A new Germany–Japan e-fuel partnership

ENEOS Corporation and German eFuel One GmbH have announced a strategic cooperation aimed at supporting the introduction of synthetic fuels in Japan and developing an international value chain for lower-carbon fuels.

The cooperation was officially announced on 17 July 2026 and represents a new phase in the relationship between ENEOS and eFuel GmbH, a shareholder and strategic partner of German eFuel One.

As part of the agreement, ENEOS and eFuel GmbH signed a Sale and Purchase Agreement covering the future supply of synthetic gasoline, also known as e-gasoline.

Connecting European production with Japanese demand

The agreement is intended to connect future production capacity in Germany with the introduction, distribution and use of synthetic fuels in Japan.

According to the companies, the planned cooperation would represent ENEOS’s first import of synthetic fuel into Japan. For German eFuel One and eFuel GmbH, it would also represent their first synthetic-fuel export outside Europe.

This makes the agreement an important early example of how international e-fuel supply chains could connect production facilities, fuel suppliers and transport markets across different regions.

Germany’s planned large-scale e-gasoline facility

German eFuel One is developing a commercial synthetic-gasoline production facility in Steyerberg, Lower Saxony.

The planned facility is designed to produce approximately 75 million litres of 95 E10 synthetic gasoline per year, equivalent to around 57,000 tonnes annually. Commissioning is currently planned for the end of 2028.

The project will use CAC METHAFUEL technology to convert methanol into synthetic gasoline that meets the DIN EN 228 fuel standard. German eFuel One states that the resulting fuel is intended to be drop-in compatible with existing combustion engines and fuel infrastructure.

How the synthetic fuel will be produced

Synthetic fuels can be produced using renewable hydrogen and captured or recycled carbon dioxide. They may also be produced from synthesis gas obtained through processes such as biomass gasification.

German eFuel One’s production concept is based on converting renewable or biogenic methanol into synthetic gasoline using an industrial methanol-to-gasoline process.

When renewable energy and eligible carbon sources are used throughout production, synthetic fuels can potentially reduce lifecycle greenhouse-gas emissions while retaining many of the storage, transport and handling characteristics of conventional liquid fuels.

Strategic importance for ENEOS

For ENEOS, the cooperation is part of a broader strategy to establish new supply chains for fuels with lower net carbon dioxide emissions in Japan.

Synthetic fuels are included in the company’s Carbon Neutrality Plan as one of several possible measures for reducing emissions from transport.

Importing fuel from German eFuel One would allow ENEOS to gain practical experience in the introduction, distribution and use of synthetic fuels in the Japanese market. This experience could support larger supply volumes in the future as demand, regulations and available production capacity develop.

ENEOS also plans to offer customers in the transport and mobility sectors an additional fuel option for reducing net carbon emissions.

Strategic importance for German eFuel One

For German eFuel One, the agreement provides its first planned offtake relationship in Asia and creates a reference point for future international supply contracts.

Securing potential buyers before commercial production begins is particularly important for large e-fuel projects. Long-term demand can support project development, financing decisions and the creation of reliable production and distribution networks.

The cooperation also positions Germany as a potential producer and exporter of synthetic fuels while connecting European production capacity with demand in Japan.

Supporting existing vehicles and infrastructure

One of the main potential advantages of synthetic gasoline is its ability to work with existing liquid-fuel systems.

When the final fuel complies with the required technical standards, it may be used in compatible combustion engines without major modifications. It can also make use of established storage, transport and distribution infrastructure.

This makes synthetic fuels particularly relevant for existing vehicle fleets and transport applications where complete electrification may be difficult, slow or technically challenging.

However, the environmental performance of any synthetic fuel depends on how its electricity, hydrogen, carbon and other feedstocks are produced. Certification and transparent lifecycle accounting will therefore be essential.

Building an international market for synthetic fuels

The ENEOS and German eFuel One cooperation demonstrates how the e-fuel industry is beginning to move from isolated demonstration projects toward international commercial relationships.

Future e-fuel markets may connect regions with suitable renewable-energy resources and industrial production capacity to countries with significant transport-fuel demand.

These supply chains will require cooperation across production, certification, logistics, fuel distribution and regulation. Agreements between future producers and major energy companies can help establish the commercial structure needed before large-scale facilities begin operating.

What happens next?

Although the Sale and Purchase Agreement represents an important commercial step, the fuel is not yet being produced at the planned annual capacity.

The long-term impact of the cooperation will depend on several future developments, including project financing, construction of the German facility, certification of the fuel, regulatory acceptance in Japan and the start of commercial deliveries.

The currently announced figures should therefore be understood as planned production capacity rather than operational output. German eFuel One is targeting commissioning of the facility by the end of 2028.