Vast Renewables Limited (“Vast”) (Nasdaq: VSTE) has secured up to AUD180 million in conditional funding from the Australian Renewable Energy Agency (“ARENA”) to support the construction of its utility-scale clean energy project, Vast Solar 1 (“VS1”), in Port Augusta.
Using next-generation concentrated solar thermal power (“CSP”) technology, VS1 will be among Australia’s first projects to provide long-duration renewable energy storage and generation. The project aims to capitalize on peak electricity pricing periods after sunset, delivering reliable, on-demand clean power to South Australia’s grid when solar PV is unavailable.
Vast’s award-winning CSP technology plays a crucial role in the global energy transition by delivering round-the-clock, carbon-free power and heat—critical for decarbonizing the grid, sustainable fuels production, and hard-to-abate industries like mining, refining, and data centers. Vast has received strong backing from the Australian Government, ARENA, and strategic investors such as EDF and Nabors Industries (NYSE: NBR).
Advancing Towards Final Investment Decision
The ARENA funding represents a significant milestone in securing the remaining capital required for VS1. The total construction cost is estimated between AUD360 million – AUD390 million. With front-end engineering design (FEED) and commercial development already completed, Vast is working to finalize investment and begin construction in 2025.
VS1 is a key component of the Port Augusta Green Energy Hub and may also power a co-located green methanol production facility, Solar Methanol 1 (“SM1”), being developed in partnership with global energy company Mabanaft. Green methanol is an emerging clean fuel with the potential to decarbonize shipping, already in use by major container vessels.
Scaling Clean Energy Solutions Globally
Vast’s South Australian projects will serve as a foundation for scaling its technology worldwide, complementing solar PV and wind power while contributing to green methanol and sustainable aviation fuel production.
Craig Wood, CEO of Vast, stated:
“Our clean energy solutions are exactly what Australia and the world need to accelerate the energy transition. By providing affordable, on-demand green electricity when other renewables are unavailable, we fill a critical gap. This technology harnesses Australia’s natural resources, innovation, and expertise. We’re grateful for the continued strong support from ARENA and the Australian Government.”
Manufactured in Queensland, Vast’s technology is expected to create dozens of green manufacturing and construction jobs, along with long-term operational roles at its plants.
Next Steps for Funding Approval
The AUD180 million commitment replaces previous funding announced in February 2023 by Minister for Climate Change and Energy, Hon Chris Bowen MP, and ARENA. The funding is subject to conditions, including:
- Completion of project development activities
- Securing the remaining capital needed for VS1 construction
- Other customary conditions for project financing
About Vast
Headquartered in Australia, Vast develops renewable energy solutions that provide 24/7 clean, low-cost power and heat for grid decarbonization, green fuels production, and hard-to-abate industries. Vast’s CSP v3.0 technology features a proprietary modular sodium loop, designed for efficient solar energy capture and conversion.
On December 19, 2023, Vast listed on Nasdaq under the ticker symbol “VSTE.”