Vast and Mabanaft partner to supply renewable heat for green methanol plant

It could cut green fuel production costs by up to 40%.

Vast Renewables Limited signed a joint development agreement with global energy company Mabanaft to supply baseload renewable heat from its concentrated solar thermal power plant to contribute to powering the Solar Methanol 1 (SM1) plant.

In a statement, Vast Renewables said supplying renewable heat from its 30-megawatt (MW) 288 MW-hour CSP plant to SM1 could reduce green fuel production costs by up to 40%, citing a report by engineering group Fichtner.

“The JDA is a significant milestone for SM1, which has the potential to demonstrate how Vast technology can unlock low-cost green fuel production to contribute to decarbonising the global shipping and aviation industries,” said Vast CEO Craig Wood.

SM1, located in South Australia at the Port Augusta Green Energy Hub, can produce 7,500 tonnes of green methanol annually which is one of the most versatile hydrogen derivatives.

Vast and Mabanaft in February signed a fund agreement for SM1, amounting to up to (A$40m).