A BP logo photograph taken in London on May 12, 2021. The International Energy Agency recently reported that energy-related carbon dioxide emissions rose to their highest level in history in 2021.
Glynn Kirk | AFP | Getty Images
oil and gas supermajor bp ASEAN has agreed to take a 40.5% equity stake in Renewable Energy Hub, a massive project planned for Australia spanning an area of 6,500 square kilometres.
In an announcement Wednesday, BP said it would become the driver of the development, adding that it “has the potential to be one of the world’s largest renewable and green hydrogen hubs.”
Located in the Pilbara region of Western Australia, it is envisaged that the project will develop up to 26 GW of combined solar and wind generation capacity.
The idea is that the hub will provide electricity to local customers. The hydrogen and ammonia will be used in Australia and exported internationally.
“At full capacity, AREH is expected to be able to produce approximately 1.6 million tons of green hydrogen per year, or 9 million tons of green ammonia,” BP said.
The firm said it will assume operations of the project on July 1, adding that it is “subject to approval.”
Shares of BP listed in London were down 1.2% on Wednesday afternoon.
Hydrogen, which has a wide variety of applications and can be deployed in a wide range of industries, can be produced in a number of ways. One method involves using electrolysis, in which an electric current splits water into oxygen and hydrogen.
Some call it “green” or “renewable” hydrogen if the electricity used in this process comes from renewable sources such as wind or solar. Today, the vast majority of hydrogen production is based on fossil fuels.
BP’s announcement did not disclose the amount to be paid for its stake in the AREH project. Other shareholders are Intercontinental Energy, CWP Global and Macquarie Capital and Macquarie’s Green Investment Group. Their share is 26.4%, 17.8% and 15.3% respectively.
While Wednesday’s news is a shot in the arm for the Asian renewable energy hub, the development of the project has not been without its challenges, including the June 2021 decision of the authorities,
Anja-Isabel Dotzenrath, BP’s executive vice president of gas and low-carbon energy, said the Asian renewable energy hub “is poised to be one of the largest renewable and green hydrogen energy centers in the world and can make a significant contribution to Australia and Australia.” The Energy Transition of the Broader Asia Pacific Region.”
BP, a major producer of oil and gas, says it aims to become a net-zero company by the year 2050 or earlier. It is one of several major firms to have made net-zero pledges in recent years.
While such commitments attract attention, actually achieving them is a huge task with significant financial and logistical constraints. The devil is in the detail and the goals can often be lighter afterwards.
Fossil fuels remain an important part of the global energy mix and companies continue to explore and develop oil and gas fields at locations around the world.
In March, the International Energy Agency reported that 2021 saw energy-related carbon dioxide emissions Reach your highest level in history.
The IEA found that energy-related global CO2 emissions rose 6% to a record high of 36.3 billion metric tons in 2021.
UN Secretary-General Antonio Guterres on Tuesday Condemned new funding for fossil fuel explorationDescribing it as “delusional” and calling for fossil fuel finance to be abandoned.