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The main lobby group of the German automobile industry has recommended that all fossil fuel sales should be ended in Germany by 2045.

The news comes from a new position paper (source in German) released by the the Verband der Automobilindustrie (VDA), the trade group representing some 600 automobile-related companies in the country where the automobile was first invented.

The lobby group, in stark contrast to how American lobbyists often operate, said that the European Union’s guidance on fuels do not go far enough, and need to be stricter if it wants to reach the goal of climate-neutral road traffic by 2045.

The criticism relates to the EU’s Renewable Energy Directive III (RED III), adopted last year. It sets out goals for renewable energy deployment in various realms, including the adoption of low-carbon fuel sources for road transport.

The VDA spends much of its time advocating in its position paper for “renewable fuels of non-biological origin” (RFNBOs), which is an umbrella term for both green hydrogen (generated through electrolysis of water via renewable energy) and e-fuels produced by combining green hydrogen with other chemicals to create synthetic liquid fuels.

These fuels would be beneficial for certain heavy-duty applications for which batteries are currently too heavy, as they can be more energy dense than batteries. And as VDA points out, there are currently tens of millions of combustion vehicles on the roads in Germany whose impact could be reduced immediately via the application of sustainable fuels.

But their application has been controversial, because it is thought of as a way to maintain current auto industry practices rather than quickly reforming the whole auto industry around electrification. It’s also much more energy intensive than directly fueling vehicles with electricity, even when the most green methods are used for e-fuel production. As a result, environmental organizations typically recommend that e-fuels shouldn’t have a place in road transport, rather more in aviation and shipping.

Further, EU member nations were able to water down RED III’s targets on e-fuel adoption (with Germany being one of the main advocates for this stipulation, though there was debate among German automakers).

VDA claims that bonus incentives for e-fuels, and particularly for hydrogen, should be retained for some time before ramping down, in order to incentivize nascent enterprises focusing on their production. And that long-term targets with higher mixes of these fuels should be adopted now – VDA wants to see renewable fuel use rise to 60% by 2035, 90% by 2040, and 100% by 2045.

But after stating this target, VDA says its most interesting sentence, from which this article got its title: “In the interests of climate protection, fossil fuels should no longer be allowed to be sold at German petrol stations from 2045 onwards.”

In context, VDA is arguing that gas stations should still remain open and still sell fuel, but that that fuel should be entirely renewable. But it is a rather stark statement, and one that might not be expected from an auto industry lobbyist – a recognition of climate change and the huge amount that road transport contributes to it, and a rapid end to the primary way that road transport fuels climate change.

Electrek’s Take

We have seen various efforts to stop the sale of new combustion-engined vehicles by 2035 (which we have repeatedly argued should be sooner, and some countries indeed have targeted earlier timelines), but this might be our first time hearing an auto lobbyist call for an end to fossil fuel sales.

That said, the context of arguing in favor of greater e-fuel adoption means that this call by the VDA isn’t as entirely ambitious as it might originally seem.

While VDA is correct that current vehicles will remain on the road for a long time, and that a solution that allows them to decarbonize would be beneficial, we share the worry that e-fuels are simply a way to maintain current industry practices.

The recent history of advocacy for e-fuels by German firms does give us the feeling that there is an undercurrent of some companies trying to forestall industry electrification. Much in the same way that focus on hydrogen, or on predictions of future battery improvements, have been used by Japanese firms to convince the market that now is not the time for fully-electric vehicles.

So we have to be skeptical of this to some extent, because it would be a shame if a call like this resulted in less momentum for industry electrification, which is an objectively less energy intense step for decarbonization. The IEA (and… everyone else) acknowledges that electrification of transport is one of the most important strategies for reducing CO2 emissions.

But regardless, we must say – naturally, we agree with the VDA that fossil fuel sales need to end by 2045.

Frankly, earlier would be good – there’s genuinely no time too early to end fossil fuel sales, and no pace too quick to reduce them. The magnitude of the harm that climate change will otherwise cause, and the cost of trying to reduce it which will only increase as time goes on, dictate this.

And to see an auto industry organization at least acknowledge that fossil fuels sales need to end by 2045 completely in order to hit Germany’s 2045 carbon neutrality goal (and EU’s 2050 goal) is quite striking. We’re used to industry organizations whining about every little thing – even rules they claim to support – so it’s nice to see a step in the right direction.

But hopefully, German and EU regulators go even further than what VDA has asked, and don’t rely so heavily on e-fuels to get to carbon neutrality, and rather to increasing ambitions around electrification, public transport, and micromobility.

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Saudi Aramco posts drop in quarterly revenues amid lower crude, oil products prices

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Saudi Aramco posts drop in quarterly revenues amid lower crude, oil products prices

Members of media chat before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. 

Hamad I Mohammed | Reuters

Saudi Aramco on Tuesday posted a drop in second-quarter revenues, citing lower crude oil and refined chemical products prices that were only partially offset by higher traded volumes.

The world’s largest oil company declared an adjusted net income of 92.04 billion Saudi riyal ($24.5 billion) over the three months to the end of June. The result compares with a forecast of adjusted net income of $23.7 billion, according to an analyst survey estimate supplied by the company.

Second-quarter revenues dropped to 378.83 billion Saudi riyals from 425.71 billion Saudi riyal in the same period of the previous year.

“Market fundamentals remain strong and we anticipate oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half,” Aramco CEO Amin Nasser said in a Tuesday statement accompanying the results.

Crude prices have stayed depressed over the course of the year, barring a brief second-quarter flare-up sparked by Israel-Iran tensions. Futures have been under pressure from an uncertain outlook for demand, exacerbated since April by the rollout of Washington’s wide-spanning tariffs. The protectionist trade measures muddy the picture for growth in the world’s largest economy and the future of the U.S. dollar, which denominates most commodities — including crude oil.

Aramco’s income is set to see a boost from higher output, after Saudi Arabia – and seven other OPEC and non-OPEC partners — complete unwinding 2.2 million barrels per day of voluntary cuts through a last tranche in September. Saudi Arabia most recently produced 9.356 million barrels per day in June, according to independent analyst estimates compiled in OPEC’s Monthly Oil Market Report.

Aramco has increasingly tapped debt markets, with two issuances totalling $9 billion in the second half of 2024 and a three-part bond sale of $5 billion this year.  

Front of mind for investors is the dividend policy at Aramco, which in March slashed investor returns for 2025 to $85.4 billion — down sharply from the $124.2 billion of 2024 — after a first-quarter decline in net profits. Aramco declared a base dividend of $21.1 billion and a performance-linked dividend of $0.2 billion in the third quarter.

The company’s dividend yield stood at 5.5% as of Monday, still ahead of U.S. industry peer Exxon Mobil‘s 3.6% and Chevron‘s 4.5%, according to FactSet data.

Aramco’s payouts ripple sharply into the budget of Saudi Arabia, which has been juggling diversifying its economy away from oil reliance under Crown Prince Mohammed bin Salman’s signature Vision 2030 program. Saudi Arabia’s gross domestic product expanded by 3.9% in the second quarter, boosted by non-oil activities.

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California’s grid gets a record power assist from a 100k home battery fleet

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California's grid gets a record power assist from a 100k home battery fleet

More than 100,000 home batteries across California stepped up as a virtual power plant last week in a scheduled test event, and the results were impressive, according to new analysis from The Brattle Group.

Sunrun was the largest aggregator, Tesla was the largest OEM, and most of the batteries were enrolled
in California’s Demand-Side Grid Support (DSGS) program.

Sunrun’s distributed battery fleet delivered more than two-thirds of the energy during a scheduled two-hour grid support test on July 29. In total, the event pumped an average of 535 megawatts (MW) onto the grid – enough to power over half of San Francisco.

The event, run between 7 and 9 pm, was coordinated by the California Energy Commission, CAISO (California Independent System Operator), and utilities to prepare for stress on the grid during August and September heat waves. And it worked.

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Sunrun alone averaged over 360 MW during the two-hour window. The batteries kicked in right when electricity demand typically spikes in the evening, acting just like a traditional power plant, but from people’s homes.

Brattle’s analysis found that the battery output made a visible dent in statewide grid load, when the power is needed most. “Performance was consistent across the event, without major fluctuations or any attrition,” said Ryan Hledik, a principal at The Brattle Group. He called it “dependable, planning-grade performance at scale.”

The Brattle Group

Residential batteries, Hledik explained, don’t just help shave off demand during critical hours; they can reduce the need for new power plants entirely. “They can serve CAISO’s net peak, reduce the need to invest in new generation capacity, and relieve strain on the system associated with the evening load ramp,” he said.

This isn’t a one-off. Sunrun’s fleet already helped drop peak demand earlier this summer, delivering 325 MW during a similar event on June 24. The company compensates customers up to $150 per battery per season for participating.

Sunrun CEO Mary Powell summed it up: “Distributed home batteries are a powerful and flexible resource that reliably delivers power to the grid at a moment’s notice, benefiting all households by preventing blackouts, alleviating peak demand, and reducing extreme price spikes.”

Read more: The US’s largest virtual power plant now runs on 75,000 home batteries


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Hyundai’s new electric SUV may be heading overseas after all

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Hyundai's new electric SUV may be heading overseas after all

Hyundai’s new Elexio electric SUV, which is built in China, could be sold in overseas markets. The CEO of Hyundai Australia calls it “a promising vehicle” that could help the company regain market share from Tesla, BYD, and others.

Will Hyundai’s new Elexio SUV be sold overseas?

The Elexio SUV is the first dedicated electric vehicle from Hyundai’s joint venture with BAIC in China, Beijing Hyundai.

After unveiling it for the first time in May, Hyundai is preparing to launch the new Elexio in China in the next few weeks.

According to a new report, Hyundai’s new electric SUV could be sold in overseas markets, including Australia. Don Romano, the CEO of Hyundai Australia, told journalists (via EV Central) last week during the launch event for the new IONIQ 9 that the company has done a “terrible job” with its EVs so far.

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“And the only explanation for that is that we haven’t put enough focus into it,” he explained. However, Romano promises the automaker will do better.

Hyundai plans to boost marketing and support its dealership network, which only began selling IONIQ EV models a little over a year ago.

Hyundai's-new-electric-SUV-overseas
The Hyundai Elexio electric SUV (Source: Beijing Hyundai)

In what mostly went under the radar, Romano also suggested the new Elexio SUV could arrive in Australia. “It’s under evaluation now,” he said, adding, “it’s definitely a promising vehicle.”

Despite this, it may have a few hurdles to clear. Hyundai’s Australian boss explained, “I still have work to do to ensure that it’s the right vehicle in the right segment at the right price for our market. And I have not reached that level yet.”

Hyundai-Elexio-EV-interior
Hyundai Elexio electric SUV interior (Source: Beijing Hyundai)

Romano told journalists that a final decision needs to be made “in the next 60 to 90 days,” and to check back in three months when he will have a definitive answer.

Hyundai Australia is also looking to launch the IONIQ 2, a smaller, more affordable EV to sit between the Inster EV and Kona Electric.

Hyundai's-electric-SUV-overseas
Hyundai Elexio SUV (Source: Beijing Hyundai)

Romano said, “It’s a potential opportunity,” but didn’t provide any details. He said, at this point, he’s just glad Hyundai is producing it. “Now I just need to get the details and find out, will it fit into our overall product plan and create enough demand to where it becomes a viable option for us? So my initial thought is absolutely. Yep.” Hyundai Australia’s boss told journalists.

The new EVs would help Hyundai, which has been struggling to keep pace in the transition to electric, compete in Australia and other overseas markets.

Hyundai's-electric-SUV-global-test
Hyundai Elexio electric SUV during global testing (Source: Beijing Hyundai)

As of June 2025, Hyundai has sold only 853 EVs in Australia. In comparison, Tesla has sold 14,146 electric vehicles, and BYD has sold over 8,300. Even Kia is selling more EVs in Australia, with 4,402 units sold in the first six months of the year.

Measuring 4,615 mm in length, 1,875 mm in width, and 1,673 mm in height, Hyundai’s electric SUV is slightly smaller than the Tesla Model Y.

It recently underwent three consecutive crash tests among several other global evaluations, consistently outperforming benchmarks. Based on Hyundai’s E-GMP platform that powers nearly all Hyundai and Kia EVs, the Elexio has a CLTC driving range of up to 435 miles (700 km)

Hyundai is set to launch it in China in the third quarter of 2025. Prices have yet to be announced, but it’s expected to start at around 140,000 yuan ($19,500).

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