bp a step closer to hydrogen FID

25th August 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Energy major bp is a step closer to a final investment decision (FID) on its energy hub H2Kwinana, having completed its concept development phase study.

The study identified two potential base case scenarios, with the hub producing either 44 t/d of green hydrogen or 143 t/d. The potential growth target of 429 t/d was selected as the third and final case.

The potential H2Kwinana hub will be able to provide a renewable hydrogen supply for domestic and export markets, and support the creation of new green industries, the Western Australian government said in a statement on Friday.

The hub will include installation of an electrolyser of at least 75 MW, hydrogen storage, compression and truck loading facilities, and upgrades to bp’s existing on-site hydrogen pipeline. The hydrogen produced will support domestic and export demand including hydrogen supply for bp’s renewable fuels production, ammonia, metals and minerals processing, on-site gas blending and hydrogen for heavy duty transport. 

To create green hydrogen the required electrical power is derived from renewable energy sources or by procuring Renewable Electricity Certificates.

"With the completion of this feasibility study Western Australia is a step closer to the creation of a green hydrogen hub,” Hydrogen Industry Minister Bill Johnston said.

“Kwinana has been a central hub of fuel operations for the past 65 years, the potential development of a green hydrogen hub would progress the decarbonisation of the Kwinana Industrial Area.”

The study formed part of the state government’s A$180-million investment into renewable hydrogen as part of its march towards net zero by 2050.