About 11 years ago, researchers started looking at ways to store solar energy, in Germany.
At roughly the same time Audi, bought an old refinery to experiment with making fuel from
Carbon from the air, Hydrogen from water, and electricity.
The Audi venture spun off to form Sunfire energy,
Sunfire e-fuel
The Naval Research Labs also started looking into making jet fuel from ocean based CO2, water and electricity at sea,
to enable carrier groups to make all their own fuel.
The economics is fairly well understood, The Navy says the conversion efficiency is 60%,
While Sunfire says when scaled up, they expect an 80% efficiency.
I will use the 60% as an example.
A gallon of gasoline contains 33Kwh of energy, so to make that at a 60% efficiency, it takes 55 Kwh of electricity.
If the plant making the fuel, can buy wholesale electricity for $.05 a Kwh, it would take $2.75 to make a gallon of gasoline.
A barrel of oil can produce 35 gallons of usable fuel, so $2.75 X 35 = $96.25,
That is roughly the point where the refinery would find it less expensive to make their own feedstock, as opposed to buying oil.
While I used the 60% number, Sunfire is claiming a higher percentage of efficiency, so the price will like be lower.
Sunfire is building the first demo plant to make fuel now in Norway,
Power to Liquid plant
The process of storing electricity as fuel is generically called Power to liquid.
The first fuel from the Norway plant will be blended at 10% with normal jet fuel, to meet the airlines
emission standards in Europe.