Porsche and Siemens Energy Collaborate on eFuels Production Plant

Porsche and Siemens Energy have commenced the construction of their eFuels production plant, named “Haru Oni,” with the aim of producing around 550 million liters of fuel by 2026. This collaboration was first announced in late 2020, and shortly after, construction began in Punta Arenas, Chile in association with Highly Innovative Fuels.

Once the necessary environmental permits are acquired, the project aims to produce the world’s most affordable hydrogen and transform Chile into the first country to export this synthetic and nearly carbon-neutral fuel. Initially, Porsche will be the primary user of eFuels, starting with its motorsport fleet and experience centers before expanding the usage to production cars.

Armin Schnettler, Executive Vice President of New Energy at Siemens Energy, expressed enthusiasm about the project, stating, “We are implementing one of the most exciting projects in the energy industry for the future and advancing the decarbonization of the mobility sector. This means that we are making a significant and rapidly effective contribution to reducing CO2 emissions in the traffic and transport sector.”

Porsche provided a brief explanation of the production process, which relies on wind energy. First, electrolyzers will use wind energy to split water into oxygen and green hydrogen. Then, CO2 will be extracted from the air and combined with green hydrogen to produce synthetic methanol, which will be further converted into eFuels. Production is expected to commence in the middle of 2022, with an initial output of 130,000 liters, followed by 55 million liters in 2024, and reaching 550 million liters by 2026.

Porsche’s approach sets it apart from competitors like Mercedes, Bentley, and Jaguar, who have committed to manufacturing exclusively electric vehicles in the near future. Porsche aims to reduce fossil CO2 emissions from combustion engines by up to 90% using eFuels. Michael Steiner, Member of the Executive Board for Research and Development at Porsche AG, emphasized the potential of eFuels in reducing emissions, stating that “eFuels will allow us to significantly reduce the CO2 emissions of combustion engines.” Porsche is staunchly defending its traditional engines and placing its faith in green fuels as an alternative to gasoline, diesel, and GPL.

Despite the European Commission’s announcement that new internal combustion engine car sales will cease by 2035, Porsche is determined to develop alternative solutions to electric vehicles. In 2020, electric vehicles accounted for 17% of Porsche’s sales, indicating the company’s recognition of the importance of sustainable alternatives in the journey towards a greener future.

Useful links:
1. Porsche Official Press Release
2. Siemens Energy Press Release

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