Oil supermajor BP grew its low-carbon hydrogen pipeline by more than 60% last year — from 1.8 million tonnes annually to 2.9 million, new CEO Murray Auchincloss revealed while presenting its 2023 financial results earlier today.
“We grew our hydrogen pipeline to 2.9 million tonnes per annum,” he explained, less than three weeks after being appointed to the chief executive role on a permanent basis.
“Our focus this decade is on blue hydrogen and decarbonisation of our refineries while laying the foundation for green hydrogen production towards the end of the decade.”
He added that BP would wait and see what the final guidelines for green hydrogen production in the US will be before making further decisions in that space.
“But we have lots of [hydrogen] opportunities inside Europe, lots of opportunities inside Australia. So we can always pivot to what the best returns are inside the portfolio,” Auchincloss explained.
BP’s 105MW H2Kwinana green hydrogen project in Western Australia was shortlisted for up to A$2bn ($1.35bn) of federal government subsidies in December, while the Midwest Hydrogen Hub in the US — in which BP is one of the partners — was selected for a grant of up to $1bn in October by the Biden administration, under a scheme set out in the 2021 Bipartisan Infrastructure Law.
In June 2023, BP was awarded a land lease for a green hydrogen project in Oman; while in March, its bpH2Teesside blue H2 project in northeast England was shortlisted for funding from a £1bn ($1.26bn) pot of government funding.
It is also the largest shareholder in the partnership planning the Australia Renewable Energy Hub project in Western Australia, which is set to be powered by 26GW of wind and solar in order to produce about 1.6 million tonnes of green hydrogen a year. However, that landmark project made little progress in 2023.
BP made $13.8bn of profits in 2023, the company stated, down from $27.7bn in 2022.