BP 'indefinitely pausing' blue hydrogen project at Whiting refinery in Indiana

BP has suspended development of a blue hydrogen plant at its Whiting refinery in Indiana, spelling trouble for US policymakers' plans to develop a clean hydrogen ecosystem in the Midwest.

A BP spokesperson confirmed the company is "indefinitely pausing" the hydrogen and carbon capture project, which had been promised part of a $1 billion federal grant.

"BP is committed to remaining a critical driver of the economic engine that powers northwest Indiana and the Midwest," the spokesperson said in an emailed statement on June 17. "[Our] focus is on building a strong, economically competitive future for our Whiting Refinery."

The suspension was first reported in local news outlets. The spokesperson did not respond to requests for more details on BP's decision.

The UK oil major had proposed to produce hydrogen from natural gas and capture the CO2 emissions for Indiana's steel mills and other potential customers in the Midwest. The company also envisioned using some of that supply to replace the unabated hydrogen in its own refinery operations.

The project was part of a wider effort to develop a hydrogen hub in Illinois, Indiana and Michigan. In 2024, the US Energy Department finalized a $1 billion funding agreement with the Midwest Alliance for Clean Hydrogen (MACH), a public-private coalition that includes BP.

The now-suspended Whiting project was a key component of that proposal, along with other hydrogen production plants being developed by Constellation Energy, Invenergy and L'Air Liquide.

But the DOE has disbursed only $22 million of that grant so far, and it is unclear whether the Trump administration will continue to honor the funding commitment. Earlier in the year, the Midwest hydrogen hub was rumored to be on US Energy Secretary Chris Wright's "hit list" of clean energy projects.

"This uncertainty is blowing up our economy," Rep. Frank Mrvan (D-Ind.) told Wright at a hearing on May 7.

Since then, the DOE has canceled $3.7 billion in funding for carbon capture demonstrations and other projects. Though the Midwest hub was not on that list, Wright has indicated to lawmakers that the DOE will continue reviewing the Biden administration's grant commitments through the end of the summer.

Meanwhile, one of the hubs' anticipated Indiana offtakers — Cleveland-Cliffs— recently abandoned plans for a hydrogen-powered steel plant in Middletown, Ohio. The company announced the decision earlier this month, despite the Biden administration's commitment of $500 million to the project.