Mabanaft secures funding for new methanol solar plant in Australia

Hamburg-based energy company Mabanaft has received grant approval from the German Projektträger Jülich for the potential construction of a new green methanol plant in Port Augusta, South Australia.

In cooperation with Australian renewable energy company Vast, Mabanaft intends to build a solar methanol plant with a capacity of approximately 7,500 tonnes per year and a 10 MW electrolyzer.

The planned demonstration plant could be operational at the beginning of 2027.

In Germany, the project is granted public funding of approximately €12.4 million from Projektträger Jülich. At the same time, the Australian government, through the Australian Renewable Energy Agency, has pledged to support the project equivalent to approximately €11.9 million after it was selected as a part of the German-Australian Hydrogen Innovation and Technology Incubator, known as HyGATE.

HyGATE seeks 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: importing sustainable energy sources and exporting climate protection technologies “made in Germany”.

Commenting on the project, 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 decarbonise its fuels. The funding is a testament to Vast’s technology as well as our partners within the Solar Methanol Consortium.”

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 decarbonisation efforts and can be a strong contribution to strengthening Germany’s leading role in the global energy transition.”