Mabanaft, a leading energy company, has signed a Heads of Agreement (HoA) with HIF Global, a pioneer in e-Fuels production, to advance the adoption of e-methanol as a sustainable fuel alternative for the maritime industry. This landmark agreement underscores the companies’ commitment to reducing carbon emissions and enabling the transition to cleaner energy in shipping.
The agreement outlines the planned offtake of up to 100,000 tons of e-methanol per year, a fuel derived from renewable electricity and captured CO₂. This partnership sets the stage for negotiations on a potential offtake contract, marking a significant step forward in the shipping industry’s push towards decarbonization.
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A Strategic Step Toward Decarbonization
E-methanol, produced by recycling CO₂ emissions into renewable fuels, has the potential to play a crucial role in the maritime industry’s efforts to reduce its carbon footprint. Under the terms of the agreement, Mabanaft will work closely with its customers to identify the demand for e-methanol as an alternative fuel.
Volker Ebeling, Senior Vice President New Energy, Supply & Infrastructure at Mabanaft, highlighted the significance of the agreement, saying, “We strongly believe in the potential of e-methanol as a key enabler of the energy transition, and we are proud to deepen our partnership with HIF Global. This agreement is a further step forward in providing our shipping customers with a viable, alternative fuel. In parallel, we are now in the process of making methanol storage available at our Hamburg tank terminal and potentially other global locations. Our combined efforts help bridge the gap towards broader adoption of methanol in the maritime sector.”
Expanding Infrastructure and Opportunities
The agreement not only focuses on the offtake of e-methanol but also emphasizes the development of infrastructure to support its distribution and storage. Mabanaft is already in the process of establishing methanol storage facilities at its Hamburg terminal, with plans for further expansion to global locations. This infrastructure will be pivotal in meeting the increasing demand for cleaner fuels as the maritime industry shifts away from traditional, polluting fuels.
Diego Fettweis, Chief Commercial Officer at HIF Global, also voiced the significance of the agreement, stating, “Today, we take another step in leading the e-Fuels industry, joining forces to break into a key market: shipping. Drop-in fuels can make a relevant difference, ensuring a secure energy supply while leveraging existing infrastructure.”
The partnership between Mabanaft and HIF Global aligns with both companies’ broader missions to support the transition to a low-carbon future and provide cleaner, renewable fuels to the maritime industry. By utilizing captured CO₂, e-methanol offers an innovative solution to help decarbonize maritime operations, addressing both carbon neutrality and sustainability goals.
A Partnership Built on Innovation
This collaboration builds on a previous Memorandum of Understanding (MoU) signed between Mabanaft and HIF Global in 2021. The HoA marks the next phase of their partnership, strengthening their efforts to bring e-methanol to the forefront of the shipping sector’s decarbonization strategy. The companies are committed to the ongoing development of e-Fuels facilities, including those at HIF Global’s Haru Oni e-Fuels facility in southern Chile, and expanding their operations to other regions such as the United States, Uruguay, and Australia.
The move to e-methanol is part of a broader trend in the shipping industry as companies look for cleaner fuels that can be used in existing engines, allowing for a smoother transition to a low-carbon shipping model without the need for significant infrastructure overhauls. As a drop-in fuel, e-methanol is compatible with existing fuel systems, making it a practical and viable option for reducing the environmental impact of shipping.
The Future of Sustainable Shipping
As the shipping industry continues to seek solutions to meet the IMO’s carbon intensity reduction targets, e-methanol is emerging as a key alternative to traditional marine fuels. Its production from renewable electricity and CO₂ captured from industrial processes allows it to be a carbon-neutral fuel, which is crucial for the shipping industry to achieve net-zero emissions by 2050.
Both Mabanaft and HIF Global are at the forefront of these efforts, with their focus on scaling up the production and supply of e-methanol set to drive broader adoption within the global maritime industry. The agreement will not only help meet the immediate fuel needs of shipping companies but also contribute to the industry’s long-term decarbonization goals.
About HIF Global
HIF Global is the world’s leading e-Fuels company, focused on developing large-scale infrastructure projects to recycle captured CO₂ and produce synthetic hydrocarbons. HIF Global’s mission is to provide Highly Innovative Fuels that drive global energy sustainability and support the transition to cleaner energy. The company is currently producing e-Fuels at its Haru Oni e-Fuels facility in southern Chile and is expanding its operations with commercial-scale facilities in the United States, Uruguay, Australia, and Chile.
About Mabanaft
Mabanaft is a leading independent energy company that provides tailored solutions to its customers in the transportation, heating, industrial, and agricultural sectors. With a strong presence in the import, distribution, and marketing of petroleum products, natural gas liquids, chemicals, and biofuels, Mabanaft plays a key role in supporting the energy transition to cleaner fuels. The company is committed to providing alternative long-term solutions to meet the changing energy needs of its customers, with a strong focus on sustainability and decarbonization.
Source Mabanaft