BP Exits Major Australian Green Hydrogen Project

BP has announced its withdrawal from the Australian Renewable Energy Hub (AREH), a green hydrogen project in Western Australia's Pilbara region, as it shifts its focus back to fossil fuels. The project, previously valued between $36 billion and $55 billion and envisioned to deliver 26 gigawatts of solar and wind power—about a third of Australia's electricity—now faces uncertainty. BP, which held a majority stake, cited a shift away from large-scale green hydrogen due to unmet cost reduction expectations, reflecting a wider pullback by industry participants such as Macquarie. With BP's exit, the project will be operated by Intercontinental Energy, with CWP Global remaining involved, but the scope and timeline are now uncertain. The move is a setback for Australia's clean energy efforts, especially in the emissions-intensive Pilbara region. BP's departure highlights the commercial hurdles facing green hydrogen in the energy transition.