BP is planning to acquire a stake in one of the world’s largest green hydrogen projects from wind and solar energy, in Western Australia.
BP plans to acquire a stake of about 30% of the Asian hub of renewable energy with a capacity of 26 gigawatts, The Australian newspaper reported.
The project proposes about 14 gigawatts of hydrogen electrolysis, supported by about 16 gigawatts of wind turbines and another 10 gigawatts of large-scale solar energy.
The final development decision on the project is expected by 2025, with construction to begin in 2026, and electricity generation by 2027.
Investing In Green Hydrogen
The future of the $36 billion Asian renewable energy hub was expected to be announced this week, according to the Renew Economy platform.
Late Monday, The Australian reported that BP will acquire a “major stake” in the largest green hydrogen project, which is currently owned by InterContinental Energy, CWP Global, Vestas and Macquarie Group.
According to the newspaper, BP is set to formally announce the investment, during the World Hydrogen Summit in Rotterdam this week.
That would make sense, given that Western Australia’s Minister of Hydrogen, Alana McTiernan, is also attending this conference, as the minister is one of the driving forces behind the state’s green hydrogen industry.
Asian Hub For Renewable Energy
The Asian Renewable Energy Hub is one of a number of wind and solar projects of unprecedented scale being developed in Australia, either to produce green hydrogen and green ammonia, or for direct export to Asia via sea lines.
The Asian hub for renewable energy became a federal election issue last year when Environment Minister Susan Lee rescinded environmental approval over concerns about its impact on wetlands, but was pushed back by the state government.
BP’s emergence in the Asian renewable energy hub would be an important development for the project itself, which previously targeted Japanese coal generators as a buyer of the project’s green ammonia.
It is also important to BP itself, as one of BP’s most ambitious green goals is to develop 50 gigawatts of renewable energy, by 2030.
Green Gydrogen In Australia
Several partners in the Asian Renewable Energy Hub are involved in a project twice the size, the 50 GW Green Energy Western Hub, located in the south of the state.
Australian billionaire Andrew Forrest, owner of Fortescue Future Industries, is reportedly seeking land deals with farmers in the area as part of his ambitious plans to produce 15 million tons of green hydrogen annually.
Forrest is also co-developed with billionaire Mike Cannon-Brooks in developing the world’s largest solar and battery project, with 20 gigawatts of solar capacity and 42 gigawatt-hours of battery storage destined mostly for Singapore.
The Forest Green Hydrogen plan, which is being pursued by Fortescue, will require 150 gigawatts of hydrogen electrolysis, and 450 gigawatts of wind and solar power.
Source: XglobalMarkets
