BP Plc (LON: BP) has commenced the front-end engineering and design (FEED) phase for its proposed green hydrogen production hub in Western Australia, to be installed at the site of a former oil refinery.
The oil and gas major announced the milestone on Friday, saying the FEED is enabled by an AUD-70-million (USD 45.6m/EUR 41.8m) investment by the Australian government.
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The Kwinana Energy Hub, also called the H2Kwinana project, envisages the installation of a 100-MW electrolyser that could potentially be expanded to reach a total production of 1.5 GW in subsequent phases. The construction of hydrogen storage, compression and truck loading facilities, as well as upgrades to BP’s existing on-site hydrogen pipeline systems are also included.
BP aims to complete construction works for the project in the middle of 2027. Once in operation, K2Kwinana is expected to produce more than 14,000 tonnes of green hydrogen annually for industrial use and heavy transport. Subject to approvals and public policy and business decisions, initial production from the complex is anticipated to start from 2026.
Around 150 jobs are planned to be created during the construction phase. In the summer, BP contracted Technip Energies to deliver a hydrogen production unit for the project.
(AUD 1.0 = USD 0.651/EUR 0.597)
