Global HIF CEO Cesar Norton said the group plans to produce more than 8 billion liters of electronic fuel a year in total, enough to decarbonise 5 million vehicles.
Norton said Australia, which will be HIF’s third largest production hub in the world, “has exceptional renewable energy resources that can be transformed into liquid fuels” and used in existing traditional vehicle engines.
The plant will use renewable energy to divide water into oxygen and hydrogen by electrolysis of 250 megawatts capacity. Carbon dioxide is filtered from the air and combined with green hydrogen to produce synthetic methanol, which is then converted to fuel using gasoline methanol technology authorized by ExxonMobil. The water used in the electrolysis process is mainly extracted from biological waste.
Fuel sales agreements are under negotiation, with a main focus on European carbon fuel markets, a HIF spokesman said, adding that some of the electronic fuel would be offered locally.
It is expected that the project will be financed 70% with debt and 30% with equity. Although HIF Global currently owns 100 percent of the company, it does not rule out the introduction of capital partners in construction, but would continue to be the owner and main operator for the life of the plant of at least 40 years, said the spokesman.