A Porsche 911 Carrera 4S Leipzig stands in the evening light at a drive-in movie on the factory circuit in Porsche.
Jan Whitas | Photo alliance through Getty Images
Detroit – Porsche is increasing its investment in developing a climate-neutral “e-fuel” designed to replace gasoline with traditional combustion engines.
The German automaker, owned by Volkswagen, announced on Wednesday a উদ্ 75 million “long-term” investment in high-innovation fuel Global, a manufacturer headquartered in Chile in the United States. Porsche will acquire 12.5% of the Delaware-based holding company.
The move is based on existing tie-ups between companies. Towards the end of 2020, Porsche announced an investment of approximately 24 million in a pilot plant manufactured by HIF in Chile. The plant is expected to start production of e-fuels made from hydrogen and carbon dioxide later this year.
“Today is an important milestone in our commitment to e-fuels,” Barbara Frankel, head of purchasing Porsche, said during a media roundtable from Chile. “We see our participation in HIF Global as a long-term investment and the use of e-fuels is certainly of great interest to the automotive industry. It is also relevant to the aviation and shipping industries.”
According to HIF, Porsche’s new investment is part of a larger international funding of $ 260 million. Other investors include Chilean company Andes Mining and Energy (AME) and American companies EIG, Baker Hughes and Gemstone Investments.
HIF said the additional capital would be used to develop industrial e-fuel facilities in the United States next year, followed by similar facilities in Chile and Australia in 2024.
According to HIF, electricity-based fuels or e-fuels are clean, carbon-neutral fuels produced from renewable, green hydrogen and carbon dioxide from the atmosphere. They can act like gasoline, allowing owners of current and classic vehicles a more environmentally friendly way to drive.
Despite increasing regulation away from fossil fuels, e-fuels could allow companies like Porsche to continue producing new electric models as well as vehicles like the iconic 911 sports car with traditional engines. While electric vehicles can offer outstanding performance, the driving dynamics of vehicles are different from traditional engines.
Porsche, which is now the company’s second largest shareholder after AME, hopes to use e-fuel from Chile first in motorsports, then in new consumer vehicles.