Australian industrial project developer ABEL Energy is looking to speed up the potential construction of a methanol production plant at the Cleveland Bay Industrial Park located in the Townsville State Development Area through cooperation with the Port of Townsville.
The company said it is finalizing a feasibility assessment for the Townsville project that would produce 400,000 tonnes per annum of green methanol. A final investment decision (FID) is expected by the end of 2027, with operations commencing in 2029.
ABEL Energy intends to export green methanol from the proposed $1.7 billion plant through the Port of Townsville and provide green methanol marine bunkering facilities on the port’s land. This would also include supporting infrastructure such as storage tanks, loading and unloading facilities, and pipelines.
To this end, ABEL Energy and the Port of Townsville have entered into a memorandum of understanding (MoU), identifying the following purpose:
With the Townsville project, ABEL Energy wants to replicate its flagship Bell Bay project in Tasmania . A MoU has been signed between the Port of Melbourne, Maersk, ANL, Svitzer, Stolthaven Terminals, HAMR Energy, and ABEL Energy to explore the commercial feasibility of establishing a green methanol storage and bunkering hub at the Port of Melbourne.
They are now looking to enter a similar arrangement with the Port of Townsville.
ABEL Energy CEO Michael van Baarle commented: “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 Australian company also noted that it had completed the Singapore Port MPA tender for the supply of green methanol, expressing its approval of the recent announcement that a green and digital shipping corridor is being established between Singapore and Australia.
To remind, both countries formalized their cooperation on establishing the green and digital shipping corridor by signing an MoU on March 5, 2024.