:

  1. Establishing a stable and predictable policy framework to encourage long-term investment in renewable liquid fuel production and distribution.
  2. Implementing a technology-neutral approach that acknowledges renewable liquid fuels as a key solution for reducing emissions across various heating systems.
  3. Adopting a full life-cycle emissions assessment, accounting for production-related emissions and the carbon benefits of circular feedstocks.
  4. Supporting innovation by avoiding bans on specific fuels or technologies, ensuring industry-led research and development continues to drive progress.
  5. Addressing the social impact of the energy transition by permitting consumer choice, promoting innovation, and fostering competition to make heating solutions affordable for lower-income households and practical for off-grid rural areas.
  6. Enhancing building efficiency standards in a socially responsible manner, recognising the challenges of energy poverty and the limited availability of low-carbon heating alternatives in remote areas.

The EU’s decarbonisation strategy should incorporate all viable solutions to ensure a fair, cost-effective, and sustainable transition. Ignoring renewable liquid fuels would be a missed opportunity. These fuels offer a practical and immediate way to reduce emissions, enhance energy security by preventing electricity power spikes on cold days, and support vulnerable communities without necessitating costly infrastructure changes.

Eurofuel and its members remain committed to working with policymakers, industry leaders, and consumers to promote an effective energy transition.