The European Investment Bank and Breakthrough Energy Catalyst agreed on a funding package of €70 million in favor of Germany-based e-fuel company, INERATEC. Under this investment, EIB will offer a venture debt worth €40 million, and for its part, Breakthrough Energy will commit €30 million. INERATEC will use the fund to build its e-fuel plant in Frankfurt, set to become Europe’s largest carbon-neutral factory in 2025.
Increased E-Fuel Output to a Zero-Carbon Future
E-fuels are synthetic fuels derived from CO2 and hydrogen, representing an important potential for decarbonizing hard-to-electrify sectors such as aviation. Burning these fuels makes them carbon neutral or nearly carbon neutral.
The production capability at the Frankfurt site of the INERATEC will stand at 2,500 tons per year in terms of production of e-fuels and e-chemicals. According to the ReFuelEU Aviation directive, fuel supply companies to the aviation industry have to supply the synthetic fuel up to 1.2 percent by 2030, growing to 35 percent in 2050.
Also read: Samotics Secures €20M EIB Investment to Boost Industrial Efficiency and Sustainability
E-Fuel Production at Scale
The new plant will include an upgrading facility to refine e-crude oil into certifiable, ready-to-use sustainable aviation fuel. This development will prove that scaling e-fuel production efficiently is possible, making e-SAF a practical, viable option for aviation soon.
EIB Vice President Nicola Beer said, “E-fuels are a crucial part of achieving a competitive net-zero economy, particularly in the mobility and transport sector. Game-changing technologies like Ineratec’s play a vital role in this transition.”
She added, “Together with the European Commission and Breakthrough Energy, through the EIB’s venture debt product, we are supporting an innovative startup in scaling up production and advancing research to make e-fuels a viable, sustainable alternative to fossil fuels.”
The funding package underscores the European Investment Bank’s role as the “Climate Bank,” as part of its 2024-2027 Strategic Roadmap. The project also aligns with the European Commission’s RefuelEU aviation regulations, which aim to reduce the carbon footprint of the aviation sector.