The state’s planning body has given global energy giant BP the green light to convert its Kwinana refinery into a clean energy hub under a plan worth more than half-a-billion dollars.
On Thursday, a development assessment panel voted unanimously to approve the $580 million biorefinery, earmarked for the 250-hectare Kwinana Industrial Area site BP has occupied for almost 70 years.
The Kwinana heavy industrial area south of Perth started with BP refining oil in 1955.Credit: Kwinana Industries Council
Under the plan, the company intends to demolish its redundant oil refining assets, repurpose its existing facility and build new infrastructure to produce renewable diesel and sustainable aviation fuel from renewable feedstocks.
New infrastructure at the Mason Road site about 32 kilometres south of Perth includes hydrogen generation units and will be capable of using vegetable oils, animal fats and other biowaste products that can be mixed with mineral oil to produce renewable diesel and sustainable aviation fuel.
The plant is expected to have an operational life span of at least two decades and require less frequent trips to and from the facility, alleviating pressure on the area’s congested road network.
The site operated as an oil refinery for more than 65 years until operations ceased in 2021 amid the emergence of cheaper producers in Asia and the Middle East.
At its peak, the facility employed as many as 1500 personnel and was the biggest refinery of its kind in Australia, but has been operating as an import terminal since it was closed three years ago.
The plan had the backing of the City of Kwinana, which recommended it be approved on the basis it was an efficient use of underutilised industrial land.
Construction is tipped to get under within months, supporting up to 150 jobs.
Production is anticipated to begin from 2027.
BP’s plans for the site are a key pillar of its ambitious plan to invest more than $1 billion into green hydrogen facilities and will help it capitalise on the race to decarbonise hard to abate industries — including mining and aviation.
The company’s Kwinana plan had been backed by the federal government, which helped bankroll engineering work to the tune of $70 million.
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