Idemitsu Kosan Co.,Ltd. has agreed with HIF USA, a subsidiary of HIF Global, which manufactures e-fuels in South America, North America, Australia, and elsewhere, to jointly procure e-methanol from the HIF group and to study the development of an e-methanol business. e-methanol is produced by synthesizing CO2 recovered from the atmosphere and other sources with hydrogen derived from renewable energy. In addition to direct use as marine fuel, for which demand is expected to continue to grow, e-methanol can be used to selectively produce e-fuels such as synthetic gasoline, synthetic SAF (Sustainable Aviation Fuel), synthetic diesel, and synthetic chemicals.

Unlike methanol, which is produced from fossil fuels, CO2 itself is used as a raw material, making a significant contribution to low carbon emissions throughout the product life cycle, including the use of the final product. HIF USA is in the process of starting up a 1.4 million ton/year e-methanol production facility in Matagorda, Texas, USA. In March of this year, Idemitsu signed an MOU with HIF Global for a strategic partnership in the field of e-fuels, and has been working with the HIF group on various studies for early social implementation of e- fuels.

This agreement is part of that progress, and the parties have now agreed to work together to study the procurement of e-methanol from the HIF group and the development of an e-methanol business. Methanol is a liquid under normal temperature and pressure, and Idemitsu's existing facilities such as tanks and pipelines can be used for storage, transportation, and supply. Aiming to establish a supply chain for e-methanol, which has low environmental impact and high versatility, Idemitsu will accelerate studies on procurement of e- methanol from overseas where it can be produced using inexpensive renewable energy, development of demand for marine fuel applications and bunkering facilities, and production of e-fuels and synthetic chemicals in Japan.