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Mabanaft is granted EUR 12.4 million in funding for the construction of a new solar methanol plant in Australia

The Hamburg-based energy company Mabanaft has received a grant commitment from the German project management organisation Jülich. The funding represents a milestone for the potential construction of a new green methanol plant in Port Augusta, South Australia. Together with the Australian renewable energy company Vast, Mabanaft is planning to build a demonstration plant with a capacity of around 7,500 tonnes of green methanol per year.

Working closely with the project developer Vast, which specialises in solar thermal energy systems, the energy company Mabanaft intends to build a solar methanol plant with a capacity of around 7,500 tonnes per year and a 10 MW electrolyser. The planned demonstration plant could come on stream in early 2027 and then supply customers with green methanol produced from renewable energy sources. In the future, and following an assessment of its effectiveness, further project sites in or near Europe could be added.

Companies are receiving funding totalling 24 million euros
In Germany, the project is being funded with around €12.4 million by Projektträger Jülich, a public-sector partner in science, industry and politics. The Australian Government, via the Australian Renewable Energy Agency, has pledged funding of around 11.9 million euros after the project was selected as part of the German-Australian Hydrogen Innovation and Technology Incubator (known as HyGATE).

Aiming for a German-Australian green hydrogen supply chain
The HyGATE initiative aims to establish a German-Australian supply chain for green hydrogen and to strengthen cooperation between the two countries in the field of hydrogen technologies. For Germany, the initiative also has the potential to contribute to the National Hydrogen Strategy: the import of sustainable energy sources and the export of climate protection technologies ‘made in Germany’.

Green methanol can expand the range of sustainable energy solutions
For Mabanaft, the planned demonstration plant can expand its expertise for the potential construction of similar plants on a commercial scale worldwide. The aim is to supply existing and future customers with green methanol and support them in their commitment to decarbonisation. “With access to green methanol, our range of sustainable energy solutions for our customers would grow further,” says Philipp Kroepels, Director of New Energy at Mabanaft. He continues: “The financing agreement is a sign that our decarbonisation efforts are being recognised. It can make an important contribution to strengthening Germany’s leading role in the global energy transition.”

Craig Wood, CEO of Vast, comments: “This is a major step forward for Vast and for the production of environmentally friendly fuels worldwide. Solar methanol, produced in plants such as SM1, has the potential to transform the transport sector, which is urgently seeking ways to decarbonise its fuels. The funding is a clear endorsement of Vast’s technology and of our partners in the Solar Methanol Consortium.”

The Mabanaft Group is a leading independent and integrated energy company that provides its customers with innovative energy solutions in the transport, heating, industrial and agricultural sectors. The group is active in the import, distribution and marketing of petroleum products, natural gas liquids, chemicals and biofuels, and supports its customers in the transition to cleaner fuels by offering alternative long-term solutions.

www.mabanaft.com

Vast is a renewable energy company that utilises CSP systems to generate, store and distribute carbon-free electricity and industrial heat, and enables the production of green fuels. Vast’s CSP v3.0 approach utilises a proprietary, modular sodium cycle to efficiently capture and convert solar heat into these end products. On 19 December 2023, Vast will be listed on the Nasdaq under the ticker symbol “VSTE”, whilst the company’s headquarters will remain in Australia.

www.vast.energy

The project “SoIMeth24 Collaborative Project: Development, Construction and Commissioning of a Unique Solar Methanol Production Plant in Australia” is funded by the Federal Ministry of Education and Research (BMBF) under grant reference number (FKZ): 03SF0725B

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