BP takes 40% stake in Australian renewables project

BP is investing in a solar, wind and green hydrogen project in Western Australia.

The oil giant has agreed to acquire a 40.5% equity stake in the Asian Renewable Energy Hub (AREH) the Pilbara mining region of Western Australia, and will operate the project.

AREH intends to supply renewable power to local customers and also produce green hydrogen and green ammonia for the domestic Australian market and export to major international users.

According to BP, this project has the potential to be one of the largest renewables and green hydrogen hubs in the world.

AREH is planning to develop 26GW of onshore wind and solar power, equivalent to around a third of Australia’s entire generating capacity.

At full capacity, it could also produce around 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia per year.

“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,” said Anja-Isabel Dotzenrath, BP’s executive vice president of gas and low carbon energy. “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.”

BP’s partner shareholders in AREH will be InterContinental Energy (26.4%), CWP Global (17.8%) and Macquarie Capital and Macquarie’s Green Investment Group (15.3%).