E-Fuel producer INERATEC receives €70-MM commitment from EIB and Breakthrough Energy Catalyst
The European Investment Bank (EIB) and Breakthrough Energy Catalyst have committed a €70-MM funding package through the EU-Catalyst Partnership to INERATEC, a Germany based e-Fuel company.
The EIB is providing a venture-debt-loan, backed by the EU`s InvestEU-programme, while Breakthrough Energy Catalyst has committed to provide a grant, subject to the satisfaction of certain funding conditions. The package will support INERATEC’s carbon neutral e-Fuel production plant in Frankfurt, as well as further research and development. The Frankfurt plant is set to be Europe’s largest when it opens in 2025.
Long term market growth expected for e-sustainable aviation fuel (e-SAF) and e-Fuels. E-fuel production uses biogenic carbon dioxide (CO2) and green hydrogen (H2) to produce synthetic fuels and chemicals that are carbon neutral or close to carbon neutral when used. They have significant potential in hard-to-decarbonize sectors such as aviation, where commercial demand is underpinned by clear regulation. Therefore, long-term market growth can be expected.
The EU’s ReFuelEU Aviation regulation requires that aviation fuel suppliers provide jet fuel with 1.2% minimum synthetic fuel content by 2030, rising to 35% in 2050. Based in Karlsruhe, Germany, INERATEC is well-placed for this growing market, offering an efficient, scalable and modular plant design.
INERATEC’S Frankfurt plant will produce up to 2,500 tons of e-fuels and e-chemicals, including e-SAF. The plant will also incorporate an upgrading facility, enabling the e-crude oil to be refined on site into certifiable, ready-to-use SAF. The fuel will support compliance with the EU’s synthetic aviation fuel mandate.
INERATEC’s Frankfurt plant to show e-Fuel production is possible at scale. INERATEC CEO Tim Boeltken said: “INERATEC’s Frankfurt production plant will show that e-Fuel production is no longer a technological concept but a scalable reality. Reliable production of certifiable e-SAF is possible in the near term – at commercial scale, that will be a breakthrough for sustainable aviation. The funding commitment from EIB and Breakthrough Energy Catalyst is a sign of strong confidence in the INERATEC technology and our approach.”
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. 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.”
Mario Fernandez, Head of Breakthrough Energy Catalyst, said, “We are delighted to be working with INERATEC. This pioneering project will bring us a decisive step closer to the decarbonization of aviation.”
The financing reinforces EIB position as the ‘The Climate Bank,’ a priority in the EIB Group’s 2024–2027 Strategic Roadmap, and supports the objectives of the European Commission’s RefuelEU aviation regulations.
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 B in new financing for over 900 projects in 2023.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. It is on track to deliver on its commitment to support €1 T in climate and environmental sustainability investment in the decade to 2030 as pledged in its Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
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