Alternative fuels producer HIF Global has entered into a memorandum of understanding (MoU) with Chile's state-owned petroleum company, Enap, with the shared objective of expediting the adoption of carbon-neutral e-fuels in South America. Under this partnership, Enap is set to distribute an annual volume ranging from 22.5 to 37.5 million liters of e-gasoline from HIF's upcoming Cabo Negro e-fuels facility. This quantity represents 30-50% of the facility's total production capacity.
The collaboration capitalizes on Enap's extensive storage, distribution, and refining capabilities, facilitating the distribution of HIF's e-fuels throughout Chile using existing logistical infrastructure. Additionally, the agreement opens avenues for potential future collaborations involving additional HIF facilities in the southern regions of Chile.
The HIF Cabo Negro project, valued at USD 830 million, is presently undergoing environmental assessment. The proposed facility is designed to produce 173,600 tonnes per year of e-methanol and 75 million liters per year of e-gasoline. Located within Enap's Cabo Negro industrial complex in Punta Arenas, the southernmost part of Chile, the e-fuels plant will source electricity from the forthcoming Faro del Sur wind farm to produce green hydrogen.
HIF aims to secure CO2 for e-methanol synthesis from biogenic sources, direct air capture, or maritime imports of cryogenic CO2, as outlined in its environmental impact study for the Cabo Negro project.
Cesar Norton, President and CEO of HIF Global, expressed satisfaction with Enap's alignment with their vision, emphasizing the joint efforts to transition around 15,000 Chilean vehicles annually to carbon neutrality. Norton anticipates expanding the Chilean market for synthetic eGasoline produced from green hydrogen with future expansions at their facilities in the Magallanes region.
