Japan’s Idemitsu invests in US e-methanol producer HIF

Market: E-fuels, Hydrogen
13/05/24

Japanese refiner Idemitsu is investing in US synthetic fuel (e-fuel) producer HIF Global to develop a supply chain of e-methanol, as part of a strategy to achieve net zero emissions by 2050.

Idemitsu said on 13 May that it has agreed to spend $114mn to secure an undisclosed stake in HIF after the US firm issued new shares. HIF is expected to produce around 4mn t/yr of e-methanol equivalent by 2030 at its production sites in Australia, North America and South America.

E-methanol is typically made from green hydrogen and carbon dioxide (CO2). This is used as an alternative bunker fuel and as a feedstock for synthetic fuels, including gasoline, sustainable aviation fuel (SAF) and diesel, as well as synthetic chemicals.

Idemitsu is focusing on e-methanol, along with blue ammonia and SAF, as its investment targets to achieve net zero by 2050. The company aims to set up 500,000 t/yr of e-methanol supplies in domestic and overseas markets in 2035 by using its existing oil supply and sales networks. The target includes unspecified volumes from HIF, possible production in the Middle East and domestic output, Idemitsu said.

The deal follows Idemitsu's initial agreement with HIF in March 2023 to work on production and promotion of e-fuels, along with a decision to buy e-methanol from HIF and jointly study the possible development of the fuel.

Idemitsu also agreed an initial deal with HIF and Japanese shipping firm Mitsui OSK Line to explore opportunities to develop an e-fuel and e-methanol supply chain between Japan and where HIF's e-fuel and e-methanol production plants are located, including CO2 transportation from Japan to HIF's production sites.

By Motoko Hasegawa

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

10/06/25

Lithuania mulls green H2 transport quota at EU minimum

London, 10 June (Argus) — Lithuania is planning to set its 2030 quota for use of renewable hydrogen and derivatives in the transport sector in line with the EU's 1pc minimum, underpinned by penalties for non-compliance of €7.20/kg. Like most other EU countries , Lithuania has missed the EU's 21 May deadline for transposition of the revised renewable energy directive (REDIII). But the country is planning to amend its "law on alternative fuels" to meet the REDIII requirements, the energy ministry has told Argus . A draft proposal for this foresees that fuel suppliers would have to meet a 1pc share of renewable fuels of non-biological origin (RFNBOs), which are effectively renewable hydrogen and derivatives, in line with the minimum quota that countries have to reach. The revised law would also set a 5.5pc combined target for advanced biofuels and RFNBOs by 2030. This too would be in line with the EU's minimum. Unlike some EU peers, including Finland , France ) and Romania , Lithuania is not planning a phase in for the RFNBO standalone quota or the combined advanced biofuels and RFNBO share. Finland and Romania have opted for more ambitious 2030 RFNBO targets at 4pc and 5pc, respectively, while others like Denmark have also gone for the minimum necessary to meet EU requirements, prompting criticism from local hydrogen industry participants . Lithuania's proposal foresees that companies failing to comply with the 2030 quotas would pay a penalty of €0.06 for each MJ that they fall short of their obligations under the energy ministry's plans. This would be equivalent to €7.20/kg of hydrogen based on hydrogen's lower heating value of 120MJ/kg. This is lower than penalties foreseen by some peers, such as France and the Czech Republic where fees would be close to €10/kg. Lithuania late last year aimed to boost development of renewable hydrogen production facilities through the European hydrogen bank's auctions-as-a-service mechanism. But it will not be able to award any subsidies because of a lack of bids . By Alexandra Luca Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Partners to build NH3 bunkering in Australia’s Pilbara

10/06/25

News

10/06/25

Partners to build NH3 bunkering in Australia’s Pilbara

Sydney, 10 June (Argus) — Australia-based blue ammonia firm NH3 Clean Energy and marine fuels company Oceania Marine Energy have signed an initial agreement with Australian port authority Pilbara Ports to develop low-emissions ammonia bunkering at the port of Dampier in Western Australia (WA). The partners aim to establish ammonia bunkering to service iron ore carriers at Dampier by 2030, NH3 Clean Energy said today. PPA is the world's largest bulk handling authority, shipping 750mn t/yr of commodities. NH3 Clean Energy is developing the WAH-2 blue ammonia plant near the WA city of Karratha, for which it hopes to take a final investment decision for a 650,000 t/yr phase 1 in late 2026 . Privately owned Oceania is establishing a bunkering business that will use LNG and ammonia at Pilbara Ports sites, with operations set to begin in 2027 and 2028, respectively. Oceania plans to use ship-to-ship transfer to supply low-emissions fuels, and is working with Singapore maritime firm Seatech Solutions on a vessel with capacity for 10,000m³ NH3 parcels. About 300 bulk carriers service Pilbara Ports's iron ore trade. If just 16 of these operated on ammonia and bunkered in Australia, 600,000 t/yr of ammonia would be required — more than 90pc of WAH-2 's phase 1 output, NH3 Clean Energy said. WA could become a world leader in lower-emissions shipping, the firm said, referencing recently adopted International Maritime Organisation (IMO) emissions limits and carbon pricing . The IMO's plan has disappointed some hydrogen industry associations and environmental groups , which claim hydrogen-based bunkering fuels will remain at a disadvantage to biofuels and LNG under the agreement. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Q&A: Engie targets Mideast Gulf efficiency, renewables

02/06/25

News

02/06/25

Q&A: Engie targets Mideast Gulf efficiency, renewables

Dubai, 2 June (Argus) — As Mideast Gulf countries race toward ambitious net-zero goals, global utility Engie is refocusing its presence in the region, doubling down on core markets like the UAE and Saudi Arabia. Engie is ramping up renewables, flexible power and grid-stabilising tech while maintaining a balanced approach to its legacy thermal and desalination operations, in line with a 2045 net zero target. The company was bullish on green hydrogen just a few years ago, but is now taking a more cautious approach as technology and economics evolve slower than expected. Argus spoke to Engie's Gulf Co-operation Council (GCC) flexible power managing director Niko Cornelis on the sidelines of the World Utilities Congress in Abu Dhabi. What role does Engie envision for itself in the region's transition to net zero? The ambitions for Engie in CO2 emissions reduction and net zero are stricter than the ambitions in the region. But we feel supported by the governments that have similar goals, even if the timelines sometimes differ. We are a developer, which means we are developing different projects in the energy and water sectors and support the countries in these fields. If you look at our scope here in the UAE, we have thermal and desalination assets and we see shifts driven by the government to move towards low-carbon emitters in the future. This means that for our thermal assets, we are looking at upgrades to be more efficient. For new projects, we are focusing on the development of renewables, battery energy storage systems (BESS), low-carbon thermal power generation and desalination switching entirely to reverse osmosis (RO), which is five to seven times more efficient — particularly if pulling electricity from on-site renewables. You mentioned efficiency multiple times. Will there be a pause in building new projects to work on upgrading the efficiency of existing assets? We would not shut down existing thermal sites and build renewables instead. It does not work like that. We bid on different projects launched by the governments and we have become way more active in the renewables field, in a break with the past. But rebuilding an asset to make it more efficient is not viable. So we can instead look at existing assets, see if there are technology improvements etc that may have a direct impact on efficiency. When building a new combined-cycle gas turbine (CCGT) asset, we typically try to incorporate the latest technology to achieve the highest possible efficiency — nowadays 60-65pc versus 50-55pc for assets developed in the 1990s or 2000s. But in addition to efficiency, grid stability is also crucial. Therefore, from our perspective, we also want to focus on ways to stabilise the grids — which we refer to as flexible power (flex power) and can be through batteries and open-cycle gas turbine (OCGT) projects. Flex power is the safety net — it ensures reliability as we transition to a cleaner, more renewables-based energy system. And it allows for the secure safety of power supply to customers. With Engie's recent divestment from certain assets in Kuwait and Bahrain, how does this realignment reflect the company's broader strategic vision in the GCC? For a few years now, Engie's strategic vision has generally been as follows. We have a lot of activities in a lot of countries, which have not always been that structured. What we prefer to do is work where we are strong. That means instead of working in all these countries, we want to limit the number of countries where we are active. Where we want to have a more consolidated portfolio and a bloated platform in order to support the government and these countries. That is the general view. If you translate it to the region, you see for instance that in Kuwait we have one gas asset. But if we consider our wider 2045 net zero ambition, this cannot happen overnight. There needs to be an incrementally decreasing CO2 footprint in the country while renewables scale up. If you take Saudi Arabia or the UAE, there is a huge portfolio of renewables and BESS projects there. And with the strong basis we already have in these countries, we are looking at huge growth. Here, our role as an industrial player across the entire value chain allows us to perform much more effectively. Can you elaborate on Engie's collaborative efforts with regional partners in advancing green hydrogen projects? What we have seen over the past two to three years is that while there were huge ambitions for green hydrogen, they were often based on optimistic assumptions about technological advances and cost reductions. For green hydrogen to truly scale, we need a viable offtake market — one that is prepared to absorb the premium costs that green hydrogen currently commands. This remains one of the biggest missing pieces in the ecosystem. So what you see is a slower-than-expected evolution while the costs are still high. Could you share updates on Engie's upcoming GCC projects currently in development or pre-financial close stages, and what timelines you are aiming at? We were one of the three short-listed bidders for the 1.5GW Al-Khazna solar PV independent power producer (IPP) project in Abu Dhabi and are hoping for a successful outcome. Should we be awarded the project, we anticipate it will come on line between the second and third quarters of 2028. Over the past year, we have significantly strengthened our focus on developing renewables and flexible power assets. The project is targeting commercial operations by July 2028. Over the past year or so, we have expanded the capacity at the Sohar 1 power generation and desalination plant in Oman. Sohar 1 was originally a 585MW CCGT plant with 150,000 m³/d desalination capacity, whose power purchase agreement (PPA) expired in May 2022. Engie maintained the plant in preservation mode and, after successful debt restructuring, secured a new PPA in October 2024 for 405MW of OCGT capacity. The plant resumed commercial operations on 28 March. Looking at affordability, it is better to extend current contracts than build new projects. Engie also secured a 15-year extension and reconfiguration of the Shuweihat 1 power plant, in partnership with Taqa and Sumitomo. Transitioning from a cogeneration facility to a 1.1GW open-cycle gas plant, Shuweihat 1 will provide fast, flexible reserve capacity critical to integrating Abu Dhabi's growing renewable energy portfolio. The conversion optimises existing infrastructure, minimises carbon intensity and enhances grid stability, reinforcing Engie's role as a leader in supporting the UAE's net zero ambition. Commercial operations are set for 2027. With regional competition growing in clean energy and hydrogen, how is Engie positioning itself to remain a preferred partner for governments and sovereign funds across the Gulf? We recognise that the Gulf's ambitions for clean energy are accelerating — and competition is intensifying. What sets us apart is a simple but powerful approach — we position ourselves not just as a project developer, but as a long-term strategic reliable partner aligned with national visions like the Saudi Vision 2030 and the UAE's Net Zero 2050. In clean energy, we are scaling at pace. Across the region, we are building gigawatt-scale renewables while expanding in BESS and grid flexibility solutions, which are critical to decarbonising at scale. Our 2045 Net Zero target is underpinned by a pragmatic roadmap — not only growing renewables, but also decarbonising molecules and investing in solutions like carbon capture, utilisation and storage (CCUS). This resonates with governments and sovereign investors that are looking for partners capable of delivering growth and climate ambition. Ultimately, we see ourselves as an extension of the region's aspirations — flexible, innovative and firmly committed to creating lasting value for the Gulf. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Dutch pension fund invests €250mn in SAF firm SkyNRG

30/05/25

News

30/05/25

Dutch pension fund invests €250mn in SAF firm SkyNRG

Amsterdam, 30 May (Argus) — Dutch pension services provider APG is investing up to €250mn ($283mn) in Dutch sustainable aviation fuel (SAF) distributor SkyNRG, to accelerate that company's global development of SAF production facilities. The funding, on behalf of pension fund ABP, is a part of a wider €300mn round that also includes an additional €50m from Macquarie Asset Management in 2023 , to take its backing to €225mn from €175mn. The capital will support SkyNRG's SAF infrastructure expansion and its existing production facilities. In the Netherlands, SkyNRG is developing a 100,000 t/yr hydroprocessed esters and fatty acids SAF plant at Delfzijl . In Sweden, through a joint venture with power company Skelleftea Kraft, it is developing 100,000 t/yr e-SAF plant from renewable electricity and biogenic CO2 . In the US, SkyNRG is preparing a 150,000 t/yr facility combining SAF and renewable diesel production from feedstocks such as syngas. Located at the Port of Walla Walla in Washington state, construction is slated to begin in 2026, with production expected by 2029. SkyNRG supplies SAF to airlines and corporate customers. Its push for dedicated SAF facilities is to meet anticipated demand driven by mandates like ReFuelEU . Under that mandate, fuel suppliers will need to include 2pc SAF in their jet fuel deliveries in 2025, rising to 6pc in 2030, 20pc in 2035, 34pc in 2040, 42pc in 2045 and 70pc in 2050. RefuelEU also requires a specific proportion of synthetic aviation fuels, such as e-kerosene and hydrogen, that are defined as renewable fuels of non-biological origin (RFNBOs). Synthetics must reach a total share of aviation fuels of 1.2pc in 2030, 2pc in 2032, 5pc in 2035 and 35pc in 2050. European SAF prices have been at relatively low levels because of oversupply, but started picking up recently. Argus assessed spot hydrotreated esters and fatty acids (HEFA) synthetic paraffinic kerosene (SPK) fob ARA range at $1,886.5/t on 29 May, up from $1,177.8/t on 22 May, driven by stronger seasonal European demand ahead of the summer flying season. By Anna Prokhorova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Verdagy, Mainspring to demo H2-fueled linear generators

28/05/25

News

28/05/25

Verdagy, Mainspring to demo H2-fueled linear generators

Houston, 28 May (Argus) — Clean hydrogen producer Verdagy will install Mainspring Energy's linear generators at its plant in California to power its electrolyzer manufacturing, marking the first time Mainspring's fuel-flexible units will run solely on hydrogen on a commercial scale. The companies expect operations to begin this summer, they said in a joint statement Wednesday. Verdagy said the partnership is key to demonstrating that its alkaline water electrolyzers (AWE) can be paired with dynamic operations that turn on and off quickly at a rapid pace — a key requirement when feeding them with intermittent renewable power. Traditionally, AWE, the most mature method of water electrolysis, has been used to fuel more consistent, or static, operations with little fluctuations in power supply. Dynamic run rates would lead the electrolyzer to degrade more rapidly over time. Verdagy is keen to show its dynamic alkaline electrolyzers can be paired with units seeking cleaner sources of power that are more variable. "The industry has a long history of understanding the weaknesses of traditional AWE, and what we're bringing to the party is a new approach where people will say 'I didn't know that was possible with an alkaline-based system,'" Verdagy chief executive Marty Neese told Argus in an interview. "Verdagy and Mainspring Energy are demonstrating how we can improve energy resiliency for the electrical grid, data centers and other applications," said Neese. Mainspring's stackable, 250kW linear generators are powered by gaseous fuels, which can include natural gas, propane, hydrogen and ammonia. The company has tens of megawatts deployed around the US, offering backup power generation for industrial users — such as cold-storage facilities, logistics centers and EV chargers — data centers and utilities, and expects to install tens of megawatts more this year and next. "We have hundreds of megawatts in development, said Mainspring founder and chief executive Shannon Miller, who declined to provide more precise figures. Mainspring began deploying its units in 2020. The fuel-flex design allows Mainspring customers to transition to cleaner burning fuels as they become more commercially available. The same unit that runs on natural gas or biogas today can switch to hydrogen or ammonia, depending on what the customer's roadmap to zero-carbon looks like, said Miller. "Utilities are the most interested in terms of our pipeline," said Miller. "They all still have zero-carbon mandates, even if they're pushed out to 10 or 20 years. Some of Mainspring's installed capacity is fueled by blends that include hydrogen, but to date none of its customers have used only hydrogen to power the generators such as Verdagy is expecting to do. "We've done a lot of testing in our own operation, but having it demonstrated commercially is always a good step for customers to see," said Miller. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more