Vast, Mabanaft signs $26m funding agreement for a CSP-powered solar methanol plant

The SM1 plant aims to generate over 7,500 tonnes per annum of green methanol.

Vast Renewables Limited, along with its consortium partner, Mabanaft, has signed funding agreements for up to $26m (A$40m) for a CSP-powered solar methanol plant.

The solar methanol facility, called SM1, is designed to assist in decarbonising shipping.

Vast will collect over $12.64m (A$19.48m) from the Australian Renewable Energy Agency (ARENA) and Mabanaft will receive over $13.31m (EUR 12.4m) from Projektträger Jülich (PtJ) on behalf of the German government after being selected as part of the German-Australian Hydrogen Innovation and Technology Incubator (HyGATE).

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“Solar methanol, produced at plants like SM1, has the potential to make a huge difference to the transport sector where it has proven difficult to decarbonise fuel sources. This funding is a testament to the tremendous opportunity provided by Vast’s technology as well as our partners within the Solar Methanol Consortium,” Craig Wood, CEO of Vast, stated.

SM1 intends to produce over 7,500 tonnes per annum of green methanol, powered by Vast’s CSP v3.0 technology that generates zero-emission heat and electricity to produce green methanol. The facility is one of the many efforts to bolster the solar methanol industry in Australia.