Australia and Germany fund Vast Solar green methanol production

Australian company Vast Solar and the Solar Methanol Consortium have been selected to receive AU$19.48 million and EUR13.2 million from a collaboration between the Australian and German governments to develop a world-first green methanol demonstration plant in Port Augusta known as SM1.

The German–Australian Hydrogen Innovation and Technology Incubator (known as HyGATE) is a funding round with up to AU$50 million and EUR50 million available to support real-world pilot, trial and demonstration projects along the hydrogen supply chain.

Vast Solar is an Australian developer of concentrating solar thermal power technology. Its modular tower solar array combines molten salt towers and parabolic trough systems to deliver what it says is the world’s lowest cost, dispatchable renewable energy for hot, dry climates.

Methanol is the most versatile hydrogen derivative which, if produced using clean energy, has the potential to decarbonise several hard-to-abate industries, including shipping and aviation. Vast Solar leads the Solar Methanol Consortium in Australia as Principal Energy Partner alongside Fichtner leading in Germany and is supported by fellow Australian technology company Calix as Principal CO2 Supply Partner and the Australian Solar Thermal Research Institute (ASTRI). SM1 will produce 7500 tonnes per annum of green methanol and the consortium has attracted the interest of local and international off-takers, including major shipping companies and airlines.

The project will be a catalyst for a solar methanol industry in Australia, with the potential to export the fuel to Germany and other global markets, creating hundreds of highly skilled jobs.

“We’re excited to be able to announce these four hydrogen projects that demonstrate the benefit of global collaboration to achieve a new export industry in renewable hydrogen and push us further towards the goal of net zero emissions,” said ARENA CEO Darren Miller.

“SM1 has the potential to supply the shipping and aviation industries with zero emission fuel, said Craig Wood, CEO of Vast Solar. “This is a major step forward in helping to decarbonise hard-to-abate sectors and we applaud the Australian and German governments’ leadership.

“With the support of ARENA and the Australian Government, Vast Solar has become a world leader in CSP, and today’s announcement has the potential to supercharge the domestic renewables industry.”

Calix CEO and Managing Director Phil Hodgson said: “Calix’s Leilac technology, in partnership with Adbri, will be used to make zero emissions lime for Adbri customers, using renewable electricity and efficient capture of unavoidable CO₂ emissions from limestone. At the same time, Calix and Adbri are excited to work with the Solar Methanol Consortium to enable the supply of captured CO₂ emissions to make green methanol.

“We look forward to the outcomes of the HyGATE project, which has the potential to further catalyse support for CO₂ capture and to pioneer new green fuels for aviation and shipping.”

Calix’s Leilac technology enables the electrification of calcination and the efficient capture of unavoidable process CO₂ emissions.

Image: Vast Solar