Oil and gas giant Woodside has made the decision to exit its proposed H2OK Project in Oklahoma, citing “ongoing challenges facing the lower-carbon hydrogen industry, including cost escalation and lower than anticipated hydrogen demand”.
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“We have made the decision to exit the H2OK Project, demonstrating our disciplined approach to portfolio management,” the company said in a statement accompanying its Second Quarter 2025 Report.
The decision to exit the hydrogen project will result in a US $140 million profit loss for the company.
Woodside announced was delaying its investment decision on the H2OK project in January, shortly after President Trump’s return to the White House.
It also scrapped plans to build a 5MW concentrated solar power (CSP) demonstration plant in California’s Mojave Desert through a partnership with the Bill Gates-backed Heliogen.
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Woodside said it needed to consider the implications of the administration’s pledge to cease supporting US renewable energy investments, including pausing the disbursement of funds from former President Joe Biden’s Inflation Reduction Act.
