INERATEC POWER-TO-X (IEU GT2) - CATALYST -

The project concerns the financing of a pilot carbon neutral e-fuel facility in Germany as well as the R&D cost related to the further development of the company's Power-to-X technology.

The loan will finance the promoter's research, development and investments (RDI) activities, the construction and operation of a first-of-a-kind plant in Germany for the production of synthetic sustainable aviation fuels (e-SAF) as well as other sustainable chemical products. The project, presented under InvestEU, is co-financed by Breakthrough Energy Catalyst and addresses the climate change transition by helping decarbonise the hard-to-abate aviation industry. Additionally, it consolidates the EIB's role as climate bank, meeting the Green Deal Industrial Plan objectives and the RefuelEU aviation regulation proposed by the European Commission. It is closely aligned with the EIB's strategic priority in relation to innovation and industrialisation, in particular to the deployment of the whole value chain of new technologies.

The operation is in line with the InvestEU eligibility of "(2) the development of sustainable and safe transport infrastructures and mobility solutions, equipment and innovative technologies in accordance with Union transport priorities and the commitments taken under the Paris Agreement".

The Project's external benefits are potentially high as it contributes to the establishment of an industrial value chain in Europe of a competitive innovative technology. The Project will lead to important knowledge development, provide jobs and deploy advanced manufacturing activities in Europe. The Project will furthermore help create the conditions for a hydrogen economy, and the development of a cleaner and more sustainable industry in Europe and lead to lower emissions of pollutants (health benefits) and CO2 (climate benefits).

The EIB's equity-type venture debt will feature performance-linked elements and effectively share in the upside of the venture. EIB will also share in the downside as the investment will be materially exposed to the risk of the company (including high technical, market and financial risks). The EIB would not be able to provide such type of financing support during the period in which the EU guarantee can be used, or not to the same extent, without InvestEU.

The project comprises a pilot plant located in an industrial park and RDI activities at the Promoter's premises. Neither the RDI activity nor the investment in mechanical manufacturing capacity are specifically mentioned under Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU). However, industrial estate development fall under Annex II of EIA Directive, therefore the project is subject to screening by a competent authority. The pilot plant is, given its size and location, is considered not to have significant impacts and the project is fully permitted for the activities envisaged and the project has been screened out. The Industrial Emissions Directive 2010/75/EU applies.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions.