Peroxisomal 2-OH acyl-CoA lyase involved in the cleavage (C1 removal) reaction in the fatty acid alpha-oxydation in a thiamine pyrophosphate (TPP)-dependent manner (PubMed:10468558, PubMed:21708296, PubMed:28289220). Involved in the degradation of 3-methyl-branched fatty acids like phytanic acid and the shortening of 2-hydroxy long- chain fatty acids (PubMed:10468558, PubMed:21708296, PubMed:28289220). Plays a significant role in the biosynthesis of heptadecanal in the liver (By similarity). {ECO:0000250|UniProtKB:Q9QXE0, ECO:0000269|PubMed:10468558, ECO:0000269|PubMed:21708296, ECO:0000269|PubMed:28289220}. This is the function of Ensembl gene identifier ENSG00000131373 (HACL1, 2-hydroxyacyl-CoA lyase 1).