Premier Roger Cook still expects BP to deliver on its $600 million Kwinana biofuels refinery plan, after yesterday’s announcement that the project would be “rephased”.
Premier Roger Cook still expects BP to deliver on its $600 million Kwinana biofuels refinery plan, after yesterday’s announcement that the project would be “rephased”.
BP put the renewable fuel hub at the site of its historic Kwinana oil refinery on ice yesterday, citing adjustments to its global work pipeline to improve cost outlay and ensure “better alignment with government policies”.
The biofuel project was not scrapped, but its timeline is now uncertain.
Once in production, that project will produce renewable diesel and sustainable aviation fuel.
The future of the hydrogen project at the site, called H2Kwinana, remains subject to the outcomes of the federal government’s $2 billion Hydrogen Headstart incentive program.
H2Kwinana was one of six shortlisted for funding in December 2023, but no update has been provided since.
Premier Roger Cook, who is the member for Kwinana, was on-hand in February 2023 when work started on the BP project with a target production date of 2026.
He told media today that the work being done by BP at Kwinana was important, and that his government was disappointed in the decision to ease off progress at the site.
“We are obviously disappointed with the decision that they’ve now taken their foot off the pedal to a certain extent, while they can consider their financial position,” he said.
“My government’s been working very closely with BP and will continue to do so.
“We believe these two projects at the old oil refinery site are important for Western Australia’s future.”
The commentary from BP – a multinational oil and gas company with British headquarters – suggested the project was being de-prioritised in favour of those which better aligned with government incentives.
Mr Cook said the federal government was doing plenty to support industry, but that he understood calls for them to do more.
“I think everyone would expect and want the federal government to do more in relation to supporting these new, nascent industries which are part of our energy transition,” he said.
“The federal government’s doing a lot in that space, whether it’s around the Hydrogen Headstart program, the production tax credit program, or other incentives they have in place to support these important industries which are going to be part of the energy transition.
“We still expect these projects to go forward, and they will go forward with our blessing and support.”
Federal Resources Minister Madeleine King, whose electorate of Brand encompasses Kwinana, was on the media trail alongside state Mines and Petroleum Minister David Michael today.
She expressed her disappointment in BP’s decision for local workers and called on the company to continue to reinvigorate the site.
