Rolls-Royce and INERATEC Partner on e-Fuels for Data Centres

Rolls-Royce Power Systems has teamed up with INERATEC to revolutionise the way data centres manage their emergency backup systems, aiming to replace conventional fossil diesel with cutting-edge synthetic e-Fuels.

These innovative fuels are crafted using renewable hydrogen combined with captured CO₂, offering a viable low-emission alternative that promises reliability for diesel generators when grid power fails.

The rise of AI technologies has sharply intensified power demands on global data centres.

While many have integrated renewable energy within primary operations, reliance on diesel remains for backup systems, hindering full decarbonisation.

Tobias Ostermaier, President Stationary Power Solutions at Rolls-Royce Power Systems, says: "mtu backup generators from Rolls-Royce are already approved for operation with sustainable fuels.

“Customers in the critical infrastructure sector aiming to reduce their carbon footprint will soon also be able to use e-Fuels. We are committed to the use of e-Fuels in data centres together with INERATEC."

What are e-Fuels and how do they work?

INERATEC’s synthetic e-Diesel is produced through the Power-to-X process, which transforms renewable electricity into hydrogen via electrolysis.

This hydrogen combines with trapped carbon dioxide to form liquid fuel, resulting in a synthetic diesel with substantially lower lifecycle emissions compared to traditional fossil fuels.

Their ERA ONE facility in Frankfurt enables swift delivery and deployment in initial phases, with INERATEC’s e-Fuels certified under the International Sustainability and Carbon Certification (ISCC) framework, ensuring seamless integration into current generator systems without hardware changes.

Maximilian Backhaus, Chief Commercial Officer at INERATEC, emphasises the urgency: "The secure energy supply for AI-powered data centres is one of the defining challenges of our time.

“Our e-Fuels offer a climate-neutral solution that is scalable, dependable and ready for immediate deployment. Together with Rolls-Royce, we’re bringing this solution to where it’s needed most—starting now."

The initial focus will be on German data centres, benefiting from the proximity of INERATEC’s production site for efficient delivery and deployment.

Decarbonising critical infrastructure without disruption

Diesel backup systems are critical for data centres aiming to maintain Tier III and IV uptime standards, yet they significantly contribute to site emissions.

Although these backups operate infrequently, they remain ready, fully fuelled and must be tested regularly, embodying a high carbon footprint.

The Rolls-Royce and INERATEC collaboration provides a drop-in replacement option, eliminating a major source of embedded carbon.

With larger operators under increasing pressure to address Scope 1 emissions, this solution aligns with their decarbonisation targets.

By incorporating INERATEC’s innovative fuel technology into its mtu-branded systems, Rolls-Royce offers a comprehensive solution that enhances the sustainability of data centre infrastructure, beginning its rollout in Germany before expanding globally.

Next steps: Scaling and standardisation

The partnership between Rolls-Royce and INERATEC is looking to the future with international expansion plans dependent initially on fuel availability from the Frankfurt site.

These plans align with upcoming data centre projects and retrofits in areas where digital infrastructure demand and stringent sustainability targets converge.

Rolls-Royce’s strong footing in Europe plus INERATEC’s focus on scalable production positions this partnership to meet the evolving demands of the industry.

This collaboration shifts how operators perceive emergency power, introducing a new synthetic fuel application tailored to meet data centre resilience needs and environmental commitments.