BP (NYSE:BP) said Tuesday it agreed to acquire a 40.5% stake and become operator of an Australian renewable energy project that could become one of the world’s biggest producers of green hydrogen; financial details were not disclosed.
The Asian Renewable Energy Hub in outback Western Australia, which has been estimated to cost ~$36B, would develop up to 26 GW of wind and solar power capacity over a vast 6,500 sq km (~2,500 sq miles) stretch of Western Australia’s Pilbara region.
Once fully developed, AREH would produce ~1.6M metric tons/year of green hydrogen, or 9M tons/year of green ammonia, BP (BP) said.
AREH also would supply renewable power to local customers in the Pilbara, the center of Australia’s iron ore export sector.
The project fits with BP’s (BP) move away from fossil fuels to clean energy and could advance its aim to capture a 10% share of the global hydrogen market, BP’s executive VP of gas and low carbon energy Anja-Isabel Dotzenrath, according to Reuters.
BP (BP) said it was not ready to discuss the overall cost of AREH but capital investment to deliver the full scale of the project would “likely be in the tens of billions of dollars,” with power production starting by 2029.
BP (BP) “continues to throw money down wind farm and other green energy ‘rabbit holes,'” Fluidsdoc writes in a bearish analysis published recently on Seeking Alpha.