'Indefinitely paused' | BP suspends blue hydrogen project at US refinery

Oil major BP has suspended its plans for a blue hydrogen project at its Whiting Refinery in the US state of Indiana, as well as associated carbon capture and storage infrastructure.

“BP is committed to remaining a critical driver of the economic engine that powers northwest Indiana and the Midwest,” a spokesperson said. “While we are indefinitely pausing our low-carbon project in the region, our focus is on building a strong, economically competitive future for our Whiting Refinery.”

The blue hydrogen plant had been one of eight projects in the Midwest Alliance for Clean Hydrogen (MACH2), a federally funded Regional Clean Hydrogen Hub.

The hub had been allocated up to $1bn by the Biden government in October 2023, and had last year been formally awarded more than $22m to begin development work.

However, the Regional Clean Hydrogen Hubs programme has been under review by the new Trump administration, with Secretary of State for Energy Chris Wright suggesting that the wider process of re-examining subsidies for clean energy projects would be complete by the end of this summer.

Wright had pushed back on reports that he was planning to scrap hubs specifically in Democrat-majority “blue” states in a hearing in May.

That same month, he axed $3.7bn in clean energy funding, including $331m for hydrogen-fuelled burners at ExxonMobil’s Baytown refinery; $99m for an e-methanol project planned by Orsted in Chambers County, Texas; and $200m for a partnership between Technip Energies and LanzaTech to produce ethylene using captured carbon dioxide and clean hydrogen somewhere along the US Gulf Coast.

However, a decision is yet to be made on the Regional Clean Hydrogen Hubs.

However, this tax credit is also due to be terminated at the end of this year as part of the budget reconciliation bill working its way through the Senate.