Another green methanol plant in Australia targets shipping demand

Australian hydrogen firm ABEL Energy will build a 400,000 mt/year green methanol plant in Australia's Townsville City to meet bunkering demand.

PHOTO: Aerial view of Port of Townsville in Australia. Port of Townsville

Green methanol produced at the facility will primarily be exported for bunkering in the Port of Singapore.

Abel Energy will also develop green methanol bunkering infrastructure at the Port of Townsville. This includes “storage tanks, loading and unloading facilities, and pipelines.”

Green methanol is categorised into synthetic or e-methanol and bio-methanol.

E-methanol, or synthetic methanol, is produced using 100% biogenic carbon dioxide (CO2) and green hydrogen. Biogenic CO2 is typically captured through either bioenergy with carbon capture and storage (BECCS) or through direct air capture (DAC). It is virtually free of greenhouse gases (GHG) and can cut a ship’s CO2 emissions by 95% compared to conventional marine fuels on a well-to-wake basis.

Bio-methanol is produced with sustainable biomass as a feedstock to generate syngas. This process requires little-to-no fossil fuel, reducing its overall carbon footprint. However, it emits CO2 and carbon monoxide, which are naturally present in the waste streams.

“ABEL Energy’s green methanol production process uses 100 per cent renewable power, fresh water and biomass residues. Our production site in Bell Bay – and the one planned for Townsville – is clean in operation with virtually zero greenhouse gas emissions, water emissions or waste discharge,” the company said in a statement.

The Townsville project will follow the same model as its flagship project in Bell Bay, Tasmania, ABEL Energy said.

It has partnered with Iberdrola to produce 200,000 mt/year of e-methanol at the Bell Bay facility. In the future, the production capacity may be expanded to 300,000 mt/year to meet shipping's eventual demand for green fuels.

The Bell Bay plant is expected to be operational in 2026, and the Townsville plant is expected to be operational in 2029.

By Konica Bhatt

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