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 Limited (“Vast”) (Nasdaq: VSTE) 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 Renewables | www.vast.energy