Hydrogen has been talked about for some time now as an alternative for the global energy transition we are currently experiencing. In fact, it is highly sought after. However, amid this race for hydrogen, a somewhat surprising alternative has emerged that has even greater potential than previously imagined and that we can start using right now – yes, until now we have not been able to imagine how this has been hidden for so long…
It looks like the race for green hydrogen already has a protagonist
Countries like Germany, Japan and South Korea have been ahead of the game when it comes to hydrogen for generating green energy for quite some time now. The business is so serious that they have already established partnerships to import this fuel. On the other hand, regions like the Middle East, South America and Oceania are preparing to export it on a large scale. It is worth noting that Australia, in particular, is a strong candidate in this race.
Why? Well, to understand, we need to look at the Australian state of Tasmania. The reason is its 100% renewable energy profile and strategic geography, which has been considered one of the best places in the world for producing green hydrogen. The north of this state has been the site of several projects and investments in this niche for some time now. However, many of them ended up failing due to technical and infrastructure challenges.
But it seems that this scenario is about to change, since the company ABEL Energy has put a project on the table with a different approach. How so? Well, instead of just exporting hydrogen, why can’t we transform it into something denser, more versatile and with greater immediate global demand? It seems that the secret lies there…
From hydrogen to green methanol
Ok, so what would this hydrogen transformation be? We’re talking about green methanol, and how would it be possible? Just combine green hydrogen with carbon captured from sustainable biomass, and then we’ll have methanol with a neutral carbon footprint (the famous green methanol). This material can be used as:
- Clean marine fuel;
- Feedstock for green chemicals;
- And even the basis for sustainable aviation fuel.
It was from there that ABEL Energy partnered with Worley for the Bell Bay Powerfuels project. This partnership plans to produce 300,000 tons of green methanol per year from 2028 (some experts are even saying goodbye to hydrogen). But for all this to happen, the initiative has already received A$330 million in public incentives, which has attracted international interest and is close to being acquired by Zen Energy, a company backed by economist Ross Garnaut.
Why is all this happening now?
Before we talk about the moment itself, we need to better understand the place where all this is happening. This is because Tasmania itself offers unique conditions, such as:
- Almost entirely renewable energy matrix;
- Access to a deep-water port;
- Geographical location close to major Asian markets;
- And a political and industrial ecosystem committed to the energy transition.
In addition to all these points, the state government is also accelerating these types of projects, an example of which is the 224 MW wind farm in Bell Bay and the Marinus Link, which is an underwater cable that will connect the island to the continental electricity market. The goal is to facilitate the generation and export of clean energy. And it’s not just Australia that is betting on this new source of green energy, you know? In Dubai, in the United Arab Emirates, they have just created a golden engine that is the future of mobility – and it runs on methanol.
