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Iberdrola to Build $1.1 Billion Green Hydrogen Plant in Australia

Global Association for ESG

20 Dec 2022

Global energy and electricity provider Iberdrola announced plans to invest over €1.1 billion to build a green hydrogen and green methanol production plant in Australia

Global energy and electricity provider Iberdrola announced plans to invest over €1.1 billion to build a green hydrogen and green methanol production plant in Australia, in partnership with hydrogen developer ABEL Energy.


In order to accelerate the transition to renewable energy and increase its capacity in the nation to 4GW, Iberdrola has committed to investing between €2 and €3 billion in Australia. The new project, in Bell Bay in northern Tasmania, builds on that pledge.

The Australian government recently passed legislation that, for the first time, established the nation's emissions reduction targets into law. These targets include GHG reductions of 43% by 2030, compared to 2005 levels, and the achievement of net zero by 2050. Australia's government will also support the development of the project.

Michael van Baarle, co-founder and CEO of ABEL Energy, said:

“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.”

The Bell Bay Powerfuels plant, one of the biggest in the world, will generate 200,000 tonnes of green methanol annually in its first phase of development and 300,000 tonnes in its second phase.

The green methanol generated at the facility will primarily be used to supply green marine fuels to the shipping industry, among other uses. According to Iberdrola, this will have significant advantages such as the elimination of air pollution in ports, the avoidance of environmental catastrophes brought on by oil spills in marine environments, and the reduction of overall greenhouse gas emissions currently produced by the use of fossil fuels.

Ross Rolfe, CEO and Managing Director of 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.”

(Source : ESG Today)


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