Reports emerging from Australia suggest UK-based oil giant BP will invest $10bn in what is potentially the world’s largest renewable energy project.
BP, one of the world’s largest industrial companies, is set to take a major stake in the Asian Renewable Energy Hub (AREH), which is among the planet’s biggest projects to produce green hydrogen from wind and solar at a scale that can impact the global economy.
The news has emerged through Australian media/ If true, it would represent a major breakthrough for ambitions to scale up one of the most challenging but important renewable energy sectors for meeting climate change targets.
The deal would see the UK-based oil giant acquire around 30% of the $36bn AREH. This represents significant financial backing for the project, which plans use more than 15GW of onshore wind and around 10GW of solar energy to produce green hydrogen and ammonia.
AREH involves a significant number of specialist developers and technology firms, including InterContinental Energy and CWP Global, along with companies like wind specialists Vestas.
Australia is just one of the countries aiming to harness significant renewable energy resources to become a major players in green hydrogen, with both Northern Europe and the Middle East and North Africa growing their sectors too.
The AREH in in Western Australia aims to begin producing energy within five years but the scale of investment required for such projects has often held them back. Intervention on this scale by major oil companies may be one of the ways that is finally overcome.
