Japanese shipping company Mitsui O.S.K. Lines (MOL) has signed a Memorandum of Understanding (MoU) with energy companies Idemitsu Kosan, HIF USA and HIF Asia Pacific on the joint development of a synthetic fuel (eFuel)/synthetic methanol (e-methanol) supply chain including CO2 marine transport.
Synthetic fuels and synthetic methanol are produced by synthesizing green hydrogen derived from renewable energy sources and CO2. The entire lifecycle of the product, from production to use of the final product, is expected to significantly reduce carbon emissions, and is positioned for swift commercialization.
In this joint development project, the partners will work to develop a synthetic fuel/methanol supply chain, including the transport CO2 as raw material, mainly through feasibility studies of the following items:
Through this initiative, MOL, Idemitsu, and HIF intend to work on the decarbonization of the energy and transportation industries and collaborate to develop potential business opportunities.
Specifically, HIF Global will assess the demand for CO2 in its eFuels production facilities around the world. Meanwhile, Idemitsu will study the capture of CO2 in Japan and MOL will examine the transportation and shipping of CO2 from Japan and eFuels to Japan.
“At HIF Global, we are developing a portfolio of eFuels facilities that would recycle approximately 25 million tonnes per year of CO 2 , equivalent to the emissions from over 5 million cars. Carbon neutral eFuels are an immediate replacement for fossil fuels across the global transport sector. Initiatives like this collaboration will bring us a step closer to fueling our world with renewable energy as we strive towards net zero emissions now,” Cesar Norton , President & CEO of HIF Global, said.
“As part of our commitment to sustainability, Idemitsu is actively working towards establishing a robust supply chain for eMethanol and eFuels. We recognize the importance of these low environmental impact alternatives in our business and their versatility,” Hiroshi Tanaka , General Manager (Carbon Neutral Transformation Department) of Idemitsu Kosan stated.
“Mitsui O.S.K. Lines is pleased to be working with HIF Global and Idemitsu Kosan to develop a value chain for CO 2 , synthetic fuel, and synthetic methanol, contributing to decarbonization throughout the lifecycle. We will establish efficient maritime transport of CO2, synthetic methanol, and synthetic fuel within the supply chain connecting Japanese and overseas projects,” Hirofumi Kuwata , Senior Managing Executive Officer of MOL noted.
The parties will also discuss the sale and purchase of eFuels and analyze the resulting greenhouse gas emissions reduction.
In January this year, HIF Global and Japanese companies ITOCHU, JFE Steel, and MOL signed an agreement to jointly identify and assess potential locations to establish carbon-neutral eFuels facilities in Australia as well as a CO2 supply chain between Australia and Japan.