BP buys 40% of $US30bn Pilbara renewable energy project

BP has purchased 40.5 percent of a renewable energy hub in the Pilbara, which has the potential to become one of the world's largest suppliers of green hydrogen.

In addition, the company intends to run the Asian Renewable Energy Hub, which aims to generate up to 26GW of wind and solar energy.

The financial terms of the deal were not disclosed, with a BP spokesperson stating that the amount invested was commercially confidential.

According to market sources, Areh is currently worth less than $100 million because it is still in its early stages.

BP and the project's other investors, InterContinental Energy, CWP Global, and Macquarie Group, are betting on a surge in demand for renewable energy.

Areh, on the other hand, is intended to export hydrogen to customers in other countries.

According to BP, at full capacity, the Areh will be able to absorb 17 million tonnes of CO2 per year.

Anja-Isabel Dotzenrath, the company's executive vice-president of gas and low-carbon energy, stated that Areh could become a "cornerstone project."

According to Hewitt, the partners approached a number of large oil companies, but BP stood out as the most forward-thinking on green energy.

BP intends to use AREH to meet some of its own electricity needs while also capturing a significant portion of the emerging green hydrogen market.

The Pilbara is a good location, according to Bp, because it has large areas of land, good wind and solar resources, and the capacity for major mining and manufacturing industries.