BP announced its acquisition of a 40.5% stake and operatorship of the Asian Renewable Energy Hub (AREH) green hydrogen energy project in Pilbara, Western Australia on Wednesday.
The project is one of the largest renewables and green hydrogen energy hubs in the world, and is set to support the development of up to 26GW of combined solar and wind power generating capacity.
According to BP, AREH could potentially produce 1.6 million tonnes of green hydrogen, or nine million tonnes of green ammonia per year at full scale.
The AREH intends to supply renewable power to local customers in the Pilbara region, which is the largest mining sector in the international market.
The project is also set to supply green hydrogen and green ammonia for the domestic Australian market and export the resources to major international users.
BP confirmed that the operation currently has plans to develop onshore wind and solar power generation in several phases to hit its 26GW goal, representing the equivalent of over 90 terawatt hours per year or one-third of all electricity generated in Australia in 2020.
“AREH is set to be one of the largest renewable and green hydrogen energy hubs in the world and can make a significant contribution to Australia and the wider Asia Pacific region’s energy transition,” said BP executive vice president of gas and low carbon energy Anja-Isabel Dotzenrath.
“It truly reflects what integrated energy is – combining solar and onshore wind power with hydrogen production and using it to help transform sectors and regions. It also reflects our belief that Australia has the potential to be a powerhouse in the global energy transition, benefitting from both its existing infrastructure and abundant renewable energy resources.”
“We believe AREH can be a cornerstone project for us in helping our local and global customers and partners in meeting their net zero and energy commitments.”
The AREH project is estimated to abate approximately 17 million tonnes of carbon in domestic and export markets per year, which equates to around 0.5 gigatons of carbon savings over the lifetime of the operation.
BP is scheduled to assume operatorship from 1 July 2022, with other partner shareholders maintaining a 26.4% stake for InterContinental Energy, 17.8% by CWP Global, and a 15.3% investment held by Macquarie Capital and Macquarie’s Green Investment Group.
“This is an incredibly exciting development, and we are looking forward to working closely with our partners, InterContinental Energy, CWP Global, Macquarie Capital and Macquarie’s Green Investment Group, as well as the Nyangumarta people,” said BP Australia president Frédéric Baudry.
“BP brings a broad range of capabilities to help bring the project to fruition, with extensive experience in constructing and operating facilities of this scale in remote locations in close collaboration with local communities and leveraging our global shipping and trading businesses.”
“We also have the benefit of deep experience in working with customers looking for decarbonization solutions and delivering low-carbon energy to the global market.”
