BP ends its involvement in the 26 GW AREH hydrogen project in Western Australia

BP withdraws from the Australian Renewable Energy Hub, a major renewable hydrogen and ammonia project in the Pilbara region, marking a new stage for energy investments in Australia.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The BP group has decided to exit the Australian Renewable Energy Hub (AREH), one of the world’s largest projects dedicated to large-scale renewable hydrogen and ammonia production. AREH, located in the Pilbara region of Western Australia, was aiming for a capacity of 26 gigawatts (GW) to supply around 1.6 million tonnes per year of hydrogen by electrolysis and 9 million tonnes of renewable ammonia, mainly for industrial markets and exports.

BP’s investment reorientation
BP, which held a 40.5% stake in the project since 2022, informed its partners of its withdrawal as operator and shareholder. This decision follows a review of the group’s strategy, with a refocus on its upstream oil and gas activities and a more selective investment policy in the energy transition.

Australian company InterContinental Energy, a key project partner, confirmed it would ensure the continuity of AREH’s development and governance after BP’s departure. “We welcome BP’s contributions, which have enabled the project to reach this stage of maturity,” said Alexander Tancock, Chief Executive Officer of InterContinental Energy. CWP Global, a European company, also remains involved in the AREH consortium.

Uncertain context for Australian hydrogen
BP’s withdrawal comes as several major sector groups, including Fortescue and Woodside Energy, have recently abandoned renewable hydrogen projects in Australia and the United States. These decisions are mainly motivated by rising production costs and market demand deemed insufficient by industry players.

According to the latest assessments, the production cost of hydrogen by alkaline electrolysis in Western Australia stands at $4.87/kg, a decrease of 2.41% in one month. In Japan, the price of hydrogen produced by the same technology is $5.97/kg, showing a drop of 14.71% over the same period.

Impacts on investment and the sector
Despite the uncertainties, InterContinental Energy reaffirms its commitment to continue developing AREH, which remains a central project for the Pilbara region and the industrial landscape of Western Australia. Discussions are ongoing with local authorities and partners to ensure a structured transition in project governance.

Recent withdrawals within the industry highlight the economic and industrial challenges associated with deploying large-scale renewable hydrogen in a rapidly changing global context.

U.S.-based Utility will build a hydrogen production and certification facility in Seongnam, using biogas, marking a strategic step for the expansion of its H2Gen® technology in the South Korean market.
HTEC has inaugurated a clean hydrogen production facility in Burnaby, British Columbia, marking the launch of the province’s first commercial-scale electrolyzer, with a combined production capacity of 1.8 tonnes of clean hydrogen per day.
Buscando Resources officially becomes Element One Hydrogen and Critical Minerals Corp. and completes a C$1.03mn fundraising through a three-tranche private placement.
The partnership includes local manufacturing in Poland of electrolysis systems using Elogen’s technology, with deliveries targeting the Europe, Middle East and Africa markets.
Vema Hydrogen has been named a qualified supplier by the First Public Hydrogen Authority to deliver clean hydrogen at industrial scale to California’s public and private infrastructure.
Le groupe français HRS a signé une commande pour la livraison d'une station hydrogène haute capacité, renforçant sa présence dans un réseau en expansion à l’échelle européenne.
With a $14mn investment, Enap progresses on the construction of its first green hydrogen plant, expected to be operational in early 2026 in the Magallanes region of southern Chile.
Plug completed the first delivery of 44.5 tonnes of hydrogen for the H2CAST project in Germany and secured a new contract for an additional 35 tonnes, confirming its logistical capabilities in the European market.
Gushine Electronics has opened a lithium battery plant in Vietnam, with an estimated annual production value of $100 mn, marking a new phase in the international deployment of its industrial capacities.
Indonesian nickel producer Anugrah Neo Energy Materials plans a $300mn IPO in December to finance its growing battery materials operations.
Sultan Qaboos University announces a breakthrough in water electrolysis using new rare-metal catalysts, improving production efficiency by more than 30%.
Standard Lithium a sécurisé $130mn via une émission d’actions ordinaires pour financer ses projets d’extraction de lithium en Arkansas et au Texas, consolidant sa position sur le marché nord-américain des métaux stratégiques.
Asset manager Quinbrook expands its North American portfolio with a first Canadian investment by acquiring a strategic stake in developer Elemental Clean Fuels.
Lhyfe commissions a 10 MW site in Schwäbisch Gmünd, its first in Germany, to supply RFNBO-certified green hydrogen to industrial and heavy mobility clients.
Brookfield will invest up to $5 billion in Bloom Energy's fuel cells to power future artificial intelligence factories, initiating the first phase of a dedicated global digital infrastructure strategy.
Metacon acquired components from the bankruptcy estate of Hynion Sverige AB for SEK3.5mn ($320,000), aiming to support its hydrogen refuelling station projects in Sweden.
The United Kingdom has carried out its first real-life trial of green hydrogen blending into the national gas transmission network, with power generation as a result.
Swedish company Liquid Wind has secured €3.6mn in public funding for the engineering phase of its eMethanol plant, integrated into a biomass-fuelled cogeneration site.
The Japanese industrial group will replace a 73.5 MW coke and gas-fired turbine with a 30 to 40 MW hydrogen-ready unit, scheduled to start operations in 2030 with ¥7.1bn ($47mn) in public support.
A two-year project aims to identify areas in Texas suitable for natural hydrogen exploitation, despite challenges related to infrastructure, public policy and economic viability.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.