In South Australia they’re turning sunlight into a liquid fuel you can store, ship, and use when you need it. This clean-energy idea come from Port Augusta, Vast Renewables, they’re building a project that connects concentrated solar power (CSP) and thermal storage (called VS1) with a co-located fuel plant (SM1) that makes green methanol from hydrogen and CO₂ captured through carbon capture.
The main goal is to use the sun’s heat to help create a cleaner fuel that works for sectors that are hard-to-electrify like maritime shipping and aviation. VS1 provides a firm clean heat and power, and this, even after sunset. At the same time SM1 aims to produce about 7,500 tonnes per year of green methanol. Together, this becomes a practical path: instead of only charging batteries or transporting tricky gases, you can make a liquid fuel on site, store it in tanks, and move it using familiar fuel logistics.
How VS1 and SM1 work
All of these words can seem to technical, so let’s explain it on a simpler way:
VS1 is like a giant thermal “battery.” And concentrated solar power are like mirrors focusing sunlight to create high temperatures, and that heat is stored for using later.
The energy is stored as heat, and because of that the plant can keep supplying power even when the sun goes down or if the sky is cloudy.
Then SM1 uses that steady clean heat, plus hydrogen, which is made from renewables and carbon dioxide from carbon capture, to produce green methanol. Now, green methanol is simply methanol made with clean inputs; it’s a liquid at room temperature, so it can be poured into tanks, shipped by truck or vessel, and handled with equipment industry already knows.
Are we good up to here? Okay, well now, a little question: why does all of this matter?
Because many places don’t have enough chargers or hydrogen pipelines yet to use everyday. But liquid like green methanol can fit into today’s storage and transport systems, and needs fewer changes.
This is really helpful for maritime shipping and aviation, because here, energy needs are huge and pretty expensive. So, by making the fuel right where the clean heat is available, SM1 in avoiding to lose extra energy that happen when you’re moving energy around before turning it into fuel.
Why green methanol and not just hydrogen?
Hydrogen is important and will will probably continue to be for a very long time, especially for fuel cells and certain industrial processes. But hydrogen is actually hard to store and move. Why? Because it’s the smallest molecule so it can leak. And it usually needs compression or to be cooled to very low temperatures.
Green methanol, on the other hand, is already liquid under normal conditions. That means you can store it easier, shipping will be simpler too because it can be transported using tanks, trucks, and ships that already exist.
The purpose of the VS1–SM1 combo is to reduce common points of pain. By distributing heat and electricity after sunset, VS1’s thermal storage minimizes the “intermittency” of renewable energy sources. And after that, SM1 converts that dependable clean energy, combined with hydrogen and CO₂ from carbon capture, into green methanol locally, with an annual target of about 7,500 tonnes.
What success could mean for South Australia and beyond
If VS1 and SM1 deliver as planned at Port Augusta, South Australia this will be a huge improvement on clean power. And it’s a preety big message for maritime shipping and aviation.
7,500 tonnes a year won’t transform the world overnight, but being the first with this kind of project certainly touches a lot of people and industries.