KUALA LUMPUR: German carmaker Porsche AG is investing US$75 million in HIF Global LLC, a holding company of internationally active project developers of eFuel production facilities.
Among other projects, HIF Global, the Santiago de Chile-based company, is building the Haru Oni eFuel pilot plant in Punta Arenas (Chile).
Initiated by Porsche and implemented with partners including Siemens Energy and Exxon Mobil, the production of eFuels from hydrogen and carbon dioxide (CO2) using wind energy is expected to start there in mid-2022.
The sports car manufacturer said these electricity-based synthetic fuels enable nearly-CO2-neutral operation of combustion engines.
With its investment in HIF Global LLC, Porsche participates in international financing round alongside the Chilean company Andes Mining & Energy (AME) and the American companies EIG, Baker Hughes Company and Gemstone Investments.
In total, an amount in the low nine-figure US dollar range is flowing into HIF Global LLC.
Porsche said AME remains the majority shareholder of HIF Global LLC.
The additional capital will be used to develop industrial eFuel facilities in Chile, the US and Australia, which have ample renewable energy supplies.
Porsche procurement executive board member Barbara Frenkel said eFuels make an important contribution to climate protection and complement the group's electromobility in a meaningful way.
"By investing in industrial eFuel production, Porsche further expands its commitment to sustainable mobility.
"In total, our investment in the development and provision of this innovative technology amounts to more than US$100 million," she said.
Research and development executive board member Michael Steiner said the group is moving into an attractive business area with its stake in HIF Global LLC.
He said Porsche has been researching the use of renewable fuels for some time, with tests in the laboratory and on the race track are proceeding successfully.
"We see ourselves as pioneers in eFuels and want to drive the technology. This is one building block in our clear, overall sustainability strategy," said Steiner.
Porsche said it initially plans to use the eFuel from Chile in motorsport flagship projects.
In the future, it is also conceivable that Porsche will use them to fuel the company's vehicles with combustion engines during initial fuelling at the factory and Porsche Experience Centers.