A former pulp mill on Tasmania’s north coast could hold the secret to not only driving down the price of petrol but also enhance Australia’s fuel security.
As the price of unleaded heads towards $3 per litre as on-shore supplies dwindle and what’s left of the local refineries are unable to meet modern standards, Australians are naturally starting to look for alternatives. But rather than switching to electric cars several of the industries biggest names, including Porsche, Ferrari and Toyota are working on a plan to save the internal combustion engine.
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What is this magic solution? They’re called e-Fuels, or sometimes synthetic fuel, and a multimillion-dollar project on the former pulp mill site in Burnie, Tasmania could soon be producing 200,000 tonnes of it per year.
HIF Global is an e-Fuels producer, with Porsche as one of its largest investors, that has already got one operational facility in Chile but has plans for the one in Tasmania, another in the USA and a third in Chile, as demand for synthetic fuels is expected to grow in the next decade.
The pilot plant in Chile, called Haru Oni, features a wind farm that extracts hydrogen from water and then combines the hydrogen with carbon dioxide, which has been captured from the atmosphere. Using HIF Global’s proprietary, undisclosed, technology, the facility converts this combination of hydrogen and carbon dioxide into a variety of liquid fuels, including e-Methanol, a direct replacement for petrol.
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The major advantage of e-Fuels compared to other carbon neutral options, such as electric vehicles, is it will theoretically work with any existing vehicle that runs on petrol. That means motorists will be able to make the switch as soon as e-Fuels become publicly available and become carbon neutral instantly.
It must be noted that cars running on e-Fuels still produce some tailpipe emissions, but the carbon dioxide that emits into the air is negated during the production of the fuel.
And e-Fuels don’t just work in cars, HIF Global and the other companies investing in this new industry believe it can also work as a replacement for jet fuel and diesel for trucks and even large ships.
However, the challenge is producing e-Fuel in significant volume to make it both commercially available and appealing.
An engineer from Toyota told Australian media at a 2023 media event about the pros and cons of e-Fuels, saying: “The benefits of carbon-neutral fuel is that you can use it in the cars we have, that’s a good point for it. But, the cost of carbon-neutral fuel is still very expensive. So, for the near-future, carbon-neutral fuel would be a good option if we can make it cheaper.”
The secret to achieving this commercial success could lie slightly north of the Tasmanian plant, at the Albert Park circuit in Melbourne. Formula 1 switched to synthetic fuels in 2026, a move that has been overshadowed by the controversial hybrid powertrains.
As we’ve seen over the decades, Formula 1 is a breeding ground for new technology that eventually filters down to road cars. Using carbon neutral fuel in the sport will only accelerate its development and should help to push awareness and acceptance from consumers too.
“Operating the cars with Advanced Sustainable Fuel is a small part of the whole – but one which has a tremendous resonance,” reads the sport’s official website. “Formula 1 sets the tone: it inspires and leads. Switching over to use sustainable fuels in F1 power units is a potent statement.”
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Although, if the price can be brought down below the cost of unleaded it’s likely Australians will be ready to make the switch to e-Fuels regardless of how they impact Oscar Piastri and co. And if it helps enhance Australia’s fuel security and reduce our dependence on foreign oil, it will be a bonus.
For now, though, it is a matter of being patient. The HIF Global plant in Tasmania was meant to be operational by the end of 2026, but a switch from an earlier planned site 30km away from Burnie has delayed the project. At present the company is aiming to be operational before the end of the decade.
