eFuels propelling us towards a carbon neutral future
Company looks to deploy $50 billion of capital to develop, construct, and operate facilities in the United States, Chile, Uruguay and Australia that will produce approximately 150,000 barrels of carbon-neutral eFuels daily and decarbonize more than 5 million vehicles.
To move the planet closer to a decarbonized future and meet the growing demand for clean energy worldwide, HIF Global develops projects to produce eFuels, which are clean fuels produced from renewable power, green hydrogen and carbon dioxide taken from the atmosphere. eFuels have the same chemical properties as fossil-based fuels and, as a result, can be used as direct substitutes without the need to build expensive infrastructure networks. They can be transported using existing methods – such as pipelines, ships or trucks – and used by existing vehicles such as cars, trucks, ships and airplanes without costly retrofitting.
The transportation sector currently produces roughly 20% of global carbon dioxide (CO2) emissions and, based on current policies, it is estimated that emissions from transportation will rise by 60% between 2015 and 2050 globally. So, finding more sustainable sources of energy for the transportation sector is paramount in combatting global warming.
eFuels are climate neutral - meaning that they are produced using electricity from renewable energy sources, which, together with CO2 sourced directly from air, compensates for any CO2 emitted during production.
Therefore, the increased production of eFuels represents an important development in the fight against climate change. They are a particularly effective option in the maritime and aviation sectors, where decarbonization cannot be achieved by electrification alone. Additionally, because eFuels are compatible with internal combustion engines, they achieve the same decarbonization goals without the need to build out extensive and expensive infrastructure.
To accelerate its production of eFuels, HIF Global intends to deploy up to $50 billion to develop facilities in the United States, Chile, Uruguay and Australia, starting first in the US and Chile. Construction of the first phase, large-scale commercial plants is slated to begin in late 2024 with the production of eFuels commencing in 2028. Once completed, these facilities will produce 150,000 barrels of eFuels a day, leading to the decarbonization of more than 5 million vehicles worldwide, further securing HIF Global's position as a global leader in eFuels.
Societe Generale has been mandated to provide general financial strategy and planning for the development and financing of these pioneering eFuels facilities, and, more broadly, is committed to playing a leading role in the global energy transition from fossil fuels to more sustainable sources of energy by helping to facilitate projects making use of new and emerging technologies to decarbonize the environment.