Hamburg-based energy company Mabanaft has received grant approval from the German Projektträger Jülich for the potential construction of a new green methanol plant in Port Augusta, South Australia.
Together with Vast, Mabanaft is assessing to build a demonstration plant with a capacity of around 7500 tonnes of green methanol per year.
Australian renewable energy company Vast, which specialises in concentrated solar thermal power (CSP) energy systems, and Mabanaft intend to build a solar methanol plant with a 10MW electrolyser.
In Germany, the project is granted public funding of approximately €12.4m from Projektträger Jülich, partner to the public sector in science, business and politics.
Canberra, through the Australian Renewable Energy Agency, has pledged to support the project equivalent to approximately €11.9m after the project was selected as a part of the German-Australian Hydrogen Innovation and Technology Incubator (known as HyGATE).
The planned demonstration plant could be operational in the beginning of 2027, and could then provide customers with green methanol based on renewable energy.
In the future, and after evaluation of effectiveness, other sites in or near Europe could be added.
The initiative HyGATE intends to establish a German-Australian supply chain for green hydrogen and to strengthen cooperation between the two countries in the field of hydrogen technologies.
For Germany, the initiative also has the potential to contribute to the National Hydrogen Strategy: importing sustainable energy sources and exporting climate protection technologies “made in Germany”.
Green methanol can expand the range of sustainable energy solutions
For Mabanaft, the planned demonstration plant can provide increased expertise for the possible construction of similar plants on a commercial scale worldwide, the company said.
The aim is to supply existing and future customers with green methanol and enable them in their commitment to decarbonisation.
director of new energy at Mabanaft Philipp Kroepels said: “With access to green methanol, our range of sustainable energy solutions for our customers would continue to grow.
“The funding agreement makes a crucial recognition and validation of our decarbonisation efforts and can be a strong contribution to strengthening Germany’s leading role in the global energy transition.”
Vast chief executive Craig Wood added: “This is a significant milestone for Vast and for green fuel production globally. Solar Methanol produced at plants like SM1 has the potential to make a huge difference to the transport sector as it urgently looks at ways to decarbonise its fuels.
“The funding is a testament to Vast’s technology as well as our partners within the Solar Methanol Consortium.”