Sustainable eFuel production pioneer INERATEC formally agreed a €40 MM venture debt loan with the European Investment Bank (EIB) and €30-MM grant with Breakthrough Energy Catalyst. The combined €70 MM backing will finance construction of Europe`s largest sustainable eFuel production plant in Frankfurt and eFuel research and development of future, key steps in decarbonizing aviation.

The new eFuel financing was announced at the EIB-Group-Forum taking place this week in Luxembourg and underscores the strategic importance of eFuels in decarbonizing hard-to-abate sectors such as aviation. The new investment will enable INERATEC to scale up production capacity and commercialize its innovative reactor technology, which converts green H₂ and CO₂ into synthetic aviation fuel. The committed project funding, confirmed earlier this year, represents a significant step in commercialization of INERATEC’s Power-to-Liquid technology, accelerating the transition towards a net-zero future.

Transforming the energy landscape with eFuels. INERATEC's production process uses H₂, which is then combined with CO₂ from biogenic sources like biogas plants or industrial emissions, using INERATEC’s Power-to-Liquid technology. This approach 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 eDiesel. The use of CO₂, which would otherwise be released into the atmosphere, reduces the carbon-footprint of the fuel and will help to cut carbon emissions.

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 H₂ is a byproduct from an existing chlorine production facility. By utilizing compact and modular production units, INERATEC's approach ensures efficient scalability and adaptability to different production sites.

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. This extends the contribution of INERATEC’s technology to sustainable supply for the chemical industry.

Scaling up to meet market demand. After building and operating plants at demonstration and industrial pilot scale, INERATEC now focuses on scaling up production and optimizing commercial deployment. The funding commitment backed by the EIB and Breakthrough Energy Catalyst will enable the company to deliver commercial-scale production, ensuring a steady supply of eFuels to meet increasing market demand and is critical in making synthetic fuels economically viable. 

The plant will produce up to 2,500 tons of eFuel annually that will be delivered to the aviation sector, among others. One long haul flight between Frankfurt and New York uses 80 tons of kerosene. eSAF from INERATEC could make flying on this route more sustainable by replacing fossil kerosene fully or partially on a large number of flights. This clearly shows the importance of increasing the eSAF production capacities beyond a pioneer plant. 

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 eSAF blend of 1.2% by 2030, by this creating market opportunities.

Bridging innovation and climate goals. The collaboration between INERATEC and the EU-Catalyst Partnership demonstrates how public and private sector partnerships can drive the commercialization of innovative and clean climate technologies. By building on past EU grant support and leveraging new investment mechanisms, this partnership provides a blueprint for scaling up other clean energy solutions.

Accordingly, it shows the EU's commitment to support innovative technologies that will help EU industry becoming cleaner and stay competitive. The lending by the EIB is made possible thanks to the support of the InvestEU program, which is backed by an Innovation Fund top-up guarantee. The Innovation Fund is financed by the EU Emissions Trading System.

The transformation of European industry to clean technologies is being driven by a number of technological innovations, including the efficient production of H₂. EIB supports the latter by also funding an electrolysis-project by the Dresden-based start-up Sunfire. Sunfire and INERATEC were partners in a research project in 2019, when both enterprises for the first time demonstrated the production of sustainable e-Fuels from air-captured CO₂ and solar power in a fully integrated plant.

EIB Vice-President Nicola Beer said, “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.”

Mario Fernandez, Head of Breakthrough Energy Catalyst said, “INERATEC is on a promising path towards demonstrating that eFuels can be economically produced at scale with the support of catalytic funding. Decarbonizing 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.”

Once completed, this project will help the EU reach its 2030 climate neutrality targets, including helping the industry and transportation sectors to comply with the eFuel consumption objectives defined in the Renewable Energy Directive or the ReFuelEU Aviation regulation.

INERATEC CEO Dr. Tim Boeltken commented, “This funding marks a new era for INERATEC. With the funding commitment from the EIB and Breakthrough Energy Catalyst, we are accelerating the industrialization of eFuel  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.”