Vast Renewables has finalised an updated agreement to access $30 million from its $65 million grant provided by the Australian Renewable Energy Agency (ARENA).
The funding will accelerate Vast’s development of its next-generation concentrated solar thermal power (CSP) technology, aimed at delivering clean and reliable energy to decarbonise Australia’s grid and facilitate the production of green fuels.
In a news release, Vast stated its proprietary CSP technology captures and stores solar energy as heat, offering a dispatchable energy solution that complements intermittent renewable sources like solar photovoltaic and wind.
This makes CSP a crucial component in addressing Australia’s energy transition needs.
Craig Wood, CEO of Vast, highlighted the significance of the technology, stating, “ARENA’s backing has been pivotal, getting us to a point where we are garnering significant interest from investors, industry, and international governments keen to explore how our technology can play a key role in decarbonising hard-to-abate sectors including electricity, industry, and fuels.”
The secured funding will be directed toward the final development activities of Vast Solar 1 (VS1), a 30MW CSP power plant with eight hours of energy storage, set to be built in the Port Augusta Green Energy Hub, South Australia.
This flagship project will supply clean, dispatchable electricity to the National Electricity Market and power Solar Methanol 1 (SM1), a co-located green methanol production facility.
Green methanol, a sustainable fuel option with potential to decarbonise the shipping industry, is already being used to power major container vessels.
Vast’s CSP technology, proven at a grid-connected pilot project in New South Wales, positions the company as a leader in renewable innovation.
Its scalable, Australian-manufactured solution has garnered international accolades and a growing global project pipeline.
The funding will also enable Vast to scale up its Queensland-based green technology manufacturing operations.
This expansion is expected to support the construction of VS1 and future projects while creating green manufacturing, construction, and long-term operational roles.
The construction of VS1 is scheduled to commence in the second quarter of 2025, with estimated capital expenditures between AUD360 million and AUD390 million.
The Australian Government’s consistent support has been instrumental in advancing Vast’s vision for a domestic CSP industry, with export potential for its technology.
The funding was initially announced in February 2023 by the Minister for Climate Change and Energy Chris Bowen.
“With the continued support of the Australian Government and our investors, we are looking forward to building our next projects and helping Australia become an export powerhouse for this next generation of green technology,” Wood added.
