BP takes leading stake in Australian energy project
Fossil fuel major BP has bought into a USD36 billion (MYR159 billion) “Asian Renewable Energy Hub” (AREH) project based in western Australia, billed as one of the world’s largest renewable power stations – the project is expected to have a generating capacity of 26 gigawatts, exceeding that of China’s vast Three Gorges hydroelectric dam.
The hub, an array of solar and wind facilities sprawled over 6,500 square kilometres (2,509 square miles) of Australia’s sparsely populated west coast, would also produce 1.6 million tonnes of green hydrogen upon completion each year, intended for major Asia-Pacific markets such as Japan and South Korea.
Australia is currently one of the world’s top three fossil fuel exporters, a position that has come under increased scrutiny due to the impacts of climate change.
However, according to Anja-Isabel Dotzenrath, BP’s executive vice president of gas and low carbon energy, the company believed that “Australia has the potential to be a powerhouse in the global energy transition.”
BP has a 40.5% stake in the AREH project – related environmental concerns were “being considered by the project design team” before a revised proposal would be submitted to the new pro-renewables Australian government.
Green groups including the Australian Conservation Foundation and Greenpeace welcomed the news BP was investing in the renewable energy hub: “It has to stand up environmentally,” said Elizabeth Sullivan, the Australian Conservation Foundation.
While there is huge potential for Australia’s renewables export industry ― bringing tens of billions to the economy ― time was of the essence. “International investors are struggling to see whether Australia is committed to renewables or if it’s committed to fossil fuels,” Sullivan said. “The world is not going to wait for us.”
Britain-based BP has vowed to become a cleaner and greener company but remains heavily invested in oil and gas projects around the world.
