The planned 26GW renewables hub for green hydrogen and ammonia in Pilbara suffered a setback last month when BP pulled out of its 64% stake, leaving InterContinental Energy and CWP Global as co-developers, who have reportedly insisted the project will still proceed.

The WA government is courting Japanese energy firms to step into the AUD $50bn ($33bn) project, with Japan seen as a natural replacement investor given its reliance on imports and long-term hydrogen demand.

Japan’s interest is evident – oil major ENEOS announced a small-scale green hydrogen export project in Australia last year, though developers there have also faced setbacks.

In March, the Hydrogen Energy Supply Chain (HESC) project shifted to Japan after delays in Australia, with J-Power and Sumitomo planning 30,000 tonnes of annual hydrogen output for Iwatani’s Suiso Energy to secure $1.4bn in government support by 2030.

H2 View understands that the AREH project is expected to deliver tens of thousands of construction and operations jobs in the Pilbara, driving regional development and supporting new infrastructure in one of WA’s most remote but resource-rich areas.

Yet despite these potential benefits, and ongoing concerns over offtake and policy certainty, BP told H2 View its decision to exit was driven by a broader strategy shift back toward oil and gas.

A spokesperson explained, “This decision reflects BP’s recent strategy reset, which involves growing BP’s upstream oil and gas business, focusing its downstream business, and investing with increasing discipline into the transition.”

Last February, the energy major confirmed it would limit future hydrogen projects as part of a broader green energy reset focusing on more “disciplined investment.”