Mixed fortunes for HIF Global and ABEL Energy as $2bn hydrogen funding shortlist announced

Two enormous Tasmanian future fuels projects worth a combined $2.5bn applied to the Commonwealth to receive a share of a $2bn hydrogen development fund, but only one was successful.

An artists impression of what the proposed HIF eFuel Plant at Surrey Hills in the state's North-West could look like. Picture: Supplied.

There are contrasting fortunes for a pair of proposed clean energy projects after the shortlist for a $2 billion funding program was announced.

HIF Global’s proposed eFuel plant in the state’s North-West at Surrey Hills has been shortlisted as one of the six projects for the Australian Government’s $2 billion Hydrogen Headstart program.

However, ABEL Energy’s proposed Bell Bay Powerfuels plant did not make the shortlist.

HIF Asia Pacific CEO Ignacio Hernandez said it was thrilling to be considered for such a significant funding injection.

“This is a reflection of HIF’s efforts to establish this project as a viable option for putting Australia at the forefront of a new carbon-neutral industry,” Mr Hernandez said.

Labor's energy spokesman Dean Winter speaks to the media on parliament Lawns in Hobart on Wednesday, November 22, 2023.

“HIF has demonstrated that eFuels have a major role to play in decarbonising the global transport sector with our plant at Haru Oni in Chile, which has been in operation for 12 months.

“There is colossal unmet demand for sustainable fuels that will continue to increase as the world strives to reduce its reliance on fossil fuels.

“We believe Australia has huge potential as a production base for carbon-neutral fuels, and working closely with key partners in Tasmania, we are on track to deliver the country’s first eFuel plant in 2028.”

However, Labor energy spokesperson Dean Winter expressed disappointment over ABEL Energy’s shortlist snub.

Render of ABEL Energy's proposed $1.4bn Bell Bay Powerfuels Project, located within the decommissioned Bell Bay Power Station. Picture: Supplied

“ABEL Energy put forward an incredible project that would transform the old Bell Bay Power station into a green methanol plant,” Mr Winter said.

“Tasmanian Labor strongly supports it, but the entire hydrogen hub project has been bungled from start to finish.

“Soon after being lured to the state, proponents were told there was no power available at any price, and there was no plan to deliver water to the site.

“With the state economy showing signs of being in serious trouble and young people leaving in droves for the mainland, Tasmania can no longer afford the incompetence of this tired, 10-year-old Liberal government.”

Minister Nick Duigan. Final sitting week of parliament for 2023. Picture: Nikki Davis-Jones

Energy Minister Nick Duigan said it was unfortunate the Bell Bay plant was not included in the funding shortlist.

“While it is disappointing that ABEL Energy did not make the shortlist for Hydrogen Headstart support, the Tasmanian government is still committed to supporting ABEL’s project, with the Coordinator-General currently working with ABEL Energy on its plans to better understand what the project needs to progress and importantly how this project will benefit Tasmania and Tasmanians,” Mr Duigan said.

“ABEL’s proposal fits well with our plans for a hydrogen hub at Bell Bay and is exactly the type of project we want to see get up, so we are backing them in.”

Mr Duigan also congratulated HIF on being shortlisted.

“We are excited that HIF Global’s e-Fuels project has been successfully shortlisted for the Australian government’s Hydrogen Headstart program,” he said.

“This is an exciting project that will deliver economic growth and jobs for the North West region, which is what our Government is all about.”