INERATEC Lands €70 Million to Build Europe’s Largest E-Fuel Plant

Image credit: INERATEC

Karlsruhe-based INERATEC, a pioneer in Power-to-Liquid technology, has secured a substantial €70 million investment to accelerate its e-fuel production efforts. The funding package, backed by the European Investment Bank (EIB) under the EU’s InvestEU programme and Breakthrough Energy Catalyst, will fuel the development of Europe’s largest carbon-neutral e-fuel plant in Frankfurt, set to begin operations in 2025.

The financing includes venture debt from the EIB, complemented by a conditional grant from Breakthrough Energy Catalyst, an initiative founded by Bill Gates to drive climate technology solutions. The capital will be allocated to constructing INERATEC’s state-of-the-art production facility and further advancements in its e-fuel research.

Founded in 2016, INERATEC has positioned itself at the forefront of synthetic fuel production. Its modular plants utilise renewable hydrogen and captured CO₂ to manufacture e-kerosene, CO₂-neutral gasoline, clean diesel, synthetic waxes, methanol, and synthetic natural gas (SNG). These sustainable alternatives are crucial for decarbonising hard-to-abate sectors such as aviation, where stringent regulations increase demand for greener solutions.

Mario Fernandez, Head of Breakthrough Energy Catalyst, says, “We are delighted to be working with INERATEC. This groundbreaking project will take us a decisive step closer to decarbonising aviation.”

Scaling E-Fuel Production:

As the EU pushes forward with its ReFuelEU Aviation regulation—mandating that at least 1.2% of jet fuel must be synthetic by 2030, increasing to 35% by 2050—INERATEC strategically positioned itself to meet the growing demand. The company’s Frankfurt facility will produce up to 2,500 tonnes of e-fuels annually, refining synthetic crude oil on-site to align with regulatory requirements and bolster Europe’s energy transition.

Tim Böltken, INERATEC’s CEO, says, “INERATEC’s pioneering plant will show that e-fuel production is no longer a technological concept, but a scalable reality. The reliable production of certifiable e-SAF is possible in the near future – on a commercial scale, this will be a breakthrough for sustainable aviation.”

“The financing commitment from the EIB and Breakthrough Energy Catalyst is a sign of strong confidence in INERATEC’s technology and our approach.”

Nicola Beer, EIB’s Vice-President, adds, “E-fuels are a key enabler on the path to a competitive net-zero economy, particularly in the mobility and transport sectors. Breakthrough technologies such as those from INERATEC play a crucial role in this transition.”

“Together with the European Commission and Breakthrough Energy, the EIB is using venture debt to support an innovative start-up in scaling up its production and research funding to make e-fuels a viable, sustainable alternative to fossil fuels.”

Role of EIB & InvestEU in Driving Cleantech Growth:

The EIB, the European Union's financing arm, plays a critical role in funding sustainability-driven projects that align with EU climate policies. Through the InvestEU programme, the bank aims to mobilise at least €372 billion in additional investment, consolidating financial tools to support transformative technologies.

Since 2015, the EIB has deployed €6 billion in venture debt, backing over 200 companies in cleantech, deep tech, and life sciences. This helps early-stage firms bridge the gap from development to large-scale commercialisation.

Breakthrough Energy Catalyst: Scaling Climate Innovation:

Breakthrough Energy Catalyst, a key partner in the funding package, is dedicated to accelerating the commercialisation of next-generation climate technologies. Launched at COP26 in Glasgow, the EU Catalyst Partnership aims to support high-impact projects across clean hydrogen, sustainable aviation fuel, direct air capture, long-term energy storage, and decarbonised manufacturing.

By leveraging its expertise in energy infrastructure, financing, and industrial partnerships, Catalyst injects capital and provides strategic guidance to ensure that game-changing technologies can scale rapidly.

With this latest investment, INERATEC is cementing its leadership in the e-fuel sector, demonstrating the scalability of Power-to-Liquid solutions and their potential to drive Europe’s transition to carbon neutrality. As the energy landscape evolves, initiatives like these signal a pivotal shift—where innovation, investment, and regulation converge to redefine the future of sustainable fuel production.