Australian Renewable Energy Hub

April 20th, 2023

Australian Renewable Energy Hub

The Australian Renewable Energy Hub (AREH) will be a phased development located in the Pilbara region of Western Australia. The project intends to supply renewable power to local customers in the Pilbara, a large mining region, and produce green hydrogen for the domestic Australian market and for export to major international users.

Main proponents:

bp (Operator), CWP Global, Intercontinental Energy, Macquarie Capital and Macquarie’s Green Investment Group

 Main end-use classification:

Local potential in the Pilbara (renewable power and green  hydrogen)

Export potential (green hydrogen)

 Status:

Under development

 Estimated cost:

 
Other involvement:

 

 Production details:

At full scale, the project aims to develop 26GW total generating capacity from wind and solar power and produce 1.6 million tonnes of green hydrogen per annum

 Location:

Western Australia, Australia

 Announced funding:

 

Project description

A project consortium (with bp as project Operator) is developing the Australian Renewable Energy Hub (AREH) project. The project was formally known as the Asian Renewable Energy Hub. The proposal is to construct and operate a large-scale wind and solar renewable energy facility about 220 kilometres east of Port Hedland, in the northwest of Western Australia.

At full scale, the AREH aims to:

  • Develop 26GW total generating capacity from wind and solar power. This is the equivalent of producing over 90 terawatt hours per annum.
  • Produce 1.6 million tonnes of green hydrogen per annum.
  • Abate around 17 million tonnes of carbon in domestic and export markets annually, equating to roughly 0.5 gigatonnes of carbon savings over the lifetime of the project.

The project is situated on a 6,500-square kilometre site in the Pilbara, with access to abundant solar and wind resources.

The project offers a major decarbonisation opportunity for the Pilbara, which is identified as having significant potential for emissions reduction through the greening of iron ore mining and processing, green steel production, diesel fuel displacement and the potential use of bunkering green shipping fuels at Port Hedland.

In June 2022, it was announced that bp would take a 40.5% shareholding in the project and assume Operatorship (with an original partner Vestas leaving the project).

In September 2022, bp completed the acquisition of a 40.5 percent equity stake in the project and commenced operatorship of the Australian Renewable Energy Hub (this milestone being announced by bp in December 2022).

 

Updated: April 2023