BP and Macquarie study WA green hydrogen hub

Close-up of building with BP logo
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BP is conducting a joint feasibility study with Australian lender Macquarie Group to produce green hydrogen at the oil giant’s former refinery site near Perth in Western Australia, according to Reuters.

The study is looking at helping decarbonise the Kwinana Industrial Area, home to several high-emission power plants, mineral refineries, chemical plants and cement works, BP said.

It would test local industrial demand and appetite for possible partnerships for constructing a large-scale electrolyser to produce green hydrogen in Kwinana.

“BP is committed to developing solutions that will help accelerate the energy transition in Australia,” BP Australia president Frédéric Baudry said.

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“With our unique capabilities, BP can offer increasingly complex, multi-energy solutions to its partners and customers through their decarbonisation journey.”

BP last October stunned the Australian government with its decision to shut the Kwinana refinery, and said at the time it would explore other options for the site including a clean energy hub that could produce and store lower carbon fuels.

The Western Australian government is helping fund the $400,000 study, which the companies expect to complete in the first half of 2022.

BP recently completed another study, which found the mid-west region of Western Australia would be a good location for large-scale green hydrogen production.