BP takes the lead in Australian hydrogen project

BP has agreed to buy a 40.5pc stake in the Asian Renewable Energy Hub (AREH) in Western Australia for an undisclosed sum, becoming the project operator in one of the country's largest renewable and hydrogen ventures.

BP had been considering acquiring a stake in AREH, which plans to produce 1.6mn t of green hydrogen or 9mn t of green ammonia from its 26,000MW of wind and solar power generation capacity.

"AREH is set to be one of the largest renewable and green hydrogen energy hubs in the world and can make a significant contribution to Australia and the wider Asia-Pacific region's energy transition," said BP executive vice-president of gas and low carbon energy Anja-Isabel Dotzenrath.

The other shareholders in AREH are Hong Kong-based energy firm InterContinental Energy with a 26.4pc stake, Australian privately owned energy firm CWP Global with 17.8pc and Australian investment bank Macquarie Group and its wholly owned subsidiary Green Investment Group with 15.3pc.

BP has set some of the most ambitious targets among the international oil companies, with an aim to reduce scope one and two greenhouse gas emissions by 50pc by 2030. It is also targeting to achieve net zero emissions by 2050, including lifecycle emissions from the products it sells.

By Kevin Morrison