Oil major BP has announced it will pull its majority stake in the proposed Australian Renewable Energy Hub (AREH) in Western Australia, being developed with joint venture partners InterContinental Energy and CWP Global.
Related article: What’s happened to Australia’s green hydrogen dream?
“This decision reflects BP’s recent strategy reset, which will see BP grow its upstream oil and gas business, focus its downstream business, and invest with increasing discipline into the transition,” a BP spokesperson told the ABC.
BP joined the AREH green hydrogen project as part of a strategic phase of renewables investment, however, underwhelming stock performance and mounting investor pressure has seen the company pivot back to oil and gas ventures.
The company has informed its partners in AREH that it intends to leave the project as operator and equity holder. InterContinental Energy has assumed control of the project’s operation.
BP held a 63.57% stake in AREH, which intends to deliver renewable power and green hydrogen to support decarbonisation of the Pilbara and beyond. The project has the potential to be one of the largest renewable energy hubs in the world.
Related article: Woodside pulls pin on H2OK Project in the United States
The development site is located in the East Pilbara, approximately 250km east of Port Hedland, on the traditional lands of the Nyangumarta People.
