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Bp and partners to study feasibility of a green energy hub in Australia

bp Kwinana Refinery U.S. refiners

Bp has partnered with Macquarie Capital and the federal government of Australia. The partnership is to conduct a feasibility study for the repurposing of the company’s Kwinana refinery in West Australia. The intent is to transform the Kwinana site into an integrated green energy hub. It would produce and distribute renewable fuels and other green sources of energy.

According to the company’s statement, bp is already on its way with plans to develop a renewable fuels plant at the site. It would produce sustainable aviation fuel and renewable diesel.

The Kwinana Industrial Area is the largest industrial cluster in Western Australia. It produces more than 150 products and by-products and is home of a robust exchange between utilities and companies. The feasibility study will focus particularly on hydrogen; as it would help to decarbonize key industrial processes and would integrate green energy alternatives onto existing industrial uses.

It would also test local industrial demand for possible partnerships for the construction of a large-scale electrolyzer to produce green hydrogen in the site. According to Reuters, back in October, the company announced that its Kwinana refinery would cease operations. Company said it was time to explore other options for the site; including the development of green fuels.

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Bp concluded that production and export of green hydrogen at scale is feasible in Australia

On the other hand, the decision to repurpose the whole Kwinana site comes after Bp concluded another study that concluded that the production and export-scale development of green hydrogen and ammonia in Australia is possible. The proximity of a vast solar and wind potential further strengthens the green energy hub objective.

For the current study, the federal government of Australia committed $400,000. BP said it expects to finish the study by 2022. John Pickhaver, co-head of Macquarie Capital, Australia, and New Zealand, said about the project. “We are delighted to be partnering with bp in this project as part of our greater commitment to supporting the transition to a low-carbon economy. We believe Australia – and Kwinana in particular – has a number of use cases that support a meaningful green hydrogen industry.”

Finally, Frédéric Baudry, president, bp Australia, and SVP fuels & low carbon solutions, Asia Pacific, said. “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 decarbonization of Australia’s hard-to-abate sectors, particularly heavy industry, mining, and transport.”

He also remarked. “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.”

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