Karlsruhe-based INERATEC, a German company involved in the production of e-fuels, has received a €70M funding package from the European Investment Bank (EIB) and Breakthrough Energy Catalyst, under the EU Catalyst partnership.
The EIB, backed by the EU’s InvestEU programme, is providing venture debt, while Breakthrough Energy Catalyst has committed to a grant contingent on financing conditions.
Mario Fernandez, Head of Breakthrough Energy Catalyst, says, “We are delighted to be working with INERATEC. This groundbreaking project will take us a decisive step closer to decarbonising aviation.”
Capital utilisation
This €70M package will fund the German company’s carbon-neutral e-fuel plant in Frankfurt, set to be Europe’s largest when it opens in 2025, along with further R&D efforts.
Founded in 2016, INERATEC claims to be a pioneer in Power-to-Liquid technology, producing sustainable e-fuels and chemicals. Its modular plants use renewable hydrogen and CO2 to create e-kerosene, CO2-neutral gasoline, clean diesel, synthetic waxes, methanol, and SNG.
Growth for e-SAF and e-fuels
E-fuels are produced using biogenic CO2 and green hydrogen, creating carbon-neutral or nearly carbon-neutral synthetic fuels. They are crucial for hard-to-decarbonise sectors like aviation, where regulations drive demand.
The EU ReFuelEU Aviation regulation mandates a minimum of 1.2 per cent synthetic fuel by 2030, increasing to 35 per cent by 2050. INERATEC, with its scalable and modular plant concept, claims to be well-positioned for this growing market.
The company’s Frankfurt plant, set to produce up to 2,500 tonnes of e-fuel and e-chemicals, including e-Sustainable Aviation Fuel (e-SAF), will refine synthetic crude oil on-site to help meet EU mandates.
Tim Böltken, INERATEC’s CEO, says, “INERATEC’s pioneering plant will show that e-fuel production is no longer a technological concept, but a scalable reality. The reliable production of certifiable e-SAF is possible in the near future – on a commercial scale, this will be a breakthrough for sustainable aviation.”
“The financing commitment from the EIB and Breakthrough Energy Catalyst is a sign of strong confidence in INERATEC’s technology and our approach.”
Nicola Beer, EIB’s Vice-President, adds, “E-fuels are a key enabler on the path to a competitive net-zero economy, particularly in the mobility and transport sectors. Breakthrough technologies such as those from INERATEC play a crucial role in this transition.”
“Together with the European Commission and Breakthrough Energy, the EIB is using venture debt to support an innovative start-up in scaling up its production and research funding to make e-fuels a viable, sustainable alternative to fossil fuels.”
EIB: Everything you need to know
The EIB, owned by EU Member States, is the EU’s long-term financing institution. It funds projects that support EU policy goals, including boosting competitiveness, fostering innovation, promoting sustainability, enhancing social cohesion, and accelerating the transition to climate neutrality.
The InvestEU programme helps the European Union raise money to support long-term goals like the European Green Deal and the digital transition. It gathers various financial tools to make it easier for businesses and projects to get the funds they need.
The programme has three components: the InvestEU Fund, which uses a €26.2B guarantee from the EU to back investments; the InvestEU Advisory Platform, which offers advice on investment; and the InvestEU Portal, which connects investors with opportunities. By doing this, it aims to attract at least €372B in additional investment.
EIB Venture Debt is a financing product for early and growth-stage companies, combining long-term loans with performance-linked returns. Since 2015, the EIB has invested €6B, supported over 200 companies, and achieved more than 50 exits.
With InvestEU’s backing, the EIB focuses on supporting European companies in cleantech, deeptech, and life sciences sectors.
Brief about Breakthrough Energy Catalyst
Breakthrough Energy is focused on accelerating the transition to a clean energy future by funding innovative technologies, supporting climate-friendly policies, and mobilizing global partners. Its platform, Breakthrough Energy Catalyst, invests in emerging climate technologies to speed up their adoption and lower their costs.
The EU Catalyst Partnership was launched at COP26 in Glasgow in 2021 to foster large-scale green technology projects in Europe and encourage investment in essential climate technologies.
Catalyst focuses on five key technology areas: clean hydrogen, sustainable aviation fuel, direct air capture, long-term energy storage, and decarbonising manufacturing.
Beyond capital, Catalyst uses its expertise in energy infrastructure and project development to help innovators move their projects from development to financing and construction.
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