Idemitsu invests USD114 million in HIF Global to develop eFuels

Japanese energy giant Idemitsu Kosan has announced a significant investment of USD114 million in HIF Global, a leading company in the eFuels sector. This strategic move is part of a combined investment of USD164 million from existing shareholders and Idemitsu, aimed at advancing eFuels projects in the U.S.A., Australia, Chile, and Uruguay.

HIF Global, known for its pioneering work in eFuels, continues to expand its portfolio with support from prominent investors, including AME, EIG, Porsche, Baker Hughes, and Gemstone Investments. Cesar Norton, president and CEO of HIF Global, expressed enthusiasm about the partnership, stating, “We welcome our new partner Idemitsu into this exciting journey to fuel our world with renewable energy. This collaboration represents more than just an investment; it’s a reflection of our shared vision for a greener future. We are very thankful for the support of our shareholders to continue developing a portfolio of eFuels facilities around the world that can recycle approximately 25 million tonnes per year of CO2, equivalent to the emissions from over 5 million cars.”

Susumu Nibuya, representative director, executive vice president, and chief operating officer of Idemitsu Kosan, highlighted the importance of this investment for achieving carbon neutrality by 2050. “To achieve carbon neutrality by 2050, we have decided to initially focus our resources on e-methanol, along with blue ammonia and SAF. We are eager to learn from HIF Global, a pioneer in e-methanol with extensive expertise in this field. Together, we aspire to develop a market for e-methanol and synthetic fuels.”

This investment marks the first step in a four-part cooperation strategy that includes the investment, purchase of eFuels, development of eFuels markets in Japan, and creation of CO2 supply chains. The Japanese market for eFuels is gaining momentum, supported by policymakers under the Green Growth Strategy aimed at achieving carbon neutrality by 2050.