In March 2023, European Union countries approved a landmark law to end sales of CO2-emitting cars by 2035. This approval came after last-minute opposition from Germany, which argued that sales of new cars with internal combustion engines (ICEs) should be allowed, provided that these cars run on e-fuels.

E-fuels are being touted as a viable alternative to electric vehicles. But just what are e-fuels, and are they as promising as their advocates contend?

What are e-fuels?

E-fuels are synthetic alternatives to fossil fuels. They are comprised of CO2 emissions that have been captured from the environment, and hydrogen that has been produced by renewable or CO2-free electricity.

E-fuels are therefore carbon neutral. They still release CO2, but the amount released is exactly equal to the atmospheric CO2 that was captured for the e-fuels’ synthesis.

However, whilst e-fuels have been touted by some, there are problems with this model.

Firstly, an e-fuel can only be considered an e-fuel if the hydrogen used in its synthesis is produced with renewable or CO2-free energy. Secondly, every stage in the creation of e-fuels wastes energy, requiring around five times more renewable electricity than that needed to run an electric vehicle. Thirdly, e-fuels are currently not produced at scale, which contributes to their extreme expense. Fourth, whilst e-fuels are carbon neutral, they still release the toxic by-products involved in fossil fuel usage, which include toxic nitrogen dioxide and carcinogens.

It remains an open question whether e-fuels will develop as a viable alternative to fossil fuels for the automobile industry.

Drive greener with My Car Credit

Check your car finance eligibility with My Car Credit and start your journey towards a greener lifestyle.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
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Typical rate

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*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

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