Australia-based energy company Vast Renewables has secured up to A$180 million (approximately $113.3 million) of conditional funding from the Australian Renewable Energy Agency (ARENA) for the construction of its utility-scale clean energy project Vast Solar 1 (VS1), part of the Port Augusta Green Energy Hub, which also includes green methanol production facility Solar Methanol 1 (SM1).
Deploying the company’s next-generation concentrated solar thermal power (CSP) solution, VS1 is set to be one of Australia’s first projects to provide long-duration renewable energy storage and generation, Vast claimed, adding that its technology has the potential to play a “critical role in powering the global energy transition.”
As disclosed, the technology is designed to deliver “round-the-clock, affordable carbon free power and heat” needed to decarbonize the grid, fuel production for shipping and aviation, specialist industries such as data centers and hard-to-abate industries like mining and refining.
The announced funding from ARENA is said to be an “important step” towards finalizing financing for VS1. According to Vast, capital expenditures to complete the construction of VS1 are currently estimated to be in the range of A$360 million (approximately $226.6 million) – A$390 million (approximately $245.4 million).
Vast has completed front-end engineering design (FEED) and commercial development, and is, reportedly, working to deliver additional investment in the project. Construction is expected to begin in 2025.
To note, VS1 has the option to power SM1, which is being developed in partnership with German-based energy company Mabanaft. This facility is expected to have the capacity to produce 7,500 tonnes of green methanol each year.
READ MORE Engineering contracts awarded for solar methanol plant in Port Augusta Planning consent issued for solar methanol plant in Port Augusta Mabanaft secures funding for new methanol solar plant in Australia It is understood that the A$180 million funding commitment for the construction of VS1 replaces the existing funding announced in February 2023 by the Minister for Climate Change and Energy and ARENA. It is subject to various conditions, including completing project development activities, securing the remaining funding necessary to complete construction and other conditions customary for project financings of this nature.