E-diesel is a synthetic diesel fuel for use in automobiles. Currently, e-diesel is created at two sites: by an Audi research facility Germany in partnership with a company named Sunfire, and in Texas. The fuel is created from carbon dioxide, water, and electricity with a process powered by renewable energy sources to create a liquid energy carrier called blue crude which is then refined to generate e-diesel. E-diesel is considered to be a carbon-neutral fuel as it does not extract new carbon and the energy sources to drive the process are from carbon-neutral sources.