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Government support enables bp renewable hydrogen project to hit major milestone

bp’s plans to produce renewable hydrogen at its Kwinana Energy Hub in Western Australia have reached a major milestone, with the company’s H2Kwinana project entering front-end engineering and design (FEED).

bp welcomed the Federal Minister for Climate Change and Energy, the Hon. Chris Bowen MP to Kwinana to mark the milestone, with the project supported by $70 million from the Australian Government’s Regional Hydrogen Hubs Program.

The project plans to install 100MW of electrolyser capacity at the site, with the potential to expand to a total of 1.5GW production in subsequent phases.

H2Kwinana also involves the installation of hydrogen storage, compression and truck loading facilities and upgrades to bp’s existing on-site hydrogen pipeline system.

bp Australia and SVP fuels & Low Carbon Solutions, Asia Pacific President Frédéric Baudry said: “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.

“H2K at Kwinana is bp’s strategy in action, leading from the front in decarbonisation in the region and providing energy security through diversity.

“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.”

bp Hydrogen, Australia and Asia Pacific VP Lucy Nation said: “Part of bp’s strategy is leaning into the energy transition through our five transition 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.

“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.”

A feasibility study supported by the WA government demonstrates the project’s opportunity to support the decarbonisation of the state’s heavy industry sector.

Globally, bp is proceeding with the procurement of long lead items, including electrolysers, for its projects, including H2Kwinana. Subject to approvals and public policy and business decisions, production from H2Kwinana is anticipated from 2026.

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