ABEL Energy, a leading developer of green methanol as a marine fuel, is accelerating the potential build of a $1.7 billion methanol manufacturing plant at a 16-22 hectares site near Townsville, Queensland.
The new plant will produce 400,000 tonnes a year of green methanol.
Abel Energy has completed the Singapore Port MPA tender for the supply of green methanol.
Singapore and Canberra have formalised cooperation on establishing a Green and Digital Shipping Corridor by signing a Memorandum of Understanding on 5 March 2024.
ABEL Energy wants to export green methanol through the Port of Townsville and provide green methanol marine bunkering facilities on port land. This would also include supporting infrastructure such as storage tanks, loading and unloading facilities, and pipelines.
ABEL Energy’s current flagship project is Bell Bay in Tasmania. A MoU has been signed between 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.
CEO Michael van Baarle said: “the Townsville project would seek to replicate the company’s flagship project, Bell Bay Powerfuels in Tasmania. “ABEL’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.”
ABEL energy is finalising a feasibility assessment for the Townsville Project. A final investment decision would be by the end of 2027, with operations commencing in 2029.
Basics of methanol
Methanol is a form of alcohol (don’t consume it though, it would be horribly toxic to drink!). It has been considered for use in road transport since the oil shocks of the 1970s – it has been blended into conventional fuels in various parts of the world – and it has been used in cars in China.
Combustion of this alcohol produces 99% less sulphur oxides (SOx), 80% less nitrogen oxides (NOx) and, theoretically, less greenhouse gas emissions compared to conventional heavy marine fuel oil.
Methanol can be manufactured in a very low-carbon manner. Methanol’s formula is CH3OH, which means that it is composed of one carbon atom, four hydrogen atoms and one oxygen atom. So it follows that, to make methanol, a producer needs access to large volumes of oxygen, carbon, and hydrogen. Oxygen and hydrogen are both industrially-produced gases; both can be produced by the electrolysis of water (zap electricity through a water molecule (H20) and it will split into oxygen and hydrogen). Electrolysis can be powered by renewable energy.
Biogenic carbon dioxide can be obtained by feeding agricultural waste, municipal waste, sewage, non-food crops, industrial wastes, black liquor, or animal wastes (among other things), into a bio-reactor. Micro-organisms break down the feedstock, which releases carbon dioxide.
Combine the various gases (carbon, hydrogen, oxygen) in the appropriate way, in the appropriate proportions, using environmentally-friendly power, and, et voila: environmentally-friendly methanol. Combustion of methanol would then restore carbon dioxide to the place from which it originated – the atmosphere.
This is why green methanol (i.e. produced with renewable energy from responsibly sourced feedstocks) is regarded as net-carbon neutral.
