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Honda, Porsche race ahead in e-fuels as EU grants exemption

Synthetic fuels seen keeping combustion engines in the running amid decarbonization

Porsche and Honda Motor are involved in aviation, which may give them an edge in working with synthetic fuels. (Source photos by Reuters)

FRANKFURT, Germany/TOKYO -- Japan's Honda Motor and Germany's Porsche are among the automakers well-positioned to capitalize on the European Union's decision to allow sales of new combustion-engine vehicles that run on climate-neutral synthetic fuels beyond its 2035 deadline.

Developers of synthetic fuels, also known as e-fuels, have been focusing on planes and ships, which are tougher to electrify than cars. Because Honda and Porsche are involved in aviation along with autos, they already have development or manufacturing plans in place. 

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