- Collaboration is geared towards constructing a large-scale green hydrogen and methanol production plant in Tasmania
- The first stage of production is set to commence in 2026, according to Iberdrola Australia.
The unit of Iberdrola SA, the Spanish utility giant, based in Australia has combined efforts with Australia-based Abel Energy. The collaboration is geared towards constructing a large-scale green hydrogen and methanol production plant in Tasmania. It is expected to cost about AUD 1.7 billion
The project, named Bell bay Powerfuels, is projected to have a plant with the capacity to produce 200,000 tonnes of green methanol in the first phase annually which could be expanded to 300,000 tonnes in the second phase. The first stage of production is set to commence in 2026, according to Iberdrola Australia.
The plant will be located in the Bell Bay Industrial centre of northern Tasmania. Renewable-generated power will be supplied to the plant.
The project was developed by Abel Energy and received a grant of AUD 555,000 from the Tasmanian government to back its AUD-1.3-million feasibility study. Iberdrola and its Aussie partner noted that they are still assessing different technologies for the project.
“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,” said Michael van Baarle, Abel Energy’s co-founder and CEO. He pointed out that major shipping firms such as Denmark’s AP Moeller Maersk A/S have been placing orders for very large ships designed to run on ultraclean-burning green methanol.