Over 800 jobs to be created through Bell Bay green methanol project

A $1.2 billion green methanol and hydrogen plant has been proposed to be built at the decommissioned Bell Bay Power Station in Tasmania and the State Government welcomes this new investment that will generate hundreds of jobs for the region. 

The Bell Bay Powerfuels Project will revitalise the precinct of the old power station into a world-leading green methanol and hydrogen production hub. 

This announcement follows the signing of a term sheet between Hydro Tasmania and Bell Bay Powerfuels – a partnership between ABEL Energy and Iberdrola Australia – for the sale of the decommissioned Bell Bay Power Station. 

“This announcement is the start of a very unique period for Tasmanian renewable energy. We are on the cusp of being a global leader in green methanol production, the future fuel of world shipping. It’s a great win for all Tasmanians particularly the Tamar Valley communities of George Town and Launceston,” ABEL Energy Co-Founder and Chief Executive Officer Michael van Baarle said. 

“Iberdrola Australia’s support for the Bell Bay Powerfuels green methanol project is part of our broad commitment to helping deliver decarbonisation solutions for commercial and industrial customers in historically hard-to-abate sectors. In addition to our partnership with Bell Bay Powerfuels, Iberdrola is providing technical and commercial support for the project, enabling the development to benefit from our local market expertise and global capabilities in this emerging technology,” Iberdrola Australia Chief Executive Officer and Chairman Ross Rolfe, AO said. 

Render of the project (source: ABEL Energy)

With the site secured, it accelerates the development of the Bell Bay Powerfuels Project. Front end engineering and design (FEED) on the project is scheduled to commence over the next few months. 

The proposed production plant will combine green hydrogen from a 240MW water electrolysis plant with synthesis gas from a biomass gasifier to produce green methanol. 

The production process is going to be fully powered by renewable energy from hydro and new wind production assets as well as fresh water from major river systems and biomass residues recovered from existing plantation forestry operations in the State. 

Once operational, the production plant is estimated to have 300,000 tonnes of output annually, making this global-scale green methanol project the largest of its kind in the Southern Hemisphere. 

The Bell Bay Powerfuels Project is anticipated to create up to 500 jobs during its construction and its operations will require more than 300 direct and indirect jobs. 

“This is an exciting opportunity because it is a step towards the creation of a new $1.2 billion clean energy production facility, but it also provides an innovative solution to re-develop the mothballed oil-fired Bell Bay Power Station that was built in 1971. 

“With our world class wind resources, Tasmania is an ideal location to produce cost-competitive renewable methanol/hydrogen on a large-scale to meet this emerging export and domestic demand and become a global leader in renewable energy supply. 

“Green methanol/hydrogen can be used to transition advanced manufacturing, heavy transport and energy intensive industries to renewable energy, as well as for export,” Minister for Energy and Renewables Guy Barnett said. 

Source: Premier of Tasmania – News; ABEL Energy (1, 2)