Engineering contracts awarded for solar methanol plant in Port Augusta

October 17, 2024, by Aida Čučuk

Energy companies Vast Renewables and Mabanaft have awarded contracts to engineering group Fichtner and e-fuels company bse Methanol to commence pre-front-end engineering and design (pre-FEED) work for SM1, the solar thermal-powered plant that will produce green methanol in Port Augusta, South Australia.

Fichtner’s role in the project builds off the company’s recent report that highlighted using CSP in green fuels production can potentially reduce costs by up to 40%, Vast said, claiming that SM1 is a “first-of-its-kind” project that can demonstrate this potential and catalyze Australia’s green fuels industry and a global pipeline of projects.

According to Vast, a key part of Fichtner’s work will involve integrating proven technologies to produce green methanol:

Leilac calcination plant from technology company Calix to capture unavoidable process carbon dioxide produced in the making of cement and lime.
Methanol plant, with bse Methanol acting as the process provider and original equipment manufacturer (OEM). To note, the e-fuels company has developed the FlexMethanol modules which are said to enable the economic conversion of energy and carbon dioxide from flue gas into a chemical energy store by means of modular and decentralized production units.
Electrolysis plant to produce hydrogen.

Part of the Port Augusta Green Energy Hub in South Australia, SM1 is expected to have the capacity to produce 7,500 tonnes of green methanol each year and will be supplied with base load clean and renewable heat from Vast’s 30 MW / 240 MWh concentrated solar thermal power (CSP) plant.

As per Vast, methanol is one of the most versatile hydrogen derivatives and, if produced using clean energy, it has the potential to decarbonize shipping and aviation fuels.

Craig Wood, CEO of Vast, said that “commencing pre-FEED is an important milestone to progress SM1,” and Philipp Kroepels, Director of New Energy at Mabanaft, pointed out that “with the commissioning of Fichtner and bse Methanol, the SM1 project demonstrates tangible progress in shaping the future.“

Amy Philbrook from Arup, the newly-appointed Project Manager for SM1, stated that Arup is excited to contribute to this project, “which is poised to transform the transport sector.”

Alex Dronoff, CEO of Fichtner Australia, and Joachim von Schnitzler, Project Manager of Fichtner’s international engineering team and Head of Future Fuel & Gas, commented: “Fichtner has supported the SM1 project over the last few years, including during the application for funding as part of the German-Australian HYGATE Program, and we are proud to continue supporting this promising development.”

Christian Schweitzer and Sten Wranik, Managing Directors of bse Methanol, expressed pride in receiving the pre-FEED contract, adding: “The selection is a clear commitment by our industry partners to the use of our prefabricated and transportable methanol modules at commercial scale, and we’re excited to show the flexible operation of our methanol synthesis alongside power in Australia.”

To remind, the SM1 has secured funding agreements for up to A$19.48 million ($13.03 million) from the Australian Renewable Energy Agency (ARENA) and up to €12.4 million ($13.51 million) from Projektträger Jülich (PtJ) on behalf of the German government. The planning consent for the project was received in May 2024, and Vast and Mabanaft signed a joint development agreement to advance SM1 in June 2024.