Australian Renewable Energy Hub

October 30th, 2024

Australian Renewable Energy Hub

The Australian Renewable Energy Hub (AREH) is planned as a phased development located in the Pilbara region of Western Australia and intends to supply renewable power to local customers in the Pilbara, a large mining region, and produce renewables-based hydrogen for domestic and export markets.

Main proponents:

bp (Operator), CWP Global, Intercontinental Energy

 Main end-use classification:

Local potential in the Pilbara (renewable power and renewables-based hydrogen)

Export potential (renewables-based hydrogen)

 Status:

Under development

 Estimated cost:

AUD$30 billion – total project capital cost
Other involvement:

 

 Production details:

At full scale, the project aims to develop 26 gigawatts (GW) total generating capacity from wind and solar power and produce around 1.6 million tonnes of renewables-based 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 AREH project, at full scale, is planned to be developed over multiple phases and aims to:

  • Develop 26 GW total generating capacity from wind and solar power. This is the equivalent of producing over 90 terawatt hours per annum.
  • Produce around 1.6 million tonnes of renewables-based hydrogen or nine million tonnes of (renewables-based) ammonia per annum.

The AREH project proposal, at full scale, would involve:

  • The construction and operation of a large-scale wind and solar renewable energy facility (and after the initial phase of project development, large-scale hydrogen production facilities and associated infrastructure) about 250 kilometres east of Port Hedland, in the northwest of Western Australia, with a project Development Area of approximately 6,500-square kilometres.

On present planning, the produced power from the wind and solar energy facility would be connected to Port Hedland (and beyond) via the proposed Pilbara Green Link network.

The Pilbara Green Link feasibility study being undertaken by Horizon Power will consider development of two 330kV transmission lines; one line would connect Horizon Power’s existing Pilbara network at Port Hedland to the AREH project Development Area, the other line would connect Port Hedland to the Yandicoogina Creek Terminal (YCT), approximately 100 kilometres north-west of Newman.

It is proposed that the AREH project, at full scale, would be developed in several phases over a ten-year construction period:

  • Phase 1 – primary focus is the build out of wind turbines, solar arrays and associated infrastructure to develop approximately one GW of unfirmed renewable energy at the project Development Area, with the renewable energy delivered to Port Hedland and Newman via the proposed Pilbara Green Link common use transmission network. The Phase 1 renewable energy is planned to be provided to domestic customers in the Pilbara as unfirmed power (currently planned by 2029).
  • Phase 2 – Additional build out of wind and solar generation, along with the construction of electrolysers and associated infrastructure at the project Development Area. It is planned that desalinated water would be delivered via pipelines from Port Hedland to the project Development area. The produced hydrogen could be made available to support decarbonisation efforts in the Pilbara and facilitate renewables-based manufacturing value chains.
  • Phase 3 – Produced hydrogen could be utilised to produce renewables-based ammonia through the installation of ammonia production and storage facilities at the Boodarie Strategic Industrial Area, with the ammonia being available for domestic or international markets.

Following assessment of materials submitted to the Western Australian Environmental Protection Authority (WA EPA), in October 2020, a Ministerial Statement approved the assessed development proposal subject to the implementation of the conditions and procedures included in the Statement (the project at that time, prior to bp assuming Operatorship, was known as the Asian Renewable Energy Hub). Media reporting indicates that the WA EPA recommendation for approval is for 15 GW of hybrid renewable generation capacity.

In January 2023, it was announced that the State Government’s Industrial Lands Panel had approved Boodarie Strategic Industrial Area land allocation to bp, which provides strategic access to the port of Port Hedland and supply of renewable power and hydrogen to the Pilbara and potential to support domestic and export markets for hydrogen/hydrogen fuels.

In May 2024, the project was granted Major Project Status by the Australian Government (expiry May 2027) with such projects receiving assistance from the Major Projects Facilitation Agency in navigating their major Australian Government approvals.

 

Reviewed (reviewed by the project proponent): October 2024