ABx brings ALCORE hydrogen fluoride pilot plant closer to reality

ALCORE equipment reaches final assembly stage

ABx Group Limited (ASX:ABX) has moved its hydrogen fluoride project from engineering drawings into physical construction, with the major process equipment for the ALCORE continuous pilot plant now substantially manufactured. The equipment is being prepared for final assembly, including the integration of piping, valves, instrumentation and supporting structures.

The facility is being built at the ALCORE Technology Centre beside Rio Tinto’s Bell Bay aluminium smelter in northern Tasmania. ALCORE, which is 83% owned by ABx, is intended to demonstrate a proprietary process for producing hydrogen fluoride from a by-product of aluminium smelting. Australia currently has no domestic hydrogen fluoride production.

The construction progress comes after ABx’s $4.1 million ALCORE funding package, which included funds earmarked for construction and commissioning of the pilot plant. The current announcement does not disclose total construction costs, remaining funding requirements or the project’s final commercial-scale economics.

Power upgrade and site preparation continue

A new TasNetworks substation has been installed to provide additional power to the site. Manufacture of the main switchboard is still in progress, with factory acceptance testing planned before delivery, while foundations and other site infrastructure are being prepared for the arrival and installation of the process modules.

ABx said vegetation had been cleared in line with bushfire hazard requirements. Engineering work is now shifting towards integrating the individual modules into a functioning plant, with the 3D model being developed around piping layouts, equipment connections, cable routing, pipe supports and installation planning.

Environmental report accepted for final assessment

EPA Tasmania has advised that the Environmental Effects Report has been accepted as the final case for assessment following review and revision. That is a meaningful regulatory step, but it is not the same as final planning approval. The local council is expected to publicly advertise the planning documentation and EER shortly.

Safety and operational work remains substantial. ALCORE is completing remaining HAZOP actions and risk assessments, while designing hazardous gas detection, emergency shutdowns, safety showers and emergency response procedures. Hazardous-area classification, ventilation design and laboratory facilities are also being finalised.

Q2 2027 commissioning target remains conditional

The immediate priorities are equipment assembly, detailed plant integration, staged delivery and installation, and completion of control and safety systems. ALCORE expects to hire three pilot plant operators in early 2027 to support installation, commissioning and subsequent operations, with commissioning targeted for the second quarter of 2027.

ABx also repeated indicative operating economics from its 2 July 2026 announcement: a hydrogen fluoride production cost of US$1,000-US$1,600 per tonne, which the company said could place the process in the lowest quartile of production costs and imply a 30%-60% operating margin. Those figures are estimates rather than reported operating results, and the pilot plant has not yet demonstrated commercial production.

Critical minerals rationale meets execution test

The strategic case rests on hydrogen fluoride’s role in lithium-ion battery chemicals, semiconductor manufacturing, fluorocarbons, rare earth fluorides and aluminium fluoride. ABx says global anhydrous hydrogen fluoride production is about 2.5 million tonnes a year, while fluorspar supply is concentrated heavily in China and Mexico. The company is using the Fluorine Forum in Italy to pursue additional commercial opportunities in fluorine chemicals and other critical-minerals applications.