BP has agreed to acquire an equity stake and become the operator of a multi-GW green hydrogen hub in Western Australia.
The energy producer has taken 40.5% stake in the Asian Renewable Energy Hub (AREH), which will comprise 26GW of renewable energy capacity (14.5GW wind and 11.5GW solar) plus 12.5GW of electrolyser capacity.
AREH, to be built in the Pilbara region, will produce 1.6 million tonnes of green hydrogen (or 9 million tonnes of green ammonia) annually.
Under the terms of agreement, BP will acquire the interest in the project and will assume operatorship from 1 July 2022, subject to approvals.
The other partner shareholders in AREH will continue to be InterContinental Energy (26.4%), CWP Global (17.8%) and Macquarie Capital and Macquarie’s Green Investment Group (15.3%).
The hub will supply renewable power to local customers in the largest mining region in the world and also produce green hydrogen and green ammonia for the domestic Australian market and also export markets.
The project’s onshore wind and solar power generation capacity will be built in multiple phases up to 26GW, the equivalent of producing over 90 terawatt hours per year, which is around a third of all electricity generated in Australia in 2020.
AREH will be located on a 6500 sq km site, to take advantage of abundant solar and wind resources with consistent output, BP said.
Anja-Isabel Dotzenrath, BP’s executive vice president of gas and low carbon energy, said: “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.
“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.
“It will also serve as a long-term clean energy security contributor in Asia Pacific, helping countries such as South Korea and Japan to decarbonise.”