H2Kwinana

April 28th, 2022

H2Kwinana 

The project proponents are investigating the establishment of a renewables-based hydrogen hub at bp Australia’s Kwinana site in Western Australia.

Main proponents:

bp Australia, Macquarie Capital

Main end-use classification:

Industrial end-use applications is main focus

Status:

Under development –feasibility study anticipated to be completed in the second quarter of 2022

 

Estimated cost:

In excess of AUD$252 million (Hub implementation project value estimate)

Other involvement:

 

Production details:

Installation of an electrolyser of at least 75 megawatts (MW) capacity under evaluation,

Location:

Western Australia, Australia

Announced funding:

AUD$300,000 – Western Australian Government Renewable Hydrogen Fund Round 2 (feasibility studies)

Up to AUD$70 million – Australian Government Regional Hydrogen Hubs Program – Hub Implementation funding stream

Project description

In October 2020, bp Australia announced that, after 65 years of operation, it would cease fuel production at its Kwinana Refinery, near Fremantle in Western Australia, and convert the facility to an import terminal. It was reported that refining activities would wind down over the ensuing six-month period with a conversion workforce supporting site works to 2022.

At the time of the closure announcement, following discussions with the State Government, bp committed to exploring opportunities to convert the Kwinana site to a renewable and clean energy production hub.

The Kwinana Industrial Area is the largest industrial cluster in Western Australia with more than 170 products, by-products and utilities exchanged between facilities in the region. The H2Kwinana project proponents are undertaking a feasibility study investigating the repurposing of part of bp Australia’s Kwinana site into a hydrogen hub that would include installation of an electrolyser of at least 75 megawatts (MW), hydrogen storage, compression and truck loading facilities, and upgrades to bp’s existing on-site hydrogen pipeline.

The hydrogen produced will support domestic and export demand, including hydrogen supply for bp’s renewable fuels production, ammonia, metals and minerals processing, on-site gas blending and hydrogen for heavy duty transport.

The project cost for the hub development is estimated at over AUD$250 million.

In September 2021, it was announced that bp Australia was the recipient of AUD$300,000 in funding under Round 2 of the Western Australian Government Renewable Hydrogen Fund (feasibility study) to support of the feasibility study, which is expected to conclude in the the second quarter of 2022.

bp Australia is recipient of up to AUD$70 million in support of its H2Kwinana hydrogen hub development through the Australian Government’s Regional Hydrogen Hubs Program (Hub Implementation funding stream).

 

Updated: October 2022