BAKU, Azerbaijan, March 5. INERATEC, a leader in sustainable e-fuel production, has secured a 40 million euro venture debt loan from the European Investment Bank (EIB) and a 30 million euro grant from Breakthrough Energy Catalyst, Trend reports.
This 70 million euro investment will support the construction of Europe's largest sustainable e-Fuel production plant in Frankfurt and further research and development to decarbonize aviation.
The deal was announced at the EIB-Group Forum in Luxembourg, highlighting the growing importance of e-fuels in reducing emissions in sectors like aviation. The funding will allow INERATEC to scale up production and commercialize its reactor technology, which converts green hydrogen and CO2 into synthetic aviation fuel. The project represents a significant step in the commercialization of INERATEC’s Power-to-Liquid technology.
INERATEC’s production process uses hydrogen and CO2 from biogenic sources, such as biogas plants, to produce synthetic crude oil. This can then be refined into sustainable aviation fuel (SAF), marine fuels, and e-diesel. By utilizing CO2 that would otherwise be released into the atmosphere, the process reduces the carbon footprint of fuel production. The plant will be located outside Frankfurt, with CO2 sourced from a biogas plant and hydrogen from a chlorine production facility.
The new plant will produce up to 2,500 tons of e-Fuel annually, helping meet the growing demand for sustainable aviation fuel. For example, one long-haul flight between Frankfurt and New York uses 80 tons of kerosene, and e-SAF from INERATEC could replace fossil fuel on this route.
The European ReFuelEU Aviation regulation, which requires airlines to use at least 1.2% e-SAF by 2030, provides a clear market opportunity for the plant. The EIB’s support, through the InvestEU program, is a key enabler in making synthetic fuels more economical.
EIB Vice-President Nicola Beer stated, “The EIB is committed to a competitive net-zero economy, especially in hard-to-decarbonize sectors like aviation. We’re enabling a green transition for transport and contributing to making e-Fuels more affordable.”
INERATEC CEO Dr. Tim Boeltken added, “This funding marks a new era for INERATEC. With support from the EIB and Breakthrough Energy Catalyst, we’re accelerating the industrialization of e-Fuel production, which will make a tangible impact in reducing CO2 emissions.”