The federal government has tipped $70 million into bp’s proposed Kwinana green hydrogen hub as the development enters the front-end engineering and design phase.
The federal government has tipped $70 million into bp’s proposed Kwinana green hydrogen hub as the development enters the front-end engineering and design phase.
The major funding announcement was made by federal Energy Minister Chris Bowen and Resources Minister Madeleine King amid the state’s Energy Transition Summit in Perth today.
Bp’s proposed hydrogen hub, dubbed H2Kwinana, would incorporate a 100-megawatt electrolyser, with the possibility to expand up to 1.5-gigawatt production through stages.
Once operational, the endeavor could produce more than 14,000 tonnes of green hydrogen per annum for the industrial and heavy transport sectors.
Hydrogen storage, compression and truck loading facilities and upgrades to the existing on-site hydrogen pipeline system would be incorporated into the project's scope.
First hydrogen production from H2Kwinana has been tipped from 2026, with construction expected to be completed in mid-2027.
The H2Kwinana project is a part of bp’s larger Kwinana Energy Hub, which also incorporates its $1 billion proposed biofuel project also under early-stage development.
The biofuel plant is expected to produce 10,000 barrels of renewable diesel and sustainable aviation fuel per day once it’s up and running in three years.
Both proposed projects, located at the former Kwinana oil refinery site that was shutdown two years ago, would be integrated into bp's operating import terminal.
Bp Australia president Frédéric Baudry said entering FEED was a major milestone for the project.
“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,” he said.
The federal government is also pouring $500 million into regional hydrogen developments in Kwinana and the Pilbara among other regional centres.
“Kwinana has been an industrial and economic powerhouse for decades, making it an ideal location for a hydrogen hub that can support decarbonisation of heavy industry and connect our renewable resources to the world,” Mr Bowen said.
“These projects are the next step towards using locally produced renewable hydrogen in Australia to reduce our industrial emissions and develop a renewable export future.”
Ms King said Western Australia was ready to become a world-class, low-cost hydrogen supplier.
“Kwinana has long been the powerhouse of the Western Australian economy and this investment will ensure Kwinana remains the state’s powerhouse into the future,” she said.
“WA’s renewable hydrogen industry will diversify and decarbonise our economy and create jobs in Perth and in the regions.”
