HIF Global, HIF Chile and Uniper Global Commodities signed a Letter of Intent to negotiate binding offtake agreements for the sale and purchase of eFuels from the commercial plants under development in Magallanes, Chile.
HIF Global expects to produce approximately 4 million tonnes/year of eFuels from four commercial plants in Magallanes, Chile.
Pursuant to the eFuels LOI, HIF Global and Uniper will explore further opportunities for Uniper to purchase up to approximately 2 million tons per year of eMethanol from four commercial plants in Chile, representing 50% of the production from each plant.
Production from the first commercial plant in Chile is expected to begin in 2025 with 150,000 tons per year of eMethanol. Production from the second commercial plant is expected to begin in 2027 and will be the first industrial-scale plant with 1.3 million tonnes/year of eMethanol. Each subsequent industrial scale commercial plant is expected to begin production after 2027.
The eFuels will be certified under the recognized international standard of emission reductions, a fundamental requirement to comply with European decarbonization regulations.
Clara Bowman, HIF Global COO, said, “Due to the exceptional renewable energy resources in the area, our sites in Magallanes, Chile, can produce large volumes of highly competitive eFuels for sale worldwide. Uniper is a leader in innovative, lower-carbon solutions with distribution networks in key decarbonization markets.”
iek den Hollander, CEO of Uniper, said, “The HIF project is a very promising opportunity to source green eMethanol from one of the most competitive locations in the world. We are excited to jointly cooperate with and potentially offtake from HIF in the Magallanes region in Chile.”