BP Australia has partnered with investment banking company Macquarie Capital to study the feasibility of producing green hydrogen at the Kwinana site in Western Australia.

Backed by funding from the Western Australian Government, the study is aimed at helping in decarbonising the Kwinana Industrial Area near Perth.

Said to be Western Australia’s largest industrial cluster, the Kwinana Industrial Area is home to numerous high-emission power plants, mineral refineries, chemical plants, and cement works.

BP’s study will focus on producing green hydrogen at its former refinery site in Kwinana.

This in turn forms a part of the firm’s broader plan to repurpose its Kwinana site as an integrated energy hub to produce and distribute fuels.

Western Australia Hydrogen Industry Minister Alannah MacTiernan said: “BP’s proposal to convert the old Kwinana oil refinery into a green hydrogen hub will help to revitalise Kwinana and bring this facility into a low-emissions future.”

The oil giant said it is already working on plans to develop a renewable fuels plant at the site to enable the production of sustainable aviation fuel and renewable diesel.

BP Australia president and Asia Pacific fuels and low carbon solutions senior vice-president Frédéric Baudry said: “Guided by the Federal Government’s Low Emission Technology Investment Roadmap, we are advancing bp Kwinana’s contribution to the creation of domestic green value chains and the decarbonisation of Australia’s hard-to-abate sectors, particularly heavy industry, mining and transport.”

Last year, BP unveiled plans to close fuel production at the 65-year old Kwinana Refinery located on the shore of Cockburn Sound at Kwinana, and convert it to an import terminal to help strengthen Western Australia’s fuel security.

The company said that the refinery, which was closed earlier this year, was no longer economically feasible due to the regional oversupply and continuous lower refining margins.