Iberdrola Australia and hydrogen developer ABEL Energy will work together to deliver a green hydrogen and green methanol production facility at Bell Bay, in northern Tasmania.
The scale of the Bell Bay Powerfuels Project, at 200,000 tonnes per year of green methanol for Stage One, will make it one of the largest such projects in the world. Stage Two will increase capacity to 300,000 tonnes per year.
The proposed green hydrogen and methanol production facility, known as the Bell Bay Powerfuels Project, was the subject of a feasibility study and knowledge-sharing report completed earlier this year by ABEL Energy with a hydrogen funding grant from the Tasmanian Government.
The total estimated capital requirement for the methanol and renewable energy project is in the order of A$1.7bn (US$1.14bn).
The technology required to design and build the project is being accessed from around the world. It is estimated operations will require 50 local employees upon commencement in 2026 and generate a further 150 indirect local jobs. Construction will employ around 500 people.
CEO and Managing Director of Iberdrola Australia Ross Rolfe said: “Iberdrola Australia’s investment in the Bell Bay Powerfuels Project demonstrates our commitment to helping Australian enterprises reduce their carbon emissions in sectors which have, historically, been more technically and economically difficult to abate. We are delighted to be combining Iberdrola’s global expertise in green hydrogen technologies with ABEL Energy’s local knowledge and business momentum.”
He added: “Iberdrola Australia was attracted to the Bell Bay Powerfuels Project because of its integrated nature – combining both renewable generation investments with green hydrogen capacity investment – and its collaborative approach to creating shared value for Tasmanian stakeholders over the long-term.”
ABEL Energy Co-founder & CEO Michael van Baarle said: “We are delighted to have Iberdrola’s support as a financial and project partner given their significant capability and experience in constructing and operating large-scale renewable energy projects in Australia and around the world.”
“Together we can harness Tasmania’s excellent hydro and wind resources to produce hydrogen via electrolysis of water, and then use that hydrogen to produce green methanol for the burgeoning green maritime fuel market and other applications.”