$2 billion Bell Bay Powerfuels project to open in Northern Tasmania by 2028
You might be surprised to learn that the biggest project undertaken in Tasmania in the last 50 years is neither a stadium nor a bridge.
Tasmania
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A $2bn green methanol production plant set to open at Bell Bay by 2028 has been described as “by far the biggest” project to be undertaken in Tasmania in half a century and is tipped to create more than 300 direct and indirect jobs.
Originally spearheaded by ABEL Energy, the Bell Bay Powerfuels project was bought out by Zen Energy, which has now been appointed the lead proponent of the Tasmanian Green Hydrogen Hub in the Bell Bay Advanced Manufacturing Zone.
Zen Energy executive director Simon Talbot joined Energy Minister Nick Duigan to make the announcement on Saturday.
“It’s a $2bn project, plus $2bn [worth] of renewable energy coming to site,” he said.
“That makes it by far the biggest project in Tasmania for 50 years. It is the right project for Tasmania.
“It’s producing green methanol – a fuel replacement for diesel, a fossil-free fuel – that goes into maritime and aviation. When you buy something in Tasmania, it often comes via shipping or aviation and it’s going to be great for us to produce that fuel right here at home, using our own local resources.”
Energy Minister Nick Duigan said the announcement of Bell Bay Powerfuels as the hydrogen hub’s lead proponent “continues Tasmania’s path toward becoming a globally significant exporter of hydrogen and hydrogen-derived products”.
“I think what this demonstrates is how good Tasmania’s fundamentals are as a place for the production of green hydrogen,” he said.
“We have our green grid and that’s so critically important. We have relatively abundant freshwater, we’ve got port infrastructure that can be built out. So we are best placed, as we were at the beginning of the hydrogen gold rush.”
By combining renewable hydrogen from a 240MW electrolysis plant with synthesis gas, Bell Bay Powerfuels will aim to produce 300,000 tonnes of green methanol per year.
The project will use 100 per cent renewable energy from hydro and wind assets, as well as freshwater from major river systems and biomass residues taken from existing plantation forestry operations to power its plant.
Bell Bay Advanced Manufacturing Zone CEO Susie Bower said Bell Bay Powerfuels would turn “a hypothetical into a reality”.
“We are very keen to start work with Simon and his team to look at what the reality means for our supply chain,” she said.
Green hydrogen is viewed as a potentially game-changing alternative to fossil fuels and diesel.
The state Liberal government’s Renewable Hydrogen Action Plan, released in 2020, set a goal of making Tasmania a “significant global supplier” of green hydrogen for export and domestic use.
The plan also laid out a target of commencing renewable hydrogen production by 2022-2024 and exporting the fuel by 2025-2027.
Labor frontbencher Josh Willie said the Opposition welcomed the announcement of Bell Bay Powerfuels being the lead proponent of the hydrogen hub but said it had been “a long time coming”.
“It is overdue and we want to see this government do the hard work to support these sorts of announcements,” he said.
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