BP Exits Major Australian Green Hydrogen Project Amid Strategic Shift

Australia's green hydrogen ambitions have suffered major setbacks with multiple projects delayed, scaled back, or cancelled, including BP's withdrawal from the $36 billion Australian Renewable Energy Hub in Western Australia. Despite these challenges, the Australian government is investing A$432 million in the Hunter Valley Hydrogen Hub led by Orica, aiming to decarbonize industrial operations and support green hydrogen exports, highlighting the government's commitment to clean energy amid the faltering sector. Industry experts suggest that Australia needs smarter subsidies and a focus on domestic green hydrogen applications, particularly in sectors like fertilizer production, explosives manufacturing, and green iron production, rather than costly export ambitions. BP, once a leader in renewable energy investments, is reversing course by increasing oil and gas exploration spending by nearly 20% and divesting $20 billion in clean energy assets through 2027, citing low profitability and slower-than-expected EV adoption. This strategic shift reflects broader investor skepticism about the immediate returns of renewable ventures and underscores the continuing dominance of fossil fuels in the near term. Overall, while Australia continues to pursue renewable energy targets, the green hydrogen sector faces a pivotal moment requiring recalibrated strategies for viability and growth.