UK oil-and-gas major BP Plc said on Tuesday it had finalised the acquisition of a 40.5% equity stake in the Asian Renewable Energy Hub (AREH) project, a Western Australia development that is promised to deliver 26 GW of wind and solar generation capacity and green hydrogen and ammonia production.
Being the largest shareholder in the project, BP also took over the duties as the operator. Following the acquisition and per the agreement, the remaining shareholding is divided between green fuels company InterContinental Energy (26.4%), renewables developer CWP Global (17.8%) and financial services firm Macquarie Capital and Macquarie’s Green Investment Group (15.3%).
Upon shaking hands, BP and its partners decided to rename the project to the Australian Renewable Energy Hub, the oil-and-gas group said.
Going forward, the project promoters will need to enter into an indigenous land use agreement with the Nyangumarta People and secure regulatory approvals.
Whether Asian or Australian, AREH stands to become one of the largest renewable and green hydrogen hubs in the world. The project will be developed in multiple phases in the Pilbara region, where its investors can supply renewable power and hydrogen and ammonia to local miners and other industrial consumers and forge export deals to international markets.
At full capacity, the hub will be capable of producing around 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia per year, BP estimates.