Engineering Contracts Secured for Vast Solar Methanol Facility

On October 8, 2024, Vast Renewables Limited, a company focused on renewable energy for green fuel production, announced a significant advancement in the development of its green methanol plant, SM1. Vast, in partnership with global energy firm Mabanaft, has awarded contracts to international engineering group Fichtner and German e-fuels leader bse Methanol to initiate pre-front-end engineering and design (FEED) work. This announcement follows the appointment of Dr. Amy Philbrook, Arup’s Australasia Clean Fuels Technical Lead, as Project Manager.

Located within the Port Augusta Green Energy Hub in South Australia, the SM1 plant is designed to produce 7,500 tonnes of green methanol annually. Methanol, a versatile hydrogen derivative, can significantly decarbonize fuels in shipping and aviation when produced from clean energy sources. The plant will be powered by renewable heat from Vast's 30 MW / 240 MWh concentrated solar thermal power (CSP) facility.

Fichtner brings a wealth of experience in designing renewable energy projects worldwide, including energy storage and hydrogen. Their involvement in SM1 builds on a recent report highlighting that CSP could potentially reduce costs in green fuel production by up to 40%. This makes SM1 a pioneering project that could stimulate Australia's green fuels industry and a wider global initiative.

The pre-FEED phase is crucial for the project's progress. Fichtner's work will focus on integrating established technologies for green methanol production, including:

• The Leilac calcination plant from Calix, an Australian technology company, which will capture unavoidable carbon dioxide generated during cement and lime production.

• A methanol plant utilizing bse Methanol’s innovative FlexMethanol® modules, designed for the efficient conversion of energy and carbon dioxide from flue gas into chemical energy through modular production units.

• An electrolysis facility for hydrogen production.

Vast's collaboration with Mabanaft was solidified through a joint development agreement signed in June 2024. The project has secured funding agreements totaling up to AUD $19.48 million from the Australian Renewable Energy Agency (ARENA) and up to EUR 12.4 million from Projektträger Jülich (PtJ) on behalf of the German government.

Craig Wood, CEO of Vast, emphasized the importance of the pre-FEED milestone for SM1, highlighting its potential impact on the challenging transport sector. Dr. Philbrook's expertise is seen as vital for advancing this innovative project. Philipp Kroepels, Director of New Energy at Mabanaft, noted the significance of the engineering partnerships with Fichtner and bse Methanol in realizing the solar methanol plant.

Both Alex Dronoff and Dr. Joachim von Schnitzler from Fichtner expressed enthusiasm for continuing their collaboration with Vast and Mabanaft, underscoring their long-standing support for the project. Meanwhile, bse Methanol's leadership conveyed pride in being part of this groundbreaking initiative, emphasizing the commercial viability of their methanol synthesis technology in Australia.