Mabanaft and HIF Global shake hands on e-methanol purchase for shipping industry

German energy company Mabanaft and e-fuels producer HIF Global have signed a heads of agreement (HoA) for the planned offtake of e-methanol for the shipping industry.

The agreement outlines the starting point to advance negotiations of a definitive sales and purchase agreement involving an offtake of up to 100,000 tons per annum of e-methanol produced at HIF Global’s facilities from renewable electricity and captured CO2.

The deal expands an initial memorandum of understanding (MoU) signed by Mabanft and HIF Global in 2021 to include production facilities in Uruguay and the United States in addition to Chile.

Volker Ebeling, Senior Vice President New Energy, Supply & Infrastructure at Mabanaft, said: “We strongly believe in the potential of e-methanol as a key enabler of the energy transition, and we are proud to deepen our partnership with HIF Global.

“This agreement is a further step forward in providing our shipping customers with a viable, alternative fuel. In parallel we are now in the process of making methanol storage available at our Hamburg tank terminal and possibly further global locations. Our combined efforts help bridging the gap towards a broader adoption of methanol in the maritime sector.”

Diego Fettweis, Chief Commercial Officer of HIF Global, added: “Today we take another step in leading the e-Fuels industry, joining forces to break into a key market: shipping. Drop-in fuels can make a relevant difference ensuring a secure energy supply while leveraging existing infrastructure.” 

In 2024, HIF Global’s e-fuel portfolio was boosted with a $36 million investment from Japan Organization for Metals and Energy Security (JOGMEC) which provided the equity financing via Idemitsu Efuels America Corp. This move is said to be JOGMEC’s ‘first time’ to offer an equity investment for e-fuel projects.