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West Australia allocates land for BP’s 26 GW AREH renewable and hydrogen hub

The Government of the Australian state of West Australia has approved the allocation of land to the British oil and gas company BP to develop a 26 GW renewable and green hydrogen project at the Boodarie strategic industrial area near Port Hedland in the Pilbara (north-western Australia).

The project, estimated at AUD53bn (US$36.7bn) will be developed by BP through the Australian Renewable Energy Hub (AREH) initiative, in which the company bought a 40.5% stake in June 2022; other participants in the AREH are InterContinental Energy (26.4%), CWP Global (17.8%) and Macquarie (15.3%). The AREH will comprise up to 26 GW of onshore wind and solar power generating capacity and, at full capacity, is expected to produce about 1.6 Mt/year of green hydrogen or 9 Mt/year of green ammonia. The project may enter into construction in 2026, with first hydrogen exports in 2027-2028.

Overall, the Government of Western Australia has allocated land to several companies for seven mostly green hydrogen-related projects, collectively valued at AUD70bn (US$48.35bn), that will be built at two industrial estates on the Pilbara coast. At the 4,000-hectare Boodarie strategic industrial area, land was allocated to BP, the South Korean steel producer Posco, the Australian power utility Alinta Energy, Fortescue Metals Group and the UK-based mining company Tees Valley Lithium. Australia’s Fortescue Future Industries (FFI) and Equus Energy secured land from the Government of Western Australia at the 8,000-hectare Ashburton North strategic industrial area near Onslow.

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