Hamburg-based energy company Mabanaft has received a grant approval from the German Projektträger Jülich. The funding marks a crucial milestone for the potential construction of a new green methanol plant in Port Augusta, South Australia. Together with Australian renewable energy company Vast, Mabanaft is assessing to build a demonstration plant with a capacity of around 7,500 tpy of green methanol.

In close cooperation with the project developer Vast, which specializes in concentrated solar thermal power (CSP) energy systems, energy company Mabanaft intends to build a solar methanol plant with a capacity of approximately 7,500 tpy and a 10 MW electrolyzer. The planned demonstration plant could be operational in the beginning of 2027 and could then provide customers with green methanol based on renewable energy. In the future, and after evaluation of effectiveness, other project sites in or near Europe could be added.

In Germany, the project is granted public funding of approximately €12.4 MM from Projektträger Jülich, partner to the public sector in science, business and politics. The Australian government, through the Australian Renewable Energy Agency, has pledged to support the project equivalent to approximately €11.9 MM after the project was selected as a part of the German-Australian H₂ Innovation and Technology Incubator (known as HyGATE).

Aiming for a German-Australian supply chain for green H₂. The initiative HyGATE intends to establish a German-Australian supply chain for green H₂ and to strengthen cooperation between the two countries in the field of H₂ technologies. For Germany, the initiative also has the potential to contribute to the National H₂ Strategy: importing sustainable energy sources and exporting climate protection technologies "made in Germany".

For Mabanaft, the planned demonstration plant can provide increased expertise for the possible construction of similar plants on a commercial scale worldwide. The aim is to supply existing and future customers with green methanol and enable them in their commitment to decarbonization. "With access to green methanol, our range of sustainable energy solutions for our customers would continue to grow," said Philipp Kroepels, Director New Energy at Mabanaft. "The funding agreement makes a crucial recognition and validation of our decarbonization efforts and can be a strong contribution to strengthening Germany's leading role in the global energy transition."

Craig Wood, CEO of Vast said, “This is a significant milestone for Vast and for green fuel production globally. Solar methanol produced at plants like SM1 has the potential to make a huge difference to the transport sector as it urgently looks at ways to decarbonize its fuels. The funding is a testament to Vast’s technology as well as our partners within the Solar Methanol Consortium.”