The project to build a facility producing carbon-free fuel south of Burnie took a step closer to becoming reality this week, after project proponent HIF Global signed a deal securing supplies of a key feedstock needed to make the fuel.
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HIF Asia-Pacific chief executive Ignacio Hernandez said his company signed an agreement with Optimal Renewable Gas (ORG) to potentially supply 15,000 tons of biogenic carbon dioxide to the HIF Tasmania's proposed 'eFuel' facility.
ORG is developing a plant at Westbury using organic waste to produce biomethane, which can be used to replace carbon-emitting natural gas.
A by-product of ORG's proposed plant would be biogenic carbon dioxide, which HIF Global requires to produce carbon-neutral fuel at its proposed facility in Surry Hills, 30 kilometres south of Burnie.
If built, the Surrey Hills plant would produce up to 100 million litres per year of carbon-neutral 'eFuels', and create approximately 200 permanent jobs across the North-West Coast.
"ORG's plans are complementary to ours, so we are very pleased to be collaborating with another project in northern Tasmania which strives to reduce our dependence on fossil fuels and tackle the threat of climate change," Mr Hernandez said.
"We look forward to exploring the potential for the Westbury Bio-hub to supply a portion of our carbon dioxide demand alongside plantation residue from the state's sustainable forestry operations."
ORG managing director Mike Davis said the collaboration between his company and HIF Global was an opportunity to expand the circular economy in the state.
"This exciting collaboration presents a further ... opportunity to utilise the biogenic carbon dioxide from our Westbury Bio-hub."
The latest development at HIF Global came after the company was one of six companies nationwide shortlisted for a for $2 billion federal government grant program.
The Australian Renewable Energy Agency's Headstart program is aimed at financing hydrogen projects that could potentially reduce the country's carbon emissions.
Mr Hernandez has previously said that demand for carbon-free fuels is massive and growing.
"There is colossal unmet demand for sustainable fuels that will continue to increase as the world strives to reduce its reliance on fossil fuels," he said.
"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 eFuels plant in 2028."