Japan's JOGMEC invests USD-36m in e-fuels firm HIF Global

Japan Organization for Metals and Energy Security (JOGMEC), a Japanese government agency, has made a USD-36-million (EUR 33m) equity investment into global e-fuels project developer HIF Global, intending to secure shipments of the carbon-free fuels for Japan’s decarbonisation efforts.

JOGMEC invested through Idemitsu Efuels America Corp, a subsidiary of Japanese petroleum refiner Idemitsu Kosan Co Ltd (TYO: 5019), gaining an equity stake of an undisclosed size, according to its press release on Thursday.

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Idemitsu alone contributed USD 114 million in an earlier fundraiser, as announced by HIF Global in May this year.

HIF operates a pilot e-fuels plant at its Haru Oni site in Magallanes, Chile, and is expected to start construction of a commercial-scale facility in Matagorda, Texas, some time in 2024. The company is also developing e-fuels production sites in Australia and Uruguay.

“Through this investment, Idemitsu plans to source e-Methanol from HIF Global’s facilities and is committed to building up a green and sustainable supply chain of e-Fuels (including e-Methanol) around Japan,” JOGMECs said in the press release.

Its investment, JOGMEC adds, will accelerate the establishment of supply chains of hydrogen, including its derivatives such as e-methanol, and drive Japan’s decarbonisation and energy transition.

“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, “ HIF Global President and CEO, Cesar Norton, said in a separate statement.

“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,” Norton added.

(USD 1.0 = EUR 0.917)