Iberdrola Partners with ABEL Energy for € 1.1 Bn Green Hydrogen Project

Iberdrola Australia and hydrogen developer ABEL Energy have come together to build a green hydrogen and green methanol production plant at Bell Bay, Tasmania. The project – Bell Bay Powerfuels – is backed by the Australian government and will involve an investment of EUR 1.1 billion.

Iberdrola said that Bell Bay Powerfuels will produce 200,000 tonnes of green methanol annually in the first phase, rising to 300,000 tonnes in second, making it one of the largest such projects in the world.

The green methanol will be used to supply the maritime market as well as for other applications, mentioned the official statement by Iberdrola. From 2021, the world’s leading shipping companies are opting for large ships designed to run on ultra-clean-burning green methanol.

The company believes that this decision has major benefits, such as eliminating air pollution in ports, avoiding environmental disasters due to oil spills in marine environments, and reducing greenhouse gas emissions currently generated by the use of fossil fuels.

The construction of the future plant, which combines investment in renewable generation with investment in green hydrogen capacity, is characterised by a collaborative approach to creating long-term value for the Tasmanian community, and will rely on the best technology in the world while creating 500 jobs. Of these, 200 direct and indirect jobs will be locally recruited.

Ross Rolfe, CEO and Managing Director, Iberdrola Australia, said, “Iberdrola Australia’s investment in the Bell Bay Powerfuels Project demonstrates our commitment to helping Australian businesses reduce their carbon emissions in sectors where historically, both technically and economically, it has been more difficult to make this transition. We are delighted to be able to combine Iberdrola’s global expertise in green hydrogen technologies with ABEL Energy’s local knowledge and commercial drive.”

Michael van Baarle, Co-Founder and CEO, ABEL Energy, commented, “Together with Iberdrola, we look forward to driving green hydrogen to commercial scale in Australia and establishing a new climate technology industry that will benefit the Tamar Valley community and its future generations. We are delighted to have the support of Iberdrola as a financial partner and as an expert in building and operating large-scale renewable energy in Australia and around the world.”

Iberdrola’s hydrogen initiatives 

Iberdrola is developing 60 renewable and green H2 initiatives in eight different countries. Its goal is to reach 35,000 tonnes of hydrogen per year by 2025 and more than 350,000 tonnes per year by 2030.

To this end, it has created a project portfolio of 2,400 MW in different regions, mainly in Spain, the United States and Australia.

Iberdrola said that it will also invest between 2,000 and 3,000 million euros in Australia with the aim of boosting the switch to renewables in the country and reaching 4,000 MW in the coming years.