BP eyes more hydrogen production in Australia

Developing a hydrogen industry in Australia is feasible; however it would depend on government support, as major investment is required in ports, building transmission lines, and providing incentives and setting emissions targets, said BP in a statement based on the findings of a study.

In a  study, supported by the Australian Renewable Energy Agency (ARENA), conducted by engineering firm GHD, the organisations looked at building a demonstration plant and a 1 million tonnes a year facility, with an electrolyser powered by renewable energy to split water to produce hydrogen. This hydrogen will then be used to make green ammonia. 

"Importantly, our study also confirmed strong demand from potential customers in the hard-to-abate sectors, and for both local and export markets," BP Australia President Frédéric Baudry said in a statement.

"This has the potential to position Australia as a regional powerhouse of the energy transition,"Baudry said.

BP, plans to spend US $5 billion a year on low-carbon investments, said it has found that the midwest region of Western Australia was a particularly promising location for the production of hydrogen.