PERTH, July 25, 2025 – BP will withdraw from the Australian Renewable Energy Hub (AREH) project as operator and equity holder, Reuters reported on Thursday.

The decision is a further step in BP’s shift back towards oil and gas operations as it carries out a broad reallocation of investments and a reduction in renewables spending following recent underperformance and investor criticism.

BP has informed joint venture partners InterContinental Energy and CWP Global of its intention to leave the green hydrogen initiative, a BP spokesperson told Reuters. BP currently holds a 63.57% interest, with InterContinental Energy and CWP Global holding 26.39% and 10.04%, respectively.

No names were given of buyers who could potentially take up BP’s stake. BP joined the project as operator in June 2022 with the acquisition of 40.5%, and upped its participation in February 2024 when it acquired a 15.25% interest divested by Australia’s Macquarie Group.

First proposed in 2014, the AREH project is located in the Pilbara region of Australia and aims to develop up to 26 GW of solar and onshore wind generation capacity to produce 1.6 million tonnes per year (tpy) of green hydrogen or 9 million tpy of green ammonia.

Under the project’s phased development plan, first deliveries of green hydrogen are expected by the end of 2027 and potential ammonia exports after 2030.