Why We Invested: INERATEC

Hard-to-abate industries, such as aviation, shipping, road transport, and chemicals, rely heavily on fossil crude oil and the massive infrastructure involved in refining, transforming, and distributing it. These sectors are eager to find renewable alternatives to achieve carbon-neutral goals. For this reason, the global market for e-fuels is expected to expand at a compound annual growth rate (CAGR) of 19.0% from 2023 to 2050.

Despite escalating demand for solutions to decarbonize these industries, most options have fallen short. Strides have been made in improving chemical catalysts, electrifying some forms of transport via batteries, and developing hydrogen fuel cells. However, these options cannot solve all the world’s needs. Batteries are too heavy for planes, for example, and regulatory approvals have held hydrogen back.

The answer: “drop-in” e-Fuels

But imagine if there was a synthetic fuel option made from recycled or captured CO2 and renewable energy — one that decoupled mobility from fossil fuels where there are limitations to electrification? What if the synthetic fuels were high-quality, “drop-in” capable, and could be mixed with conventional fuels without any adjustments to engines, logistics, or infrastructure? And what if these synthetic fuels were highly available, with stable prices? What if this option could also be deployed modularly in global sweet spots that offer optimal conditions in the form of low-cost renewable electricity?

If it sounds too good to be true, it isn’t. At Piva, we focus on solving the world’s biggest challenges, including decarbonizing hard-to-abate sectors such as transportation, aviation, and chemicals. For these reasons, in December last year, we led the $129 million Series B funding round in German company INERATEC.

A scalable, standards-compliant solution

There are several reasons why we are so excited to invest in INERATEC. The company has developed a scalable patented technology that enables the production of “drop-in” e-fuels. The process involves two main steps: first, turning CO2 and hydrogen into synthesis gas, then using another reactor to turn the synthesis gas into liquid and solid hydrocarbons.

INERATEC’s e-fuels are compliant with standards targeted for industries heavily relying on fossil fuels, such as aviation, shipping, road transport, and the chemical industry. Although the combustion of the company’s e-fuels releases the CO2 again, the carbon is recycled, so the balance remains carbon neutral. And, with its modular and scalable technology, INERATEC can meet the requirements of specific locations and offer customized solutions to drive the decarbonization of industry and mobility.

The company’s technologies are also proven. Since its founding in 2016, INERATEC has built and operated numerous pilot plants and is engaged with over 30 customers in the respective fields of application. The company has also broken ground for a pioneering power-to-liquid plant in the industrial park Frankfurt Höchst to produce up to 2,500 tons of sustainable e-fuels annually.

A stellar team

It is a pleasure working with the INERATEC management team. Together, Tim Boeltken, Philipp Engelkamp, Ingo Katz, and Caspar Schuchmann have extensive industry knowledge, technical and operational expertise, and financial skills. We are impressed by their “get it done” attitude and achievements that go beyond the scope of many startups. They are straightforward and humble — not to mention being laser-focused on doing what is right for the company. Focused execution is going to ensure such critical technology gets to the masses in a timely manner to drive global energy transition needs.

Farewell to the fossil age

We’re proud to back Tim and his team at INERATEC, a company that is poised to lead the shift away from reliance on fossil crude oil and drive the future of transportation and energy, directly benefiting the aviation, shipping, and chemical industries.

An astronomical 4,000 million tons of fossil crude oil are processed into fuels and chemical products every year. With help from INERATEC, that may soon no longer be the case.

INERATEC was also recently recognized by WEF and Uplink as the winner in their global Sustainable Aviation Innovation Challenge.