The Role of Electrofuels in the Decarbonization of Hard-to-Abate Sectors: A Review of Feasibility and Environmental Impact

The decarbonization of hard-to-abate sectors remains a significant challenge in achieving net-zero emissions targets. These industries depend on energy-dense fuels, making direct electrification and the direct use of hydrogen technically and economically challenging. Electrofuels present a promising pathway to reducing emissions while leveraging surplus renewable energy. This review evaluates the feasibility of electrofuels for deep decarbonization, focusing on production processes, energy demands, and economic viability. Environmental performance is discussed in terms of lifecycle greenhouse gas (GHG) emissions, carbon circularity considerations, and energy conversion efficiencies, while techno-economic feasibility is evaluated using metrics such as levelized cost of hydrogen (LCOH), CO2 capture costs, and projected fuel production costs. The review indicates that while electrofuels can achieve substantial lifecycle emission reductions up to 40–90%, depending on pathway and electricity source, their deployment remains constrained by high energy demand, conversion losses, and capital costs. Projected reductions in LCOH to below $2.1/kg by 2030 and declining renewable electricity costs could significantly improve competitiveness, particularly in regions with abundant solar and wind resources. However, substantial trade-offs exist between efficiency, infrastructure compatibility, scalability, and carbon neutrality across different electrofuel routes. The review identifies key technological bottlenecks, cost drivers, and research priorities necessary to position electrofuels as a strategic solution for deep decarbonization in sectors where direct electrification is not feasible.