On Wednesday, Porsche announced a $75 million investment in the industrial production of eFuels, a synthetic low-carbon fuel, in addition to plans to electrify 80% of its model range by 2030.
Porsche, which aims to be carbon-neutral by the end of the decade, said at a briefing that the technology could allow the automaker to continue producing its classic boxer-six sports cars for the next decade.
In exchange for its investment, Porsche will receive a 12.5% stake in HIF Global LLC in Santiago de Chile, an e-fuel holding company in the US, Chile and Australia. The automaker is currently working with HIF Global and partners including Siemens Energy and ExxonMobil to start producing hydrogen and carbon dioxide fuels using wind power at the new Haru Oni eFuel pilot plant in Punta Arenas, Chile.
An investment in eFuels, a synthetic material that can reduce emissions in the automotive, marine and aerospace industries, gives Porsche the opportunity to establish itself as a leader in zero-emission alternative fuels.
However, it is not yet clear when this e-fuel will become widely available to Porsche owners. Porsche is allowed to use synthetic fuels in its vehicles, which are driven on tracks at seven Porsche Experience Centers around the world, including Atlanta and Los Angeles.
The e-fuel produced there could also support Porsche’s plans if it decides to compete in Formula One. Last year, the International Racing Organization announced that it would start using cleaner fuels by mid-decade, calling it “a big step in the right direction.” Michael Steiner, Member of the Management Board for Research and Development at Porsche AG. Formula One has also set a 2030 deadline to become carbon neutral.
Meanwhile, investment in e-fuel can be seen as insurance against continued battery shortages due to the tightness of the current global supply chain.
In March, Porsche announced plans to expand its portfolio of battery electric vehicles beyond the Taycan sedans with the Macan and 718 by 2025, and a global network of charging stations next year.
HIF Global confirmed on Wednesday that it plans to start building an e-fuel plant in the US next year, followed by similar facilities in Chile and Australia in 2024.