Clean fuels startup INERATEC announced today that it has raised over $129 million in its Series B funding round with proceeds to be used to scale production of the company’s sustainable e-fuels, aimed at decarbonizing hard-to-abate industries.
Founded in 2016, Karlsruhe, Germany-based INERATEC produces sustainable e-Fuels and synthetic chemicals to replace fossil crude oil. The company builds modular chemical plants for “Power-to-X” Power-to-X and gas-to-liquid applications, which use hydrogen from renewable electricity and greenhouse gases such as CO2 to produce fuels and chemicals including e-kerosene, CO2-neutral gasoline, clean diesel or synthetic waxes, methanol or SNG.
According to INERATEC, the financing comes as demand for drop-in e-Fuels is expected to increase rapidly over the next several years, as sectors that rely heavily on fossil fuels, such as aviation, shipping, road transport and chemicals, seek renewable alternatives to achieve their climate goals. INERATEC produces a drop-in e-Fuel, a synthetic fuel that releases no CO2, and can be used in place of fossil fuels.
The company said that the new capital will be used to start mass production of its industrial-scale Power-to-X plants worldwide. INERATEC has also begun construction of its largest plant to date in Frankfurt and is expanding through international projects in the Netherlands and Chile, with the expansion expected to yield a 1,500 x increase in production, recycling over 12,000,000 metric tons of CO2 annually.
INERATEC CEO Tim Boeltken said:
“This financing round is a major milestone for INERATEC as well as the transition from fossil fuels to sustainable e-Fuels. With the new capital, we are positioned to catalyze a paradigm shift in the energy sector. Our focus is to scale-up e-Fuels enabled by this new investment. By transforming 1GW of renewable energy into 125 million gallons of sustainable e-Fuel by 2030, we are taking solid steps in creating a viable alternative to fossil fuels.”
The round was led by San Francisco-based venture investor Piva Capital with participation from investors including Planet A Ventures, MPC, High-Tech Gründerfonds, FO Holding, Safran Corporate Ventures, Honda, ENGIE New Ventures, HG Ventures, TDK Ventures, Copec WIND Ventures, RockCreek, Emerald, and Samsung Ventures.
Adzmel Adznan, Co-founding Partner at Piva Capital said:
“INERATEC’s pioneering technology is the most promising e-Fuel solution we’ve seen to date in addressing the hardest-to-decarbonize sectors such as aviation, shipping, and chemicals. The company is doing more than just creating e-Fuels; their proprietary reactors are more efficient and scalable, re-imagining how industry can transform waste CO2, green electrons and hydrogen to meet various needs, from fuel to power cars, planes, and ships to green chemicals for our everyday consumptions. We believe that INERATEC has the winning solution to transform industries and help the world meet its collective goal to transition away from fossil fuels for energy.”