BP to blanket swathes of Australia in solar panels

BP IS planning to blanket parts of Western Australia with solar panels and wind turbines as part of a major bet on renewables as it moves away from fossil fuels.

The FTSE 100 company is buying a 40.5pc stake in the Asian Renewable Energy Hub (AREH), one of the world’s largest clean energy projects set to sprawl across 2,500 square miles in the mining heartlands of the Pilbara.

The value of BP’S investment has not been disclosed, but it is believed the entire project will cost about £25bn to develop.

BP will also operate the project, which will supply clean energy to mining giants digging out iron ore and copper nearby, and clean hydrogen and ammonia for export.

Under chief executive Bernard Looney, BP is repositioning itself towards greener energy, adapting to global shifts in demand as well as pressure from shareholders to cut emissions.

Anja-isabel Dotzenrath, who runs BP’S low carbon energy division, said AREH could be a “cornerstone” project for BP, helping it sell clean energy to countries such as South Korea and Japan.

BP is planning to cut its oil and gas production by 40pc by 2030 and wants to be earning up to $10bn (£8.2bn) from lower carbon businesses such as hydrogen and electric vehicle charging by the end of this decade.

Australian bank Macquarie owns 15.3pc of AREH alongside BP, while green hydrogen developer Intercontinental Energy owns 26.4pc; and renewable energy developer CWP Global owns 17.8pc.

The consortium is hoping for first production by 2027-28, but the development faces regulatory hurdles.

The Australian government’s environment department rejected plans last year amid concern over the impact on wetlands and birds. The project involves a port and new town for thousands of workers.

Dean Bialek, at CWP Global, told the Financial Times this week he was confident the project could be reworked.

BP’S investment in Australia comes as it has also said it plans to invest up to £18bn in UK energy by the end of 2030, ranging from hydrogen projects in Teesside to more oil and gas production in the North Sea.

However, it is now reviewing its North Sea investment plans after the Government announced a windfall tax on oil and gas producers late last month.

BP’S shares fell 1.74pc to 427.4p yesterday.