INERATEC, TERTU form JV to build France e-fuels plant amid EU SAF demand push

German cleantech firm INERATEC and France-based TERTU have formed a joint venture to develop a synthetic fuel production plant in Normandy, targeting startup by 2029 as Europe accelerates efforts to scale sustainable aviation fuel supply.

The joint venture, T.H2, will develop the "BELair" project near Caen, converting locally sourced wood residues into synthetic fuels, including e-SAF and e-naphtha using Fischer-Tropsch technology, the companies said March 27 in a statement.

The facility, to be located near Caen under the BELair project, will convert approximately 60,000 metric tons/year of locally sourced wood residues into synthetic fuels and chemicals using Fischer-Tropsch technology. The partners are preparing an application for funding support from the European Innovation Fund.

The project marks INERATEC's expansion beyond its existing e-fuel operations, following the commissioning of its ERA ONE commercial-scale plant in 2025. The company will contribute its modular gas-to-liquids platform, while TERTU will supply biomass feedstock and leverage its regional industrial network.

Feedstock will be gasified into synthesis gas and subsequently upgraded into synthetic hydrocarbons, including e-SAF and e-naphtha. The companies said the project aims to establish a circular value chain by utilizing regional forestry and industrial residues to produce low-carbon fuels.

The project marks a shift toward biomass-based e-fuel pathways, complementing INERATEC's existing projects that primarily combine renewable hydrogen with captured CO2.

"This creates a circular industrial value chain, transforming local waste into high-value fuels," the companies said.

The development is supported by French public investment bank Bpifrance and regional authorities in Normandy, reflecting broader European efforts to scale domestic synthetic fuel production and strengthen energy resilience.

The project has completed initial engineering phases and remains under development, with commissioning planned for 2029.

Policy-driven demand outlook

The project comes amid rising momentum in Europe's e-fuels sector, driven by tightening regulatory mandates.

Under the EU's ReFuelEU Aviation regulation, SAF is expected to account for at least 10% of aviation fuel by 2030 and up to 70% by 2050.

Parallel measures under FuelEU Maritime are also expected to boost demand for low-carbon fuels in shipping.

The use of waste-based feedstocks also aligns with EU policy preference for advanced biofuels and synthetic fuels with lower lifecycle emissions.

Platts, part of S&P Global Energy, last assessed the SAF FOB FARAG outright at $2,871.75/metric ton in the week ended March 25, down $150.25, or 5%.

The SAF premium to ICE gasoil in the over-the-counter market was heard to be relatively steady, with indications in a range of $1,150/cubic meter on the bid side and $1,250/cubic meter on the offer side.