Vast Renewables Limited has secured up to AUD 180 million in conditional funding from the Australian Renewable Energy Agency (ARENA) to support the construction of its Port Augusta utility-scale clean energy project, Vast Solar 1 (VS1). This project will use Vast’s advanced concentrated solar thermal power (CSP) technology, providing long-duration renewable energy storage and generation. VS1 will deliver reliable, on-demand clean power to South Australia’s grid, especially after sunset when other renewables like solar PV aren’t available.
Vast’s award-winning technology offers round-the-clock carbon-free power and heat, helping to decarbonize the grid, shipping, aviation, data centers, mining, and refining industries. The Australian Government, along with strategic investors EDF and Nabors Industries, has been a strong supporter of Vast’s mission. The AUD 180 million from ARENA is a crucial step toward securing full financing for VS1, which is expected to cost between AUD 360 million and AUD 390 million. Vast has completed front-end engineering design (FEED) and commercial development and is working to finalize the additional investment needed to start construction in 2025.
Craig Wood, CEO of Vast, said in a statement, “Our clean energy solutions are exactly what Australia and the world needs to accelerate the energy transition. By providing green, affordable electricity on-demand when other renewables are not available to power homes, industry and fuels production, we deliver the missing piece of the puzzle. Our technology leverages Australia’s natural resources, skills and innovation and we are thrilled to have the continued strong support of ARENA and the Australian Government on this journey.”
VS1 is part of the Port Augusta Green Energy Hub and could also power Solar Methanol 1 (SM1), a co-located green methanol production facility being developed with Mabanaft. Green methanol is a promising fuel for decarbonizing shipping and is already being used in major container vessels. These South Australian projects will pave the way for Vast’s global clean energy initiatives, complementing solar PV and wind power while supporting green methanol and sustainable aviation fuel production.
Vast’s technology is manufactured at its Queensland facility and is expected to create numerous green jobs in manufacturing, construction, and long-term plant operations. The AUD 180 million funding replaces a previous announcement from February 2023 by Minister for Climate Change and Energy, Hon Chris Bowen MP, and ARENA. The funding is subject to conditions like completing project development, securing additional financing, and other standard project financing requirements.
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