TDK Ventures invests in pioneering e-fuel company INERATEC

Rhea-AI Summary

German company INERATEC raises $129 million in Series B funding round to accelerate the production and commercialization of carbon-neutral e-fuels. The investment will enable mass production of industrial-scale Power-to-X plants and advance the production of e-fuels made from recycled CO2 and renewable energy, with a 1,500x increase in production, recycling over 12,000,000 metric tons of CO2 annually.

• German company INERATEC is poised to lead the shift toward cleaner fuel solutions and drive the future of transportation
• TDK Ventures, in collaboration with other investors, participated in INERATEC's Series B funding round, contributing to the successful raising of $129 million to propel the company into its next phase of sustainable mobility
• INERATEC is TDK Ventures' first investment from the new energy transformation Fund, EX
• INERATEC's patented microstructured reactor technology enables the production of 'drop-in' e-fuels for use in aviation, marine, and road transportation. Since 2016, INERATEC has built and delivered numerous modular microstructured reactors for liquid fuel and chemical production and is engaged with over 30 customers
• The company has been recognized with key awards including the German Founders' Award, the Next Economy Award, and the EARTO Award; and was selected as a Top Innovator by UpLink, the Innovation platform of the World Economic Forum

SAN JOSE, Calif., Jan. 16, 2024 /PRNewswire/ -- TDK Corporation (TSE: 6762) announced today that subsidiary TDK Ventures, Inc. has participated in German pioneering e-fuel company INERATEC's Series B funding round. Led by Piva Capital, other investors include HG Ventures, Copec WIND Ventures, The Rock Creek Group, Emerald Ventures, and Samsung Ventures, as well as current investors, including large corporate investors ENGIE New Ventures, Safran Ventures, and Honda Motors. With signed commitments for the round totaling more than $129 million (USD), the influx will accelerate production and commercialization of the company's carbon-neutral e-fuel.

INERATEC's technological advancement is a scalable patented microstructure reactor technology that enables the production of 'drop-in' e-fuels. The process involves reacting CO₂ with low-carbon hydrogen to make synthesis gas, which is then converted in another microstructured reactor into hydrocarbons. The resulting renewable e-fuels are then targeted at industries that rely heavily on fossil fuels, such as aviation, shipping, road transport, and the chemical industry, all known as hard-to-abate sectors that are major contributors to the world's greenhouse gas emissions.

"Every year, more than 4,000 million tons of fossil crude oil worldwide are processed into fuels and chemical products with much of the demand coming from hard-to-abate industries," commented Nicolas Sauvage, TDK Ventures President. "We believe INERATEC's innovative technology for producing e-fuels is the best solution and highly suited for the myriad of applications within this sector. We are delighted to be a part of INERATEC Series B funding and eager to see its technology at work in helping the world reduce or negate its dependency on fossil fuels."

Hard-to-abate industries are desperately seeking renewable alternatives to achieve carbon-neutral goals. The demand for 'drop-in' e-fuels – or synthetic fuels – for use in combustion engines that require little to no adjustments relative to existing fuel infrastructure, is expected to triple by 2030, reaching $13.6 trillion by 2050, expanding at a CAGR of 19.0% over the forecast period 2023-2050.

"We are grateful for TDK Ventures' participation in our Series B funding," said Tim Boeltken, CEO of INERATEC. "They bring a lot to the table with their emphasis on scaling entrepreneurs and focus on sustainability and hard-tech projects. Transitioning from fossil fuels to sustainable e-fuels is a major undertaking. TDK Ventures has shown it is fully committed to doing whatever it takes to make it successful and profitable."

INERATEC will use this new capital to start the mass production of its industrial-scale Power-to-X plants worldwide and advance the production of e-fuels made from recycled CO2 and renewable energy. Additionally, the company has begun construction of its largest plant to date in Frankfurt and is expanding through international projects in the Netherlands and Chile. This expansion will yield a 1,500x increase in production, recycling over 12,000,000 metric tons of CO2 annually. Beyond that, the technology will be implemented globally, wherever CO2 and renewable energy are available.

INERATEC represents TDK Ventures' first investment from its $150 million Fund EX1, a fund the firm launched in mid 2023 to back early-stage leaders in energy transition, electrification, and decarbonization within the U.S. and Europe. To learn more about TDK Ventures, interested startups or investment partners should visit www.tdk-ventures.com or reach out at contact@tdk-ventures.com.

About TDK Corporation

TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately "Attracting Tomorrow." It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's comprehensive, innovation-driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in automotive, industrial and consumer electronics, and information and communication technology. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2023, TDK posted total sales of USD 16.1 billion and employed about 103,000 people worldwide.

About TDK Ventures

TDK Ventures Inc. invests in startups to bolster innovation in materials science, energy/power and related areas typically underrepresented in venture capital portfolios. Established in 2019 as a wholly-owned subsidiary of TDK Corporation, the corporate venture company's vision is to propel the digital and energy transformations of segments such as next-generation transportation, robotics and industrial, mixed reality and the wider IoT/IIoT markets. TDK Ventures will co-invest and support promising portfolio companies by providing technical expertise and access to global markets where TDK operates. Interested startups or investment partners may contact TDK Ventures: www.tdk-ventures.com or contact@tdk-ventures.com.

About INERATEC

INERATEC is a pioneer in the field of Power-to-Liquid applications. The company supplies sustainable e-fuels as well as chemical products. Modular chemical plants for power-to-X and gas-to-liquid applications use hydrogen from renewable electricity and greenhouse gases such as CO2 to produce e-kerosene, CO2-neutral gasoline, clean diesel or synthetic waxes, methanol or SNG. Founded in 2016, INERATEC has already implemented industrial-scale power-to-liquid plants at German sites to boost the availability of sustainable fuels and chemicals in various transportation sectors, such as aviation. Further information can be found at www.ineratec.com.

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Contacts for regional media

Brand	Contact		Phone	Mail
TDK	Ms. S MACKENZIE	Publitek Portland, OR, USA	+1 503 720 3743	sarah.mackenzie@publitek.com
TDK Ventures	Mr. R. FINELLI	TDK Ventures San Jose, CA, USA	+1 408 667 5970	raphel.finelli@tdk-ventures.com

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SOURCE TDK Ventures

FAQ

What is the purpose of INERATEC's Series B funding round?

The purpose of INERATEC's Series B funding round is to accelerate the production and commercialization of carbon-neutral e-fuels.

How much was raised in INERATEC's Series B funding round?

INERATEC raised over $129 million in its Series B funding round.

What is the technology behind INERATEC's e-fuel production?

INERATEC uses a scalable patented microstructure reactor technology to produce 'drop-in' e-fuels.

What are the targeted industries for INERATEC's renewable e-fuels?

INERATEC's renewable e-fuels are targeted at industries such as aviation, shipping, road transport, and the chemical industry.

What is the expected growth of the demand for 'drop-in' e-fuels by 2050?

The demand for 'drop-in' e-fuels is expected to reach $13.6 trillion by 2050, expanding at a CAGR of 19.0% over the forecast period 2023-2050.