Global energy companies are increasingly looking to regional Western Australia for renewable energy projects, and BP is the latest to acquire land for this purpose.
BP has purchased Daisy Downs, a 27,000-hectare cropping property north of Mullewa, for $23 million. The company plans to integrate significant green energy generation alongside the existing agricultural operations.
The Daisy Downs property is expected to account for approximately a quarter of the land required by BP to establish 10 gigawatts of renewable energy capacity. This capacity will be converted into hydrogen and ammonia for export from the planned green energy hub at Oakajee, as part of the Western Australian government’s initiative.
Currently, the South West Interconnected System, which powers communities from Geraldton to Kalgoorlie and Albany, has a capacity of 3-4 gigawatts. BP intends to install wind and solar energy generation assets on the Daisy Downs property. While the primary focus is on wind and solar, the company is open to exploring opportunities to produce hydrogen on-site.
BP spokesperson James Foley explained that acquiring a significant portion of land quickly allows them to demonstrate their commitment to the project. The company is also in negotiations with landowners in the area to access an additional 73,000 hectares for further expansion of their renewable generation infrastructure.
Foley emphasized the compatibility of renewable energy projects with farming, stating that it can be done in synergy without interfering with grazing activities. He also highlighted the potential benefits for farmers, such as providing an additional form of income to help drought-proof their farms. The leases with farmers will involve fixed annual payments.
Daisy Downs was purchased from Western Australian agrifood company PenAgri, which acquired the property along with additional farmland for $55 million in July 2022. The property has been leased to a local farm business to continue its cropping operations.
BP is one of six companies allocated land in the planned Mid West Hydrogen Hub at Oakajee. The other companies securing leases are Fortescue Future Industries, Copenhagen Infrastructure Partners, Green LOHC, Kinara Power, and Blue Diamond Australia.
In a separate development further south on the coast, Western Australia-based Infinite Green Energy has signed a memorandum of understanding with South Korean engineering company Samsung C&T to construct a significant green hydrogen plant. The Arrowsmith Hydrogen Plant, located 300km north of Perth, is projected to produce up to 9 gigawatts or approximately 100,000 tonnes of green hydrogen annually.
Stephen Gauld, CEO of Infinite Green Energy, highlighted the plant’s substantial energy output, equating it to powering a large-scale power station for a year or covering the energy needs of approximately 700 road trains per day.
