Even though Porsche’s push towards electric mobility is stronger than ever, the German brand announced last February that it is also helping to develop synthetic fuels, or e-fuels.
Why take that route? As Michael Steiner, Porsche’s Head of Research and Development, put it: “with electricity alone, we can’t move forward fast enough” - a clear reference to meeting carbon neutrality targets.
Porsche is backing up those words with action. Plans are already under way for the first synthetic-fuel production plant, which will be built in Chile and is expected to start operating as early as 2022.
Planned production volumes for the Porsche e-fuels project
During the pilot phase, the facility will produce 130,000 litres of climate-neutral synthetic fuels. Output is then set to rise sharply in the following two phases: in 2024, capacity is planned at 55 million litres of e-fuels; and by 2026 it is expected to be ten times higher - 550 million litres.
Why Chile?
The construction of the plant and the production of synthetic fuels come from a partnership between Porsche and Siemens Energy (alongside others, including the energy company AME, Chilean oil firm ENAP, and Italian energy company Enel). The project also has support from the German government through the Federal Ministry for Economic Affairs and Energy, which contributed eight million euros.
Known as “Haru Oni”, the pilot project that includes this new factory will be carried out in Chile’s Magallanes province. Why choose this South American country - and this province in particular? Because Magallanes, in the far south of Chile (closer to Antarctica to the south than to the country’s capital, Santiago, to the north), offers outstanding wind conditions. In other words, it is an excellent location for generating wind power - and renewables are essential to ensure the climate neutrality of synthetic fuels.
From wind power to methanol and petrol
That is because e-fuels are made by combining two ingredients: carbon dioxide (CO_2) and hydrogen (H). The key difficulty still lies, above all, in producing hydrogen. At present, 90% of hydrogen production comes from steam reforming, a highly polluting process because it relies on breaking down fossil fuels. This is why it is known as grey hydrogen.
To obtain green hydrogen - non-polluting and produced through the electrolysis of water, in which water is split into its constituent molecules, oxygen (O) and hydrogen (H_2) - large amounts of electricity are required. That electricity must therefore come from renewable sources such as wind, which is precisely what drove the choice of Magallanes in Chile. Green hydrogen is also the most expensive type to produce today, although costs are expected to fall as production volumes increase.
Siemens Energy will be responsible for system integration across the entire value chain, from Siemens Gamesa wind turbines through to PEM (Proton Exchange Membrane) electrolysis, which suits the variable nature of wind power.
Once water electrolysis has produced (green) hydrogen, it is then combined with CO_2 - which can be obtained in several ways, including capturing it from the atmosphere - to create synthetic, renewable methanol. This methanol is then converted into petrol using MTG (Methanol To Gasoline) technology, which will be licensed and supported by ExxonMobil.
Porsche, the main customer
Given its role in the partnership - with Porsche initially investing around 20 million euros - the company is also expected to be the main customer to receive and use this e-fuel.
Porsche will begin by using synthetic fuels in motorsport, where the German manufacturer has a strong presence, before extending use to Porsche Experience Centres and also to its production vehicles.
In this way, all Porsche cars - whether purely combustion, hybrid, or electric - will be able to contribute to cutting emissions on the path towards carbon neutrality.
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