BP announced its agreement to buy 40.5 percent stake in Asian Renewable Energy Hub (AREH) to become the operator of the largest renewables and green hydrogen hubs in the world.
BP did not reveal financial details.
The Asian Renewable Energy Hub in outback Western Australia would develop up to 26 gigawatts (GW) of wind and solar power capacity which could be used to produce 1.6 million tons of green hydrogen – hydrogen produced from renewable energy – or 9 million tons a year of ammonia.
“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,” said Anja-Isabel Dotzenrath, bp’s executive vice president of gas and low carbon energy.
AREH could provide significant net renewable generating capacity for BP as well as making a material contribution to its strategic aim to capture a 10 percent share in core hydrogen markets globally.
The other shareholders in AREH will be InterContinental Energy (26.4 percent), CWP Global (17.8 percent) and Macquarie Capital and Macquarie’s Green Investment Group (15.3 percent).
One of AREH’s original partners, top global wind turbine maker Vestas which had a 2 percent stake, has quit the project.
Australian government put AREH’s plan to use 15 GW of clean power to split water to produce green hydrogen and ammonia for export on a fast track for approvals in 2020 but then left the project in limbo a year ago, when it raised environmental concerns about AREH’s plan to expand to 26 GW, Reuters news report said.
The government said the expansion would have impacts on internationally recognised wetlands and migratory bird species and the issue is yet to be resolved.
“By partnering with BP, we bring in a new level of engineering know-how and technical expertise, a track record of developing large and complex projects in remote locations, and deep experience in trading energy products globally,” CWP Global co-founder Alex Hewitt said in emailed comments.