The global transport sector accounts for around 15 per cent of total greenhouse gas (GHG) emissions, and over 91 per cent of the energy required for transport is still covered by petrol and diesel fuels. These figures illustrate the urgent need for a transformation towards alternative fuels, so-called reFuels.
Despite the progress made in the electrification of the passenger car sector, the transport sector will continue to rely on conventional fuels even after 2035. There are currently still various hurdles to overcome when switching to alternative fuels: different technological requirements for the fuel, current availability of large quantities of synthetic fuels required, insufficient investment security for plant operators, currently higher costs compared to conventional fuels and regulatory uncertainties. However, there are alternative fuel options such as liquefied natural gas (LNG), advanced biofuels and synthetic fuels that can be considered as transitional and substitution solutions for fossil fuels. Companies that invest in these types of fuels at an early stage and/or use them in their mobility fleet can secure first-mover advantages, benefit from government subsidies and improve their sustainability profile.
The detailed KPMG report "Evolution of transport fuels: The role of alternative fuels on the path to sustainability" provides valuable insights and strategic recommendations for dealing with this complex and forward-looking topic. The report highlights the viability and potential of various alternative fuels (such as natural gas, advanced biofuels, methanol, dimethyl ether (DME) and synthetic fuels) for sectors that are technically and physically difficult to electrify, such as aviation, maritime shipping and road transport (including long-distance trucking and local public bus transport).
Alternative fuels will play an important role in the future of freight transport, private and local public transport and the operation of construction machinery, among other things. Nevertheless, their use is associated with a number of challenges that are not easy to solve and, above all, cannot be solved without a prompt and binding framework, such as clear regulation. An understanding of the usability, availability and impact of the various alternative fuels should help companies make the right decisions on the path to decarbonisation. These sustainable fuels can help to reduce CO2 emissions both in the existing fleet and in new acquisitions. They therefore make an important contribution to the sustainability of mobility and enable companies to achieve their sustainability goals. In addition to contributing to CO2 reduction, the use of alternative fuels creates the necessary time to build up infrastructure for electromobility. This creates a technology-neutral ecosystem of sustainable energy sources in the form of renewable energy and fuels for companies to reduce their emissions.
