Global oil and gas giant bp plc has picked up a 40.5% stake in one of the world's largest planned renewable energy hubs with up to 26 GW onshore wind and solar capacity as it sees opportunity to supply green hydrogen and ammonia generated for domestic use and export.
The Asian Renewable Energy Hub (AREH) is already backed by InterContinental Energy with 26.4% share, CWP Global with 17.8%, and Macquarie Capital along with Macquarie's Green Investment Group 15.3% stake.
Now with a majority stake acquired for an undisclosed amount, bp said it will operate the project that can is planned to produce an estimated 1.6 million tons of green hydrogen or 9 million tons of green ammonia on annual basis. Its operatorship in the project is subject to approvals and will kick into effect from July 1, 2022.
Proposed to come up in sun and wind energy rich Pilbara region of WA, the project is expected to generate more than 90 TWh of clean energy annually once all 26 GW capacity is online. AREH will be in proximity of the mining industry providing it a ready target audience for local use. Shipping and steel industries will also be the end consumers.
Green hydrogen and green ammonia produced here will also be used to export to major international users, according to the plan.
"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," explained bp's Executive Vice President of Gas and Low Carbon Energy Anja-Isabel Dotzenrath.
AREH found itself in troubled waters after the earlier federal government of Australia complained about its 'clearly unacceptable impacts' on wetlands, migratory birds and groundwater and surface water flows in June 2021 (see 26 GW Wind-Solar Complex In Australia In Trouble).
The British energy giant is already exploring green hydrogen and ammonia production in WA's Geraldton to produce 200,000 tons of hydrogen for 1 million ton of ammonia (see 4 GW Solar & Wind Capacity For BP's Geraldton Project).
The news of bp joining the project should come as a happy news for WA as it recently announced plans to shutter its remaining coal power plants by 2030. soon instead seeing the massive growth of rooftop solar and renewables in the state (see Western Australia To Exit Coal By 2030).