BP unveils deal to buy into 26-GW Asian Renewable Energy Hub

British oil and gas major BP Plc (LON:BP) has clinched a deal to buy a 40.5% stake in the 26-GW Asian Renewable Energy Hub (AREH) project in Pilbara, Western Australia, and will become its operator, it said today.

The massive USD-36-billion (EUR 34.5bn) project was first proposed in 2014. Following BP’s acquisition, the value of which was not disclosed, green fuels company Intercontinental Energy’s stake will be lowered to 26.4%, while renewable energy projects developer CWP Global will own 17.8%. Macquarie Capital and Macquarie’s Green Investment Group (GIG) will collectively hold the remaining 15.3%.

BP is set to take the reins from July 1, subject to approvals.

The AREH scheme envisages the installation of some 14 GW of electrolysers, powered by 16 GW of wind turbines and another 10 GW of solar photovoltaic (PV) capacity. Most of the electricity produced at the site will be used to cover local power requirements in the mining area and for the production of green hydrogen and ammonia for export and domestic consumption. The future electricity output is estimated at over 90 TWh per year.

The project’s website says that construction is planned to be launched in 2026, with first exports expected in 2027-2028. At full capacity, the complex will produce around 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia annually.

BP noted that the ambitious project will underpin its goal of capturing 10% of the core hydrogen markets globally. “It will also serve as a long-term clean energy security contributor in Asia Pacific, helping countries such as South Korea and Japan to decarbonise,” said Frederic Baudry, president of BP Australia.

(USD 1.0 = EUR 0.958)

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