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Iberdrola to build €1.1 billion green hydrogen plant in Australia

Iberdrola Australia and Australian hydrogen developer ABEL Energy are planning to build a green hydrogen and green methanol production plant.

Located in northern Tasmania, the €1.1 billion Bell Bay Powerfuels project (including a new 300MW windfarm) will be one of the largest in the world. Iberdrola plans to install 260MW of electrolysis and produce 300,000 tonnes of green methanol per year.

"Together with Iberdrola, we look forward to driving green hydrogen to commercial scale in Australia ... We are delighted to have Iberdrola’s support as a financial partner and as an expert in building and operating large-scale renewable energy in Australia and around the world,’ says Michael van Baarle, co-founder and CEO of ABEL Energy.

The project will create 500 jobs, of which 200 direct and 300 indirect jobs will be recruited locally.

A multibillion-dollar commitment to Australian renewables

Iberdrola has been active in the Australian energy market since 2018. The company has installed 1,122 MW of renewables (wind, solar and batteries). It plans to invest between €2 and €3 billion in the coming years to speed Australia’s switch to renewables.

This investment is on top of the €2 billion invested to date. Iberdrola’s Australian projects include the Avonlie solar farm and the Flyers Creek wind farm in New South Wales. Its Port Augusta renewable energy farm in South Australia is the largest hybrid wind-solar farm in the southern hemisphere. In Queensland, it has the rights to the world’s largest wind farm (1,000 MW) at Mount James, and the 360 MW Broadsound photovoltaic plant. 

In addition, it is building 2 new facilities with a combined capacity of 391 MW. These are scheduled for commissioning in 2023. It has also set up a networks business to help Australia expand its electricity grids.

How Austrade helped

Austrade has promoted Australia as a location for renewables investment to Iberdrola since 2016. Iberdrola Renewables Australia was established in 2018 with Austrade’s assistance. More recently, Austrade has provided Iberdrola with information on Australia’s green hydrogen projects, energy networks, offshore wind resources, and electric vehicle charging networks.

Opportunities for clean energy and renewables investors

The Australian Government is building a cleaner energy future for Australia. Its Powering Australia plan is focused on projects that reduce emissions by boosting renewable energy. It has committed almost A$25 billion to clean energy spending, including funding for investment projects. The Bell Bay Powerfuels project has the Australian Government’s support.

Australia offers investment opportunities in clean energy, renewables, microgrids and storage solutions, and future fuel technologies. Find out more about Australia’s transition to net zero.

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Contact an Austrade specialist as an investor as a buyer