Iberdrola SA has announced its plans to build the largest methanol plant in the Southern Hemisphere. The company has closed a deal with state utility Hydro Tasmania to acquire the Bell Bay plant located in Australia. The acquisition is part of a project called Bell Bay Powerfuels, which includes setting up a hydrogen and methanol production plant.
The planned investment for the project is 1,140 million euros, and the plant is expected to start commercial operation in 2027. Iberdrola, in collaboration with Abel Energy, is starting the process necessary to complete the Engineering and Design (FEED) in the near future. months.
To guarantee the supply of renewable energy needed for the 240 MW electrolyzer, which will generate the green hydrogen needed to produce methanol, Iberdrola will have to develop new power generation assets. The initial intention is to reach production of 200,000 tonnes per year in the first phase, and later increase to 300,000 tonnes in the second phase. If achieved, the plant would become the largest facility of its kind in the Southern Hemisphere.
Originally oil-fired, Bell Bay Power Station has had its own deepwater port that received tankers since it opened in 1971. Although the plant will be demolished, it is planned to preserve and reuse some of the existing structures, including the port, which will be used by Bell Bay Powerfuels to export its methanol production.
The Bell Bay Powerful Fuels project has made significant progress in various aspects. For example, a sustainable supply of biomass is guaranteed from certified plantations, as well as the necessary water supply. In addition, agreements have been established for the supply of methanol.
In December last year, Iberdrola entered into an agreement with Abel Energy to jointly develop this plant in the north of the island of Tasmania. As a financial partner, the Spanish company has demonstrated its commitment to the project. It is estimated that the plant will create 50 direct jobs and another 150 indirect jobs by 2027. During the construction phase, approximately 500 people are expected to be employed.
Iberdrola has consolidated its position as a leader in the Australian energy market with an installed capacity of 1,062 MW. In addition, it has a portfolio of projects of over 2 GW across various technologies. The company also owns, leases and purchases assets through four Power Purchase Agreements (PPAs) totaling 245 MW as well as battery energy storage systems with a total capacity of 75 MW.
These 75 MW include a 25 MW battery currently operating at Lake Bonney Wind Farm in South Australia, and another 50 MW of batteries will be managed at Walgrove substation in New South Wales under an agreement signed with local distributor TransGrid. In 2021, Iberdrola completes the installation of the final wind turbine in Port Augusta, South Australia, leading to the construction of its first hybrid wind-solar plant in the world.
With the construction of the methanol plant in Bell Bay, Iberdrola has once again demonstrated its commitment to the transition towards more sustainable and cleaner energy. The project will not only boost the production of Green Methanol, but will also generate employment and contribute to the economic development of the region. Iberdrola continues to strengthen its position as a global leader in the energy sector, standing out for its investments in renewable technologies and its commitment to protecting the environment.
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