Plans by one of the world’s biggest oil and gas businesses to build a new “renewable” diesel refinery in Kwinana have been lodged for development approval.
BP wants to revive the site of its old oil refinery with new green energy projects, including a potentially $1 billion plant to make green diesel and sustainable aviation fuel from vegetable oils, animal fats and other waste products. That could be followed by a hydrogen facility next door.
The latest step in the super-major’s Kwinana revival bid comes just weeks after Alcoa revealed the nearby alumina refinery would be mothballed in a decision set to cost as many as 1100 jobs.
The new BP plant could help the airline industry decarbonise as the Federal Government’s Jet Zero Council pushes to slash emissions from plane travel.
A report by CSIRO and Boeing last year forecast greener aviation fuel could be a $10b industry for Australia by the end of the decade, with the BP Kwinana project identified as among the most advanced.
First production is targeted in 2026.
The company applied for the green light in late January and will need approval from the City of Kwinana and a development assessment panel.
The Environmental Protection Authority signed off on the refinery proposal earlier this year.
A spokesman for BP said the company was pleased to reach the milestone of pursuing major approvals.
BP is also considering a green hydrogen plant, with hopes for construction to start on a 100 megawatt facility in 2026. That would serve local industrial customers and transport users.
The Federal Government pledged $70 million for the planned hub in November.
By the next decade, the project could be at export scale. BP director of hydrogen Justin Nash last year revealed hopes for up to 1.5 gigawatts of hydrogen production annually.
Mr Nash said the old refinery site was a prime location because projects could use existing infrastructure, including a port, power lines, and repurposed oil tanks.