BP has cancelled its proposed 105MW H2Kwinana renewable hydrogen project in Western Australia after failing to secure funding from the Australian government's Hydrogen Headstart programme.
BP said the project "was contingent upon receiving funding".
The Australian Renewable Energy Agency (Arena) in May [announced a shortlist]https://direct.argusmedia.com/newsandanalysis/article/2826207) of seven projects for the A$1bn ($694mn) second round of the Hydrogen Headstart programme, with final winners to be selected later this year. Two projects were successful in a first round concluded in 2025.
H2Kwinana, planned at BP's Kwinana Energy Hub south of Perth, was designed to produce 44 t/d of renewable hydrogen for industrial users in the Kwinana precinct.
The project secured up to A$70mn under Canberra's Regional Hydrogen Hubs programme in 2022 and entered front-end engineering in November 2023.
BP indicated in 2025 that the project had progressed commercially. It said it had signed offtake agreements with four customers and could move to a final investment decision "relatively shortly".
The decision to cancel marks another reduction in BP's hydrogen portfolio, as it narrows its exposure to projects that have struggled to secure demand and commercial support.
BP last year exited the Australian Renewable Energy Hub (AREH) project in Western Australia's Pilbara region, a proposed 1.6mn t/yr renewable hydrogen development in which it held a 63.57pc stake. It said at the time it had been unable to secure sufficient customer commitments.
BP has also withdrawn its application for the 1.2GW H2Teesside blue hydrogen project in northeast England and exited renewable hydrogen and ammonia plans in Oman, where it had proposed producing 150,000 t/yr of hydrogen for conversion into ammonia exports.
BP said Kwinana remains a "strategically important asset as a key import terminal" and said it would work through the implications of the project's cancellation for its longer-term asset strategy.
