Consortium of MOL, ITOCHU Corporation, HIF Asia Pacific and JFE Steel Corporation to pioneer synthetic fuel supply chain and CO2 marine transport initiative
In a groundbreaking collaboration, Mitsui O.S.K. Lines, Ltd. (MOL), ITOCHU Corporation, HIF Asia Pacific Pty Ltd (a subsidiary of HIF Global), and JFE Steel Corporation have announced their partnership through a Memorandum of Understanding (MoU) aimed at establishing a novel supply chain for synthetic fuel and the marine transport of CO2 using green hydrogen. This ambitious project focuses on Japan and Australia as key operational grounds, encompassing CO2 capture, synthetic fuel production, storage, and export.
The venture sets sights on revolutionizing the industry by producing e-fuel—a sustainable liquid fuel synthesized from hydrogen obtained from renewable energy sources, combined with CO2. This initiative targets CO2 emissions from sectors where decarbonization poses significant challenges. The unique quality of e-fuel is its compatibility with existing infrastructure, highlighting its potential as a short-term decarbonization strategy that does not require modifications to current vehicles and machinery.
Roles and Responsibilities within the Consortium:
- ITOCHU Corporation is tasked with conducting Life Cycle Assessment (LCA) and economic evaluations, playing a pivotal role in assessing the environmental and financial viability of the project.
- HIF, through its e-fuel enterprise, will determine the optimal region for e-fuel production in Australia and estimate the associated costs, positioning itself as a key player in the operational segment of the synthetic fuel production chain.
- JFE Steel Corporation brings critical expertise in iron manufacturing, focusing on the estimation of costs for CO2 separation, capture, liquefaction, and offloading, thereby addressing the initial stages of the supply chain involving CO2 management.
- Mitsui O.S.K. Lines, Ltd. (MOL) will leverage its vast experience in ocean shipping to estimate the costs of transporting CO2 and e-fuel. MOL will also conduct studies on marine transport, ensuring the feasibility and efficiency of the entire supply chain from capture to delivery.
The consortium emphasizes the utility of e-fuel in supporting existing transport and storage infrastructure while also actionable across various transportation modes—automobiles, aircraft, and ships—without necessitating alterations to the current technology.
By combining their networks, expertise, and resources in Japan and Australia, MOL, ITOCHU, HIF, and JFE Steel are not just envisioning a decarbonized future but actively working towards realizing it. This feasibility study, particularly focusing on its implementation within JFE Steel's operations, marks a significant step towards integrating e-fuel into mainstream energy sources, contributing significantly to the global shift towards sustainable energy consumption and a reduction in greenhouse gas emissions.
