BP Quits US$36 Billion Australian Green-Hydrogen Hub

BP Plc said it will withdraw as operator and majority shareholder of the Australian Renewable Energy Hub, a planned US$36 billion project designed to use up to 26 gigawatts of solar and wind power to produce about 1.6 million tonnes of green hydrogen a year. The company has notified partners InterContinental Energy and CWP Global that it will relinquish its 63.57% interest in the venture. The decision marks the latest step in Chief Executive Murray Auchincloss’s effort to steer the British oil major back toward oil and gas after investor pressure over weak returns from renewables. BP has already pared spending on low-carbon projects and expanded investment in hydrocarbons since revising its energy-transition targets earlier this year. BP’s departure throws one of the world’s largest proposed green-hydrogen developments into uncertainty, underscoring the financing and technology hurdles that have slowed momentum for the fuel. The remaining partners have not yet detailed how they will restructure ownership or funding for the hub, which was expected to export hydrogen and ammonia to Asian markets.