07/09/2021 - 16:06

BP to study Kwinana hydrogen

07/09/2021 - 16:06

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BP will assess the feasibility of hydrogen production at Kwinana, while the state government has promised a further $62 million for hydrogen projects.

BP's oil refinery at Kwinana.

BP will assess the feasibility of hydrogen production at Kwinana, while the state government has promised a further $62 million for hydrogen projects.

In August, BP Australia released the results of a feasibility study into green hydrogen production in the Mid West, finding it was technically possible but too early to make a call on the economics.

Kwinana possibly has some advantages over that approach, with existing infrastructure in place at the site.

Today, BP said it would undertake feasibility work with Macquarie Capital to repurpose the shuttered Kwinana refinery for green hydrogen production.

The study will be financed with $300,000 from the state government.

BP already had plans to produce renewable diesel and sustainable aviation fuel at the site, the company said.

BP Australia president Frederic Baudry thanked the state government for its support of the company’s plans to repurpose Kwinana.

“Guided by the federal government’s Low Emission Technology Investment Roadmap, we are advancing BP Kwinana’s contribution to the creation of domestic green value chains and the decarbonisation of Australia’s hard-to-abate sectors, particularly heavy industry, mining and transport,” Mr Baudry said.

“We are excited by the role BP’s Kwinana energy hub will play in close collaboration with our partners.

“BP has a strong track record as an energy provider to the industrial area and has readily accessible land, existing infrastructure including storage and distribution facilities, and a team with extensive operational capabilities and experience.”

It was one of three projects announced today to have feasibility work backed through a $15 million renewable hydrogen fund.

APA Group will be granted $300,000 to study converting the Parmelia gas pipeline to 100 per cent hydrogen, and Global Energy Ventures will receive the same amount to study compressed hydrogen shipping.

Also today, the state government announced an additional $62 million package for renewable hydrogen.

That included $7.5 million for an access road to the Oakajee strategic industrial area, where the government ran an expressions of interest program for a green hydrogen development.

A further $4 million will develop a plan for other infrastructure at Oakajee, and to fund the Department of Jobs, Tourism, Science and Innovation’s renewable hydrogen unit.

The remaining $50 million will be used to stimulate local renewable hydrogen demand in transport and industrial settings.

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