BP secures further approval for A$580 mil Kwinana biorefinery conversion in Australia

BP has received approval from the Western Australian government for a pivotal plan to convert its Kwinana refinery site into a renewable energy hub as part of a A$580 million ($386 million) investment.

BP will transition the 250-hectare Kwinana Industrial Area site into an energy hub that will produce and supply renewable fuels and energy products.

The clearance was granted by the Department of Planning, Lands and Heritage.

Before becoming an import facility in 2021, the site operated as an oil refinery, and was the biggest supplier by far of fuel to Australian market. The site has been in BP's hands since 1955, documents from development assessment panel website showed Oct. 29.

The biorefinery is expected to start operating in 2026-27 on a 10-hectare portion of the site, with some existing infrastructure repurposed, including hydrofining units and storage tanks.

This proposed new infrastructure includes a hydrofiner feed pre-treatment unit, a hydrogen generation unit, a product fractionation unit, a by-product recovery unit and a truck unloading facility.

These advancements will repurpose some of the existing infrastructure from the site, thereby optimizing resource use and reducing installation costs.

The biorefinery will focus on producing sustainable aviation fuel and hydrotreated vegetable oil from renewable sources, leveraging both domestic and imported feedstocks, such as canola oil. This effort aligns with BP's broader vision to establish the Kwinana Energy Hub, integrating renewable fuel production with green hydrogen initiatives.

The Kwinana Energy Hub aims to play a significant role in decarbonizing sectors such as aviation and other industries reliant on heavy diesel engines. By transitioning to low-carbon liquid fuels, BP expects to aid hard-to-abate sectors in reducing their carbon footprints substantially.

BP advocates for government incentives such as a production tax credit to bolster investment in domestic renewable fuel production, aiming to ensure Australia can compete globally in the LCLF industry.

Platts, part of S&P Global Commodity Insights, assessed renewable diesel cost of production (palm fatty acid distillate) Southeast Asia at $1,790.01/mt on Oct. 29, up $14.19/mt from the previous assessment.