April 2025
Published: 17 Mar 2025
Author: Precedence Research
Vast Renewables Limited has secured conditional funding from the Australian Renewable Energy Agency for a site-specific allotment of up to AUD180 million for the South Australian clean energy project called Vast Solar 1 (VS1). The funding will foster an infrastructure to advance renewable energy in the least. Hence, the funding is for long-duration energy storage and generation to be injected into the South Australian grid and green fuels sub-sector.
VS1 will deploy Vast's next-generation concentrated solar thermal power (CSP) technology, enabling one of the first large-scale renewable energy projects in Australia catering to on-demand power. CSP technologies guarantee stability in power supply even in the dark, ensure grid reliability, and provide cheap and sustainable energy. The CSP system of VS1 captures solar energy and stores it in molten salt, rendering it a vital solution for industrial operations, data centers, and hard-to-abate sectors like mining and refining.
According to Craig Wood, the CEO of Vast, it will be very meaningful for this particular project to be part of Australia's energy transition. It is supposed to be where clean energy solutions are needed to accelerate change. Expected to also be a strong contributor to decarbonizing the power grid, high-temperature heat industries, such as shipping and aviation fuel production, are supposed to attach themselves to the use of Vast technology. VS1 is part of the Port Augusta Green Energy Hub, and being on it is integral to tying renewable energy solutions into the South Australian energy mix. The development also has the capability of powering Solar Methanol 1 (SM1), the world's first green methanol production facility, built in collaboration with Mabanaft. Green methanol, produced using renewable hydrogen and carbon capture technologies, is increasingly seen as a much cleaner alternative fuel, particularly in the case of shipping.
An amount of AUD 180 million has been authorized by ARENA for Australia-based renewable energy firm Vast. This is a great milestone for the country in its renewable sector. In return for the investment, Vast must meet certain milestones concerning successful project development activities, securing the remaining capital required for construction, and fulfilling many other financing conditions. The total capital expenditure for this project has been estimated to be between AUD 360 million and AUD 390 million range. Once fully funded, construction for VS1 is expected to commence in 2025. In addition, Vast plans to replicate this model project for the development of future projects worldwide, particularly in those countries where the business is currently engaged in getting CSP-based long-duration energy storage solutions into international markets. The project is expected to have immense benefits for the economy, creating jobs in engineering, construction, operations, and maintenance.
The development of Vast has significantly arisen with the backing from ARENA and strategic investments from EDF and Nabors Industries, and also as part of the Australian Government's commitment to a low-carbon economy. Vast's CSP technology solves the issue of variable generation in solar and wind sources to be able to deliver energy as per demand. The project is slated to kick off in 2025, providing a template for future reliable renewable energy supply in South Australia while being the first scalable solution in the global energy market. As we chart the path to net zero emissions, projects like VS1 are showcases for how innovative renewables can serve to meet some of the growing demand for sustainable power and fuels in the 21st century.
April 2025
April 2025
April 2025
April 2025