BP takes major stake in renewable energy hub

BP has agreed to acquire a 40.5 per cent stake and to become operator of the Asian Renewable Energy Hub (AREH) in the Pilbara region of WA.

Situated on a 6,500 sq km site, AREH has the potential to produce 1.6 million tonnes of green hydrogen or nine million tonnes of green ammonia per annum, which would make it one of the largest renewables and green hydrogen hubs in the world.

AREH intends to supply renewable power to local customers in the largest mining region in the world and produce green hydrogen and green ammonia for the domestic Australian market and export to major international users.

Anja-Isabel Dotzenrath, bp’s Executive Vice President of gas and low carbon energy, said that 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.”

Other shareholders in AREH are InterContinental Energy (26.4 per cent), CWP Global (17.8 per cent) and Macquarie Capital and Macquarie’s Green Investment Group (15.3 per cent).

Alannah MacTiernan, Hydrogen Industry Minister, said the project will transform the Pilbara, create thousands of jobs and be a major contributor to global efforts to decarbonise the economy, and provide the low-cost energy to underpin downstream processing of our mineral wealth.

“A project of this scale will require new supply chain facilities for the manufacture and assembly of equipment for wind, solar and hydrogen generation, which will create new, local, high-value jobs.”

AREH also plans to develop onshore wind and solar power generation over multiple phases to a total generating capacity of up to 26 GW, the equivalent of producing over 90 terawatt hours per year, which is around of all electricity generated in Australia in 2020.

Frédéric Baudry, President of bp Australia, said this is an incredibly exciting development, and they are looking forward to working closely with their partners, InterContinental Energy, CWP Global, Macquarie Capital and Macquarie’s Green Investment Group, as well as the Nyangumarta people.

“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.”

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