Mabanaft a subsidiary of Hamburg-based Marquard & Bahls AG, a holding company in the energy and chemicals sector, has announced that it has signed a Memorandum of Understanding (MOU) with Chilean e-fuels developer Highly Innovative Fuels (HIF) regarding the purchase and sale of up to 500 million litres of carbon-neutral e-fuels per annum from the commercial phases of HIF's projects in Chile’s Region de Magallanes.
In December 2020, the project consortium – AME, Porsche, Siemens Energy, Enel Green Power, ENAP, and ExxonMobil – for the Haru Oni pilot plant announced that it had received EUR 8 million in financial support from the German government.
Our objective is to contribute to the decarbonization of the transport sector in the short to medium term through the production of carbon-neutral e-Fuels. HIF’s projects in Magallanes enjoy the world’s best wind resources, enabling us to produce carbon-neutral e-Fuels at scale and with competitive pricing.
Mabanaft is a leader in responsible energy supply, trading, and logistics and we are delighted to have such an innovative company as a potential major customer, explained César Norton, President of Highly Innovative Fuels (HIF), the special purpose vehicle for the project.
The project will use wind power to produce hydrogen which will be combined with carbon dioxide (CO2) extracted from the atmosphere (aka Direct Air Capture – DAC) to produce methanol. The methanol will then be converted into gasoline.
HIF intends to move forward with the construction of its first commercial-scale facility in 2022. E-gasoline can be used as a direct substitute for fossil-based gasoline, with no changes to existing logistics, infrastructure or engines required.
Mabanaft aims to be one of the first companies in Germany and Europe to supply its customers with CO2-neutral e-fuels through its extensive network of service stations and wholesale supply locations. Our cooperation with HIF will allow us to bring substantial volumes of this innovative fuel into the German and European market within a few years. We look forward to becoming a major customer of this bold and forward-looking project, said Jonathan Perkins, CEO of Mabanaft.