Industrial E-Fuel Market Size - By Renewable Source, By Technology, By Product, Analysis, Share, & Growth Forecast, 2025 - 2034

Industrial E-Fuel Market Size

The global industrial e-fuel market was projected at USD 1.7 billion in 2024 and is estimated to reach the value of USD 25.8 billion by 2034, growing at a CAGR of 31.5% from 2025 to 2034. The need to move towards decarbonization and the sustainable demand for energy solutions both aid in propelling the market forward.

Increased growth in the market caters to the technological advancements related to the production of e-fuels, efficiency improvements, and cost reduction. E-fuels are positioned as a potential substitute for fossil fuels in heavy transportation, manufacturing, aviation, and other sectors as industries attempt to mitigate carbon emissions.
 

Government policies and regulatory frameworks supporting the development of green technologies further fuel market expansion. Moreover, alliances among energy firms, automobile manufacturers, and technological advancements are beginning to change the existing dynamic of the market.
 

As an illustration, in October 2022, Shell along with the Lufthansa Group entered a Memorandum of Understanding where they agreed to provide more than 1.8 million metric tons of Sustainable Aviation Fuel (SAF) between 2026 and 2036. In order to fully exploit the industrial potential e-fuels adoption, underdeveloped infrastructure and high production cost issues need to be addressed first.
 

The industrial e-fuel market is being impacted by tariffs from the Trump administration which increases the price of fuel’s raw materials and supply chains around the world. While there may be an advantage for some domestic producers, the industry deals with sharp increases in costs and possible volatility in the market. The overall economic outcome will depend on how long the tariffs are in place and how the targeted industry navigates the situation.
 

Industrial E-Fuel Market Trends

• The e-fuels industrial market is growing tremendously due to a few specific factors. E-fuels are becoming increasingly feasible due to technological advancements in production efficiency and scalability.
   
• Globally, there is an effort to switch toward e-fuels bound within decarbonization targets, supporting policies are introduced to aid e-fuel adoption. For instance, the ReFuelEU Aviation initiative included in the EU’s Fit for 55 package, requires the increasing use of sustainable aviation fuel in EU Airports and targets 70% by 2050.
   
• Additionally, increasing investments from both public and private sectors are accelerating research and development efforts. Air transport and other heavy transport industries are concentrating e-fuels as a fuel alternative that can be easily integrated into services as one of the most suitable e-fuels.
   
• Despite the remaining challenges of high production costs and infrastructure requirements, there is a positive projection for technology in the market. For example, UTA Edenred will start offering HVO100 at over 1800 stations in Europe. This project is set to begin in March 2025. This is a cleaner alternative to diesel as it reduces CO₂ emissions and doesn’t require engine modifications.
   

Industrial E-Fuel Market Analysis

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• The global market for industrial e-fuel was evaluated at USD 1.3 billion, USD 1.3 billion and USD 1.7 billion in 2022, 2023 and 2024 respectively. The on-site solar segment is expected to cross over USD 13.5 billion by 2034.
   
• These sources provide the required renewable electricity for the production of electricity-based fuels with processes like Power-to-X. The use of wind and solar technologies in industry enhances the supply of energy and helps in the decarbonization process.
   
• The adoption of renewable energy, especially on-site generation, is growing combined with advanced policy frameworks encouraging clean energy, as well as complex monitoring and control systems. The adoption of off-grid solutions is bolstered by developments in energy storage systems, as well as policies supporting clean energy.
   
• Consequently, the synergy between renewable energy generation and e-fuel production is anticipated to play a significant role in achieving long-term sustainability goals within the industrial sector.
   
• As a citation, in December 2022, Porsche, along with Highly Innovative Fuels, launched the pilot plant of Haru Oni eFuels in Chile, which produces synthetic fuels from wind energy, hydrogen, and CO₂. This initiative helps to diminish the carbon emissions of internal combustion engines, furthering the efforts of e-mobility that Porsche is actively pursuing.
   

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• The industrial e-fuel market is witnessing notable trends across its product segments, including e-gasoline, e-diesel, e-kerosene, ethanol, and e-methanol. The ethanol segment held 22% of market share in 2024 and is anticipated to grow at a CAGR of over 32% till 2034.
   
• E-gasoline and e-diesel are increasingly being proposed as drop-in fuels for new internal combustion engines, enabling decarbonization with minimal changes to infrastructure. Ethanol is still the mainstay of this sector due to the established production processes and its incorporation as a component in the current fuel systems.
   
• E-kerosene is coming forth as a fuel for planes that is more environmentally friendly, serving the purpose of cutting down on emissions globally. Additionally, E-methanol is becoming more popular due to its usefulness in seafaring industrial work due to the fact that it helps reduce emissions in hard-to-abate sectors.
   
• This portfolio creates a complex e-fuel ecosystem that serves different industrial requirements while also helping to shift toward renewable energy. To illustrate, in March of 2022, Maersk joined six other firms to begin the construction of 730,000 metric tons of green methanol by 2025 to help in sustaining its fuel decarbonization goals and to enable its vessels.
   

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• The U.S. industrial e-fuel market experienced significant growth in 2022, 2023 and 2024 and was valued at USD 174.9 million, USD 182.8 million and USD 235.4 million respectively and is likely to exceed USD 4.3 billion by 2034.
   
• The market is expanding with new opportunities in the use of renewable energy and government incentives. These trends are the combination of wind and solar energy for e-fuel production, innovations that further lower costs, and greater funding for related facilities. For example, the draft of the US Department of Energy published in March 2024 includes plans of USD 750 million for projects of clean hydrogen and e-fuel production.
   
• Industrial e-fuel demand in Europe is fueled by strong enforcement of environmental policies and aggressive decarbonization targets. The region is experiencing robust investment in renewable energy and e-fuel infrastructure. Germany is the largest market by far as it is at the forefront of e-fuel production and technology adoption. For example, INERATEC obtained USD 79.57 million in funding in March 2025 for INERATEC’s e-fuel production plant in Frankfurt, which is the largest in Europe.
   
• The industrial e-fuel market in the Asia Pacific region is developing, with government support on clean technologies and increasing industrial demand for sustainable energy. Japan leads the region and is focusing e-fuels towards transportation and power sectors which makes it the biggest market in the region.
   
• Also, Japan’s NEDO provided project funding worth USD 0.80 billion in April 2022 for implementing e-fuels, SAF, and green technologies which includes hydrogen-based e-fuel production and SAF supply chains towards carbon neutrality by 2050.
   
• The Middle East & Africa region is the most advanced in terms of further incorporating renewable energy into e-fuel production driven by the need to diversify the sources of energy. The United Arab Emirates is the biggest market and is regionally leading in clean energy projects and e-fuel technologies, for supporting long term sustainability goals. For example, Samsung E&A will build the first methanol plant in Abu Dhabi in February 2025, adding 1.8 million tons per year by 2028 which will aid the UEA’s fuel transition objectives.
   

Industrial E-Fuel Market Share

The top 5 companies in the industrial e-fuel industry include HIF Global, Norsk e-Fuel AS, Climeworks AG, Ballard Power Systems, Inc. and Sunfire GmbH which held a market share of over 30% in 2024. These companies pioneered e-fuel development through strategic investments and e-sustainable fuel production through technological innovations and partnerships.
 

ExxonMobil’s clean energy initiatives as well as current global assets provides the company with a remarkable advantage in the e-fuels sector. For example, ExxonMobil has partnered with Porsche to Pre-Test Esso Renewable Racing Fuel in Porsche’s motorsport engines, starting with biofuels during the 2021 Porsche Mobil 1 Supercup, then transitioning to eFuel for general market use in 2022. ExxonMobil’s e-fuels competitiveness is supported by its strong energy business which allows ExxonMobil to remain a leader in the rapidly growing e-fuels market.
 

Industrial E-Fuel Market Companies

• HIF Global possesses advanced capabilities in the production of synthetic e-fuels through the use of green hydrogen and recycled CO₂. HIF is developing the Haru Oni plant and has projects in the U.S. and Chile, aspiring to capture over 25 million tons of CO₂ annually by scaling production to 150,000 barrels per day by 2035. 
   
• Norsk e-Fuel AS focuses on renewable synthetic aviation fuels manufacturing. The company’s Herøya plant in Norway to be operational by 2026, with capacity to produce 100 million liters of e-fuel per year, and possible future expansions.
   
• Climeworks AG is dedicated to capturing CO₂ from the air with DAC technology. The processed CO₂ is captured and prepared for production of e-fuels which contributes to emissions reduction in sustainable fuels and carbon removal. 
   
• Ballard Power Systems develops proton exchange membranes (PEM) fuel cells for wide-ranging applications, including those in the transport and industrial domains. Their fuel cells are integral in the transition to zero-emission mobility.
   
• Sunfire GmbH Control Group focuses on the areas of , high-temperature electrolysis and power-to-liquid technologies. Their inventions enable the production of synthetic fuels such as e-diesel, which aids in emissions reduction in hard-to-decarbonize sectors. In April 2025, Sunfire had completed a contract for a 10 MW electrolyzer with Repsol for a green hydrogen expansion project in Bilbao, Spain. The plant is expected to become operational in 2026, and will further sustainable fuel development in the region by supplying green hydrogen for an e-fuels facility.
   

Key players operating across the industrial e-fuel industry are:

• Archer Daniels Midland
• Arcadia eFuels
• Ballard Power Systems
• Ceres Power
• Clean Fuels Alliance America
• Climeworks
• Electrochaea
• eFuel Pacific
• ExxonMobil
• FuelCell Energy
• HIF Global
• INFRA Synthetic Fuels
• LanzaJet
• Liquid Wind
• MAN Energy Solutions
• Norsk e-Fuel
• Porsche
• Sunfire
   

Industrial E-Fuel Industry News

• In March 2025, HIF Global became the first in the U.S. to receive an approval for an e-fuels design pathway under California's LCFS. This certification includes e-SAF, e-naphtha, and e-diesel underscoring HIF's Texas project's foresight of e-fuels demand which aims to achieve production of 1.4 million metric tons annually. 
   
• In March 2025, INERATEC declared that they secured 79.57 million dollars for the biggest e-fuel manufacturing facility in Europe, which is currently being developed in Frankfurt. This funding contains a loan of USD 45.47 million from the European Investment Bank along with a USD 34.05 million grant for the construction of the plant and development of the sustainable aviation fuel.
   
• In January 2024, Clean fuels subsidiary INERATEC reported raising more than USD 129 million in a Series B funding round. The funds will be allocated to increase the sustainable e-fuel production of the company which strives to decarbonize the hard-to-abate sectors.
   
• In December 2023, Bill Gates decided to invest over USD 75 million to support Project Roadrunner, an initiative led by e-fuels company Infinium. The project's main goal is to convert waste carbon dioxide and renewable energy into sustainable aviation fuel and other eco-friendly fuels.
   

This industrial e-fuel market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Renewable Source

• On-site solar
• Wind

Market, By Technology

• Fischer-tropsch
• eRWGS
• Others

Market, By Product

• E-gasoline
• E-diesel
• E-kerosene
• Ethanol
• E-methanol
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Netherlands
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Middle East & Africa
  • Saudia Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina