Skip advert
Advertisement

Porsche breaks ground on new CO2-neutral fuel plant in Chile

Porsche plans to use the synthetic fuel in its motorsport pursuits from 2022, and will expand production to 550 million litres a year by 2026

Porsche carbon-neutral fuel plant

Porsche has started work on its new synthetic fuel production plant in Haru Oni, Chile. The facility is being built in collaboration with the German technology giant Siemens and is set to produce its first batch of carbon-neutral fuel next year.

Synthetic fuels, or eFuels, are compatible with conventional internal combustion engines, and are produced via carbon-neutral processes that potentially offset the carbon dioxide (CO2) generated when the fuel is burnt.

In its first year of service, the plant will produce just 130,000 litres of carbon-neutral fuel, which will be used to power Porsche’s racing cars and Experience Centre cars. Porsche is then targeting a capacity of 55 million litres a year by 2024, and 550 million litres by 2026.

Advertisement - Article continues below

While that might seem like an awful lot of fuel, it’s actually just a drop in the ocean. Figures from the Petrol Retailers’ Association show that the UK alone uses 46.5 billion litres of petrol and diesel every year.

But that isn’t the point of the project. Porsche is trying to show how reports on the death of the internal combustion engine may be exaggerated – and that the carbon emissions these engines produce can be managed with clever engineering.

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

The Haru Oni plant will take advantage of the region’s strong winds to generate clean electricity from turbines built by Siemens. Fuel will be made at the plant by using wind power to dissociate hydrogen and oxygen molecules from water. CO2 filtered from the air will then be combined with the hydrogen to make synthetic fuel.

More importantly, Porsche’s synthetic fuel solution doesn’t require any updates to the global fueling infrastructure as, if the tech makes it into mainstream circulation, it would be dispensed using the pumps at existing fuel stations.

The factory is being funded with an initial €20 million (£18m) from Porsche, plus €8 million  (£7.2m) from the German government. Porsche’s chief executive, Oliver Blume, said eFuels are a “worthwhile complement” to electric cars and “an additional element on the road to decarbonisation.”

Advertisement - Article continues below

“As a maker of efficient, high-performance engines, we have broad technical expertise,” Blume added. “We know what fuel characteristics our engines need in order to operate with minimal impact on the climate.”

Michael Steiner, Member of the Executive Board for Research and Development at Porsche AG, said: “Porsche was founded with pioneering spirit. That’s what drives us, we thrive on innovation. We also see ourselves as pioneers when it comes to renewable fuels, and we want to drive development forward. 

“This fits in with our clear overall sustainability strategy. It means that Porsche as a whole can be net CO2 neutral as early as 2030. Fuels produced with renewable energy can make a contribution to this. 

Our icon, the 911, is particularly suitable for the use of eFuels. But so are our much-loved historic vehicles, because around 70 per cent of all Porsches ever built are still on the road today. Our tests with renewable fuels are going very successfully. 

“eFuels will make it possible to reduce fossil CO2 emissions in combustion engines by up to 90 per cent. Among other things, we’ll be using the first fuel from Chile in our Porsche Mobil 1 Supercup race cars from 2022.”

Could you live with an electric car? Read our story on the pros and cons of owning an EV today...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

Electric cars don’t excite kids, but a Porsche 911 with a loud engine definitely does
Opinion - Porsche 911

Electric cars don’t excite kids, but a Porsche 911 with a loud engine definitely does

Phil McNamara discusses how a blast in a Porsche with his kids proves the emotional pull of petrol engines is alive and well
Opinion
22 Oct 2026
Porsche Mission S supercar reveals brand’s future look and plan to challenge Ferrari
Porsche Mission S concept - Phil McNamara

Porsche Mission S supercar reveals brand’s future look and plan to challenge Ferrari

Officially it’s a design study, but Porsche is working flat out to bring this petrol-burning, Ferrari-chasing supercar to life
News
16 Oct 2026
Best new cars coming soon: all the big new car launches due in 2026, 2027 and beyond
Best new cars coming soon 30/06/26

Best new cars coming soon: all the big new car launches due in 2026, 2027 and beyond

Here are the most important new cars from Alfa Romeo, Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
21 Sep 2026
Best cars with pop-up headlights
Best cars with pop-up headlights - header image

Best cars with pop-up headlights

Safety laws and modern tech have largely extinguished the pop-up headlight so let’s take a look back at the all time greatest cars to feature them.
Best cars & vans
3 Sep 2026

Most Popular

Used Car of the Year 2026 is the Hyundai Ioniq 5
Used Car of the Year 2026 - Hyundai Ioniq 5

Used Car of the Year 2026 is the Hyundai Ioniq 5

While you can’t go wrong with any of our Used Car Awards winners for 2026, the Hyundai rose above the rest
News
21 Oct 2026
New Chery Tiggo X7 revealed: who knew a Tiggo could get so tough?
Chery Tiggo X7 - front 3/4

New Chery Tiggo X7 revealed: who knew a Tiggo could get so tough?

Chery's new Tiggo X7 SUV promises greater off-road ability than the standard Tiggo 7, but UK launch plans remain unclear
News
21 Oct 2026
Tories spark rumours of 'heavy car tax' in Labour budget - here’s what it could cost
Land Rover Defender V8 - front cornering

Tories spark rumours of 'heavy car tax' in Labour budget - here’s what it could cost

The Conservative Party is claiming that Chancellor John Healey may bring a weight-based car tax supplement in with the next budget
News
23 Oct 2026

Find a car with the experts