BP to take 40% stake in AREH – The $36 billion Green Hydrogen Focused Project In Australia

Energy major BP has announced that it will acquire a 40.5 per cent equity stake in the Asian Renewable Energy Hub (AREH) to become operator of it. BP said that AREH has the potential to be one of the largest renewables and green hydrogen hubs in the world.

AREH is located in the Pilbara region of Western Australia and will supply renewable power to local customers in the largest mining region in the world. It will also produce green hydrogen and green ammonia for the Australian market and export too.

BP said that AREH is spread over 6,500-square km with plans to develop onshore wind and solar power generation in multiple phases to a total generating capacity of up to 26 GW, which is around a third of all electricity generated in Australia in 2021. About 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia will be produced annually.

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Anja-Isabel Dotzenrath, Executive VP of gas and low carbon energy, BP, said about AREH, “It truly reflects what integrated energy is – combining solar and onshore wind power with hydrogen production and using it to help transform sectors and regions.”

Dotzenrath also added that AREH can be a cornerstone project for us in helping our local and global customers and partners in meeting their net zero and energy commitments. He also expects AREH to serve as a long-term clean energy security contributor in Asia Pacific, helping countries such as South Korea and Japan to decarbonize.

The official statement of BP held that when fully developed, AREH will add to the RE generating capacity for BP and help the company to capture a 10 per cent share in core hydrogen markets globally.

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Frédéric Baudry, President, BP Australia, stated, “This is an incredibly exciting development, and we are looking forward to working closely with our partners, InterContinental Energy, CWP Global, Macquarie Capital and Macquarie’s Green Investment Group, as well as the Nyangumarta people.”

The President also said, “bp brings a broad range of capabilities to help bring the project to fruition, with extensive experience in constructing and operating facilities of this scale in remote locations in close collaboration with local communities, and leveraging our global shipping and trading businesses. We also have the benefit of deep experience in working with customers looking for decarbonization solutions and delivering low-carbon energy to the global market.”

BP want to evolve as one of the most integrated energy player in the world. The company wants to add 50 GW of renewable energy by the end of this decade and cut emissions to zero by 2050. According to the company, it had achieved 1.9 GW of renewable energy portfolio by the end of 2021.