U.S.-based eFuels producer HIF Global has announced a $36 million equity investment by the Japan Organization for Metals and Energy Security (JOGMEC) to expand its eFuels projects in the U.S., Australia, Chile, and Uruguay.
JOGMEC determined to provide equity financing via Idemitsu Efuels America Corp. As disclosed, this is the first time for JOGMEC to provide equity investment for eFuels projects, a form of hydrogen.
“JOGMEC has provided financial and technical support for the development of oil, gas, and LNG so far. However, by the revised act, our support extends to new business areas of hydrogen, ammonia, e-fuels, and CCS (carbon capture and storage). Just starting with this investment, JOGMEC will contribute to realizing a carbon-neutral society,” DAITO Michio , President of JOGMEC, pointed out.
When combined with the investments by Idemitsu and existing shareholders announced in May 2024, HIF Global has now secured $200 million of new funding year-to-date to fund the development of its eFuels projects globally.
Cesar Norton , President & CEO of HIF Global, said: “Japan set a priority for the commercial introduction of e-Fuels into its fuel supply to support their mandate for 46% GHG emissions reduction by 2030. We have already proven e-Fuels are a real solution with over 18 months of e-Fuels production from our Haru Oni facility in southern Chile.
“We foresee a future when e-Methanol, produced by low-cost, abundant sources of renewable energy in the USA, Australia, Chile, or Uruguay, is exported to Japan for green shipping, or to be further refined into fuels like e-Gasoline, e-Diesel, or e-SAF, to be dropped-in to existing engines without the need for any changes to our infrastructure.”
eFuels are produced by synthesizing hydrogen from renewable energy sources and CO2. They can be utilized in existing infrastructures such as storage tanks and pipelines and can be dropped in to existing engines without any modifications.
eFuels are expected to play an important role as an early decarbonization measures, including in the shipping industry which recognizes eFuels as one of the candidates for replacing conventional marine fuels, which can help reduce greenhouse gas (GHG) emissions.
The equity investment by JOGMEC follows HIF Global’s previous collaborations with Japanese companies. These include: