Rolls-Royce and INERATEC Partner to Run Data Centres on Synthetic E-Fuels

Rolls-Royce Power Systems and clean fuels startup INERATEC have agreed a strategic partnership to replace fossil diesel in data centre backup generators with climate-neutral synthetic e-fuels. The collaboration initially targets data centres in Germany and plans international expansion over time.

The partnership will leverage INERATEC's synthetic e-diesel, produced at its ERA ONE facility in Frankfurt using renewable electricity and biogenic CO2, as a sustainable alternative to conventional diesel for emergency power systems. Rolls-Royce Power Systems plans to integrate the e-fuels into its mtu emergency generators, which it says are already approved for operation with sustainable fuels. INERATEC, founded in 2016, uses modular Power-to-X plants to manufacture e-kerosene, CO2-neutral gasoline, clean diesel, and other synthetic products.

Data centres are classified as critical infrastructure and face mounting pressure to reduce carbon footprints as AI-driven energy demand accelerates globally. E-diesel manufactured to ISCC international environmental standards offers a drop-in solution that can decarbonise backup power without requiring generator replacement. The partnership demonstrates how clean fuel technology developed for hard-to-abate sectors can find new application in digital infrastructure, a market of growing relevance to India as hyperscale data centre investments expand across the country.

INERATEC raised over $129 million in a Series B funding round last year to scale e-fuel production. With the Frankfurt production facility already operational, the companies plan to extend the solution to data centre operators internationally beyond the initial German market. The initiative positions e-fuels as a bridging solution for operators seeking near-term carbon reductions before fully renewable power grids are available at scale.

Key figure — $129 million raised by INERATEC in Series B funding