Green fuel hopes for $1.7bln boost with Bell Bay plant plan

Tasmania’s ambition to become an international renewable energy export powerhouse has been given a $1.7 billion boost with plans for a green fuel project in the state’s north. DETAILS >

TOOT TOOT: A container ship passes under the West Gate Bridge. Picture: Mark Stewart

TASMANIA’S ambition to become an international renewable energy export powerhouse has been given a $1.7bln boost with plans for a green fuel project in the state’s north.

With plans to produce up to 300,000 tonnes of green methanol a year, the Bell Bay Powerfuels Project will be one of the largest in the world and will help the world’s shipping fleets switch to renewables.

Iberdrola Australia and hydrogen developer ABEL Energy announced the project on Monday. It will employ 500 people during construction.

“Iberdrola Australia’s investment in the Bell Bay Powerfuels Project demonstrates our commitment to helping Australian enterprises reduce their carbon emissions in sectors which have, historically, been more technically and economically difficult to abate,”

Iberdrola Australia chief executive officer Ross Rolfe said.

“We are delighted to be combining Iberdrola’s global expertise in green hydrogen technologies with ABEL Energy’s local knowledge and business momentum.”

ABEL Energy CEO Michael van Baarle said

Bell Bay Advanced Manufacturing Zone. Picture: ABEL Energy

“Together we can harness Tasmania’s excellent hydro and wind resources to produce

hydrogen via electrolysis of water, and then use that hydrogen to produce green

methanol for the burgeoning green maritime fuel market and other applications,” he said.

“The world’s major shipping companies, led by Denmark’s A.P. Moller – Maersk, have,

since August 2021, been placing orders for very large ships designed to run on ultra-clean-

burning green methanol.

“This has many benefits such as eliminating air pollution in ports, avoiding the risk of catastrophic oil spills in sensitive marine environments, and especially reducing greenhouse gas emissions currently generated by fossil fuel use.”

Minister for Energy and Renewables Guy Barnett said plans to proceed with the plan were a vote of confidence in the Tasmanian Renewable Hydrogen Action Plan.

“With our world-class renewable energy, Tasmania is an ideal location to produce cost-competitive renewable hydrogen on a large-scale to meet this emerging export and domestic demand and become a global leader in renewable energy supply.

“The Tasmanian Green Hydrogen Hub will include a hydrogen production plant located within the Tasmanian Green Hydrogen hub in Bell Bay. It will be central to providing local jobs and training opportunities.

“The green hydrogen produced on site will be used to transition advanced manufacturing, heavy transport and energy intensive industries to renewable energy, as well as for export,’’ Minister Barnett said.