BP Aims to Start Producing Green Jet Fuel in Australia by 2025

by Sonali Paul (Reuters) BP Plc (BP.L) is aiming to start producing sustainable aviation fuel (SAF) in Australia by 2025 after converting its oil refinery near Perth to produce renewable fuels, a senior executive of the British company said on Thursday.

The project is expected to cost "hundreds of millions" of dollars, BP's Asia Pacific vice president of low-carbon solutions, Lucy Nation, told Reuters.

BP has not disclosed what volume it plans to produce, but Nation said output would depend on demand as the facility would be able to switch day-to-day between producing sustainable aviation fuel and biodiesel.

Its Kwinana plant is in Western Australia, a region dominated by the mining industry where there is heavy demand for diesel for trucks.

Australia has no SAF production so far and has no mandates for the fuel, unlike the European Union, which last week approved plans to require suppliers to blend a minimum of 2% of SAF into their jet fuel from 2025, rising to 85% in 2050. read more

BP's plant on the west coast and an A$500 million plant being built by private firm Oceania Biofuels on the east coast will be the country's first two SAF plants. Oceania's plant will be able to produce more than 350 million litres per year of sustainable aviation fuel and renewable diesel.

Nation, Qantas Airways (QAN.AX) and Boeing Co officials said the government needs to impose mandates or provide subsidies, tax breaks or a carbon pricing mechanism to spur development of the industry, which they said would be crucial to make long-haul travel affordable for Australians as the world shifts to green fuels. READ MORE

The McGowan Government has welcomed the latest milestone for bp's $1 billion Kwinana Renewable Fuels project.

The Kwinana project is one of five biofuel refineries bp has planned globally and is scheduled to be the first to come online.

It is part of bp's commitment to transform the former refinery into a renewable energy hub.

The Renewable Fuels Project has reached the front-end engineering design phase milestone which is the step before making a final investment.

The Kwinana project will repurpose refining units and infrastructure at bp's Kwinana site to produce renewable diesel and sustainable aviation fuel.

The biorefinery is planned to produce sustainable aviation fuel and biodiesel from bio feedstocks by 2026.

It will complement the site's existing import terminal operations and integrate with bp's plans for green hydrogen production, which are currently being assessed in a feasibility study.

The McGowan Government has provided $300,000 to bp to support the H2Kwinana feasibility study.

The Kwinana Renewables Project is located in the Kwinana Industrial Area which has supported tens of thousands of jobs and billions of dollars in investment.

Comments attributed to Premier Mark McGowan:

"I welcome this latest milestone as bp begins the transformation of its Kwinana infrastructure into a renewables hub.

"This transformational project, which is one of five in the world, is a testament to the fact that WA continues to be an ideal location to invest and do business.

"Initiatives like this bring significant benefits to our State, boost our strong economy and ensure we have a long line of local jobs and work for local businesses into the future."

Comments attributed to State Development, Jobs and Trade Minister Roger Cook:

"There has been a long association between bp and Kwinana over many years.

"It is very encouraging that we are seeing the rebirth of the facility as a renewable energy hub.

"Not only will this create jobs, but it will create jobs for the future as WA plays a leading role in the global shift to renewable energy." READ MORE