Karlsruhe, Germany-based INERATEC, a sustainable e-fuel production pioneer, announced that it has raised €40M in venture debt loan with the European Investment Bank (EIB) and €30M grant with Breakthrough Energy Catalyst.
EIB Vice-President Nicola Beer says, “The EIB is committed to a competitive net-zero economy, especially in hard-to-decarbonize sectors like aviation. Through partnerships such as the EU-Breakthrough Catalyst initiative, we’re enabling a green transition for transport and are ultimately contributing to making prices of e-Fuels more economical.”
The combined €70M backing will finance the construction of Europe`s largest sustainable e-Fuel production plant in Frankfurt and e-Fuel research and development of the future.
The new e-fuel financing was announced at the EIB-Group-Forum taking place this week in Luxembourg.
Fund utilisation
The latest investment will enable the German company to scale up production capacity and commercialise its reactor technology, which converts green hydrogen and CO2 into synthetic aviation fuel.
INERATEC CEO Dr. Tim Boeltken comments, “This funding marks a new era for INERATEC. With the funding commitment from the EIB and Breakthrough Energy Catalyst, we are accelerating the industrialisation of e-Fuel production. This will make a tangible impact in reducing CO2 emissions in sectors where direct electrification is not feasible. The focus now is on scaling up and deploying our technology where it is needed most.”
The investment follows EU-Catalyst Partnership initiated in 2021 and supported by the Innovation Fund through the InvestEU Programme.
The EU-Catalyst partnership was launched in 2021 at COP26 in Glasgow by EU President Ursula von der Leyen, EIB-President Werner Hoyer, and Bill Gates to develop large-scale green tech projects based in Europe and boost investments in critical climate technologies.
INERATEC: e-Fuel production pioneer
Led by Dr. Tim Boeltken, INERATEC‘s production process uses hydrogen, which is then combined with CO2 from biogenic sources like biogas plants or industrial emissions, using INERATEC’s Power-to-Liquid technology.
This enables the production of synthetic crude oil, which can be processed into a range of synthetic fuels, including Sustainable Aviation Fuel (SAF), marine fuels, and e-Diesel.
At the production site outside Frankfurt, the main feedstock is supplied from the industrial park — the CO2 comes from a biogas plant that recycles waste, and the hydrogen is a by-product from an existing chlorine production facility.
Beyond sustainable fuels for aviation, the synthetic oil that INERATEC produces can also be used as a base chemical for different sustainable products like plastics.
After building and operating plants at the demonstration and industrial pilot scale, the company now focuses on scaling up production and optimising commercial deployment.
The plant will produce up to 2,500 tons of e-fuel annually that will be delivered to the aviation sector, among others.
The political requirement to shift to more sustainable forms of energy is supported by the European ReFuelEU Aviation-regulation which requires Airlines to use a minimum e-SAF blend of 1.2 per cent by 2030, creating market opportunities.
Mario Fernandez, Head of Breakthrough Energy Catalyst says, “INERATEC is on a promising path towards demonstrating that e-fuels can be economically produced at scale with the support of catalytic funding. Decarbonising aviation requires real-world projects to drive down costs and crowd in investment. Breakthrough Energy Catalyst is proud to partner with INERATEC to accelerate deployment and unlock the potential to make e-fuels a reality.”
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