CWP Global has revealed that the BP-majority owned 26GW Australian Renewable Energy Hub Project (AREH), located in the iron-ore rich Pilbara region of Western Australia, has had its Major Project Status renewed by the Australian government.
First granted in 2021, renewal of Major Project Status confirms the federal administration’s strong support for the scheme as a major driver of decarbonisation in the country’s highest emitting industrial region, CWP said.
It also signifies the emergence of a new industrial hub near Port Hedland for the production of green iron and green fuels, the company said.
Now majority-owned and operated by BP, AREH will comprise two main project sites.
The first is an upstream wind and solar hub across 6500 square kilometres of coastal desert land, which at full scale could produce 26GW of power.
The second is a hydrogen production and downstream processing facility within the Boodarie Strategic Industrial Area with the potential to foster new industrial opportunities aligned with the Canberra’s Future Made in Australia agenda, including green iron and green fuels.
Critical to the success of the project will be federal and WA government support for Pilbara Green Link transmission lines to enable the mining sector’s best use of one of the most scaleable renewable energy resources anywhere in the country, CWP added.
A recent report by Climate Energy Finance estimates that Australia has the potential to double the value of its annual iron ore exports to AUS$250bn.
This would be if it leverages Australia’s renewables and green hydrogen potential to process and add value to current raw iron ore rock exports through green hydrogen-powered production of direct reduced iron for delivery to steelmakers, mainly in Asia.