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BP Drives Australia’s Hydrogen Push

Anela DoksoBy Anela Dokso14/10/20242 Mins Read
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BP is continuing its commitment to hydrogen energy in Australia, despite current market hurdles.

BP is pushing hydrogen projects worldwide as part of broader efforts to address climate change. With projects planned in Australia, Germany, Spain, the US, and the UK, the company is focused on utilizing hydrogen for decarbonizing sectors that are challenging to transition to lower-carbon electricity, such as heavy manufacturing. Hydrogen also holds the potential to store green energy, hinting at future export possibilities.

In Australia, BP is advancing three major green hydrogen projects. These include the massive Australian Renewable Energy Hub in Pilbara, a 26-gigawatt project, and a separate 14-gigawatt wind and solar initiative in Geraldton. BP is also developing the H2Kwinana hydrogen hub, which has received federal support and is competing for government subsidies designed to increase the competitiveness of clean fuel technologies.

Despite progress, the viability of green hydrogen in Australia faces economic challenges. Origin Energy recently withdrew from a major hydrogen production effort due to market hesitancy and high costs. While the market development has been slower than expected, BP stresses that substantial government backing and access to renewable energy are critical for scaling projects.

The Australian government’s incentives for hydrogen development are expected to encourage approximately $50 billion in private investment. Energy Minister Chris Bowen emphasizes that these measures offer more stability for projects.

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