(Kwinana / Australia) – BP has begun the FEED (Front-End Engineering and Design) phase at its Kwinana Energy Hub (H2Kwinana) in Western Australia. The group wants to produce renewable hydrogen there. The government is supporting the project with 70 million Australian dollars (42 million euros).
The Kwinana refinery has been producing fuels for 65 years. Electrolyzers with an initial capacity of 100 megawatts are now to be built at the site. An expansion to 1,5 gigawatts is optionally possible. In addition, hydrogen storage and compression systems will be installed and BP's existing hydrogen pipeline system will be expanded. Once the plant is operational - the current target is mid-2027 - K2Kwinana is expected to produce more than 14.000 tonnes of green hydrogen annually for industrial purposes and heavy-duty transport.
Important milestone for BP
The start of the FEED phase is “an important milestone for this project,” says Frédéric Baudry, President of BP Australia. It has “the potential to decarbonise BP’s planned biorefinery, which will produce hydrogen from natural gas and biogas, as well as other industrial facilities in the Kwinana Industrial Estate, which will also produce hydrogen from natural gas”.
Kwinana: BP wants to add hydrogen production to its site. © BP Australia
In a study conducted in 2021 feasibility study BP concluded that large-scale production of green hydrogen and green ammonia using renewable energy was technically feasible in Australia. In particular, the state of Western Australia “with its enormous potential solar and wind resources, existing infrastructure and proximity to long-term markets” is ideal for the development of large renewable energy plants, it was said at the time.
Just a few months ago, as reported, the Dutch plant manufacturer Technip Energies NV received an order from BP for an electrolyzer in the Kwinana biorefinery. The plant is intended to support the production of sustainable aviation fuel (SAF) and biodiesel from biological raw materials. Kwinana Renewable Fuels is one of five biofuel projects planned by BP worldwide.
Scenarios for the development of Kwinana
According to the government organization CSIRO (Commonwealth Scientific and Industrial Research Organisation), the Kwinana Industrial Estate is the largest industrial complex in Western Australia and includes mineral processing (alumina, nickel), chemical plants, cement plants, power plants, a range of ancillary industries (construction, manufacturing, engineering) and five large bulk jetties along the shoreline.
The project sponsors have completed the concept phase for further development of the site and published an “H2023Kwinana Public Knowledge Sharing” report in August 2. Three scenarios were examined: production capacities of 44 tons of hydrogen per day, 143 tons per day and 429 tons per day. The range of electrolyzer capacities for the scenarios range from 101 to 111 megawatts to 380 to 418 megawatts to 1.133 megawatts. In any case, the power supply is based on renewable energies. The investment costs are estimated at 334 to 399 million dollars for scenario 1, 1.253 to 1.498 million dollars for scenario 2 and 2.434 to 2.922 million dollars for scenario 3.
Climate Change and Energy Minister Chris Bowen expects Australia's hydrogen industry to generate $2050 billion in additional gross domestic product by 50 and create tens of thousands of jobs in the region.
Photos
After 65 years it's over: Kwinana oil refinery, Western Australia, 37 kilometers south of the capital Perth. © BP Australia
