Funding worth AU$1m (£480,000) has been awarded to a government-backed Australian energy partnership to develop a project that will demonstrate how green hydrogen production can reduce the cost of renewable methanol by up to 20%.
Announced today (23rdMay), the project aims to bring together innovation in electrolysis from the UK and a growing market opportunity for renewable methanol as a sustainable fuel in Australia.
Using funding supplied by the Australia-UK Renewable Hydrogen Innovation Partnership, a study will explore how high-pressure hydrogen from UK-based energy company Supercritical Solutions (Supercritical) electrolysers can be used in Australia’s HAMR Energy (HAMR’s) hybrid methanol plant.
The study will include testing Supercritical’s advanced catalysts and testing the environmental impact of their electrolysers, which do not use membranes.
Starting in 2026, the company’s technology will be used to produced renewable methanol at a cost 20% lower compared to other technologies.
Why green hydrogen?
Green hydrogen reacts with captured carbon dioxide (CO2) to create methanol, a versatile chemical used in fuels, plastics, and other products.
This method significantly reduces carbon emissions compared to traditional methanol production, which relies on fossil fuels.
Renewable methanol can replace conventional methanol and heavy fuel oils, offering a cleaner alternative for various industries, including transportation and manufacturing.
Supercritical claims that this can be achieved through its ‘world-leading’ system efficiency of 42 kilowatt hours per kg of hydrogen, whilst delivering hydrogen over 200 bara.
“Our collaboration with HAMR Energy signifies a leap towards making zero-emission renewable fuels a mainstream reality,” said Matt Bird, CEO and Co-founder at Supercritical.
“This venture underpins our commitment to innovation and our belief that the right technology can indeed turn the tide on global energy challenges.”
The methanol industry, the third largest user of hydrogen, emits 38.8m tonnes of carbon dioxide (CO2). Used to make various products such as plastics and fuels, methanol is increasingly seen as a replacement for heavy fuel oil, especially in the shipping industry.
Companies like Maersk with backing from the International Maritime Organisation both aim to cut global greenhouse gas emissions using renewable methanol.
©Maersk. In February 2024, Maersk launched the first of its 18 large methanol-enabled vessels currently on order.
According to Alex Smith, Co-founder at HAMR, the partnership could help Australia become a leader in the production of the fuel.
“HAMR has some of the leading production projects in the region, however we need to continue to pursue cost reduction opportunities and efficiencies.”
In partnership with UK’s Astrimar Ltd and the Manufacturing Technology Centre, the initiative will develop a containerised product concept and a certification roadmap for UK and Australian markets.
Monash University in Melbourne will provide expertise and engineering support through its Faculty of Engineering.
On 7th May 2024, the Australian Minister for Climate Change and Energy announced the successful applicants at the Australian British Energy Transition & Investment Summit.
This builds on the 2021 Australia–UK Clean Technology Partnership and the 2023 Australia-UK Free Trade Agreement. The Australian government’s new Hydrogen Production Tax Incentive (HTPI) will offer AU$2 per kg of hydrogen over ten years from 2027, aiding the commercialisation of green hydrogen to methanol technology.
Driven by the growth in low-carbon fuels, the global methanol market is projected to grow from US$32.7bn in 2024 to $46.32bn in 2032.
