bp’s H2Kwinana Hydrogen Hub receives $70m boost

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Image credit: bp

The Australian Government has announced a $70 million investment into bp’s H2Kwinana Hydrogen Hub under the Government’s Regional Hydrogen Hubs program.

The project is now moving towards Front-End Engineering Design, marking a significant advancement for Western Australia’s (WA) hydrogen industry’s future.

“Western Australia is one of the world’s great energy producers, and thanks to our wealth of natural resources and talent pool of skilled workers we are ready to become a world-class, low-cost hydrogen supplier,” Minister for Resources Madeleine King said.

According to Minister King, Kwinana has long been the economic engine of WA, and this investment will ensure that it remains so in the future.

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“WA’s renewable hydrogen industry will diversify and decarbonise our economy and create jobs in Perth and in the regions,” Minister King added.

The investment aims to generate regional jobs and contribute to the decarbonisation of WA’s industrial sector by adopting clean energy transformation opportunities.

bp Australia is leading the H2Kwinana Hydrogen Hub, which will create 150 jobs and include a 100 MW electrolyser, with potential for 1.5 GW production.

H2Kwinana development is already underway, with completion scheduled for mid-2027.

Once operational, the hub could generate over 14,000 tonnes of green hydrogen annually, enough to power 750 vehicles in Australia’s heavy vehicle fleet.

“Kwinana has been an industrial and economic powerhouse for decades, making it an ideal location for a hydrogen hub that can support decarbonisation of heavy industry and connect our renewable resources to the world,” Minister for Climate Change and Energy Chris Bowen said.

The project involves the installation of hydrogen storage, compression, truck loading facilities, and upgrades to the existing on-site hydrogen pipeline system.

bp Australia has welcomed the $70 million investment into the hydrogen hub.

“bp is strengthening the energy system of today while building the energy system of tomorrow, leveraging existing infrastructure and strengthening our unique relationships with customers.  We are all-in in Australia, with major investment plans in WA and specifically in the Kwinana area,” Frédéric Baudry, president, bp Australia and SVP fuels & low carbon solutions, Asia Pacific said.

“Going into FEED, with the support and belief of the state and federal governments, is a major milestone for this project. Hydrogen produced from water and renewable power has the potential to decarbonise bp’s planned biorefinery where hydrogen is made from natural gas and biogas, and at other industrial facilities in the Kwinana industrial area where hydrogen is also made from natural gas.”

Australia and Asia Pacific VP Hydrogen Lucy Nation explained that bp’s strategy involves embracing the energy transition through five growth engines: biofuels, mobility and convenience, EV charging, renewable power, and hydrogen.

“The Kwinana Energy Hub shows this strategy in action. We are repurposing existing process units, tanks, pipelines and utilities from the former refinery as the starting point for Kwinana Renewable Fuels and H2Kwinana,” Nation stated.

“Both of these projects will allow us to supply ourselves and our customers with products that allow them to meet their own emissions targets while also contributing to Australia’s decarbonisation targets,” she added.

The Federal Government is investing over half a billion in regional Hydrogen Hubs across various locations, including Pilbara, Kwinana, Gladstone, Townsville, Hunter, Bell Bay, and Port Bonython.

“Investing in an Australian hydrogen industry is investing in Australia’s future,” Minister Bowen stated.

“These projects are the next step towards using locally produced renewable hydrogen in Australia to reduce our industrial emissions and develop a renewable export future,” he added.

Australia’s hydrogen industry is expected to generate $50 billion in additional GDP by 2050, boosting regional jobs and transforming the country into a renewable energy superpower.