INERATEC, a pioneer in sustainable e-fuel production, has secured a significant €70 million financing commitment to construct Europe's largest e-fuel production plant in Frankfurt. This funding, comprised of a €40 million venture debt loan from the European Investment Bank (EIB) and a €30 million grant from Breakthrough Energy Catalyst, marks a pivotal step in decarbonizing hard-to-abate sectors, particularly aviation.

The announcement, made at the EIB-Group-Forum in Luxembourg, underscores the strategic importance of e-fuels in achieving net-zero emissions. INERATEC's innovative Power-to-Liquid technology, which converts green hydrogen and CO2 into synthetic aviation fuel, is central to this initiative. The Frankfurt plant will utilize CO2 from a local biogas plant and hydrogen from an existing chlorine production facility, demonstrating a circular economy approach to sustainable fuel production.

INERATEC's process involves combining hydrogen with CO2 from biogenic sources, such as biogas plants or industrial emissions, to produce synthetic crude oil. This oil can then be refined into various synthetic fuels, including Sustainable Aviation Fuel (SAF), marine fuels, and e-Diesel. By utilizing captured CO2, the plant significantly reduces the carbon footprint of these fuels, contributing to global efforts to mitigate climate change.

The new funding will enable INERATEC to scale up its production capacity and commercialize its reactor technology. The Frankfurt plant is expected to produce up to 2,500 tons of e-fuel annually, contributing to the aviation sector's transition to sustainable alternatives. With a single long-haul flight between Frankfurt and New York consuming approximately 80 tons of kerosene, the plant's output has the potential to significantly reduce the carbon footprint of numerous flights.

The project aligns with the European Union's ReFuelEU Aviation regulation, which mandates a minimum e-SAF blend of 1.2% by 2030, creating a substantial market opportunity for INERATEC. The collaboration between INERATEC, the EIB, and Breakthrough Energy Catalyst exemplifies how public-private partnerships can drive the commercialization of clean climate technologies.

EIB Vice-President Nicola Beer emphasized the bank's commitment to a competitive net-zero economy, particularly in sectors like aviation. Mario Fernandez, Head of Breakthrough Energy Catalyst, highlighted the importance of real-world projects in driving down costs and attracting investment in e-fuels.

The EIB's venture debt loan is supported by the InvestEU programme, which leverages private and public funds to support EU policy priorities, including the European Green Deal. The Innovation Fund, financed by the EU Emissions Trading System, provides a top-up guarantee to the InvestEU programme, further bolstering support for innovative climate technologies.