Siemens Energy, Porsche and their partners begin construction of an integrated wind-powered synthetic fuel facility in southern Chile

Construction officially began on the Haru Oni e-fuel pilot plant in Chile’s Magallanes region on 10 September 2021.

The project was developed to demonstrate an integrated production pathway using wind-generated electricity, renewable hydrogen and carbon dioxide to manufacture synthetic methanol and gasoline. Siemens Energy led the system integration, while Porsche participated as an industrial partner and intended fuel user.

Why Magallanes Was Selected

The Magallanes region in southern Chile is known for strong and consistent wind conditions.

These conditions were considered suitable for producing renewable electricity at high operating rates. The electricity would power electrolysers that split water into hydrogen and oxygen.

The renewable hydrogen would then be combined with carbon dioxide to produce synthetic methanol. A further conversion stage would transform the methanol into synthetic gasoline.

An Integrated Production Chain

Haru Oni was designed to combine several technologies at one location:

• Wind-power generation

• Water electrolysis

• Renewable hydrogen production

• Carbon dioxide capture

• Methanol synthesis

• Methanol-to-gasoline conversion

• Fuel storage and testing

Integrating the entire process allowed the partners to study how the individual systems would operate together under real wind and production conditions.

The Role of Siemens Energy

Siemens Energy led the project’s technical integration and coordinated several of the plant’s main components.

The company described Haru Oni as an important demonstration of Power-to-X technology, in which renewable electricity is converted into transportable molecules and fuels.

The project also received approximately €8 million in support from Germany’s Federal Ministry for Economic Affairs and Energy as part of the country’s national hydrogen strategy.

Porsche’s Interest in E-Fuels

Porsche supported the project as part of its research into synthetic fuels for existing combustion engines.

The company planned to use the first fuel volumes in motorsport, vehicle testing and Porsche Experience Centres.

Porsche presented e-fuels as a potential complement to electric mobility, particularly for existing vehicles and applications where direct electrification may be difficult.

Planned Pilot Production

When construction began, the pilot plant was expected to start production during 2022.

The initial production target was approximately 130,000 litres of e-fuel per year. The pilot phase was intended to provide operational experience rather than immediately supply a large commercial market.

Future expansion plans discussed at the time projected much larger production volumes, although these depended on financing, permitting, renewable-power development and successful operation of the pilot facility.

Why the Construction Milestone Mattered

Before Haru Oni, many E-Fuel initiatives existed mainly as laboratory studies, engineering concepts or early project announcements.

Beginning physical construction demonstrated that the partners were moving toward an operating facility.

The project aimed to test:

• Equipment integration

• Production reliability

• Fuel quality

• Renewable-power variability

• System efficiency

• Maintenance requirements

• Certification processes

• International fuel logistics

Synthetic Fuel and Engine Compatibility

The planned synthetic gasoline was intended to have properties similar to conventional gasoline.

When a finished synthetic fuel meets the relevant technical specifications, it may potentially be used in compatible combustion engines and existing fuel infrastructure.

However, approval depends on the final composition, applicable standards, certification and engine requirements.

Environmental Performance

Synthetic fuel still releases carbon dioxide when it is combusted.

Its potential climate benefit depends on using renewable electricity and obtaining carbon from a non-fossil or recycled source. The complete environmental impact must therefore include:

• Electricity generation

• Hydrogen production

• Carbon sourcing

• Fuel conversion

• Transport and distribution

• Final engine efficiency

The project was designed to demonstrate technical feasibility, not to prove that every synthetic-fuel pathway would automatically be climate neutral.

What Happened After Construction Began

Haru Oni was later completed and officially opened on 20 December 2022.

At the opening ceremony, the first synthetic fuel produced at the site was used to refuel a Porsche 911. The facility’s pilot production target remained approximately 130,000 litres annually.