E-fuels company HIF Global has signed a land reservation contract with the Port of Açu, one of Brazil’s main ports, to develop a facility to produce up to 800,000 tons per year of e-methanol.
HIF Global revealed that a large area within the complex of Port of Açu has been reserved for the facility, adding that the port will provide support in several aspects related to the project development.
The Port of Açu is located in the state of Rio de Janeiro and holds the preliminary environmental license for the development of a hydrogen and derivatives hub. According to HIF Global, the port complex stands out as an “important logistics and industrial center” and is positioning itself as a player in the renewable energy sector. The HIF project is expected to attract new investment and boost the local economy.
Cesar Norton, President and CEO of HIF Global, commented: “We have been operating the world’s first e-Fuels facility for over a year in southern Chile, demonstrating e-Fuels are a real and concrete solution to fight climate change now. The Port of Açu will be a fundamental pillar in building a sustainable future, and we are excited to work together on this first HIF Global development in Brazil.”
Mauro Andrade, Executive Director of Business Development at Prumo, stated: “The agreement with HIF Global is a milestone for the Port of Açu and the region in this new industry. We are committed to promoting sustainable development and contributing to a cleaner and more energy-efficient future.”
To note, 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.
HIF Global said the company is seeking e-fuels development sites worldwide that have the optimal combination of conditions, including access to low-cost renewable energy, an abundance of CO2 sources, stable legal frameworks, favorable market conditions and well-developed port facilities. This is its first project in Brazil. The company already has projects in Chile, Uruguay, Australia and the U.S.
In September 2024, Japan’s shipping giant Mitsui O.S.K Lines (MOL) announced its investment in HIF Global through its wholly-owned subsidiary MOL Clean Energy, aiming to reduce carbon emissions by promoting the establishment of an e-fuel and CO2 supply chain.
In August 2024, HIF Global’s e-fuel portfolio was given a boost 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.
HIF Global has reportedly secured well over $200 million of new funding year-to-date to fund the development of its e-fuel projects globally.