Japanese energy company Idemitsu joins HIF Global as the E-Fuel developer secures new funding for projects across several regions

Japanese energy company Idemitsu Kosan announced a US$114 million investment in HIF Global in May 2024. Together with additional funding from existing shareholders, the transaction brought HIF Global’s new capital raise to US$164 million.

The investment was intended to support the development of HIF’s synthetic-fuel projects and strengthen a future supply chain connecting international e-fuel production with the Japanese market.

A Strategic Move into Synthetic Fuels

HIF Global develops E-Fuels using renewable hydrogen and captured carbon dioxide. Depending on the final conversion and refining process, these inputs can be used to produce products such as e-methanol, synthetic gasoline and synthetic aviation fuel.

Idemitsu said the investment would support the development of an e-methanol supply chain and help the company build knowledge in synthetic-fuel production and international distribution.

The partnership combined HIF’s project-development experience with Idemitsu’s existing capabilities in fuel handling, refining, logistics and market distribution.

Why the Investment Mattered

Large-scale e-fuel projects require significant capital before commercial production can begin. Developers must secure renewable electricity, electrolyser capacity, carbon supply, engineering partners, permits, transport infrastructure and long-term customers.

The Idemitsu investment therefore represented more than a financial transaction. It provided HIF with a strategic partner in one of Asia’s largest energy markets and created a potential route for synthetic fuels to reach Japanese customers.

For Idemitsu, the agreement offered access to project experience and future production capacity outside Japan.

Focus on e-Methanol

e-Methanol can be produced by combining renewable hydrogen with an eligible carbon source. It can be used directly in selected marine and industrial applications or converted into other synthetic fuels.

Its liquid form makes it easier to store and transport than compressed hydrogen, although its commercial viability still depends on renewable-electricity costs, production efficiency, certification and customer demand.

Idemitsu has identified e-methanol as a potential building block for products including e-gasoline and e-SAF.

Building a Japan-Focused Supply Chain

The investment followed a March 2024 memorandum of understanding between HIF Global, Idemitsu and Mitsui O.S.K. Lines to study an international E-Fuel and e-methanol supply chain.

The proposed structure included overseas fuel production, maritime transportation and downstream handling through ports and refineries.

Later in 2024, Japanese government agency JOGMEC committed up to US$36 million through Idemitsu’s subsidiary, bringing further public-sector support to the partnership.

HIF’s International Project Portfolio

At the time, HIF was developing E-Fuel projects in several countries, including Chile, the United States, Australia and Uruguay.

The company’s Haru Oni demonstration facility in Chile had already begun producing synthetic fuels, while larger commercial projects remained under development. The new investment was designed to help move parts of this portfolio toward greater scale.

What the Deal Signalled for the Sector

The transaction highlighted growing interest from established energy companies in synthetic-fuel supply chains.

It also showed that the sector was moving beyond pilot production toward partnerships involving:

• Project financing

• International fuel transportation

• Port and refinery infrastructure

• Long-term market development

• Commercial fuel distribution

• Government-backed investment

These capabilities are essential if e-fuels are to move from demonstration projects into regular commercial supply.