e-Fuels plant to target shipping’s methanol demand

MULTINATIONAL HIF Global, which describes its mission as scaling the development of e-Fuels worldwide, has switched the focus of its plans to produce hydrogen-based petrol to methanol as it targets, amongst others, the shipping industry. 

HIF Asia Pacific originally proposed to build a 100,000 million litre plant at Hampshire, south of Burnie, Tasmania. But this was stymied when the state-owned TasNetworks delayed plans to build a high-voltage transmission line that passed near the site. 

This week, the company announced that instead it now plans to locate the HIF Tasmania e-Fuels Facility at the former Burnie Paper Mill site in South Burnie. The move would bring new life to one of the region’s most significant industrial sites, returning long-term employment to the community while supporting Tasmania’s ambition to be a leader in renewable energy, HIH said. 

The facility is expected to produce more than 200,000 tonnes of e-Methanol per year, create several hundred construction jobs and approximately 200 permanent jobs during operations. 

HIF Tasmania was first announced in July 2022. After significant project engineering and design work and site review, HIF concluded that the former Pulp Mill site will provide better opportunities for cost-saving modularization and port access, making it a more ideal location for this pioneering e-Fuels infrastructure. 

Ignacio Hernandez, CEO of HIF Asia Pacific, said: “Burnie’s industrial heritage and deepwater port make the old Pulp Mill site the ideal location. Relocating here allows us to bring employment back to this historic site while enabling efficient delivery of large equipment and sustainable use of local resources, such as recycled wastewater from Round Hill Sewage Treatment Plant.” 

Project director Adam Alderman told local media the decision to produce methanol rather than petrol was based partly on projected demand. 

The methanol produced at the plant could supply the global shipping industry, which is presently shifting away from fossil fuels, he said. "It's all driven by regulation around the world, and the International Maritime Organisation passed a resolution... which will effectively mandate the use of low carbon fuel in global shipping," Mr Alderman said. 

Methanol, which can be refined into petrol, shipping fuel, jet fuel and diesel, also offered the company more flexibility. 

Ian Jones, president of Business North West, said: “The Pulp site is hugely significant to Burnie and has sat idle and rusting for far too long. I have followed the progress of this project very closely over the last three years and believe this is a golden opportunity for the town to be at the forefront of a new, emerging industry.” 

HIF Asia Pacific will submit a formal Notice of Intent to the Tasmanian Environmental Protection Agency in the coming weeks, with a Development Application to follow in 2026. Operations could commence as soon as 2030. 

e-Fuels are made using renewable electricity to power electrolysers that separate hydrogen from water. The hydrogen is then combined with recycled carbon dioxide from plantation residues to create e-Methanol, a synthetic fuel that can be used in shipping or converted into e-Fuels for aviation, cars, and trucks. 

HIF Global says it is is the world's leading e-Fuels company developing large infrastructure projects to recycle CO2 and produce hydrogen-based fuels for existing cars, ships and planes: “The name HIF represents the mission of the company: to provide Highly Innovative Fuels that advance global energy sustainability.  

HIF is producing e-Fuels today at its HIF Haru Oni e-Fuels facility in Chile and is developing commercial-scale e-Fuels facilities in United States, Uruguay, Chile, Brazil, and Australia.  

Shareholders include Mitsui-OSK Lines, Porsche, Idemitsu and Baker Hughes.