Agreement Reached Between Mabanaft and HIF Global for Speeding up e-Methanol Adoption in Maritime Transportation
Mabanaft and HIF Global Partner to Accelerate Adoption of e-Methanol in Shipping
In a significant move towards decarbonizing the shipping industry, energy companies Mabanaft and HIF Global have signed a Heads of Agreement (HoA) for the planned offtake of e-methanol. This agreement aims to deepen collaboration and explore demand for different methanol applications in the shipping industry.
Based in Germany, the Mabanaft Group is a leading independent energy company, active in the import, distribution, and marketing of various energy products, including biofuels. On the other hand, HIF Global, headquartered in Switzerland, is the world's leading e-Fuels company, developing large infrastructure projects to recycle CO2 and produce synthetic hydrocarbons.
Under the initial terms of the agreement, Mabanaft would purchase up to 100,000 tons per annum (t/a) of e-methanol produced using renewable electricity and captured CO2. This e-methanol, with its green credentials, is a key enabler of the energy transition, according to Volker Ebeling, Senior Vice President New Energy, Supply & Infrastructure at Mabanaft.
As HIF Global moves forward with the development of its e-Fuels facilities, Mabanaft will explore demand for different methanol applications jointly with its customers. Mabanaft is in the process of making methanol storage available at its Hamburg tank terminal and possibly further global locations.
Diego Fettweis, Chief Commercial Officer of HIF Global, stated that this agreement is a further step forward in providing shipping customers with a viable, alternative fuel. HIF Global's e-Methanol production process is unique, as it uses renewable electricity and captured CO2, making it a carbon-reducing fuel solution.
HIF Global produces e-Fuels at its HIF Haru Oni e-Fuels facility in southern Chile and is developing commercial-scale e-Fuels facilities in the United States, Uruguay, Australia, and Chile. The initial offtake would be of up to 100 thousand tons of e-methanol per year, with the agreement outlining the starting point for negotiations to define the terms of a potential offtake contract.
This collaboration signifies a significant step toward the adoption of e-methanol in shipping, addressing decarbonization by providing a renewable fuel alternative. Mabanaft supports its customers' transition to cleaner fuels by providing alternative long-term solutions, furthering its commitment to global energy sustainability.
[1] Source: Company press release, Mabanaft and HIF Global, 2022.
- This energy transition in the shipping industry gains momentum with Mabanaft and HIF Global's collaboration, as they aim to deepen cooperation on e-methanol demand, a key enabler of sustainable energy, according to Volker Ebeling.
- To explore diverse methanol applications in the industry, Mabanaft, while pursuing sustainability, is planning to make methanol storage available at its Hamburg tank terminal and potentially other global locations.
- Leveraging science and technology, HIF Global, a leader in e-Fuels production, produces carbond reducing e-Methanol, using renewable electricity and captured CO2, signifying a significant step in environmental-science and finance for the environmentally-conscious finance sector.
