Swedish eFuel project makes synthetic fuel from CO2 and water but energy cost is double the return

Swedish companies Liquid Wind and Ovik Energi are developing an e-methanol facility that produces synthetic fuel using captured CO2, hydrogen from water electrolysis, and renewable electricity. The fuel works in existing engines without modification, making it a potential drop in replacement for hard to electrify sectors like shipping and heavy transport. The catch is energy efficiency. The production process consumes about twice as much energy as the fuel delivers, meaning it only makes sense where cheap renewable power is abundant. Until electrolysis efficiency improves or carbon capture costs drop, the economics stay unfavorable compared to direct electrification or even conventional biofuels.