HyFuel Solar Refinery Pty Ltd, a subsidiary of Vast Renewables Limited (Nasdaq: VSTE), has been awarded $700,000 under the Australia-Singapore Low Emissions Technologies (ASLET) initiative.
This funding will drive the development of South Australia Solar Fuels (SA Solar Fuels), a pioneering sustainable fuels project in collaboration with global energy company Mabanaft.
The initiative aims to meet the growing demand for low-emission fuels in the maritime and aviation sectors, which are under pressure to decarbonise and achieve net-zero emissions.
Previously known as Solar Methanol 1 (SM1), SA Solar Fuels is set to become a global benchmark in sustainable fuel production.
The demonstration plant will be capable of producing 7,500 tonnes per annum of green methanol, enough to power car ferries for sustainable tourism or short-sea shipping operations in Australia.
The project’s innovative technology synthesises hydrogen-derived sustainable fuels, providing a low-carbon alternative to fossil fuels for ships, planes, and industrial applications.
The ASLET funding will support further optimisation of the project as it progresses toward front-end engineering and design (FEED).
This phase will address technical, infrastructure, regulatory, and commercial readiness to ensure the successful adoption of green methanol in maritime operations.
Preliminary front-end engineering and design (pre-FEED) work has already been completed by global engineering firms Fichtner and bse Methanol.
Craig Wood, CEO of Vast, expressed enthusiasm for the ASLET support: “We are delighted to receive this backing from ASLET, which recognises the potential of our project to play a significant role in decarbonising global fuel production.
“We believe SA Solar Fuels offers a scalable solution that can produce green fuels at lower costs than renewable-powered alternatives.
“We look forward to advancing towards FEED with our partners at Mabanaft and progressing our global pipeline of green fuels projects.”
The ASLET initiative is co-delivered by Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Singapore’s Maritime and Port Authority, with support from both governments.
It aims to accelerate decarbonisation in maritime and port operations while fostering bilateral economic benefits.
The funding marks another milestone for SA Solar Fuels, following significant financial backing announced in January 2023.
Vast secured up to $19.48 million from the Australian Renewable Energy Agency (ARENA), while Mabanaft received up to €12.4 million from Projektträger Jülich on behalf of the German government under the HyGATE program.
Located at the Port Augusta Green Energy Hub, SA Solar Fuels will leverage Vast’s next-generation concentrated solar thermal power technology.
This innovative energy source provides continuous heat and power at lower costs, making it ideal for green fuel production.
Additionally, Calix, Vast’s CO2 supply partner, will contribute unavoidable industrial CO2 emissions from its co-located carbon capture and utilisation demonstration plant.
These emissions will be synthesised with green hydrogen to produce sustainable fuels.
The SA Solar Fuels project represents a significant step toward decarbonising global fuel production while positioning South Australia as a leader in renewable energy innovation.