Germany’s largest arms manufacturer, Rheinmetall, has formed a strategic partnership with synthetic fuel producer INERATEC to scale up e-Fuel production, calling the technology “indispensable for modern defence readiness.”Rheinmetall says synthetic e-Fuels offer the energy density, storability, and versatility of conventional fuels – essential attributes for defence operations that cannot easily transition to electrification.

“As fossil fuel supply chains become increasingly vulnerable in the event of conflict, the ability to produce CO₂-neutral synthetic fuels locally is critical,” the company stated.

Produced from electricity, water, and CO₂, e-Fuels can be made near military installations using wind or solar power – creating a resilient, independent fuel supply without needing to alter existing vehicle fleets such as tanks or aircraft.

INERATEC, which recently opened Europe’s largest commercial e-Fuels plant, will work with Rheinmetall to help reduce the military’s carbon footprint while ensuring energy security. The announcement comes amid a major increase in German defence spending following Russia’s invasion of Ukraine.