Australian concentrated solar thermal power (CSP) specialist Vast Renewables Ltd and its consortium partner, German energy company Mabanaft, have finalized funding agreements totaling up to AUD 40 million (USD 26m/EUR 24m) for the SM1 solar methanol project, the companies announced.
The funding, initially unveiled in January 2023, comprises non-recoupable grant funding from the Australian Renewable Energy Agency (ARENA) and Projekttraeger Juelich (PtJ), amounting to AUD 19.48 million and up to EUR 12.4 million, respectively. This support comes after the SM1 project secured a spot within the German-Australian Hydrogen Innovation and Technology Incubator (HyGATE).
The signing of the final-form funding agreements last week marks a significant milestone for the project, which aims to establish a demonstration plant in Port Augusta, South Australia. Powered by Vast's advanced CSP v3.0 technology, the plant will have a capacity of approximately 7,500 tonnes of green methanol per year.
The overarching goal of the SM1 project is to catalyze the development of a solar methanol industry in Australia, with a view towards potential export opportunities to Germany and other markets.
Commenting on the project, Philipp Kroepels, Director New Energy at Mabanaft, remarked, “With access to green methanol, our range of sustainable energy solutions for our customers continues to grow.”
See also: Australia Approves Construction of $34 Million Renewable Hydrogen Plant
The collaboration between Vast Renewables and Mabanaft underscores a shared commitment to advancing renewable energy technologies and fostering innovation in the global energy landscape. By harnessing the power of concentrated solar thermal technology, the SM1 project represents a significant step towards realizing a more sustainable and environmentally friendly energy future.
