The automotive industry has always been at the forefront of innovation, and nowhere is this more evident than in motorsport. With increasing pressure to reduce carbon emissions while maintaining the high-performance standards of internal combustion engines, one technology that has been gaining traction is synthetic fuels, commonly referred to as e-fuels. While electric vehicles dominate public discourse, e-fuels present a viable alternative that retains the internal combustion engine while dramatically reducing its environmental impact.
Antonella Abbate • 17 February 2025
E-Fuels and Their Impact on the Industry
An Article by IAME CEO Peter Blanshard
The Formula 1 championship has been anticipating this shift for several years. In 2019, Paddy Lowe, a highly decorated team principal with 12 world championship titles across teams like Williams, McLaren, and Mercedes, left the sport to co-found Zero, a company specialising in producing non-biological, carbon-neutral e-fuels. Backed by investors such as former F1 World Champion Damon Hill, Zero has already secured an agreement to supply e-fuels to the Sauber F1 team in 2026. But Zero is not the only player in this space—major petroleum companies such as Aramco (the Saudi Arabian state-owned oil giant) and ExxonMobil are investing heavily in synthetic fuel technologies, with Aramco set to supply the Aston Martin F1 team.
E-fuels are produced using a process that captures and repurposes carbon dioxide from the atmosphere, making them a closed-carbon cycle fuel. This means they do not introduce new carbon into the environment, unlike fossil fuels. The production process involves several key steps.
- Electrolysis – Water is split into hydrogen and oxygen using electricity, ideally sourced from renewable energy. This step is critical to ensuring the process remains carbon-neutral.
- Carbon Capture – Direct Air Capture (DAC) technology extracts carbon dioxide from the atmosphere using a chemical process. Sodium hydroxide is one such adsorbent that enables the capture of CO₂.
- Reverse Water-Gas Shift Reaction – The captured carbon dioxide is combined with hydrogen in a catalytic reaction to produce carbon monoxide and water. This reaction can also be achieved through electrolysis.
- Syngas Formation and Fischer-Tropsch Synthesis – Carbon monoxide and additional hydrogen are combined to form syngas, which is then processed through the Fischer-Tropsch reaction, a method originally developed in 1925 by German scientists Franz Fischer and Hans Tropsch. This high-temperature, high-pressure reaction uses iron or cobalt catalysts to bond carbon atoms into hydrocarbons, producing liquid fuel.
From approximately 1.46kg of water and 3.07kg of carbon dioxide, 1kg of hydrocarbon fuel and 3.53kg of oxygen can be produced. The resulting fuel is chemically similar to traditional petrol or diesel, meaning it can be used in existing internal combustion engines without modification.
Historical Context and Challenges
The concept of synthetic fuels is not new. During World War II, Germany produced about 9% of its fuel supply using the Fischer-Tropsch process due to a shortage of natural crude oil. However, at the time, the process was energy-intensive and expensive, limiting its widespread adoption. These same challenges persist today.
The primary hurdle for e-fuels is scalability and energy efficiency. The process requires significant amounts of electricity, and if this electricity comes from fossil-fuel-based sources, the carbon savings could be negated. Therefore, the viability of e-fuels depends on using renewable energy for production. While Formula 1 teams can be supplied with enough synthetic fuel, the real question is whether e-fuels can be mass-produced efficiently for the broader automotive market.
For Australian automotive professionals, particularly members of the Institute of Automotive Mechanical Engineers (IAME), the rise of e-fuels represents both an opportunity and a challenge. The Australian government has committed to reducing carbon emissions, and while EVs are part of that strategy, the existing fleet of internal combustion engine (ICE) vehicles will remain on the road for decades. E-fuels provide a solution that allows these vehicles to operate sustainably without requiring costly infrastructure overhauls.
For IAME members involved in mechanical engineering, servicing, and tuning, e-fuels could become a major market in the coming years. Workshops may need to adapt to servicing engines optimised for synthetic fuels, and performance tuners could see new opportunities in fuel mapping and combustion efficiency improvements. The ability to offer low-emission, carbon-neutral fuels may become an attractive selling point for workshops and mechanics looking to future-proof their businesses.
The transition to synthetic fuels will depend on government policy, investment in renewable energy, and advancements in production efficiency. Motorsport has long been a testing ground for cutting-edge technologies that eventually make their way into commercial vehicles—disc brakes, turbochargers, and hybrid powertrains all originated from high-performance racing. E-fuels could follow the same path, providing a bridge between today’s petrol and diesel engines and the net-zero future.
As Australia’s automotive industry prepares for a carbon-neutral future, IAME members should stay informed about developments in synthetic fuels. Whether through training programs, industry partnerships, or advocacy for policy incentives, the IAME has a critical role to play in shaping how e-fuels fit into Australia’s automotive landscape.
The next few years will be pivotal. The technology is here—the challenge now is making it economically and logistically viable for widespread adoption. And as always, innovation starts with those who understand the mechanics behind the machines.
Tickets are now on sale for Wire & Gas 2026, with VASA and The Automotive Technician (TaT) confirming a full three-day programme at The Westin Brisbane from 31 July to 2 August. The event, co-hosted for the first time by both organisations under the theme ‘Better Together’, brings together automotive air-conditioning technicians, auto electricians and thermal management specialists from across Australia and New Zealand for training, networking and industry updates. VASA and TaT members can register for $995 + GST, with non-member tickets priced at $1,195 + GST. A Social Pass covering the Friday cocktail party and trade show plus the Saturday Gala Awards Dinner is available for $349 + GST. Non-members have the option to purchase discounted VASA or TaT membership at registration to unlock member pricing and ongoing benefits. VASA President Brett Meads said the TaT partnership had raised the bar for what Wire & Gas could deliver. “TaT and VASA have a long history of collaboration and share a common goal: supporting automotive technicians and workshop owners to build their skills and grow their businesses,” Mr Meads said. “By combining our networks and expertise, we can deliver a bigger, better Wire & Gas with high-quality training, new topics and more opportunities for technicians to connect with their peers and industry partners. “This is what ‘Better Together’ is all about.” Programme at a glance Friday 31 July: Opening Night The event opens with a cocktail party and trade show, followed by a panel discussion marking the launch of the updated Australian Automotive Air Conditioning Code of Practice. Panellists include Kylie Farrelley (Refrigerant Reclaim Australia), Dr Greg Picker (Refrigerants Australia / Australian Refrigeration Council), Lesley Yates (AAAA) and Jeff Smit (TaT). Saturday 1 August: Technical Training The full-day technical programme features four in-depth 1.5-hour sessions, with a trade show running during morning tea and lunch: ● Clint Flower: Diagnosing modern automotive HVAC systems ● Clinton Brett: AdBlue (SCR) emissions-control technology for diesel vehicles ● Brendan Sorensen: 48V to BEV: Electrified Diagnostic Triage Framework ● Scott Thomas: Vehicle Security Systems: A Workshop Guide The Saturday evening Gala Awards Dinner will feature live acoustic music, the REDARC Young Technician of the Year Award, the VASA Grant Hand Industry Mentor Award, the VASA Pioneer Award and a race sim champion and trade show prize draw. More awards are to be announced. Sunday 2 August: Seminars The closing half-day covers business and industry topics, with sessions from Lesley Yates on best practices and industry cohesion, Jeff Smit on the EV and hybrid market from an aftermarket perspective, a refrigerant and regulation panel with Kylie Farrelley and Dr Greg Picker, and Geoff Mutton on enhancing workshop productivity. TaT co-founder Jeff Smit said the programme reflected the combined training strengths of both organisations. “Wire & Gas has established itself as the must-attend event for the auto electrical and air-conditioning trades, and we’re thrilled to be joining forces with VASA to take it to the next level,” Mr Smit said. “TaT will be bringing our training expertise, presenter network and broad membership base to the table, with a focus on delivering practical, hands-on sessions that attendees can take straight back to the workshop. “We’re looking forward to welcoming both VASA and TaT members, and the broader industry, to Brisbane in July.” Accommodation VASA has negotiated special room rates for Wire & Gas attendees at The Westin Brisbane at $325 per night (room only, super king or twin) and the adjoining Four Points by Sheraton at $225 per night (room only, king or twin). Optional extras include breakfast ($30 per person at The Westin; $25 at Four Points), a rollaway bed for $80 per night, and valet parking at $60 per vehicle per day. All accommodation prices include GST. Discounted rates are valid for three days before and after the event, subject to availability. Cool Mavericks book signing Authors Mark Mitchell and Ken Newton will be signing copies of Cool Mavericks, which traces the evolution of automotive air-conditioning and the pioneers who shaped it. Books will also be available for purchase or collection at the event. Sponsors and exhibitors With the combined reach of the VASA and TaT networks, sponsorship and exhibition opportunities are expected to fill quickly. Organisations wanting to connect with the calibre of automotive repair professionals Wire & Gas is known for attracting should contact Jill Johnson at jj@jkjmedia.com.au or on 0409 217 624. Tickets and accommodation can be booked at WireAndGas.com
The Institute of Automotive Mechanical Engineers (IAME) wishes to advise members and industry partners that Mr Peter Blanshard is no longer employed by the IAME , effective 7 July 2026 . The Board wishes to extend its best wishes to him for the future. The Board has enacted transition arrangements to ensure continuity across all operational areas, including member services, supplier and industry partnerships, RTO operations, and government engagement. Redirecting Communications To ensure enquiries are directed appropriately and responded to promptly, members and stakeholders are asked to redirect any communication previously addressed to the CEO to the following contact: IAME Auburn Office (NSW) unit 5, 340 Chisholm Road Auburn NSW 2144 Phone: (02) 9782 1100 Email: inbox@iame.com.au The IAME Board appreciates the cooperation and understanding of our members during this period of transition. We remain committed to delivering strong industry leadership and high‑quality support across the automotive and training sectors. Kind regards, The IAME Board
By Dean Rothapfel - Oceania Country Manager Motul Asia Pacific
