The $1.2 billion project is currently under development by its parent company, Australia’s Abel Energy, with financial and project support from Iberdrola Australia.
Abel Energy said its subsidiary has signed a term sheet for the sale of the site with Hydro Tasmania – the owner of the Bell Bay power station – which was commissioned in 1971 but is now closed.
Securing the site would move the project into higher gear, according to Abel Energy, with front-end engineering and design (FEED) expected to start “in a few months” and commercial operation scheduled to commence in 2027.
The new generation assets, to be built by Iberdrola, will have to provide power for a proposed 240MW electrolyser capable of generating the green hydrogen required for the onsite production of green methanol.
At 300,000t/y, the green methanol project will be the largest of its kind in the southern hemisphere, according to Abel Energy.
Abel Energy says green methanol is in strong demand as an emerging fuel for new ships. The site has its own deep-water berth, which used to receive oil tankers. Bell Bay Powerfuels plans to use it for the export of green methanol.
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