Energy giant BP has agreed to become the largest stakeholder of the planned Asian Renewable Energy Hub (AREH) in the Pilbara region of Western Australia.
BP will take the leading role and buy a 40.5% stake in the $36 billion project, which will cover an area of 6,500 square kilometres and have the capacity to generate 26GW of solar and wind power that will in turn be used to produce 1.6 million tonnes of green hydrogen a year. This could further be used to produce 9 million tonnes of green ammonia, either for use in Australia’s own agricultural sector or for export to other countries.
An executive vice president at BP, Anja-Isabel Dotzenrath, said that AREH will be one of the world’s largest hubs for green hydrogen and renewable energy, adding that it:
“…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.”
She also stressed BP’s belief that with the country’s abundant resources for generating renewable energy and current infrastructure, Australia is well positioned to be a major player in the energy transition.
BP, which makes the Castrol lubricants and metalworking fluids, is also planning to make Teesside a prominent hydrogen hub in the UK, with the H2Teesside and HyGreen Teesside projects expected to together produce some 1.5 GW of low- or zero-carbon hydrogen by 2030.
