Proposal to re-purpose decommissioned Bell Bay Power Station welcomed by government

This proposal comes after ABEL Energy successfully negotiated a deal with Hydro Tasmania as the preferred proponent for the Bell Bay site, following an expression of interest process launched in December 2022.

ABEL Energy chief executive officer Michael van Baarle said they expected to be in production by 2027.

"We've started the environmental impact study with with the local engineering firm Pitt & Sherry, and we'll be progressing that as quickly as we can, obviously over the next next few months and years," Mr van Baarle said.

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"As far as community engagement goes, we've done quite a bit, our involvement with the community will be one that never comes to an end."

He said the operation would require a workforce of about 50 people under a 24/7 operation.

"But the indirect jobs will take the total number of new jobs for the ongoing operation to over 200, maybe even 250 or 300.

"As far as construction goes, we'll need about 500 people for construction project."

Mr van Baarle said they had been overwhelmed by the demand for green methanol, particularly in the shipping industry.

"They have literally got over 100 new ships on order all proposing to run on green methanol," Mr van Baarle said.

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"What we have said to those shipping companies is that we yes, of course, we will be looking to export the methanol for them, but that we need to have a portion an allocation of the green methanol we're producing here to be allocated for activities in Tasmania."

He said they were examining what existing structures at the Bell Bay site could be repurposed.

"For example we are hopeful that we can retain the stack, because we need a flu stack and to have something that's already here could be a very useful way of not having to rebuild something."

Mr van Baarle said in terms of water supply, there was a new scheme being promoted by Tasmanian Irrigation to supply fresh water to the Bell Bay hydrogen hub.

"In theory we could easily take saline water from the Tamar because between desalinating water and treating freshwater, frankly, there's not a huge amount of difference," he said.

Energy and renewables Minister Guy Barnett said it was a major step forward to a renewable energy future to build Bell Bay as a green hydrogen hub.

"It's consistent with our renewable hydrogen action plan that I launched with Michael Ferguson, just some four years ago, right here at Bell Bay," Mr Barnett said.

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"It'll lock in our plans from going from 100 per cent fully self sufficient in renewable energy to 200 per cent by by 2040."

He said Tasmania was balanced in terms of supply and demand of electricity.

"Because we have a growing economy, we have to supply more electricity," he said.

"That's why we have plans to grow our renewable energy opportunities through wind and solar, and specifically with the Marinus Link and Battery of the Nation.

"That will provide the two way flow of electricity to ensure that we do have that energy security that we need."

Labor's energy and emissions reduction spokesman Dean Winter congratulated Abel Energy for its commitment to its methanol project.

"And for wading through Minister Guy Barnett's red tape to get to this point, it is a credit to their commitment to the project that they have made it this far," Mr Winter said.

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Mr Winter questioned where the government would source power and water for the project.

"On February 23 Minister Barnett announced legislation to allow hydrogen proponents to use Tasmanian Irrigation water; he has still not tabled a Bill," Mr Winter said.

"Which projects will use Tasmanian Irrigation supply and what level of certainty is he prepared to offer for ongoing water security?

"Despite being encouraged to come to Tasmania to set up, there remains no power or water available for major projects, and even the Minister now admits electricity is in 'fine balance' meaning there is no power available for new projects."

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