Energy transition

 

Heating with liquid fuels today

Heating with liquid fuels remains the preferred choice for approximately 20 million households in the EU.

20millionHouseholds

Many of these homes are off-grid, meaning they have limited access to electricity or are not connected to the gas grid. For individuals living in off-grid areas, a reliable energy supply is crucial, and the use of heating oil stored in tanks is currently the most practical solution available.

There are several reasons why so many Europeans rely on heating oil:

Reliability: Easy to transport and store, liquid fuels provide a dependable energy solution for rural, off-grid households.

Flexibility: Heating systems using liquid fuels can be combined with renewable energy sources such as solar thermal, photovoltaic, or biomass.

Affordability: With lower capital investment and operating costs, heating oil systems help address energy poverty.

Performance: Modern condensing boilers achieve near 100% efficiency, making heating oil a highly efficient choice.

Setting a pathway to renewable heating with liquid fuels

Credits: IWO

An important link in the energy transition

With the 2050 decarbonization ambition set out in the Green Deal growth strategy, the European Commission is driving an ambitious agenda to foster the energy transition across different economic sectors.

Eurofuel’s roadmap to decarbonise liquid heating fuels focuses on maximising efficiency, enabling hybrid solutions, and introducing renewable alternatives. This pragmatic approach aims to reduce emissions while safeguarding energy security and affordability, especially for households in rural areas.

By following a three-step approach, heating with liquid fuels can make a strong contribution to Europe’s clean energy transition.

An important link in the energy transition

1. Maximise boiler efficiency
Encourage the replacement of outdated boilers with modern, high-efficiency condensing models.
This is the most immediate and cost-effective step to lower fuel consumption and reduce emissions using existing infrastructure.

2. Promote hybrid heating systems
Foster the uptake of hybrid systems that combine liquid fuel boilers with renewable energy sources such as solar or heat pumps.
These systems offer a flexible and reliable path to lower emissions, optimising the use of renewables while ensuring comfort and security of supply.

3. Introduce renewable liquid fuels
Accelerate the development and deployment of CO₂-neutral liquid fuels, including bio-based and synthetic alternatives.
These “drop-in” fuels can be used in modern condensing boilers without major system changes, providing a long-term, sustainable solution for carbon-neutral heating.

Eurofuel 3-steps approach

Learn more from Eurofuel Secretary General about our three-step approach. - Credits: Canal Z Production

Jérôme Lamey, Suntec

This approach is supported by European manufacturers. - Credits: Suntec

Eurofuel President Moritz Bellingen

Listen to Eurofuel President Moritz Bellingen explaining what a “technology neutral” approach is and why it is needed. - Credits: Canal Z Production

A consumer experience from Germany

Credits: IWO

A consumer experience from Belgium

Credits: Canal Z Production

Liquid fuels: a variety of solutions

The industry’s continued efforts to promote research and innovation are leading to remarkable achievements in the production of new low carbon liquid fuels.

Ranging from bio-based solutions such as Biomass-to-Liquid, HVO and FAME to synthetic products obtained through innovative technologies such as Power-to-Liquid, these fuels represent a concrete solution to decarbonise heating systems.

In addition, they can indeed be used in modern condensing boilers without the need for alterations and will therefore be “drop in” replacements for oil.

Different types of low carbon liquid fuels are already available. The raw materials for their production can be different – but they have one thing in common: the feedstock will not compete with food production.

Bio-based fuels

Different types of low carbon liquid fuels can be obtained from a variety of bio-based raw materials.

In the Biomass-to-liquid - or BtL - processes, liquid fuels are manufactured which reduce greenhouse gas emissions by up to 90% compared to conventional heating oil. The fuel is derived from different types of vegetable raw materials.

HVO (Hydrogenated Vegetable Oil) is produced from used cooking oil, residues from the food industry and from vegetable oils which are not intended for food.

FAME (Fatty Acid Methyl Ester) is based on vegetable oil, which is processed with methanol to a liquid fuel, suitable for oil heating.

 

Synthetic Fuels / e-fuels  

Synthetic fuels, also called e-fuels, are carbon-neutral and a viable way to reduce greenhouse gas emissions via a closed carbon cycle while keeping the fuel in liquid form. They are produced through PtL (Power-to-Liquid) process. This generates a synthetic liquid fuel by using renewable electricity, carbon dioxide from the atmosphere or other sources, and water. Hydrogen is produced from renewable electricity by way of electrolysis. Carbon dioxide is captured from the atmosphere or other sources. The e-fuels are synthesized in a catalyst driven process called the “Fischer-Tropsch” process.

XTL Production path 20

Once the production of low-carbon liquid fuels is scaled up, the future will be on its way for the 20 million European households which now rely on liquid fuel to heat their homes and water: liquid heating fuel has the potential to play a full part in the wider decarbonisation of heating throughout Europe by 2050.

 

New low carbon liquid fuels

Discover the new low carbon liquid fuels and their characteristics. - Credits: Canal Z Production

Part I - Biomass-to-Liquid

Credits: Canal Z Production

Part II - HVO

Credits: Canal Z Production

Part III - FAME

Credits: Canal Z Production

Synthetic Fuels (e-fuels)

Ineratec Managing Director, Philipp Engelkamp, presents their production of e-fuels. - Credits: Canal Z Production & Ineratec

Production of synthetic Fuels (e-fuels)

Sunfire Chief Technical Officer, Christian von Olshausen, presents their production of e-fuels. - Credits: Sunfire