Planning permission has been granted for a photovoltaic methanol plant in Port Augusta

Solar Methanol 1 (SM1), a proposed solar-powered plant that will produce sustainable methanol in Port Augusta, South Australia, has received planning permission.

The facility, which is being built by Australian renewable energy company Vast in cooperation with German company Mabanaft, will have a production capacity of 7,500 tonnes of green methanol per year.

According to the partners, the plant has the potential to decarbonize the transportation of methanol produced using Vast’s concentrated solar thermal power (CSP).

As explained, the project will include a Leilac calcination installation by Australian technology company Calix for capturing carbon dioxide (CO2) produced during the production of cement and lime, an electrolysis installation for hydrogen production and a methanol installation.

The project will be powered by VS1, a nearby 30 MW/288 MWh CSP power plant that will use Vast CSP v3.0 technology to provide renewable heat and electricity for the production of sustainable fuels.

In February 2024, Vast and its project partners announced funding agreements for SM1 of up to A$19.48 million (US$12.89 million) from the Australian Renewable Energy Agency (ARENA).

Additional funding of up to €12.4 million has been awarded to project partner Mabanaft by Projektträger Jülich (PtJ), Germany’s public sector partner in science, industry and policy. This funding is part of HyGATE, a collaboration between the Australian and German governments to support real-world pilot, trial and demonstration projects in the hydrogen supply chain.

Thanks to the issued construction consent, the facility is one step closer to the final investment decision (FID).

Craig WoodCEO of Vast, said: “The planning consent is an important milestone for this major project for Port Augusta and South Australia. SM1 will produce cheap green fuels that can play an important role in decarbonizing the global maritime industry. The combination of technologies can be rapidly scaled, acting as a catalyst for the green fuels industry in Australia and around the world.”

CEO and Managing Director of Calix Phil Hodgson stated: “Capturing and using unavoidable emissions from cement and lime is an exciting option to help decarbonize many hard-to-mit industries. It is great to see this innovative and collaborative project reach another important milestone, bringing us one step closer to realizing the world’s first solar methanol plant.”

Volker Ebelingsenior vice president for new energy, supply and infrastructure at Mabanaft, added: “After assessing effectiveness, we expect to develop larger-scale projects that would serve other markets, including Europe.”