A major financing agreement is set to support the expansion of sustainable aviation fuel production in Europe. INERATEC, a company based in Karlsruhe, Germany, has secured a €40 million venture debt loan from the European Investment Bank (EIB) and a €30 million grant from Breakthrough Energy Catalyst. The funding will be used to develop what is expected to be the largest sustainable e-fuel production plant in Europe, located in Frankfurt. This initiative aims to advance synthetic fuel technology to reduce carbon emissions in sectors where direct electrification is not feasible. The announcement was made during the ongoing EIB-Group-Forum in Luxembourg.
Previous funding rounds have also played a crucial role in INERATEC’s development of e-fuel technology. The company has been part of the EU-Catalyst Partnership, launched in 2021 at COP26, which has focused on supporting large-scale green technology initiatives. The latest financial backing builds on earlier investments and policies like the European ReFuelEU Aviation regulation, which mandates airlines to incorporate a minimum of 1.2% e-SAF in their fuel mix by 2030. These regulatory measures create market incentives for companies like INERATEC to scale up production and commercialize their technologies.
How will the funds be used?
The newly secured investment will allow INERATEC to enhance its production capacity and refine its reactor technology, which transforms green hydrogen and CO2 into synthetic aviation fuel. The construction of the Frankfurt facility is intended to support the commercial deployment of this technology, bringing industrial-scale production closer to reality. This effort is expected to make synthetic fuels more widely available to sectors that cannot easily electrify, such as aviation and maritime transport.
“The EIB is committed to a competitive net-zero economy, especially in hard-to-decarbonize sectors like aviation. Through partnerships such as the EU-Breakthrough Catalyst initiative, we’re enabling a green transition for transport and are ultimately contributing to making prices of e-Fuels more economical,” said EIB Vice-President Nicola Beer.
What makes INERATEC’s technology significant?
INERATEC’s approach involves combining green hydrogen with CO2 sourced from biogenic origins, such as biogas plants, using its Power-to-Liquid technology. This enables the production of synthetic crude oil, which can be further processed into various fuels, including Sustainable Aviation Fuel (SAF), marine fuels, and e-Diesel. The new plant in Frankfurt will have an annual production capacity of up to 2,500 tons of e-fuel, primarily targeted at the aviation industry.
“This funding marks a new era for INERATEC. With the funding commitment from the EIB and Breakthrough Energy Catalyst, we are accelerating the industrialization of e-Fuel production. This will make a tangible impact in reducing CO2 emissions in sectors where direct electrification is not feasible. The focus now is on scaling up and deploying our technology where it is needed most,” said INERATEC CEO Dr. Tim Boeltken.
The plant will source CO2 from a nearby biogas facility that processes waste, while hydrogen will be obtained as a by-product from a chlorine production site. INERATEC’s synthetic oil can also serve as a base chemical for manufacturing sustainable materials, such as plastics, broadening its potential impact beyond fuel production.
“INERATEC is on a promising path towards demonstrating that e-fuels can be economically produced at scale with the support of catalytic funding. Decarbonizing aviation requires real-world projects to drive down costs and crowd in investment. Breakthrough Energy Catalyst is proud to partner with INERATEC to accelerate deployment and unlock the potential to make e-fuels a reality,” said Mario Fernandez, Head of Breakthrough Energy Catalyst.
Large-scale production of e-fuels remains a challenge due to cost and infrastructure constraints, but strategic financial support and regulatory backing are helping drive progress. The EU’s commitment to reaching net-zero emissions has incentivized investments in alternative fuel technologies. As the aviation sector seeks solutions to lower its carbon footprint, the expansion of e-fuel production could play a key role in meeting sustainability targets. However, scaling this technology to a commercially viable level will require continued financial and policy support. The next steps for INERATEC involve optimizing its production processes while ensuring cost reductions that make synthetic fuels more competitive with traditional fossil fuels.
