Bell Bay Powerfuel Project

Bell Bay Powerfuel Project

Iberdrola and ABEL Energy have announced the joint delivery of a green hydrogen and green methanol production facility in Bell Bay, northern Tasmania. The facility is expected to produce over 300,000 tonnes of green methanol a year once completed.

The project will be delivered in two stages, with Stage One to deliver an initial 200,000 tonnes of methanol, and Stage Two the remainder.

The project would deploy biomass gasification of plantation forestry residues in conjunction with water electrolysis to produce green methanol.

Key Dates

Dec 2022 Project Announcement


Procuring Agency: Iberdrola and ABEL Energy


Nov 2020 The Tasmanian Government announced that ABEL Energy was one of three applicants awarded grant funding under the Tasmanian Renewable Hydrogen Industry Development Funding Program. The grant of $555,000 contributed to a 1.3 million feasibility study by ABEL Energy into the use of green hydrogen to make methanol at Bell Bay.
Jun 2022 ABEL Energy Knowledge Sharing Report released – this report investigated the feasibility of a 100 MW electrolyser plant to produce renewables-based green hydrogen and methanol at Bell Bay for domestic and export use.
Dec 2022 Iberdrola and ABEL Energy announce partnership for the joint delivery of the green hydrogen and green methanol production facility. The project's total estimated cost was announced at $1.7 billion.
Jun 2023 Hydro Tasmania announced the signing of a term sheet with Iberdrola and ABEL Energy for the sale of the decommissioned Bell Bay Power Station. ABEL Energy announced the project's total estimated cost had been revised down from $1.7 billion to $1.2 billion.
Estimated Total Cost
Procurement approach
Other |
Tasmania |
Project pages
ABEL Energy