INERATEC and GIZ collaborte to push e-Fuel production in Chile
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Karlsruhe/ Santiago de Chile, Germany/ Chile, 04th of July 2023 – INERATEC, a Power-to-X market leader from Germany, has formed a public-private collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to promote the production of e-fuels in Chile. Under the International Hydrogen Ramp-Up (H2Uppp) program, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), the partners intend to demonstrate a technically feasible and commercially viable solution for the application of Power-to-Liquid (PtL) plant using modular synthesis units.
Synthetic fuels can be used to replace fossil-based fuels in ships, airplanes as well as trucks and cars. A local production goes hand-in-hand with Chile’s hydrogen strategy and supports the expansion of renewable energy production. The production of e-fuels from green hydrogen could help to increase the competitiveness of Chilean industry by reducing its dependence on imported fossil fuels and to mitigate the risks associated with fluctuations in global oil prices and supply disruptions.
The initiative includes an assessment of the large potential and possible constraints of e-fuel production plants in Chile. It will identify and analyze potential off-takers and feedstock suppliers, as well as different Chilean regions to establish and optimize the design of the plants, to best fit the local requirements. The collaboration partners will work with local stakeholders from industry, university, and local communities to build a sustainable value chain for e-fuels in the country.
“Chile emerges as one of the global sweetspots for the production of e-fuels, showcasing immense potential due to the availability of renewable electricity at a large scale. This is the reason for INERATEC to target a large-scale e-fuel plants that will recycle tons of CO2 every hour”, as Philipp Engelkamp, CCO of INERATEC explains. “Our modular approach enables us to construct the production capacities alongside the expansion of renewable energy facilities and CO2-sources. Together with our local partners Ferrostaal Chile we are able to foster close connections in Chile to drive projects forward. We will provide large amounts of e-fuels, not only for the hard-to-abate sectors like aviation, leading us towards a more sustainable future.”
The effort to limit climate change calls for defossilization and new technologies in many sectors. While some industry sectors can be electrified easily with renewable power, other sectors like the mining, maritime, aviation and heavy-duty transportation are facing big challenges when it comes to reduce their CO2 emissions. For these applications, so-called e-fuels, produced from renewable electricity and CO2, are a promising option, especially in countries with high wind and solar energy potentials like Chile.
The development of a PtL project intends to stimulate technological innovation and the development of new manufacturing processes, as well as facilitate synergies with local project developers and educational institutions, creating new opportunities for local businesses, new jobs opportunities, and support the growth of a knowledge-based economy.
“This collaboration shows how the German government supports the decarbonization process and promotion of sustainable fuels. Through this initiative we seek to encourage the production of new fuels and boost the local economy, for which INERATEC will link up with different local actors. This is the second H2Uppp project signed by GIZ in Chile, which positions us at the forefront of the global developments of green hydrogen and new energy carriers’ market”, said Javier Ortiz, Head of GIZ H2Uppp Program for Chile, Argentina and Uruguay.
The International Hydrogen Ramp-up Programme (H2Uppp) of the German Federal Ministry for Economic Affairs and Climate Action (BMWK) promotes projects and market development for green hydrogen in selected developing and emerging countries as part of the National Hydrogen Strategy.
Further information can be found at H2Uppp
The[ Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is Germany‘s leading provider of international cooperation services. As a federal enterprise, we support the German Government in achieving its objectives in the field of international cooperation for sustainable development. We are also engaged in international education work around the globe. GIZ is fully owned by the Federal Republic of Germany.
Further information can be found at GIZ
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