BP’s Kwinana Energy Hub (H2Kwinana) has marked a major project milestone, thanks in part to $70 million provided by the Western Australian Government.

The project, H2Kwinana, has entered the front-end engineering and design (FEED) phase.

H2Kwinana 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.

A feasibility study supported by the Western Australian 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.

BP Australia and SVP fuels and low carbon solutions President for Asia and Pacific, Frédéric Baudry, said BP is strengthening the energy system of today while building the energy system of tomorrow.

“We are all-in in Australia, with major investment plans in Western Australia and specifically in the Kwinana area,” Mr Baudry said.

“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”

Hydrogen Vice President for Australia and Asia Pacific, Lucy Nation, said BP’s strategy is leaning into the energy transition though five transition growth engines: biofuels, mobility and convenience, electric vehicle 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,” Ms Nation said.

“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.”