BP Purchases 40% Stake In Green Hydrogen Project In Australia
BP plc (NYSE: BP) is acquiring the largest stake in a vast solar, wind, and green hydrogen project in Western Australia that will cost more than $30 billion to develop, reported Financial Times.
The energy company stated that it has agreed to buy 40.5% of the Asian Renewable Energy Hub, which it will also operate, making it one of its biggest renewable energy bets. Financial terms were not disclosed.
Developed by partners Intercontinental Energy, CWP Global, and Macquarie, the 6,500 square kilometers site in the Pilbara mining region has the potential to be one of the largest renewable power hubs in the world, writes FT.
The hub hopes to develop 26GW of solar and wind power, equivalent to a third of Australia’s generating capacity, and produce roughly 1.6 million tonnes a year of green hydrogen.
BP’s executive vice-president of gas and low-carbon energy, Anja-Isabel Dotzenrath, stated that the investment could significantly increase BP’s renewable power capacity and make “a material contribution” to its stated aim of securing a 10% share of global hydrogen markets.
“We believe AREH can be a cornerstone project for us in helping our local and global customers and partners in meeting their net-zero and energy commitments,” Dotzenrath said in a statement.
Price Action: BP shares are trading higher by 0.87% at $30.86 during the premarket session on Wednesday.
Photo via Wikimedia Commons
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