Mitsui O.S.K. Lines, , ITOCHU Corporation , HIF Asia Pacific  , a wholly owned subsidiary of HIF Global  and JFE Steel Corporation  announced an agreement to jointly conduct a wide-ranging feasibility study covering on carbon dioxide  capture in Japan,  shipping the CO₂ to Australia,  production and storage of synthetic fuel  derived from the CO₂ in Australia, and  establishment of a comprehensive supply chain, including export of e-fuel from Australia.

<Conceptual diagram of e-fuel production and supply chain>

<Role of each company>

The term “e-fuel” refers to liquid fuel produced by synthesizing hydrogen produced from renewable energy sources and CO₂. The CO₂ feedstock will be CO₂ emitted from industries that will have difficulty achieving decarbonization through electrification, hydrogenation, and other means alone. A benefit of e-fuel is that it can use current infrastructure such as vessels, lorries, storage tanks, and fueling stations for transport and storage. In addition, e-fuel itself can be used to power automobiles, aircraft, and vessels without the need to modify or replace current equipment, so its use is expected to be an early decarbonization measure.

Leveraging their networks in Japan and overseas and the knowledge they have cultivated through business in Australia, MOL, ITOCHU, HIF and JFE Steel aim to establish an e-fuel supply chain, starting with a study of its use at JFE Steel, with an eye toward a decarbonized society.

*1 Life cycle assessment (LCA) is a method for quantitatively evaluating the environmental impact of a product throughout its life cycle (resource extraction, raw material production, product manufacturing, distribution/consumption, and disposal/recycling).