HIF Global and Enap Sign Agreement to Accelerate Use of eFuels in Chile

(HIF Global and Enap) First collaboration for carbon-neutral eFuels in the Chilean market eFuels can be used in today’s cars without any changes to engines or infrastructure -- - HIF Global, the world’s leading eFuels company, and Chile’s state-owned petroleum company Enap signed a Memorandum of Understanding (“MoU”) to accelerate the use of carbon neutral eFuels in Chile.

The agreement anticipates the delivery of approximately 22.5 to 37.5 million liters of eGasoline per year from the future HIF Cabo Negro eFuels facility, to be located in southern Chile, which represents between 30% and 50% of its annual production.

Enap´s storage, distribution and refining capacity will allow them to distribute this new product using its logistics structure in the country, in addition to exploring other collaboration opportunities related to future HIF facilities in southern Chile.

Cesar Norton, President and CEO of HIF Global, said “This public-private partnership strengthens Chile’s leadership position in the fight against climate change and accelerates the use of carbon-neutral eFuels right here in Chile. Enap’s fuels distribution capabilities are material contributions toward the success of the first Chilean commercial scale eFuels facility. We are pleased that Enap shares our vision as we embark on the first step to convert approximately 15,000 Chilean vehicles per year to carbon neutrality together; and we anticipate growing the Chilean market for synthetic eGasoline produced from green hydrogen with future expansions at our facilities in the Magallanes region.”

"Enap has great potential to accelerate Chiles decarbonization´s efforts thanks to its logistics capacity in the central and southern areas, its plan to develop enabling infrastructure for the green hydrogen industry, and the development of new fuels in its refineries. All of these elements come together to move forward in the energy transition in a responsible and sustainable way from a technical and financial point of view" said Enap's CEO, Julio Friedmann.

eMethanol and eGasoline are carbon-neutral fuels made by combining green hydrogen and recycled CO2. They are chemically equivalent to today’s methanol and gasoline and can therefore be used in existing infrastructure without any modifications to the engines.

HIF Cabo Negro, which began its environmental assessment process a few weeks ago, has a production capacity of 173,600 tonnes per year of eMethanol and 75 million liters per year of eGasoline. It will be located in Enap's Cabo Negro industrial complex in Punta Arenas, Chile, and will be powered with renewable energy from the future Faro del Sur Wind Park. It considers a US$ 830 million investment.

HIF Global is the world’s leading eFuels company, developing projects to convert hydrogen using low cost renewable power into carbon neutral liquid eFuels that can be transported and utilized in existing infrastructure. The name HIF represents the mission of the company: to provide Highly Innovative Fuels to make decarbonization of the planet possible. HIF Latam, HIF USA, HIF Asia Pacific, and HIF EMEA are wholly owned subsidiaries of HIF Global. HIF Global is already producing eFuels in its Haru Oni eFuels Facility in Magallanes, Chile and intends to begin construction of the commercial scale HIF Matagorda eFuels Facility in Texas in 2024. HIF Global’s first Australian development, in Tasmania, was announced in July 2022. For more information, visit www.hifglobal.com.

ENAP is the sole owner of refining assets in Chile with 224 kbbl/day refining capacity. Sells wholesale to the largest fuel distributors, with an 88% market share in gasoline and 43% in diesel. Extensive network of logistics and storage assets in the country: storage facilities, pipelines (e.g. Sonacol), four maritime terminals, and a 20% stake in GNL Quintero. Imports nearly all of its crude oil from abroad (Brazil, Ecuador, Angola and Argentina), through the main O&G companies in the world. Commercial relationships with wholesale clients allow for optimization of operating resources and better estimation of sales volumes. Since 2019, the Gas & Energy segment is consolidated within R&M. More info: www.enap.cl READ MORE

Excerpt from HIF Global: .HIF Global, the world’s leading e-Fuels company, announced an investment from Mitsui O.S.K. Lines, LTD. (MOL), the international shipping company, to finance the expansion of its e-Fuels projects in the USA, Australia, Chile, and Uruguay.

MOL is the third Japanese entity to invest in HIF Global this year, following the Japanese energy company Idemitsu Kosan announced last May, and an investment by the Japan Organization for Metals and Energy Security (JOGMEC). The HIF – Japanese partnership now represents a value chain of collective capabilities, where HIF produces e-Fuels, MOL transports fuel cargoes to market centers, and Idemitsu provides further handling in ports and refineries.

HIF Global has secured USD 220 million of new funding for the development of its e-Fuels projects yearto-date 2024. MOL joins HIF Global’s existing investor portfolio, which includes AME, EIG, Porsche, Baker Hughes, Gemstone Investments, Idemitsu Kosan, and JOGMEC.

Cesar Norton, President and CEO of HIF Global, stated: “As one of the largest shipping companies, MOL is pivotal to the global accessibility of e-Methanol. We welcome MOL to the HIF partnership as we build a strategic value chain delivery capability that supplies decarbonization and a greener future from low cost production areas to market centers worldwide. Together we develop the capability to produce e-Fuels and deliver them to our customers on MOL’s fleet of carriers”

MOL aims to contribute to the building of e-Fuels supply chain together with strategic partners towards reducing emissions and the sustainable society.

e-Fuels are made using electrolyzers powered by renewable energy to separate hydrogen from oxygen in the molecule of water. The hydrogen is combined with recycled carbon dioxide to produce carbon neutral e-Fuels, such as e-Methanol, which can be used as a shipping fuel or converted into other e-Fuels including e-Gasoline for cars, e-SAF for planes, and e-Diesel for trucks. e-Fuels are chemically equivalent to fuels used today and can therefore be dropped-in to existing engines without requiring modifications.

Global HIF Global is the world’s leading e-Fuels company, developing projects worldwide to convert renewable energy into near carbon neutral e-Fuels that can be utilized in existing engines. The name HIF represents the mission of the company: to provide Highly Innovative Fuels to make decarbonization of the planet possible. HIF is producing e-Fuels today at its HIF Haru Oni e-Fuels facility in southern Chile and is developing commercial-scale e-Fuels facilities in United States, Uruguay, Australia, and Chile. For more information, visit www.hifglobal.com.

MOL Group identifies "Sustainability Issues" (Materiality) as our key issues for sustainable growth with society through realization of the Group Vision. We anticipate this initiative to contribute especially to the realization of “Environment -Conservation for Marine and global environment-” and “Innovation - Innovation for development in marine technology-”. More information in www.mol.co.jp. READ MORE