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June 15, 2022

BP to purchase almost 40% in Asian Renewable Energy Hub

The oil and gas giant is set to take over operatorship of the project from 1 July.

British oil and gas giant BP has agreed to acquire a 40.5% stake and the operatorship of the Asian Renewable Energy Hub (AREH) in Pilbara, Western Australia.

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The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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The AREH project is being developed by InterContinental Energy, CWP Global, Macquarie Capital and Macquarie’s Green Investment Group (GIG).

Following the deal, InterContinental Energy will be the second major stakeholder in the project, with 26.4%.

CWP will own 17.8% of the project, with Macquarie Capital and Macquarie’s GIG holding the remaining 15.3% share.

BP intends to assume operations of AREH from 1 July subject to approval.

Covering a 6,500km² area, AREH has the potential to support the development of up to 26GW of combined solar and wind power generating capacity, which is equivalent to more than 90TWh a year.

It also has the capacity to produce 1.6 million tonnes per annum (Mtpa) of green hydrogen or 9Mtpa of green ammonia, making it one of the world’s largest renewables and green hydrogen energy hubs.

The project will be developed in various phases and is expected to displace nearly 17Mtpa of carbon emissions once fully operational.

BP expects AREH to offer a significant net renewable generating capacity and support the company’s aim to hold a 10% share in core hydrogen markets worldwide.

BP Gas and Low Carbon Energy executive vice-president Anja-Isabel Dotzenrath said: “AREH is set to be one of the largest renewable and green hydrogen energy hubs in the world and can make a significant contribution to Australia and the wider Asia Pacific region’s energy transition.

“It truly reflects what integrated energy is – combining solar and onshore wind power with hydrogen production and using it to help transform sectors and regions.

“We believe AREH can be a cornerstone project for us in helping our local and global customers and partners in meeting their net-zero and energy commitments.”

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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Enter your details here to receive your free Report.

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