Vast’s Clean Energy Project Secures up to AUD180 Million from the Australian Renewable Energy Agency to Power South Australia’s Grid and Green Fuels Production
Vast Renewables (VSTE) has secured up to AUD180 million in conditional funding from the Australian Renewable Energy Agency (ARENA) for its Port Augusta utility-scale clean energy project, Vast Solar 1 (VS1). The project will deploy Vast's next-generation concentrated solar thermal power (CSP) solution.
The total capital expenditure for VS1 construction is estimated at AUD360-390 million. The project aims to provide long-duration renewable energy storage and generation, delivering reliable clean power to South Australia's grid during peak pricing periods when solar PV is unavailable.
VS1 includes an option to power a co-located green methanol production facility (SM1) in partnership with Mabanaft. The funding is conditional upon completing project development activities, securing remaining construction funding, and other customary conditions.
Vast Renewables (VSTE) ha ottenuto fino a AUD180 milioni di finanziamenti condizionati dall'Agenzia Australiana per le Energie Rinnovabili (ARENA) per il suo progetto di energia pulita su scala utility a Port Augusta, Vast Solar 1 (VS1). Il progetto utilizzerà la soluzione di energia solare termica concentrata (CSP) di nuova generazione di Vast.
La spesa totale in conto capitale per la costruzione di VS1 è stimata tra AUD360-390 milioni. L'obiettivo del progetto è fornire stoccaggio e generazione di energia rinnovabile a lungo termine, offrendo energia pulita affidabile alla rete dell'Australia Meridionale durante i periodi di picco dei prezzi quando il fotovoltaico solare non è disponibile.
VS1 include un'opzione per alimentare una struttura di produzione di metanolo verde co-locata (SM1) in collaborazione con Mabanaft. Il finanziamento è condizionato al completamento delle attività di sviluppo del progetto, alla garanzia del finanziamento rimanente per la costruzione e ad altre condizioni consuete.
Vast Renewables (VSTE) ha asegurado hasta AUD180 millones en financiación condicional de la Agencia Australiana de Energías Renovables (ARENA) para su proyecto de energía limpia a gran escala en Port Augusta, Vast Solar 1 (VS1). El proyecto implementará la solución de energía solar térmica concentrada (CSP) de nueva generación de Vast.
El gasto total de capital para la construcción de VS1 se estima entre AUD360-390 millones. El objetivo del proyecto es proporcionar almacenamiento y generación de energía renovable de larga duración, ofreciendo energía limpia y confiable a la red de Australia del Sur durante los períodos de precios máximos cuando la energía solar fotovoltaica no está disponible.
VS1 incluye una opción para alimentar una instalación de producción de metanol verde co-localizada (SM1) en asociación con Mabanaft. La financiación está sujeta a la finalización de las actividades de desarrollo del proyecto, la obtención del financiamiento restante para la construcción y otras condiciones habituales.
Vast Renewables (VSTE)는 호주 재생 가능 에너지 기관(ARENA)으로부터 포트 오가스타의 대규모 청정 에너지 프로젝트인 Vast Solar 1 (VS1)을 위해 최대 AUD180 백만의 조건부 자금을 확보했습니다. 이 프로젝트는 Vast의 차세대 집광형 태양열 발전(CSP) 솔루션을 배치할 것입니다.
VS1 건설을 위한 총 자본 지출은 AUD360-390 백만으로 추정됩니다. 이 프로젝트의 목표는 장기적인 재생 가능 에너지 저장 및 생성을 제공하여 태양광 PV가 사용 불가능할 때 호주 남부의 전력망에 신뢰할 수 있는 청정 전력을 공급하는 것입니다.
VS1은 Mabanaft와 협력하여 공동 위치에 있는 녹색 메탄올 생산 시설(SM1)에 전력을 공급할 수 있는 옵션을 포함합니다. 자금은 프로젝트 개발 활동 완료, 남은 건설 자금 확보 및 기타 관례적인 조건을 충족해야 합니다.
Vast Renewables (VSTE) a sécurisé jusqu'à AUD180 millions de financement conditionnel de l'Agence Australienne des Énergies Renouvelables (ARENA) pour son projet d'énergie propre à grande échelle à Port Augusta, Vast Solar 1 (VS1). Le projet déploiera la solution de concentration solaire thermique (CSP) de nouvelle génération de Vast.
Les dépenses d'investissement total pour la construction de VS1 sont estimées entre AUD360-390 millions. L'objectif du projet est de fournir un stockage et une génération d'énergie renouvelable de longue durée, offrant une énergie propre et fiable au réseau d'Australie-Méridionale pendant les périodes de prix de pointe lorsque le photovoltaïque solaire n'est pas disponible.
VS1 comprend une option pour alimenter une installation de production de méthanol vert co-localisée (SM1) en partenariat avec Mabanaft. Le financement est conditionnel à l'achèvement des activités de développement du projet, à l'obtention du financement de construction restant et à d'autres conditions habituelles.
Vast Renewables (VSTE) hat von der Australischen Agentur für Erneuerbare Energien (ARENA) bis zu AUD180 Millionen an bedingter Finanzierung für sein großangelegtes sauberes Energieprojekt in Port Augusta, Vast Solar 1 (VS1), gesichert. Das Projekt wird die nächste Generation der konzentrierten solarthermischen Energie (CSP) Lösung von Vast einsetzen.
Die Gesamtkapitalausgaben für den Bau von VS1 werden auf AUD360-390 Millionen geschätzt. Das Ziel des Projekts ist es, langfristige erneuerbare Energiespeicherung und -erzeugung bereitzustellen und zuverlässige saubere Energie für das Netz von Südaustralien während der Spitzenpreise zu liefern, wenn die Solar-PV nicht verfügbar ist.
VS1 umfasst eine Option zur Versorgung einer ko-lokalen grünen Methanolproduktionsanlage (SM1) in Partnerschaft mit Mabanaft. Die Finanzierung ist an den Abschluss der Projektentwicklungsaktivitäten, die Sicherstellung der verbleibenden Baufinanzierung und andere übliche Bedingungen geknüpft.
- Secured significant government funding of AUD180 million for VS1 project
- Strategic partnership with global energy company Mabanaft for green methanol production
- Project targets peak pricing periods for revenue optimization
- Completed front-end engineering design (FEED) and commercial development
- Strong government and strategic investor support (EDF and Nabors Industries)
- Funding is conditional upon meeting various milestones and securing additional capital
- Still needs to secure remaining funding of approximately AUD180-210 million
- Construction hasn't started yet, pending final investment decision
Insights
Vast Renewables has secured a conditional funding commitment of up to AUD180 million from the Australian Renewable Energy Agency for its Port Augusta concentrated solar thermal power project. This represents a significant milestone, covering approximately 46-50% of the project's AUD360-390 million estimated capital expenditure, but important conditions must be met before the funding is released.
The funding commitment replaces a previous ARENA announcement from February 2023, and includes specific requirements: completing remaining development activities, securing the balance of project financing (approximately AUD180-210 million), and meeting other standard project financing conditions. For a company with a $14.4 million market capitalization, securing nearly half the required capital from a government agency significantly derisks the project, though substantial financing challenges remain.
The VS1 project represents Vast's first utility-scale deployment of its CSP technology, making it a critical proof-of-concept that must succeed to validate their global expansion plans. The company has completed front-end engineering design work, positioning them for a potential final investment decision and construction start in 2025, suggesting revenue generation wouldn't begin until at least 2026-2027.
Beyond power generation, the partnership with global energy company Mabanaft to potentially produce green methanol at the same site creates a secondary revenue opportunity. This dual-use approach leverages the high-temperature capabilities of CSP technology for both electricity generation and industrial process heat, diversifying potential revenue streams.
The conditional nature of this funding means successful execution against milestones remains crucial, as failure to meet conditions could jeopardize the entire financing structure and delay the project significantly.
Vast's AUD180 million conditional funding from ARENA addresses a critical gap in renewable energy markets - the provision of dispatchable power when intermittent renewables aren't available. Their concentrated solar thermal power technology with integrated thermal storage represents one of the few scalable solutions for long-duration energy storage (8+ hours), positioning them strategically in a market increasingly dominated by shorter-duration battery systems.
The Port Augusta project aims to capitalize on peak pricing periods after sunset, when electricity demand often remains high but solar PV production drops to zero. This capability for time-shifting renewable energy has significant value in markets with high solar penetration like South Australia, where evening price spikes have become common as conventional generation retires.
The technology's dual-output design - producing both electricity and high-temperature heat - creates versatility beyond pure power generation. The planned integration with green methanol production demonstrates this advantage, as the thermal energy can directly drive industrial processes without conversion losses. This approach could potentially deliver efficiency advantages over competing pathways that require electricity-to-heat conversion.
From a manufacturing perspective, Vast's Queensland facility producing Australian-made components creates additional economic benefits beyond the project itself. This local supply chain development suggests potential for technology export, aligning with Australia's ambitions to become a clean energy technology exporter.
However, concentrated solar thermal technology has historically faced challenges with construction complexity, cost overruns, and performance guarantees. The success of VS1 will depend on Vast's ability to overcome these historical industry challenges and deliver a project that meets both technical performance specifications and economic return requirements.
- Vast secures up to AUD180 million of funding from ARENA for construction of groundbreaking South Australian clean energy project, conditional on meeting certain milestones
- Project to deploy Vast’s innovative clean energy solution, delivering clean power for South Australia’s grid when intermittent renewables are not available, as well as for green fuels production
- Vast on-track to export its solution to a global pipeline of projects, enabling long duration energy storage and generation critical to the world’s energy transition
SYDNEY, March 12, 2025 (GLOBE NEWSWIRE) -- Vast Renewables Limited (“Vast”) (Nasdaq: VSTE) today announced it has secured up to AUD180 million of conditional funding from the Australian Renewable Energy Agency (“ARENA”) for construction of its Port Augusta utility-scale clean energy project, Vast Solar 1 (“VS1”).
Deploying Vast’s next generation concentrated solar thermal power (“CSP”) solution, VS1 is set to be one of Australia’s first projects to provide urgently needed long duration renewable energy storage and generation. The project capitalises on peak pricing periods after sunset when intermittent renewables like solar PV are not available, delivering reliable, on-demand clean power to South Australia’s grid.
Vast’s award-winning technology has the potential to play a critical role in powering the global energy transition. The technology is designed to deliver round-the-clock, affordable carbon free power and heat that is needed to decarbonise the grid, fuels production for shipping and aviation, specialist industries such as data centres, and hard to abate industries like mining and refining. The Australian Government, through ARENA, has been a major supporter of Vast, alongside strategic investors EDF and Nabors Industries (NYSE: NBR).
The announced funding from ARENA is an important step towards finalising financing for VS1. Capital expenditures to complete construction of VS1 are currently estimated to be in the range of AUD360 million - AUD390 million. Vast has completed front-end engineering design (FEED) and commercial development, and is working to deliver the additional investment in VS1 and Vast (for the construction and commissioning period) necessary to allow a final investment decision and construction to begin in 2025.
Part of the Port Augusta Green Energy Hub, VS1 also has an option to power a world-first co-located green methanol production facility, Solar Methanol 1 (“SM1”), which is being developed by Vast in partnership with global energy company, Mabanaft. A real world, in-demand application for hydrogen, green methanol has the potential to decarbonise shipping and is already being used to power major container vessels.
Vast’s South Australian projects will lay the foundations for the planned rollout of its global pipeline of clean energy projects that complement intermittent solar PV and wind in the energy mix and will contribute to powering the production of green methanol and sustainable aviation fuels.
Craig Wood, CEO of Vast, said, “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.”
Vast’s Australian-made technology is currently produced at its Queensland facility. Vast’s projects and manufacturing activities are anticipated to create dozens of Australian green manufacturing and construction jobs, and long-term plant operations roles.
The AUD180 million funding commitment for construction replaces the existing funding announced in February 2023 by the Minister for Climate Change and Energy, Hon Chris Bowen MP, and ARENA. It is subject to various conditions including: completing project development activities; securing the remaining funding necessary to complete construction of VS1; and other conditions customary for project financings of this nature.
Vast’s 1.1MW demonstration project in Forbes, New South Wales
About Vast
Headquartered in Australia, Vast is a renewable energy company developing clean energy solutions that enable 24/7 green, low-cost heat and power to decarbonise the grid, green fuels production for the transport industry, and hard-to-abate industries. Vast’s next generation CSP v3.0 approach utilises a proprietary, modular sodium loop to efficiently capture and convert the sun’s energy.
On December 19, 2023, Vast listed on the Nasdaq under the ticker symbol “VSTE”.
Visit www.vast.energy for more information.
Contacts
For Investors:
Caldwell Bailey
ICR, Inc.
VastIR@icrinc.com
For US media:
Matt Dallas
ICR, Inc.
VastPR@icrinc.com
For Australian media:
Nick Albrow
Wilkinson Butler
nick@wilkinsonbutler.com
Forward Looking Statements
The information included herein and in any oral statements made in connection herewith include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, regarding VS1, Vast's future financial performance, Vast's strategy, future operations, financial position, estimated revenues and losses, projected costs, capital expenditures, prospects, plans and objectives of management are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "project," "should," "will," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Vast management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Vast disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. Vast cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Vast. These risks include, but are not limited to, general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; Vast's ability to obtain financing on commercially acceptable terms or at all; Vast’s ability to manage growth; Vast's ability to estimate project costs and to execute its business plan, including the completion of the Port Augusta project (including VS1), at all or in a timely manner; potential litigation, governmental or regulatory proceedings, investigations or inquiries involving Vast; changes in applicable laws or regulations and general economic and market conditions impacting project costs and/or demand for Vast's products and services. Additional risks are set forth in the section titled "Risk Factors" in the Annual Report on Form 20-F for the year ended June 30, 2024, dated September 9, 2024, as amended on November 7, 2024, and other documents filed, or to be filed with the SEC by Vast. Should one or more of the risks or uncertainties described herein and in any oral statements made in connection therewith occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Vast's expectations can be found in Vast's periodic filings with the SEC. Vast's SEC filings are available publicly on the SEC's website at www.sec.gov
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/edae2280-828c-4798-9bbe-dcc30d6ed557
FAQ
How much funding did Vast Renewables (VSTE) secure from ARENA for the VS1 project?
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