BP plans to take a major stake in the Asian Renewable Energy Hub (AREH) in East Pilbara, one of the world's biggest projects to produce green hydrogen from wind and solar.
The UK-based oil giant is expected to acquire about 30% of the US$36bn AREH, which plans to harness 16GW of onshore wind and 10GW of solar to produce renewable H2 and ammonia, as well as become its lead developer.
One of BP's most ambitious green targets is to develop 50GW of renewables by 2030 and to take major positions both in green hydrogen as well as blue hydrogen from abated gas.
AREH is currently led by developers InterContinental Energy and CWP Global, while wind OEM Vestas and Macquarie are also stakeholders in the Pilbara project, in Western Australia, which aims to begin generating power by 2027.
Global, often desert-based megaprojects such as the AREH are seeking to reduce the cost of H2 fuel by achieving oil & gas industry scale.
A main challenge has been the size and cost of such developments, with some seeing the clout of an oil supermajor as essential for their viability.