Massive energy project unveiled

Spanish electric utility Iberdrola will join forces with Australian group Abel Energy in a $1.7 billion project to construct a hydrogen and methanol production plant at Bell Bay by 2026, the companies confirmed on Monday. The Bell Bay Powerfuels Project will create 500 jobs during the construction phase, and approximately 50 positions once operational, with a further 150 jobs indirectly supported, according to the companies. Included in the proposal is a nearly $1 billion hydrogen and methanol production facility, with targeted output of 200,000 tonnes of methanol per annum; and an approximately $700 million renewable energy project. READ MORE:Kmart Plaza $4million development to start stage 3 Methanol production would ultimately rise to 300,000 tonnes per annum, making it one of the largest such projects in the world, according to Michael van Baarle, founder and CEO of Abel Energy. Methanol, a biodegradable form of alcohol that combusts cleanly, is emerging as the shipping fuel of the future, and is also used in many industrial processes, Mr van Baarle said. Industrial users currently import about 100,000 tonnes of the liquid into the country annually, and Abel will be looking to tap into that market, he said. He also said growing demand for methanol was illustrated by maritime companies purchasing methanol-based ships, including Norway's Maersk, which last year placed orders for at a dozen large container ships. "Each ship uses around 40,000 tonnes per year of methanol, so the market has really taken off, but the concern among the maritime industry is whether there is enough methanol supply coming on to allow this transition to happen seamlessly," he said. READ MORE: TasWater reminds users to only flush the three Ps Guy Barnett, Minister for Energy and Renewables, said the announcement by Abel and Iberdrola showed confidence in the government's plan to make Bell Bay a hydrogen production hub. "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," he said. Previous studies by Hydro Tasmania showed that it was possible to produce hydrogen as much as 15 per cent cheaper than on the mainland under certain circumstances. Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: Follow us on Google News: The Examiner