Vast deepens relationship with partner in solar methanol plant

Vast Renewables has deepened its relationship with its partner and potential offtake customer for its concentrated solar thermal powered (CSP) green methanol plant Solar Methanol 1 (SM1) being constructed at Port Pirie in South Australia.

Vast has signed a Joint Development Agreement (JDA) with global energy company Mabanaft to advance the Port Augusta green methanol project to unlock Australia’s green fuels industry.

The new JDA sets out how the project will be developed, further combining technological, business development and commercial expertise.

The JDA includes a framework agreement securing offtake rights for Mabanaft for future green fuels projects powered by Vast technology, allowing Mabanaft to supply its shipping customers seeking to decarbonise their operations.

NASDAQ-listed Vast and Mabanaft are developing SM1 with the Solar Methanol Consortium and are supported by fellow Australian technology company Calix as Principal CO2 Supply Partner and the Australian Solar Thermal Research Institute (ASTRI).

The CEO of Vast Craig Wood said: “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.

“Vast is excited to continue our partnership with Mabanaft, and the execution of this agreement is a testament to our joint commitment to pioneer green fuel production globally.”

Earlier this month Vast received approvals for SM1 which is backed by $65 million from the Australian Renewable Energy Agency (ARENA) and up to EUR 12.4 million granted to project partner Mabanaft by Projektträger Jülich (PtJ) from the HyGATE fund, a collaboration between the Australian and German governments.

Mabanaft is actively supporting its customers’ decarbonisation by expanding its range of sustainable energy solutions according to Philipp Kroepels, Director New Energy at Mabanaft.

Kroepels said: “We believe that methanol, in particular, can play an important role in the shipping industry, and Mabanaft is well positioned to build supply chains to meet that growing demand.”

Further reading:
Vast secures approvals for solar methanol project

Picture: Solar Mathanol 1