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.
About HIF Global
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 MatagordaeFuels Facility in Texas in 2024. HIF Global’s first Australian development, in Tasmania, was announced in July 2022.
About ENAP
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.
Source
HIF Global, press release, 2023-12-05.
Supplier
HIF Global
National Petroleum Company (ENAP)
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