BP takes operatorship of the Asian Renewable Energy Hub
BP has acquired a 40.5 per cent equity stake in the Asian Renewable Energy Hub, one of
the largest renewable and green hydrogen energy hubs in the world, and took over as operator on July 1.
The AREH in the Pilbara aims to develop onshore wind and solar power generation of up
to 26 gigawatts, or 90 terawatt hours per year, of green energy; almost a third of all
electricity generated in Australia in 2020.
Project partners for AREH include InterContinental Energy, CWP Global, and Macquarie Capital and Macquarie’s Green Investment Group, with 26.4 per cent, 17.8 per cent, and 15.3 per cent equity stakes respectively.
BP executive vice president of gas and low carbon energy Anja-Isabel Dotzenrath said
AREH could make a significant contribution to Australia’s and the wider Asia Pacific
region’s energy transitions.
“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,” Ms Dotzenrath said.
“We believe 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.
“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.”
At full capacity, AREH is expected to be capable of producing around 1.6 million tonnes of green hydrogen or nine million tonnes of green ammonia, abating around 17 million tonnes of carbon in domestic and export markets a year, according to BP.
Hydrogen Industry Minister Alannah MacTiernan said that BP’s commitment to AREH was a significant vote of confidence for the next stage of development of the WA renewable hydrogen industry.
“The project will transform the Pilbara, create thousands of jobs and be a major contributor to global efforts to decarbonize the economy, and provide the low-cost energy to underpin downstream processing of our mineral wealth,” Ms MacTiernan said.
“The announcement reinforces Western Australia’s credentials as a world-class investment destination for green energy generation, including the production of exportable commodities, like green hydrogen and ammonia and green steel.”