JOGMEC has committed to an equity investment through Idemitsu Efuels America Corp., marking its first financial backing for eFuels projects, a hydrogen-based technology. This investment is part of JOGMEC’s expanded focus under new regulations, which now include support for hydrogen, ammonia, e-fuels, and carbon capture and storage (CCS) as part of efforts toward a carbon-neutral society.
DAITO Michio, President of JOGMEC, highlighted the shift from traditional support for oil, gas, and LNG to these emerging areas: “JOGMEC’s new support initiatives align with our goal to advance a carbon-neutral society through these innovative technologies.”
With this new investment and previous commitments from Idemitsu and other shareholders announced in May 2024, HIF Global has now secured a total of $200 million in new funding this year for its global eFuels projects.
Cesar Norton, President & CEO of HIF Global, emphasized the significance of this funding for Japan’s climate goals: “Japan aims for a 46% reduction in GHG emissions by 2030, and e-Fuels are a crucial part of this strategy. Our Haru Oni facility in southern Chile has already demonstrated the viability of e-Fuels with over 18 months of production.”
Norton envisions a future where e-Methanol produced from renewable energy sources in countries like the USA, Australia, Chile, or Uruguay could be exported to Japan. This e-Methanol could be used in green shipping or further refined into e-Gasoline, e-Diesel, or e-SAF, compatible with existing engines and infrastructure.
eFuels, synthesized from hydrogen and CO2 using renewable energy, can be utilized in existing storage and transportation infrastructures and require no modifications to current engines. They are anticipated to play a significant role in early decarbonization efforts, particularly in the shipping industry, which is exploring eFuels as a replacement for traditional marine fuels to reduce GHG emissions.
