Idemitsu, ENEOS, Toyota, and Mitsubishi Heavy Industries consider introducing carbon-neutral fuels in Japan by 2030

The two companies announced in a joint statement on 5/27 that Japan's Idemitsu Kosan, ENEOS, Toyota Motor Corporation, and Mitsubishi Heavy Industries have agreed to jointly consider the introduction of carbon-neutral fuels domestically around 2030.

In response to the agreement, Idemitsu, ENEOS, Toyota, and Mitsubishi Heavy Industries began studies aimed at introducing and disseminating carbon-neutral fuels domestically as part of efforts aimed at carbon neutrality.

According to an ENEOS spokesperson, this research was signed on 2024/1/31 in response to a proposal from Toyota to search for a multi-route approach toward carbon neutrality in the second half of last year.

As part of the research, the four companies will discuss and examine carbon neutral fuel introduction scenarios and road maps, including e-fuel manufactured from CO2 and hydrogen derived from renewable energy, and biofuels made from raw materials such as plants that absorb CO2 through photosynthesis. About the Japanese automobile market and the necessary framework.

The two companies also plan to investigate the feasibility of domestic production of carbon-neutral fuels with a view to ensuring the country's energy security.

According to the newspaper, this move by Idemitsu and ENEOS was carried out while Japan went through the introduction/expansion/cost reduction stages in the 2030s, aiming to establish highly efficient and mass production technology for electronic fuels by 2030 in order to commercialize it by 2040.

This partnership was realized in response to the fact that Idemitsu has collaborated with domestic and international companies and has been working on the early introduction of carbon-neutral fuels such as e-fuel and biofuels.

Idemitsu announced on 5/13 that it has acquired minority shares in the synthetic fuel manufacturing company HIF Global for 114 million dollars. The company aims to develop e-methanol supply chains not only as a bunker, but also domestically and internationally with its high applications. It is used not only as a fuel, but also as a raw material for manufacturing synthetic chemicals such as e-gasoline, SAF, e-diesel, olefins, and basic chemicals.

Idemitsu said it aims to establish an e-fuel supply system by 2030 and develop 500,000 kiloliters (3.14 million barrels) of SAF supply from domestic production and imports.

Similarly, ENEOS is also working to establish a supply chain for e-fuels and biofuels, and the company will begin producing 1 barrel of e-fuel per day at the Central Technical Research Institute in 2024-25 (April to March), and an ENEOS spokesperson stated that domestic e-fuel production will increase to 300 barrels per day by 2030 to 31.

In addition to popularizing electric vehicles, Toyota is aiming for carbon neutrality by reducing CO2 emissions from internal combustion locomotives through a multi-pathway approach, such as introducing flex-fuel vehicles that can run on both biofuel and gasoline to Brazil in 2007.

Going forward, Toyota will continue to work to reduce CO2 emissions of internal combustion locomotives, including running vehicles, and will also consider developing engines dedicated to electric vehicles that contribute to the spread of carbon-neutral fuels.

Meanwhile, in preparation for the 2040 Carbon Neutrality Declaration, Mitsubishi Heavy Industries is working to build a CO2 solution ecosystem and hydrogen solution ecosystem through group products, technologies, services, and new solution innovations that contribute to reducing CO2 emissions.