Engineering and design work on a multi-hundred-million-dollar future fuels plant planned by BP in Kwinana could start within months.
Engineering work on a multi-hundred-million-dollar future fuels plant planned by BP Australia in Kwinana could start within months.
It is one of two potential projects intended to bring a new use to the former oil refinery, which shut last year after more than half a century of supplying the state’s petroleum needs.
With the two projects under consideration, Australian Terminal Operations Management will take over running the oil receival terminal from the former refinery by mid-2022.
BP could start front end engineering and design work on a future fuels plant within months, senior manager city & corporate integrated solutions Justin Nash was expected to tell an Energy Club of Western Australia meeting on Tuesday night.
The new future fuels plant will use waste-based feedstock to produce fuels to replace petroleum products in existing engines: sustainable aviation fuel and hydrogenated vegetable oil, also known as renewable diesel.
The feedstock would include tallow and used cooking oils from sustainable sources.
Mr Nash said the project would have challenges.
A number of similar plants are being considered across the globe, but the Kwinana plant would be the only one in a country without a renewable fuels mandate, he said.
BP would be seeking offtake partners, with a similar deal to supply Qantas at Heathrow in the United Kingdom a potential model.
Marine fuel, and transport for mine sites as a transition option, would be two demand sources, Mr Nash said.
The second development in the pipeline for the old refinery site is a green hydrogen project, H2Kwinana.
BP is undertaking feasibility work with Macquarie and supported by the state’s Department of Jobs, Tourism, Science and Innovation.
Potential uses will include industrial demand for hydrogen, particularly for chemical processes; heavy duty transport and municipal vehicles such as waste trucks; and blending into the domestic gas network.
The state government has a target for about 10 per cent of the natural gas in the state’s domestic network to be replaced with green hydrogen.
Woodside Petroleum last year proposed the H2Perth hydrogen plant in nearby Rockingham, which would initially source hydrogen mostly from natural gas (with abatements), and eventually use electrolysis with power from the electricity grid.
“This is where things get really interesting, and where we invoke one of BP’s other mantras - to reimagine energy, and consider how a large demand source like an electrolyser could be used to contribute to grid stability of the (state’s power grid),” Mr Nash said.
“This could help the infamous ‘duck curve challenge’ of peak solar generation during day time, by ramping up a large load like an electrolyser.
“The potential of low-cost clean energy vectors is enormous and the role they will play in helping to decarbonize existing and future industries, near and far, is significant.”
