HIF Global and Uniper in deal to produce and sell eFuels

Norwegian energy major Equinor’s Global Commodities division has signed a letter of intent with HIF Global and HIF Chile for the sale and purchase of eFuels from the commercial plants under development in Magallanes, Chile, the company said on Thursday.

Both entities will explore further opportunities for Uniper to buy up to 2 million tons per year of eMethanol from four commercial plants in Chile, representing 50 percent of the production from each plant, the company said in a statement.

Production from the first commercial plant in Chile is expected to begin in 2025 with 150,000 tons per year of eMethanol, while production from the second one will is scheduled for 2027 and will be the first industrial scale plant with 1.3 million tons per year of eMethanol. Each subsequent industrial scale commercial plant is expected to begin production after 2027.

According to HIF, the eFuels will be certified under recognised international standard of emission reductions, a fundamental requirement to comply with European decarbonisation regulations.

“eFuels based on green hydrogen and recycled carbon dioxide are critical to accelerating the decarbonisation of the transport sector. Due to the exceptional renewable energy resources in the area, our sites in Magallanes, Chile, can produce large volumes of highly competitive eFuels for sale worldwide,” HIF Global COO Clara Bowman said in a statement.

HIF Global is developing projects to convert hydrogen made using low-cost renewable power into carbon neutral liquid eFuels that can be transported and utilised in existing infrastructure.