Plans for $600 million renewable fuel center put on hold

BP has suspended plans to build a $600 million renewable fuels center at its decommissioned Perth refinery. One of the reasons the project has been put on hold is that the developer is reassessing the level of demand and return on investment.

BP said it would adjust the delivery cadence of the Quinana renewable fuels project to improve capital efficiency and better align with government policy.

Industry sources said the lack of government incentives to drive demand for sustainable aviation fuel and renewable diesel was one of the reasons the project was put on hold.

Two years ago, BP began dismantling the refinery, which was built in 1955 and had been planned to be converted into a production site for sustainable aviation fuels and biofuels such as green hydrogen. The plant had planned to produce sustainable aviation fuel and renewable diesel from waste oil, tallow and waste cooking oil, which could be a direct replacement for existing fossil fuel aviation fuel and diesel.