EU defence and military mobility

Liquid fuels, both conventional and renewable or low-carbon, provide high energy density and can be seamlessly integrated into existing infrastructure. They are easy to store and can be deployed quickly in large quantities where needed.

The EU’s defence system depends on a reliable and readily available supply of liquid fuels in peacetime and, even more critically, during conflicts and geopolitical crises. In such circumstances, the fuel manufacturing industry may be called on to produce fuels of the required quality and quantity, deliver them at the right time and place, support military mobility and keep vital services operating across the wider economy.

Why European fuel manufacturing capacity matters

Recent political choices have not recognised the role of liquid fuels in supporting the resilience of the energy system in all circumstances. They have assigned liquid fuels a marginal role, or no role in the case of road transport, in the future energy mix. This has limited investor interest in financing the low-carbon transition of fuel manufacturing.

Competitive industrial fuel production facilities may close prematurely, without the opportunity to decarbonise or convert to renewable and low-carbon fuel and product manufacturing. As a result, parts of the EU could become strategically vulnerable because of inadequate access to secure liquid energy supplies.

Military forces procure fuel through commercial distribution channels. A loss of manufacturing capacity or civilian infrastructure could therefore lead to local and regional shortages and disruption.

Energy security is a prerequisite for a resilient EU defence system and an enabler of a competitive EU economy. During the transition towards climate neutrality by 2050, energy security can be strengthened by using more domestically sourced feedstocks and gradually transforming strategic EU refineries to produce renewable and low-carbon products for transport and industrial value chains.

Without the prospect of long-term demand for fuels, competitive refineries may be decommissioned or converted into terminals. This would weaken supply security and defence readiness. Maintaining and transforming refineries requires substantial investment and a compelling business case. Without it, the EU risks losing domestic manufacturing capacity while demand for fuels and refined products remains significant.

FuelsEurope’s position and recommendations

A renewed defence and military mobility strategy should be based on:

• A resilient, predominantly EU-based fuel manufacturing industry, with plants strategically distributed across Europe, including in the most exposed regions. The competitiveness of this industrial and logistics network should be preserved and protected from external threats.
• An extensive distribution and storage network that can deliver fuels across the continent and support citizens, industry and essential services, including during regional or global crises.
• A secure import supply chain to cover temporary peaks in demand during extraordinary or wartime needs.

FuelsEurope calls on the EU institutions, under the leadership of the European Commission, to:

• Perform a fuel infrastructure stress test assessing how reduced civilian demand for liquid fuels could affect the remaining European refining capacity in the medium and long term.
• Develop an action plan to support the competitive transition of the industry while ensuring long-term security of liquid fuel supply for military and crisis-management needs.

The stress test and action plan should assess how the success or failure of refinery transformation could affect industrial value chains and the EU military system. FuelsEurope stands ready to engage with the European Commission to help ensure a secure energy supply for the EU defence system.