This strategic alliance will enable the production, commercialization, and distribution of new renewable fuels such as renewable diesel and liquefied petroleum gas (LPG).
Enap and Lipigas have signed an agreement to jointly develop low-carbon intensity fuels, made from organic waste at the state-owned company’s refineries, and make them available to the domestic market.
This is a significant milestone for the development and scaling up of low-carbon fuels in Chile, a key element for reducing emissions in the industrial and transportation sectors, as well as in Chilean households, in a straightforward way, advancing the country's decarbonization goals.
Enap already has its first batch of renewable diesel. Last July, the company conducted a test at its Aconcagua Refinery, processing more than 350,000 liters of used cooking oil (UCO) into renewable diesel. The processing of this volume allows a reduction of 1,131 tons of CO2 equivalent compared to traditional diesel.
The process was verified by an independent certifier, who confirmed the carbon footprint reduction relative to traditional diesel. The test was successful and will allow the company to offer this product in the domestic market with a growth plan adjusted to local requirements and renewable raw material availability. Meanwhile, the first molecules of renewable liquefied petroleum gas (LPG) are expected to be available by the first quarter of 2025.
As part of this agreement, Enap has sold its first batch of renewable diesel to Lipigas, which is now available to its end customers.
Enap’s Board Chairwoman, Gloria Maldonado, highlighted the importance of this agreement for the company and emphasized that "the production of low-carbon fuels is an essential part of our Enap Strategic Plan 2040, which aims to position us as a key player in Chile's energy transition, providing fuels with a lower environmental impact."
Enap’s CEO, Julio Friedmann, stated that "the actions we have taken to strengthen our operational performance and achieve greater financial stability give us the support to address challenges like this, which are crucial for advancing the transformation of our business and ensuring long-term sustainability."
This collaborative effort aligns with Enap’s corporate strategy to promote, through innovation, the development and final use of cleaner and more sustainable fuels. At the same time, it responds to Lipigas' strategy of making its core gas business more sustainable.
"Our commitment is to develop a renewable energy offering in Chile and Latin America, where we see great opportunities for growth and the potential to provide clean energy access to millions of people. Advancing in this direction through this alliance with Enap is a very significant step in the industry," said LipiAndes CEO, Ángel Mafucci, the parent company of Lipigas.
The new fuels differ from traditional diesel and LPG in their biological origin, but they are chemically identical to their fossil counterparts, meaning they can be used in the same appliances and infrastructure that exist today.
In this regard, Lipigas’ LNG and Biofuels Manager, Esteban Rodríguez, noted that "this alliance allows us to continue adding alternatives to move towards a renewable product offering for various types of customers, using the same infrastructure currently in place in the country. Therefore, what we are developing at Lipigas with various stakeholders, and now with Enap in Chile, are more sustainable energy solutions that can be implemented in the short and medium term thanks to collaboration and our common goal of contributing to decarbonization."