A milestone in the decarbonization of transportation

No sector relies as heavily on fossil fuels as transportation. In 2021, it was responsible for more than one-third of all CO2 emissions from end users. According to the International Energy Agency’s net zero scenario, emissions need to fall from the current 7.7 gigatons to less than six gigatons by 2030. Meanwhile, growth in the transportation sector remains unchecked. No question, it is a mammoth task.

The good news: there are solutions available that move the needle. One is to develop CO2-neutral fuel from wind power. I am extremely proud that Siemens Energy will play a major role in this effort. The production of eFuels began today in southern Chile with Haru Oni, a lighthouse project, we launched in collaboration with Porsche, the project developer HIF Global, and other partners. Together, we made it in just two years: from concept to completion of the plant.

CO2-neutral fuels from wind power

The conditions could not be better. Located near the Chilean city of Punta Arenas, Haru Oni has a privileged abundance of natural wind forces. Our plant produces green methanol and ultimately, electricity-based, CO2-neutral fuel from wind power. The hydrogen that’s the foundation for the fuel synthesis is produced by an electrolyzer. The wind turbine comes from Siemens Gamesa and the electrolyzer from Siemens Energy.

In collaboration with our partners, we intend to offer eFuels at competitive prices so that green energy will ultimately become competitive with fossil fuels. The transportation sector is difficult to electrify, and this applies to shipping and air traffic just as it does to car fleets with internal combustion engines still in use. eFuels are therefore an essential means for the transportation sector to achieve its climate targets. According to Porsche, eFuels will help reduce fossil CO₂ emissions in combustion engines by up to 90 per cent.

“Haru Oni isn’t just a facility in the middle of nowhere. It is the start of a journey to deep decarbonization. Located at a place with a privileged abundance of the natural forces of wind. From this base we can continue to explore the future.”

Markus Speith, Siemens Energy project lead of Haru Oni

In 2023, Haru Oni is expected to produce 130,000 liters of eFuels and 55 million liters in the next project phase. However, this is not the end of the story for us. By the end of this decade, we aim to further expand Haru Oni to provide 550 million liters of e-gasoline annually. This is enough to run one million CO2-neutral vehicles for almost one year.

From project phase to industrialization

These seem like impressive figures, but a lot more needs to be done. In 2021, almost 1.3 billion passenger cars were on the roads worldwide. One thing is clear: We have to go beyond the project phase of eFuels and move as quickly as possible to the large-scale industrialization phase of producing them for mass consumption. Only by scaling up will we succeed in decarbonizing the transportation sector.

Siemens Energy is ready. With Siemens Gamesa, we have a leading global supplier of wind power with an installed capacity of more than 120 gigawatts. In Berlin, we are investing double-digit millions of euros to ramp up production of electrolyzers for green hydrogen in a multiple gigawatt range. Only by producing large quantities on an industrial scale can we significantly reduce manufacturing costs to make hydrogen and eFuels competitive more quickly. Haru Oni is just the beginning. This pioneering approach should be replicated in many other regions worldwide.

No one can do it alone

The truth is: No one can manage such projects alone. Entrepreneurial courage is important if we want to reach the investment needed to revolutionize the transportation sector. Equally important, if not more so, is the will of politicians to support such projects. Haru Oni is a prime example of this. It was funded by the German government: In 2020, Haru Oni was the first hydrogen project to receive support under the National Hydrogen Strategy.

We would also like to see such support for the European wind industry. Wind energy is a strategic industry. Without it, projects like Haru Oni would not be feasible. I therefore appeal to the responsible politicians in the European Union and its member states to act quickly and courageously. We need the right framework conditions to keep wind energy in Europe as a crucial building block for the global energy transition.

Siemens Energy stands ready. We are counting on you.