BP has received official approval to transform its long-standing Kwinana refinery into a cutting-edge clean energy hub. This major project, valued at over half a billion dollars, marks a significant step towards sustainable energy production in Western Australia.
On Thursday, the state’s development assessment panel gave the go-ahead for the $580 million biorefinery project. This new facility will be built on BP’s 250-hectare site in the Kwinana Industrial Area, where the company has operated for nearly 70 years.
BP’s plan involves tearing down outdated oil refining equipment, upgrading the existing facility, and constructing new infrastructure to produce renewable diesel and sustainable aviation fuel. These fuels will be made from renewable sources such as vegetable oils, animal fats, and other biowaste combined with mineral oil. Additionally, new hydrogen generation units will be part of this state-of-the-art facility, located about 32 kilometres south of Perth.
Once operational, the plant is expected to have a lifespan of at least 20 years, with fewer trips required to and from the site. This will help ease traffic congestion in the area.
BP’s Kwinana refinery, which operated for over 65 years before closing in 2021, was once Australia’s largest refinery, employing up to 1,500 workers. However, with cheaper alternatives in Asia and the Middle East, it ceased operations and has since been functioning as an import terminal.
The City of Kwinana supported the redevelopment plan, seeing it as an efficient use of underutilised industrial land. Construction is expected to begin within the next few months, creating up to 150 jobs. Production is slated to start in 2027.
This project is central to BP’s broader vision of investing over $1 billion into green hydrogen facilities, aligning with global efforts to decarbonise industries like mining and aviation. The federal government has also shown support, contributing $70 million towards engineering work on the site.
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