Vast Renewables Limited has secured up to AUD 180m ($113m) in conditional funding for the construction of its Port Augusta clean energy project, which will include a hydrogen-based green methanol plant.
Awarded by the Australian Renewable Energy Agency (ARENA), the Vast Solar 1 (VS1) initiative is part of the Port Augusta Green Energy Hub and includes an option to power a co-located green methanol production facility called Solar Methanol 1 (SM1).
Set to be developed in partnership with German company Mabanaft, SM1 will produce green methanol derived from hydrogen in South Australia.
Overall, the Australian project will utilise Vast’s next-generation concentrated solar thermal power (CSP) technology to provide long-duration renewable energy storage and generation to supply on-demand clean power to South Australia’s grid.
By integrating CSP technology with green methanol production, Vast is aiming to demonstrate the practical application of hydrogen in creating sustainable fuels.
The capital expenditure for completing the construction of VS1 is estimated at AUD 360-390m ($226-245m). Vast has already finalised the front-end engineering design (FEED) and commercial development and is now focused on securing additional investment.
The company anticipates that this will pave the way for a final investment decision (FID), with construction expected to commence later this year.
Craig Wood, CEO of Vast, said these clean energy solutions are “exactly what Australia and the world needs” to accelerate the energy transition.
“By providing green, affordable electricity on demand when other renewables are not available to power homes, industry and fuel production, we deliver the missing piece of the puzzle,” Wood added.
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