BP plc has agreed to buy a 40.5% stake and become the operator of an Australian renewable energy project that could become one of the world’s biggest producers of green hydrogen, the global oil major said, without disclosing how much it paid.
The Asian Renewable Energy Hub (AREH) in outback Western Australia would develop up to 26 gigawatts (GW) of wind and solar power.
AREH could produce 1.6 million tonnes of green hydrogen – hydrogen produced from renewable energy – or 9 million tonnes a year of ammonia.
BP said it was too early to talk about the overall cost of the project, but said the capital investment was likely to be in the tens of billions of dollars.
It aims to start producing power at AREH by 2029 when the first phase of 4 gigawatts of renewable energy will go online.
A year ago, the project was left in limbo after the Australian government raised environmental concerns about AREH’s plan to expand to 26 GW.