Rheinmetall is forming an industrial alliance with German cleantech companies to ensure a crisis-proof fuel supply for the military and critical infrastructures. With „Giga PtX“ project, the defence contractor is proposing the production of synthetic fuels (e-fuels) to European armies, including the German Armed Forces.

The companies involved include venture capital-financed startup Ineratec from Karlsruhe, the Essen-based startup Greenlyte Carbon, and Dresden-based electrolysis specialist Sunfire. The latter is looking at a potential Initial Public Offering.

„War readiness requires a resilient energy infrastructure,“ said Rheinmetall CEO Armin Papperger. „Maintaining supply chains for fossil fuels will be challenging for European countries in the event of a defence situation.“ The project sends a signal for Europe's industrial transformation. Rheinmetall wants to enable the armed forces to produce their own fuel locally and independently of global supply chains. The strategic concept is intended to ensure the operational readiness of military forces.

At the same time, government and EU funding would also help boost the domestic startup ecosystem. Sunfire is an electrolysis plant manufacturer founded in 2010. The company, whose legal form was converted to a publicly tradable SE in April, currently employs around 650 people in Germany and Switzerland, and counts RWE and Salzgitter among its customers. In March 2024, Sunfire raised 500 million euros in capital. The Liechtenstein private bank LGT and the Singapore sovereign wealth fund GIC participated in the equity round. At the same time, the Dresden-based company received a 100 million euro loan and 200 million euros in EU subsidies from the European Investment Bank.

The „Giga PtX“ project, developed by Rheinmetall as a system integrator, aims to establish a network of several hundred modular e-fuel production plants. These are to produce diesel, marine diesel or kerosene in quantities of up to 7,000 tonnes per plant per year. The plants are being designed by Rheinmetall. „We are ready and can start immediately,“ said Birgit Görtler, Vice President Sales Hydrogen. „We are literally standing by to strengthen fuel resilience in Germany and Europe.“

Essen based startup Greenlyte Carbon uses its modular technology to produce green raw materials. Greenlyte can capture carbon directly from the air, providing another key component for producing synthetic fuels at the Giga PtX facilities, alongside hydrogen.

Karlsruhe-based Ineratec, which raised 118 million euros last year, is responsible for the „heart“ of the plant: the reverse water gas shift (RWGS) for converting hydrogen and carbon dioxide into synthetic fuels.