Global fossil fuel giant BP buys 40% of US$30bn Pilbara renewable energy project
Global fossil fuel company BP has bought 40.5% of a renewable energy hub in the Pilbara, billed as having potential to become one of the biggest suppliers of green hydrogen in the world.
The company will also operate the Asian Renewable Energy Hub, which has plans to generate up to 26GW of wind and solar energy – about a third of the electricity generated in Australia today.
Areh is in its early stages, but once complete – a task that will require up to US$30bn in funding – its backers expect it to be capable of producing 1.6m of “green hydrogen” from renewable sources a year.
No financial details of the deal were announced, with a BP spokesperson saying the amount invested was commercial in confidence.
However, market sources said that because Areh was at an early stage it was currently worth less than $100m.
BP and other investors in the project – InterContinental Energy, CWP Global and Macquarie Group – are betting on a rapid increase in demand for renewable energy.
Iron ore mining in the Pilbara is energy intensive and generates substantial greenhouse gas emissions, which big miners including BHP and Rio Tinto are keen to reduce.
However, Areh is also designed to export hydrogen to customers overseas.
BP predicts that at full capacity the Areh would be able to abate 17m tonnes of carbon a year.
The company’s executive vice-president of gas and low carbon energy, Anja-Isabel Dotzenrath, said Areh could become a “cornerstone project”.
Sign up to receive an email with the top stories from Guardian Australia every morning
“Areh is 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,” she said.
“I
Read more on theguardian.com
