E-fuels “indispensable for modern defence readiness” – German arms maker

Germany’s largest arms manufacturer Rheinmetall has entered a strategic partnership with synthetic fuels producer INERATEC to scale up e-fuel production, calling the technology "indispensable for modern defence readiness."

"Synthetic e-fuels are the only scalable solution that matches the energy density, storability and versatility of conventional fuels," the company said in a press release. E-fuels are produced using electricity, water and carbon dioxide and could be used in sectors where electrification is difficult, for example in aviation or shipping. However, they are expensive, currently only available in small quantities, and require large amounts of renewable electricity.

Rheinmetall has argued that a resilient energy supply is key for defence readiness, and e-fuels represent a reliably available fuel supply independent of third parties, as they can be produced locally with wind turbines or solar panels. The fuels would also allow the armed forces to reduce greenhouse gas emissions without having to change their current military vehicles, including tanks and aircraft.

"As fossil fuel supply chains become increasingly vulnerable in the event of conflict, the ability to produce CO₂-neutral synthetic fuels locally is critical," Rheinmetall said. The partnership aims to accelerate the construction of e-fuel plants. As a first step, Rheinmetall and INERATEC are seeking suitable locations for their facilities, preferably near military infrastructure or existing pipeline systems, newspaper Süddeutsche Zeitung reported. "This collaboration is a milestone in the development of resilient energy systems that function independently of fossil fuel supply chains and vulnerable infrastructure."

Germany, like most European countries, is massively increasing its military spending in response to Russia’s 2022 invasion of Ukraine and shifting geopolitics. The new German coalition government pushed a reform package through parliament even before entering office that effectively removes the country’s spending limit on defence, as it moves to bolster the Bundeswehr's role in European and NATO security infrastructure.