bp acquires 40.5% stake in one of the worlds largest renewables and green hydrogen energy hubs

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bp has agreed to acquire a 40.5% stake and operatorship of the AREH project in the Pilbara, Western Australia, which has the potential to be one of the largest renewables and green hydrogen hubs in the world.

Under the terms of the agreement, bp will acquire a 40.5% 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%).

Based on the development of world-scale renewable power generation, AREH plans to supply renewable energy to local customers in the world’s largest mining region, as well as produce green hydrogen and green ammonia for the domestic Australian market and export to major international users.

AREH intends to build onshore wind and solar power generation in a series of stages, with a total generating capacity of up to 26 gigawatts (GW) – the equivalent of over 90 terawatt-hours per year, or over a third of all electricity generated in Australia in 2020.

Situated on a 6,500-square-kilometre site, AREH is estimated to be able to produce roughly 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia per year when fully operational.

It is also expected to abate over 17 million tonnes of carbon per year in domestic and export markets, equating to roughly 0.5 gigatonnes (Gt) of carbon savings during the project’s lifetime.

Anja-Isabel Dotzenrath, bp’s executive VP of gas and low carbon energy, said AREH is set to 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 continued.

“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 decarbonize.”

Image credit: https://www.bp.com/en/global/corporate/what-we-do/gas-and-low-carbon-energy/renewable-energy-hub-in-australia.html