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Porsche taking stake in ‘e-fuels’ maker Highly Innovative Fuels Global

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Porsche 911 Carrera 4S standing in the evening light at the drive-in cinema located on the Leipzig Porsche factory circuit.

Jan Woitas – picture alliance via Getty Images| picture alliance via Getty Images

DETROIT — Porsche is upping its investment in the development of climate-neutral “e-fuels” made to replace gasoline in traditional combustion engines.

German automobile manufacturer, which is owned by VolkswagenOn Wednesday, Porsche announced a 75 million investment in Highly Innovative Fuels Global. This manufacturer is based in the U.S. and has operations in Chile. Porsche will buy 12.5% in the Delaware-based holding firm.

This move is a continuation of an existing partnership between the two companies. Porsche had announced in late 2020 that it was launching a roughly $24 million investmentHIF Chile is producing a pilot plant. Production of efuels made from carbon dioxide and hydrogen is planned to start later this year.

“Today’s announcement is a major milestone in our commitment towards e fuels,” Barbara Frenkel from Porsche’s procurement department said at a Chilean media conference. “We see our participation in HIF Global as a long-term investment and the use of e-fuels is, of course, of great interest to the automotive industry … it is also effective for aviation and shipping industries.”

HIF reports that Porsche’s latest investment is part of a wider international financing round worth $260 millions. Other investors include the Chilean company Andes Mining & Energy (AME) and American companies EIG, Baker Hughes and Gemstone Investments.

HIF indicated that additional capital will go to the construction of industrial e-fuel plants in the United States next year. These facilities would then be followed in Chile in 2024 and Australia in 2024.

According to HIF, e-fuels (or electricity-based fuels) are carbon-neutral, clean fuels made from carbon dioxide and renewable green hydrogen. These fuels can be used to power classic and current vehicles, making them more eco-friendly.

Companies like Porsche could continue to produce vehicles with traditional engines and new electric versions of their iconic 911 sports cars, even as regulations change towards fossil fuels. Although electric cars can deliver exceptional performance, their driving dynamics are quite different from traditional engines.

Porsche is the 2nd largest shareholder of the company after AME. It expects to first use the efuels from Chile in motorsports and then possibly in new consumer cars.

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