Porsche could make eFuels in Australia by 2026

Porsche can produce its sustainable synthesis eFuels in Australia by 2026.

The German sports car maker has invested $75 million to take a 12.5% ​​stake in HIF Global LLC, a company that aims to scale up eFuel production in Chile, the US and Australia.

The Porsche investment is part of a funding round for HIF that includes Chile’s Andes Mining & Energy, and US companies EIG, Baker Hughes Company and Gemstone Investments.

HIF and Porsche are currently looking at sites in northern Queensland, Victoria and Tasmania for eFuel production.

“As you would expect, those are locations where we think have a really good source of renewable energy and have access to infrastructure,” said Ignacio Hernandez, CEO of HIF Australia.

The current goal is to start construction by 2024 and start production by 2026. While nothing is tied, HIF said it is talking with the relevant state governments about collaborating on the project. eFuels project.

The exact cost of a plant depends on location, access to renewable energy, and access to infrastructure.

However, Mr. Hernandez asserted that a plant capable of producing 550 million liters of synthetic fuel per year would likely require an investment of about $ 1 billion.

Along with a plant in Chile and planned operations in Australia, Porsche and HIF are looking to the United States to build a third e-fuel plant.

It currently operates a pilot plant in Chile in partnership with Siemens Energy, AME, Enel and a Chilean petrochemical company.

Production began in earnest before that in 2022 and Porsche plans to produce 55 million liters per year by the end of 2024 and up to 550 million liters per year by 2026.

Porsche is investing heavily in technology as a way to help cut CO2 emissions from internal combustion vehicles (planes, trains and cars) as the world transitions to electric power… and as a way to keep 911 alive in its current form, or something close to it.

“Our participation in HIF Global is a long-term investment,” said Barbara Frenkel, Member of the Executive Committee for Procurement, Porsche AG.

“The use of eFuels is of course a big concern for the auto industry, but it’s also appealing to the aviation and shipping industries.”

Compared to conventional fossil fuels, which have between 30 and 40 components, synthetic fuels have only 8. There’s less novelty hidden in the eFuel, so it’s better for the engine and the environment. Porsche says it reduces emissions by about 85% compared to current unleaded grades.

Using renewable energy to split water into hydrogen and oxygen through electrolysis, eFuel plants combine hydrogen with CO2 captured from the air to create methanol, which is then converted into engine-friendly lead-free.

Along with sports cars like the 911, where noise and emotion are at the heart of the experience, Porsche says eFuels can be used to help cut carbon emissions in remote areas or underdeveloped markets. where the transition to electric energy will be slower than in major countries in the world. cities.

How it will be distributed is not yet locked. It will be used in the Porsche motorsport category, and Michael Steiner, Research and Development Executive Member of the Executive Board at Porsche AG, told the media that it can be mixed with a variety of fuels. more conventional fossil fuels at gas stations to help cut carbon emissions.

Porsche is aiming for a wholesale price of US$2.00 per liter after production increases, but the price consumers will pay will vary based on how governments decide to tax it.

“When you compare the prices of e-fuels to fossil fuels, you have to look at how much the tax and fee is for both,” Ms. Frenkel said.

“As we see more and more countries move towards sustainability, you can imagine fossil fuels becoming much more expensive with additional taxes – especially when you consider the right CO2 footprint. The government can also help make eFuels more attractive,” she told the media.

“I think it’s also been a big motivator and a big help to make it so appealing to many different industries. “