Oil and gas supermajor BP (NYSE:BP) has agreed to take a 40.5% equity stake in the Asian Renewable Energy Hub, a vast project planned for Australia set to span an area of 6,500 square kilometres.
In an announcement Wednesday, BP said it would become the operator of the development, adding that it had “the potential to be one of the largest renewables and green hydrogen hubs in the world.”
Located in the Pilbara region of Western Australia, it’s envisaged the project will develop up to 26 gigawatts of combined solar and wind generating capacity.
The idea is that the hub would provide power to local customers. The hydrogen and ammonia would be used in Australia and exported internationally.
“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, per annum,” BP said.
The firm said it would assume operatorship of the project on July 1, adding that this was “subject to approvals.”
The project fits with BP's move away from fossil fuels to clean energy and could advance its aim to capture a 10% share of the global hydrogen market,
Shares in BP captured 26 cents to $31.12 at Wednesday’s open
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