Oil and gas company BP has announced its decision to exit the Australian Renewable Energy Hub (AREH), a major green hydrogen project in Western Australia. The decision marks a shift in the company’s focus back to its traditional oil and gas operations, reports Energy Source & Distribution.
BP informed its partners, InterContinental Energy and CWP Global, that it will step down as both the project’s operator and as a stakeholder. InterContinental Energy has now taken over operational control.
“This move reflects our updated priorities,” a BP spokesperson told the ABC. “We are now concentrating on strengthening our oil and gas operations and will approach investments in the energy transition more carefully.”
BP had held a 63.57% stake in the AREH, which is being developed to generate renewable energy and green hydrogen for the Pilbara region and for export. The project, located in East Pilbara about 250 kilometers east of Port Hedland, sits on the traditional lands of the Nyangumarta People.
Once completed, AREH is expected to be one of the largest renewable energy hubs in the world.
BP initially joined the project during a phase of increased investment in renewable energy. However, the company’s underwhelming stock performance and growing pressure from investors have prompted it to refocus on core fossil fuel ventures.
Despite BP’s withdrawal, the project will continue under the leadership of InterContinental Energy, with CWP Global also remaining involved in the joint venture.
