coming in hot

Japanese agency invests $36M into Houston e-fuels company's portfolio

In total, HIF has raised $200 million this year. Photo via hifglobal.com

Houston-based electrofuel company HIF Global has secured a $36 million investment from the Japan Organization for Metals and Energy Security, a government agency.

The investment, made through an e-fuel subsidiary of Japanese energy company Idemitsu Kosan, is earmarked for HIF’s e-fuel projects in the U.S., Australia, Chile, and Uruguay.

Earlier this year, Idemitsu led a $164 million investment round in HIF. Of that amount, Idemitsu chipped in $114 million. Other investors included Houston-based Baker Hughes along with AME, EIG, Gemstone Investments, and Porsche.

In total, HIF has raised $200 million this year.

“Japan set a priority for the commercial introduction of e-fuels into its fuel supply to support their mandate for 46 percent [greenhouse gas] emissions reduction by 2030. We have already proven e-fuels are a real solution with over 18 months of e-fuels production from our Haru Oni facility in southern Chile,” says Cesar Norton, president and CEO of HIF.

In 2023, Idemitsu agreed to buy e-methanol from HIF’s $6 billion plant in Matagorda County. HIF says the plant will be the world’s first large-scale e-fuel facility. The plant is expected to produce about 1.4 million metric tons per year of e-methanol and about 300,000 metric tons of green hydrogen per year by 2027.

HIF, founded in 2016, aims to produce 150,000 barrels per day of e-fuel and recycle 25 million metric tons per year of carbon dioxide by 2035. E-fuels, which are synthetic alternatives to fossil fuels, include e-gasoline, e-diesel, and e-sustainable aviation fuel converted from e-methanol.

Using electrolyzers powered by renewable energy, HIF begins the e-fuel process by separating hydrogen from oxygen in water. The company then couples the resulting green hydrogen with recycled carbon dioxide to create carbon-neutral e-fuels.

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A View From HETI

Quaise Energy received a boost to its Series B round. Photo courtesy Quaise

Houston-based geothermal startup Quaise Energy has closed its Series B fundraising round at $180 million after inking a significant investment from another local energy leader.

Quaise, which is developing a 50-megawatt superhot geothermal plant in Oregon, announced a "first close" of the round last month at $134 million, led by San Francisco-based investment firm Prelude Ventures. The $46 million bump has been fueled by a $35 million investment from Houston-based Nabors Industries.

The funding will go toward the continued development of the company's superhot geothermal plant, Project Obsidian, as well as the commercialization of Quaise's millimeter-wave drilling system, according to a news release.

“We are unlocking the most powerful clean energy source on Earth, and the Series B signals deep conviction across a wide range of investors,” Carlos Araque, Quaise CEO and president, said in the release. “Nabors is an invaluable partner as we move millimeter wave drilling to full commercial operations at Project Obsidian and beyond.”

Nabors, a repeat investor in Quaise, has also entered into a strategic framework agreement with Quaise. Under the agreement, Quaise will have access to a dedicated Nabors land rig and drilling platform. Nabors will also provide expertise in reservoir modeling, well design and drilling strategy.

Last year, Quaise drilled to a depth of about 330 feet using its millimeter-wave technology at its field site in Central Texas. Canary Media previously reported that Quaise plans to drill to nearly 3,300 feet later this year and to deploy its millimeter-wave technology at its power plant in 2027. The plant is expected to deliver power to the Pacific Northwest in 2030.

Quaise and Nabors say the partnership will improve drilling performance, reduce costs and accelerate project timelines.

“Superhot geothermal has the potential to make clean energy ubiquitous. That is why we are excited about our close relationship with Quaise,” Anthony Petrello, president and CEO of Nabors, added in the release. “Quaise’s millimeter wave technology changes the equation entirely by reaching superhot rock at temperatures and depths that are inaccessible with conventional drilling, transforming geothermal from a location-dependent resource into a global energy solution. Combined with Nabors’ drilling expertise and infrastructure, we see a path to gigawatt-scale geothermal power that no other company can offer today.”

Quaise reports that with the latest funding, it has now raised $280 million. It raised $21 million in a Series A1 financing round in 2024 and a $52 million Series A in 2022.

The company announced in March that it was aiming to raise $200 million for Project Obsidian through $100 million in Series B funding, plus an additional $100 million from grants, debt and project-level finance.

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