The Australian state of Victoria is investing AUD 500,000 ($318,500) into a new study aimed at developing a green shipping fuel hub in the city of Portland.
It will be led by Portland H2 — a subsidiary of HAMR Energy — into the feasibility towards establishing a plant converting plantation forestry residue to green methanol.
The study includes preliminary engineering and planning for the plant that would also include a 100-megawatt electrolyser to produce renewable hydrogen from water.
“Shipping is responsible for more than 2% of the world’s greenhouse gas emissions and the use of green methanol can reduce the carbon intensity by 90% when compared to heavy fuel oil that is currently used,” said HAMR Energy.
It believes Portland is a “prime location” for a renewable methanol facility, located near Australia’s largest plantation forestry production area.
As part of the feasibility study, it will investigate using plantation forestry residue, like harvest trimmings or damaged timber to produce green methanol.
Portland is also home to a deep-water port which sees 300 vessels and approximately 5m tonnes of forestry product loaded each year.
This project is part of the Australian government’s broader AUD17.4m Portland Economic Diversification Plan and is part of the government’s investment of more than AUD 41bn in rural and regional Victoria since 2015.
“This announcement is another step forward for Victoria’s growing renewable hydrogen industry, which will support our renewable energy transition and assist in decarbonising hard-to-abate sectors, including shipping,” said the minister for energy and resources Lily D’Ambrosio.
HAMR Energy is already working with the likes of Maersk, CMA-CGM subsidiary ANL, Svitzer and Stolthaven Terminals to explore the commercial feasibility of establishing a green methanol bunkering hub at the Port of Melbourne.
The collaboration is examining a potential project involving the transportation of green methanol from production sites in Bell Bay, Tasmania, Portland and Victoria to the Port of Melbourne for storage and bunkering services.
