Idemitsu Kosan invests US$144 million in HIF Global to develop e-fuels

Japanese oil refining company, Idemitsu Kosan has made a US$144 million investment in leading e-fuels company, HIF Global to learn from the expert in the field and jointly develop e-fuels.

HIG Global announced that it has secured a combined investment of US$164 million to fund its e-fuels project from existing shareholders and Idemitsu. With the latest investment, Idemitsu joins a leading group of existing HIF investors that include AME, EIG, Porsche, Baker Hughes, and Gemstone Investments.

"This collaboration represents more than just an investment; it´s a reflection of our shared vision for a greener future," said Cesar Norton, President & CEO of HIF Global.

"We are very thankful for the support of our shareholders to continue developing a portfolio of e-fuels facilities around the world that can recycle approximately 25 million tonnes per year of CO2, equivalent to the emissions from over 5 million cars."

The latest investment by Idemitsu completes the first step in the four-part strategic cooperation announced in April 2023 which included the purchase of e-fuels by Idemitsu from HIF eFuels facilities worldwide, co-investments in HIF e-fuels facilities and new facilities in Japan, and supply of recycled carbon dioxide from Japan for use in the e-fuels production process.

The Japanese market for e-fuels is fast developing through Japan's supportive Green Growth Strategy Through Achieving Carbon Neutrality in 2050.

"To achieve carbon neutrality by 2050, we have decided to initially focus our resources on e-methanol, along with blue ammonia and SAF," said Susumu Nibuya, Representative Director, Executive Vice President, and COO of Idemitsu Kosan. "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."

HIF Global's e-fuels facility at Haru Oni in Chile is already producing carbon-neutral gasoline.

The company is expected to begin construction on the first world-scale e-fuels facility in Texas, USA this year and is currently expanding its facilities in Chile, USA, and Australia which are being developed to serve partners in Asia. Through strategic collaboration with major players like Idemitsu, HIF Global is looking to achieve its plan of 150,000 barrels per day of e-fuel production a reality.