Japanese government invests US$ 36 million in HIF Global seeking reduce greenhouse gas emissions by 46% by 2030
HIF Global announced a US$36 million investment from Japanese government agency Jogmec, through Idemitsu Efuels America Corp., to expand the company’s projects in the United States, Australia, Chile and Uruguay.
Adding this investment to those made by Idemitsu Kosan and existing shareholders in May this year, HIF Global has raised US$200 million so far this year to finance its projects.
HIF Global is a world-leading e-Fuels company. HIF develops projects globally to convert renewable energy into e-fuels that can be used in existing engines. HIF is currently producing e-fuels at its HIF Haru Oni plants in southern Chile and is developing commercial-scale e-fuel projects in Texas, Uruguay, Australia and Chile.
Jogmec is the Japan Metals and Energy Security Organization; it is a Japanese government agency whose mission is to ensure a stable and affordable supply of energy and mineral resources for Japan.
E-FUELS ARE A REAL SOLUTION
The president of HIF Global, César Nortonnoted that Japan has set as a priority the commercial introduction of e-Fuels in its supply to support its mandate to reduce GHG emissions by 46% by 2030.
“With more than 18 months of production at our facilities in Haru Oni in the Magallanes Region, We have shown that e-Fuels are a real solutionWe envision a future in which e-Methanol, produced from abundant and low-cost renewable energy sources in the United States, Australia, Chile or Uruguay, be exported to Japan for the shipping industry or to be converted into fuels such as e-Gasoline, e-Diesel or e-SAF, which They can be used in current engines without the need to modify the existing infrastructure“, the executive commented.
For its part, the President of Jogmec, Daito Michio He explained that “So far, Jogmec has provided financial and technical support for the development of oil, gas and LNG. However, in light of the legislation update, our support is extended to new business areas of hydrogen, ammonia, e-fuels and carbon capture and storage (CCS). With this initial investment, Jogmec will contribute to achieving a carbon-neutral society.”
e-Fuels are produced using renewable-powered electrolysers to separate hydrogen from oxygen in water. The green hydrogen is combined with recycled carbon dioxide to produce carbon-neutral e-Fuels, chemically equivalent to fuels used today and which can be incorporated into existing engines without any modification. A synthesis process produces e-Methanol, which can be converted into other e-Fuels such as e-Gasoline, e-Diesel or Sustainable Aviation Fuel (e-SAF).
HIF Global has already announced collaborations with Japanese companies, with collaboration agreements in place with companies such as Eneos, Itochu, JFE Steel, MOL and Idemitsu. With the latter, a letter of intent was also generated for the supply of e-Methanol from HIF Matagorda facilities in Texas (United States), and an investment of US$ 114 million last May.
On the other hand, The growth of the Japanese e-Fuel market is supported by various critical policy initiatives driven by Japanese ministries in June 2021, which include a green growth strategy for 2050 towards carbon neutrality. In addition, the Asian country aims to commercialize e-Fuels at the beginning of 2030, which was announced by the Ministry of Energy, Trade and Industry in May last year. Added to this is the issuance of Japan’s Climate Transition Bonds, for JPY$ 20 trillion over the next ten years to finance tax credits for decarbonization. (Photo from HIF website cover).
