BP takes massive stake in Asian Renewable hub

BP has this week agreed to take a major equity stake in the Asian Renewable Energy Hub, a substantial project planned for Australia set to span an area of 6,500 square kilometres.

The oil and gas major, which is taking a 40.5% stake, said it would become the operator of the development, adding that it had “the potential to be one of the largest renewables and green hydrogen hubs in the world”.

Located in the Pilbara region of Western Australia, it us envisaged the project will develop up to 26 gigawatts of combined solar and wind generating capacity, with the hydrogen and ammonia used in Australia and exported internationally.

“At full capacity, AREH is expected to be capable of producing around 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia, per annum,” BP said.

The firm said it would assume operation of the project on July 1, adding that this was “subject to approvals.”

BP’s announcement did not disclose the amount it was paying for its stake in the AREH project. The other shareholders are InterContinental Energy, CWP Global and Macquarie Capital and Macquarie’s Green Investment Group. Their stakes are 26.4%, 17.8% and 15.3%, respectively. 

Anja-Isabel Dotzenrath, BP’s executive vice president of gas and low carbon energy, said the Asian Renewable Energy Hub was “set to be one of the largest renewable and green hydrogen energy hubs in the world and can make a significant contribution to Australia and the wider Asia Pacific region’s energy transition.”

BP is aiming to become a net-zero company by the year 2050 or before. 

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