Conditions for renewable gasoline

Almost all gasoline used today is fossil-based, and there are still no established technologies for producing renewable gasoline on a large scale. At the same time, gasoline cars will remain on the roads for many years to come. This research project explores how the gasoline challenge can be addressed, which technologies may become relevant, and how policies can be shaped to ensure that the transition supports national and international climate goals.

Unlike diesel, there are currently no renewable alternatives that can be used directly in standard gasoline engines without modification. Existing products – such as ethanol and bio-naphtha – can only be blended in limited amounts. New technologies are therefore needed to enable gasoline made from a higher share of renewable feedstocks.

Emerging fuels face several challenges, including high production costs, investment risks, and declining demand for gasoline as electrification progresses. At present, there is no clear understanding of how – or even if – fossil gasoline can be replaced by renewable gasoline, either in Sweden or within the EU.

The project aims to provide an unbiased analysis of the opportunities and barriers to developing a market for renewable gasoline. It also examines how key actors – fuel producers, car manufacturers, and component suppliers – view the future of gasoline and what solutions they consider feasible.

The project includes:

• Interviews with fuel producers, vehicle manufacturers, energy companies, and other key stakeholders in Sweden and Europe
• A review of existing studies and technical data on renewable gasoline production
• An analysis of economic and policy conditions, including the impacts of EU and Swedish regulations (e.g. ETS2, REDIII, and CO₂ standards for new cars)
• Scenario modelling of future gasoline use based on different levels of electrification

The project is funded by the Trafikverket and is part of the international collaboration platform Advanced Motor Fuels under the International Energy Agency (IEA), where Trafikverket represents Sweden.