Australian methanol plant receives planning consent

The plant is expected to produce around 7,500 mt/year of green methanol by 2027 using electricity generated through solar energy.

PHOTO: Vast's solar energy field. Vast

The methanol plant - dubbed Solar Methanol 1 (SM1) - will be located in southern Australia’s Port Augusta. It is a collaborative project by Australian firm Vast Renewables and Hamburg-based Mabanaft.

Planning consent refers to official permission from local authorities to proceed with the project. It is a crucial step for the SM1 project to progress towards the final investment decision, Vast said.

Electricity for green methanol production will be sourced from a co-located 30 megawatt (MW) or 288 MWh concentrated solar thermal power plant (CSP).

SM1 will produce low-cost green fuels, which can play an important role in decarbonising the global maritime industry, said Vast's chief executive Craig Wood. 

The project received funding in February this year from the Australian Renewable Energy Agency (ARENA) and the German project sponsor Projektträger Jülich.

By Manjula Nair

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