The European Investment Bank (EIB) and Breakthrough Energy Catalyst have committed a €70-million 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-program, 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 the Europe’s largest when it opens in 2025.

E-fuel production uses biogenic CO₂ and green hydrogen 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.

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.

INERATEC’S Frankfurt plant will produce up to 2,500 tons of e-fuels and e-chemicals, including e-sustainable aviation fuel (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 sustainable aviation fuel. The fuel will support compliance with the EU’s synthetic aviation fuel mandate.

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. 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.