Ineratec’s synthetic marine diesel oil moves toward Japan

Japanese energy company Idemitsu has invested in German renewable fuels startup Ineratec through its venture capital arm.

IMAGE: Ineratec's e-fuel plant in Frankfurt. Ineratec

The investment “paves the way for Ineratec’s entry into the Japanese market,” the company said.

Ineratec recently commenced operations at its 2,500 mt/year e-fuel plant in Frankfurt-Höchst, which it describes as based on a “scalable, modular” production concept. The plant produces synthetic crude oil by combining biogenic CO2 sourced from a nearby biogas plant with green hydrogen.

Green hydrogen is typically produced via water electrolysis using renewable energy. But in this case, it is sourced as a byproduct from a chlorine production process.

The resulting synthetic crude can be refined into e-marine diesel oil (synthetic MDO) suitable for use as a bunker fuel. Synthetic MDO can be used as a drop-in fuel in conventional marine engines without requiring modifications, the company noted.

This differs from other synthetic bunker fuels, such as e-methane or e-methanol, which require specialised onboard equipment, including LNG-capable or methanol-capable engines, dedicated fuel supply systems and storage tanks.

Ineratec plans to deploy the same modular production model in Japan and other “key” markets through its partnership with Idemitsu, targeting the shipping sector alongside other industries.

The company emphasises that its e-fuels still emit CO2 when combusted onboard ships.

But since this CO2 originates from biomass that previously absorbed carbon from the atmosphere, the fuels can achieve significantly lower well-to-tank emissions and can be considered carbon neutral across their lifecycle.

By Konica Bhatt

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