BP’s Kwinana Hydrogen Hub Begins Design, Boosted by $70M Govt Funding

The construction of a substantial green hydrogen production facility at BP’s former Kwinana oil refinery in Western Australia has achieved significant progress with the commencement of front-end engineering design. This advancement is supported by a $70 million contribution from the Albanese government. The facility, known as the H2Kwinana Hydrogen Hub and spearheaded by BP Australia, will initially house a 100MW electrolyser, with plans to expand to 1.5GW of production capacity.

Upon completion, projected for mid-2027, the K2Kwinana is anticipated to generate over 14,000 tonnes of green hydrogen annually for industrial and heavy transport purposes. The project includes installing hydrogen storage, compression, and truck loading facilities, as well as enhancing BP’s existing hydrogen pipeline system on-site.

This new phase for H2Kwinana was celebrated by both the WA and federal Labor governments, with the latter fulfilling its 2022 election promise by allocating $70 million to the project from its Regional Hydrogen Hubs program. The investment is expected to create regional jobs and aid in decarbonising WA’s industrial sector as part of the clean energy transition.

The move to front-end engineering and design follows a state-funded feasibility study completed in late August. Frédéric Baudry, president of BP Australia, highlighted the significance of this milestone, noting the potential for hydrogen, produced from water and renewable power, to decarbonise various industrial facilities in the Kwinana area.

Baudry emphasised BP’s commitment to investing in Western Australia and the Kwinana area, seeing H2Kwinana as a key part of BP’s strategy to lead in decarbonisation and enhance energy security through diversification.

In addition to H2Kwinana, the Albanese government invests in several regional Hydrogen Hubs, totalling over half a billion dollars, in various locations across Australia. Federal Energy Minister Chris Bowen remarked that Australia’s hydrogen industry could contribute $50 billion to GDP by 2050 and create thousands of jobs in regional areas.

Bowen, speaking from the project site, noted Kwinana’s suitability as a hydrogen hub, considering its long-standing role as an industrial and economic centre. He emphasised that these projects are crucial steps in leveraging locally produced renewable hydrogen to lower industrial emissions and develop a renewable export market. The construction of the H2Kwinana Hub is expected to generate 150 jobs.

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