Rolls-Royce to Use Hydrogen-Based E-Fuels for Data Centre Back-Up Generators

Rolls-Royce to Use Hydrogen-Based E-Fuels for Data Centre Back-Up Generators

William Faulkner 07-Aug-2025

Rolls-Royce will power data centre generators with hydrogen-based e-fuels from Ineratec, aiming for reliable, climate-neutral energy solutions.

Rolls-Royce is taking a significant step toward sustainable energy by entering into a new agreement with German company Ineratec to supply hydrogen-based e-fuels for back-up power systems at data centres. These fuels, derived from green hydrogen, will be used to replace traditional diesel in emergency generators, particularly in data centres that require uninterrupted power. The initiative underscores a broader effort to reduce carbon emissions and increase energy resilience in an era of rapidly growing digital infrastructure and artificial intelligence.

The collaboration will begin by targeting data centres located in Germany, where short transportation distances between Ineratec’s production facility in Frankfurt and the data centres will allow for efficient fuel delivery. Ineratec’s pilot facility, known as the "Era One" plant, began producing e-fuels in April this year. The production process involves synthesizing green hydrogen with captured carbon dioxide (CO2) to create synthetic fuels that are chemically similar to conventional fossil fuels, including diesel and jet fuel.

The e-fuels offer a compelling alternative to diesel, especially for back-up systems that must be reliable in the event of grid outages. Rolls-Royce, whose mtu-branded emergency generators are widely used in data centres worldwide, sees this partnership as a key advancement in their decarbonisation strategy. The move comes at a time when the energy demands of data centres are rising significantly, driven in large part by the increasing deployment of artificial intelligence technologies.

According to Maximilian Backhause, Chief Commercial Officer at Ineratec, “Ensuring secure energy supplies for AI-powered data centres is one of the defining challenges of our era.” He emphasized that Ineratec’s e-fuels are not only climate-neutral but also scalable and suitable for immediate deployment. These features make them an ideal solution for companies aiming to enhance energy security while reducing carbon emissions.

The Era One plant has a current production capacity of 2,500 tonnes of e-fuel per year. Ineratec is also working on enhancing this capacity by 15% using a new catalyst developed by Sasol, indicating a potential increase in supply in the near future. Although specific volumes of fuel to be delivered under the Rolls-Royce agreement have not been publicly disclosed, the commitment from Rolls-Royce Power Systems remains strong.

Tobias Ostermaier, President of Stationary Power Solutions at Rolls-Royce Power Systems, affirmed the company’s commitment to the adoption of e-fuels. “Customers in the critical infrastructure sector, such as data centres, who are aiming to reduce their environmental footprint, will soon be able to use e-fuels,” he said. This statement reflects Rolls-Royce’s strategic pivot toward greener technologies and its recognition of the urgent need to decarbonise power systems in mission-critical environments.

This collaboration marks an important milestone in the shift away from fossil fuels and highlights how legacy power providers and cleantech innovators can join forces to drive meaningful change in energy infrastructure.

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