Redevelopment proposal for Bell Bay Power Station lauded by Tasmanian government

A proposal to redevelop the decommissioned Bell Bay Power Station into a $1.2bn green methanol and hydrogen plant has been lauded by the state government. DETAILS >

Energy Minister Guy Barnett tours the Bell Bay Power Station site on Sunday. Picture: Supplied.

A proposal to redevelop the decommissioned Bell Bay Power Station into a $1.2bn green methanol and hydrogen plant has been lauded by the state government.

However, the opposition says Sunday’s announcement of the energy project partnership in the state’s north raises more questions as it does answers.

Minister for Energy and Renewables Guy Barnett on Sunday announced the partnership between Abel Energy and Iberdrola – under the banner of Bell Bay Powerfuels – to create a clean energy production facility was another step toward the state government’s plan for the precinct to become a green methanol/hydrogen production hub.

The oil-fired Bell Bay Power Station was built in 1971, but has been decommissioned since 2009.

Mr Barnett said if successful, the plant would mean the ongoing employment of 200 people, and 500 during construction.

“This is the right time, it is the right place. This is exactly the vision for Tasmania … to move into a renewable energy economy that will deliver jobs and opportunities around the state and lock in Tasmania as a green energy state,” he said.

“Green methanol/hydrogen can be used to transition advanced manufacturing, heavy transport and energy intensive industries to renewable energy, as well as for export.”

The proposal comes after Abel Energy negotiated a deal with Hydro Tasmania as the preferred proponent for the site.

Labor’s spokesman Energy and Emissions Reduction, Dean Winter, said there were still questions to be answered surrounding the proposal.

“There is deep frustration from the hydrogen proponents I speak to about the government’s performance on this plan,” Mr Winter said.

He called for the government to answer where the power and water for this project will come from.

“On February 23, Minister Barnett announced legislation to allow hydrogen proponents to use Tasmanian Irrigation water. He has still not tabled a Bill,” Mr Winter said.

“Which projects will use Tasmanian Irrigation supply and what level of certainty is he prepared to offer for ongoing water security?

Michael Van Baarle, project manager of Abel Energy said the company expected to be in production by 2027.