Russia could be equipped for an attack on NATO territory in just a few years. Rheinmetall warns that the local armed forces could run out of fuel in this case. The Group sees a solution in synthetic fuels.
$RHM (-0.39%) Rheinmetall is considering entering the production of e-fuels on a large scale, as reported by the Handelsblatt newspaper. According to NATO studies, Russia will be ready to wage a major war in Europe within the next five years, stressed Shena Britzen, head of the armaments group's hydrogen program, at an event held by the newspaper. "We therefore have a maximum of five years to be able to provide a secure fuel supply." In the event of a major war or crisis, Europe does not yet have a solution for supplying its armed forces with fuel.
Synthetic fuels, also known as e-fuels, can be obtained from renewable energies. However, climate protection is not the driver for Rheinmetall. "We are not doing this because we are focusing on green fuel, but because the energy can be made available," said Britzen. Green fuel can be produced regionally independently of the power grid and oil market and can supply troops in action.
According to Britzen, 20.5 million tons of fuel would be needed annually in the event of a war. According to her, Rheinmetall could supply this with the help of hundreds of production plants spread across Europe. "Our plants turn wind and sun into drop-in fuel that can be immediately refueled into the systems in the form of kerosene, diesel or marine diesel." This fuel could be used in conventional engines. Hydrogen is produced for this purpose, which is then processed into fuel.
The state as a customer?
Rheinmetall sees security of supply as an element of deterrence - and that is cheaper than a war. A positive side effect would be a significant reduction in CO2 emissions by the military.
So far, e-fuels have been a niche product because they are expensive and difficult to produce in large quantities. Rheinmetall is hoping for government orders. If the fuel is not needed in the end, the state could sell it on to airlines, for example, the defense company advertises. It is still a vision, but according to Britzen, talks are already underway with countries such as Switzerland, Austria, Italy and Spain. Initial talks were held with the German Federal Ministry of Defense last year. Now Rheinmetall is hoping for the new German government.