bp Australia, a subsidiary of global oil and gas major bp plc, has announced that its Kwinana Renewable Fuels project in Western Australia (WA) has reached the front-end engineering design (FEED) phase milestone which is the step before making a final investment decision (FID).
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The Kwinana Renewable Fuels project in Western Australia (WA) is part of the global multi-billion dollar investment by bp and will see existing refining infrastructure repurposed to produce drop-in fuel products that have the ability over time to support the decarbonization of aviation and heavy industry, subject to regulatory and State government approvals.
In total it is expected that if fully realized these projects combined could produce around 50 000 barrels of sustainable aviation fuel (SAF) and renewable diesel (aka Hydrotreated Vegetable Oil – HVO) per day by 2030.
Kwinana first out
In November 2020, bp Australia announced that it would cease oil refining operations at its Kwinana site during 2021, and instead invest in an import terminal at Kwinana, while exploring future options for the site including a potential clean energy hub to harness the existing and emerging technologies.
As part of bp’s commitment to transform the former refinery into a renewable energy hub, the Kwinana project plans to repurpose refining units and infrastructure at bp’s Kwinana site to produce renewable diesel and SAF from bio feedstocks.
The Kwinana project in Western Australia (WA) is one of the five biofuel refineries bp has planned globally and, assuming a positive FID is made, is scheduled to be the first to come online in 2026.
Kwinana illustrates the power of the Australian economy and its ability to reinvent itself for the energy transition. This project is the first of its kind globally for bp and a first for Australia. It recognizes the importance of our Kwinana site and Western Australia in the energy transition, so we’re thrilled to say bp is progressing with engineering plans for Kwinana, said Frédéric Baudry, President, bp Australia and SVP Fuels and Low Carbon Solutions, Asia Pacific
This aims to complement the site’s existing import terminal operations and integrate with bp’s plans for green hydrogen production, which are currently being assessed in a feasibility study.
bp has established, global biogas and biofuel businesses that are positioned in an increasingly supportive environment of rapidly growing demand. We plan to integrate sustainable aviation fuel and renewable diesel with our current terminal operations, and our future potential green hydrogen project – H2Kwinana, Frédéric Baudry said.
The McGowan Government has provided AU$300 000 to bp to support the H2Kwinana feasibility study.
I welcome this latest milestone as bp begins the transformation of its Kwinana infrastructure into a renewables hub. This transformational project, which is one of five in the world, is a testament to the fact that Western Australia continues to be an ideal location to invest and do business. Initiatives like this bring significant benefits to our State, boost our strong economy and ensure we have a long line of local jobs and work for local businesses into the future, commented Premier Mark McGowan in a statement.
The Kwinana Renewable Fuels project has reached the front-end engineering design phase milestone which is the step before making a final investment decision (FID).
There has been a long association between bp and Kwinana over many years. It is very encouraging that we are seeing the rebirth of the facility as a renewable energy hub. Not only will this create jobs, but it will create jobs for the future as Western Australia plays a leading role in the global shift to renewable energy, said State Development, Jobs, and Trade Minister Roger Cook.
