WA Renewable Energy Hub Reaches Major Milestone

Renewable hydrogen project enters front-end engineering and design, putting it on track to begin production of green hydrogen and renewable diesel by 2026

Bp’s plan to produce renewable hydrogen at its Kwinana Energy Hub in Western Australia has reached a major milestone, with the company’s H2Kwinana project entering front-end engineering and design (FEED).

The milestone was marked by a visit to the site last week by Federal Minister for Climate Change and Energy, Chris Bowen. The project is supported by $70 million from the Australian Government’s Regional Hydrogen Hubs Program.

The project plans to install 100MW of electrolyser capacity at the site, with the potential to expand to a total of 1.5GW production in subsequent phases.

H2Kwinana also involves the installation of hydrogen storage, compression and truck loading facilities, and upgrades to bp’s existing on-site hydrogen pipeline system.

Frédéric Baudry, president of bp Australia and SVP Fuels and Low Carbon Solutions, Asia Pacific, says the company is “strengthening the energy system of today while building the energy system of tomorrow, leveraging existing infrastructure and strengthening our unique relationships with customers”.

“We are all-in in Australia, with major investment plans in WA and specifically in the Kwinana area,” he adds.

“H2K at Kwinana is bp’s strategy in action, leading from the front in decarbonisation in the region and providing energy security through diversity.”

Baudry says the progress to FEED is a major milestone for the project. He adds that hydrogen produced from water and renewable power has the potential to decarbonise bp’s planned biorefinery where hydrogen is made from natural gas and biogas, and at other industrial facilities in the Kwinana industrial area where hydrogen is also made from natural gas.

In addition to green hydrogen, bp has announced plans to produce up to 10,000 barrels of renewable diesel and sustainable aviation fuel a day at the Kwinana Energy Hub by 2026.

The biofuels project is already in front-end engineering design and the environmental approvals process is also under way.

The company intends to repurpose much of the existing infrastructure at Kwinana for its biofuel project including two of the former oil refining units.

Hundreds of workers are currently dismantling the oil refinery, with the massive storage tanks that for decades stored oil and petrol being repurposed to carry biofuels.

Lucy Nation, VP Hydrogen, Australia and Asia Pacific, says biofuels is one of five “transition growth engines” that form part of bp’s strategy to lean into the energy transition. The others are mobility and convenience, EV charging, renewable power, and hydrogen.

“The Kwinana Energy Hub shows this strategy in action. We are repurposing existing process units, tanks, pipelines and utilities from the former refinery as the starting point for Kwinana Renewable Fuels and H2Kwinana,” she says.

“Both of these projects will allow us to supply ourselves and our customers with products that allow them to meet their own emissions targets while also contributing to Australia’s decarbonisation targets.”

A feasibility study supported by the WA government demonstrates the project’s opportunity to support the decarbonisation of the state’s heavy industry sector.

Globally, bp is proceeding with the procurement of long lead items, including electrolysers, for its projects, including H2Kwinana.

Subject to approvals and public policy and business decisions, production from H2Kwinana is anticipated from 2026.