Iberdrola and ABEL Energy Partner to Develop Green Hydrogen and Methanol Project in Tasmania

The clean energy company Iberdrola Australia has announced a partnership with hydrogen developer ABEL Energy to work on a green hydrogen and methanol project at the Bell Bay production facility in northern Tasmania. The project, known as the Bell Bay Powerfuels Project, is estimated to cost around $1.1 billion and will use technology sourced from around the world. The scale of the project, with a capacity of 200,000 tonnes per year of green methanol in stage one and an increase of 300,000 tonnes per year in stage two, will make it one of the largest of its kind in the world.

The project will also incorporate one of the largest electrolyser units to be installed in Australia by 2025, providing pure green hydrogen for domestic customers. The green methanol produced at the facility will be used for the growing market for green maritime fuel and other applications, with major shipping companies placing orders for ships designed to run on ultra-clean-burning green methanol.

Potential environmental impact

The use of green methanol has numerous benefits, including reducing air pollution in ports, eliminating the risk of oil spills in sensitive marine environments, and significantly reducing greenhouse gas emissions.

Iberdrola Australia CEO Ross Rolfe stated that the company was attracted to the Bell Bay Powerfuels Project by its integrated nature and its long-term approach to creating value for Tasmanian stakeholders. ABEL Energy CEO Michael van Baarle added that the partnership with Iberdrola will help establish a future-proof climate-tech industry for the Tamar Valley community and kick-start a commercial-scale green hydrogen industry in Australia.