The Australian head of the company proposing to build a $1 billion carbon-neutral fuels factory outside Burnie has said he will continue plans to progress the project after it was put into doubt by a state decision not to initially build a key power line that would supply the facility.
In a statement, Ignacio Hernandez, HIF Asia Pacific chief executive officer, said the company advanced its plans for the eFuels plant "on the understanding that the that the planned transmission upgrades would be delivered within the development timeline of our project".
Those plans have now taken a setback, after state grid company TasNetworks decided to not to initially build the link between Burnie and Staverton as previously planned, complicating the plans of HIF, whose project is located at Hamphire, halfway along the line's proposed route.
TasNetworks this month confirmed that the North West Transmission Development would instead be built in stages, with the Burnie and Staverton being built later - and after a decision about whether a second Marinus Link interconnector is taken.
"We will be discussing potential solutions with the Government to make sure that this opportunity is not lost to Tasmania," Mr Hernandez's statement read.
Carbon-neutral fuels of future
HIF's proposed facility was scheduled to begin operations in 2027, creating hydrogen through electricity and water electrolysis, and converting it to methanol using another chemical process for use as a shipping fuel or conversion to a carbon-neutral eFuel for existing combustion-engine cars.
Once operational, HIF could produce 100 million tonnes of eFuels per year at its Hampshire plant, but the process it will use is extremely electricity-intensive.
That means that the plant would require significant grid connections, or its own energy supply, to go ahead.
In his statement, Mr Hernandez's said the company will continue to progress its plans in North-West Tasmania, and would be speaking to the government to find a solution to its energy problem.
"HIF estimates this project will create close to 200 jobs once operational, as well as hundreds more during construction, with significant opportunities open to local businesses," the statement read.
"HIF remains firmly committed to this project, which represents an investment of more than $1bn in the North West.
"The region is attractive to us for lots of reasons besides access to the transmission network.
"The plant will be located within a sustainable plantation so is perfectly placed to source the forestry residue that we need and has excellent access to the Ridgley Highway.
Engineering design work for the facility is "well underway" and HIF has already signed agreements with potential customers.
Build what needs building
Energy Minister Nick Duigan said the decision to stage development of the NWTD followed the decision to build the Marinus Link in two stages.
"In line with Marinus now being delivered in two stages, so too the NWTD will be built according to that timetable," he said.
"We are aware significant wind farm projects are likely to require some of that infrastructure being delivered ahead of that schedule, and that's exactly what we are planning.
"The government is working with proponents to ensure their future needs are factored into that planning so they can make investment decisions with confidence.
"I say this to all those working to deliver the renewable energy this state needs: you have our support, and we will back you.
"What needs to be built, will be built," Mr Duigan said.
Opposition doubts
Labor energy spokesman Dean Winter has criticised the government over its energy policy, claiming it has led to a deficit of on-island power generation, which is strangling industry.
"Tasmanian businesses are begging for new energy generation, with the TCCI declaring the state is in an energy crisis," he said.
He also cast doubt on Mr Duigan's claim that the government would be able to build what was needed by proponents caught out by the postponement of the link.
"The minister said if any proponents that have relied on the government's promise of connection need the transmission line they will build it, but neither the minister or the Premier could give any confidence that the Liberals will be allowed to."
Mr Winter has called on the state government to intervene to ensure the NWTD is built in its entirety.
"We have already lost Fortescue Future Industries, Woodside and Origin energy; who could not get access to any power at any price.
"We now risk six windfarms as well as HIF and Abel Energy's exciting developments if we cannot get power into the grid."
