Energy giant shuts down hydrogen project, preferring to focus on fossil fuels

British energy giant BP has decided to withdraw from plans to build a green hydrogen production plant in Australia. The company intends to return to the oil and gas sector.

BP informed its partners at the Australian Renewable Energy Centre (AREH) of its intention to close the project. Previously, the British company had been both the project's operator and shareholder. However, after poor performance in recent months sparked criticism from investors, the giant decided to cut its planned renewable energy spending and announced a shift towards investing in oil and gas.

BP currently holds a 63.5 percent stake in the project.

Recall that BP announced a $20 billion divestment program in February this year aimed at simplifying and focusing its operations.