In a significant move towards sustainable energy solutions, ABEL Energy has announced the acceleration of its plans to construct a $1.7 billion green methanol manufacturing plant in Townsville. This facility aims to produce 400,000 tonnes per annum of green methanol, catering to the burgeoning demand for eco-friendly shipping fuel.
The decision follows ABEL Energy’s successful completion of the Singapore Port MPA tender for the supply of Green Methanol. The company expressed enthusiasm at Prime Minister Albanese’s recent announcement regarding the establishment of a Green and Digital Shipping Corridor between Singapore and Australia. This initiative aligns with ABEL Energy’s commitment to decarbonizing and digitalizing shipping routes.
Formalizing their cooperation, both countries signed a Memorandum of Understanding (MoU) on March 5, 2024, laying the groundwork for the establishment of the Green and Digital Shipping Corridor.
ABEL Energy plans to export green methanol through the Port of Townsville and provide marine bunkering facilities, including storage tanks, loading and unloading infrastructure, and pipelines. This endeavor mirrors the company’s flagship project in Bell Bay, Tasmania, where a similar initiative is underway.
ABEL Energy CEO Michael van Baarle said:
“The Townsville project would seek to replicate the company’s flagship project, Bell Bay Powerfuels in Tasmania.“ ABEL Energy’s green methanol production process uses 100 per cent renewable power, fresh water and biomass residues. Our production site in Bell Bay – and the one planned for Townsville – is clean in operation with virtually zero greenhouse gas emissions, water emissions or waste discharge.
“Townsville poses an ideal location for our second green methanol production facility due to the availability of wind and solar energy, along with the large amount of readily available biomass in the forms of sugar cane waste, invasive pest species prickly acacia and woodchip.”
The company is currently finalizing a feasibility assessment for the Townsville Project, with a projected final investment decision by the end of 2027 and operations commencing in 2029.
Additionally, ABEL Energy has signed a Memorandum of Understanding with the Port of Townsville, outlining the collaborative efforts required to assess the feasibility of the project. Understand (MOU) with the following purpose:
- undertaking investigations required to assess the feasibility of the Project.
- (assessing and analysing the green methanol market including customer segments (identification of bunkering customers, market leading customers with alternate fuel strategies, high level vessel fuel conversion studies and suitability assessment to local vessel fleet).
- defining the optimal land size, tank storage and bunkering options, enabling infrastructure requirements, transport options, and safety considerations for the Project.
- undertaking agreed Work Packages to evaluate the feasibility of the Project.
- cooperatively working together with the intent to reach a Heads of Agreement to further advance the Project.
ABEL Energy, an Australian industrial project development company, focuses on the production and utilization of green hydrogen, primarily for green methanol production. With expertise in synthetic fuels and a commitment to sustainability, the company is poised to play a significant role in Australia’s transition to cleaner energy solutions.
Source ABEL Energy