HIF teams up with Idemitsu Kosan and MOL to develop eFuels supply chain

HIF Global has announced a partnership with Idemitsu Kosan, a leading Japanese energy company, and Mitsui O.S.K. Lines, Ltd. (MOL), a leading Japanese global shipping company, to develop a supply chain for eFuels from the United States, Australia, and Chile to Japan. This initiative also includes plans to transport carbon dioxide (CO2) from Japan to HIF’s eFuels production facilities, marking a significant step towards sustainable energy solutions.

The collaboration aims to leverage CO2 from Japan as a key feedstock in the eFuels production process at HIF’s facilities under development across the U.S.A., Australia, and Chile.

Cesar Norton, president and CEO of HIF Global, highlighted the company’s ambitious plans to recycle approximately 25 million tonnes of CO2 annually through its eFuels facilities, equivalent to offsetting emissions from more than five million cars. He emphasised the role of carbon-neutral eFuels as an immediate substitute for fossil fuels, propelling the global transport sector towards net-zero emissions.

Headquartered in Santiago, Chile, HIF Global’s equity investors include funds managed by German automaker Porsche AG; EIG, a leading institutional investor to the global energy and infrastructure sectors headquartered in Washington, D.C.; AME, the fifth largest electricity generator in Chile; Baker Hughes Company, one of the world’s largest oil field services companies; and, Gemstone Investments, a family office investment firm founded by Meg Gentle, an executive director of the Board at HIF Global, to make investments in the energy sector.

Hiroshi Tanaka, general manager of Idemitsu Kosan’s Carbon Neutral Transformation Department, expressed the company’s dedication to establishing a robust supply chain for eMethanol and eFuels. Tanaka sees this collaboration as a pivotal move in reducing carbon emissions and developing new business opportunities within the supply chain.

Hirofumi Kuwata, senior managing executive officer of MOL, shared the company’s enthusiasm for contributing to the decarbonisation of the lifecycle of CO2, synthetic fuel, and synthetic methanol. MOL aims to establish efficient maritime transport for these substances, connecting Japanese and overseas projects.

The partnership will explore the sale and purchase of eFuels and assess the potential greenhouse gas emissions reductions. eFuels are produced using renewable energy-powered electrolyzers to separate hydrogen from water, which is then combined with recycled CO2 to create carbon-neutral fuels. These eFuels are chemically identical to conventional fuels, allowing them to be used in existing engines without modifications.

HIF Global is on track to produce 150,000 barrels per day of eFuels by 2035 and has already commenced eFuels production at its Haru Oni facility in Chile. The company plans to start construction of the HIF Matagorda eFuels Facility in Texas in 2024 and has announced developments in Tasmania, Australia, and Paysandú, Uruguay.

Idemitsu Kosan is committed to implementing diverse, low-carbon energy solutions and aims to establish a green supply chain for biomass-derived fuels and chemicals by 2030. MOL Group’s sustainability efforts focus on environmental conservation and innovation in marine technology.

This collaboration represents a significant advancement in the global shift towards sustainable energy, highlighting the potential of eFuels to play a crucial role in achieving a carbon-neutral future.