BP has suspended its plans to produce blue hydrogen at its Whiting refinery. Photo from PMA Consultants.
WHITING — BP has suspended its plans to produce blue hydrogen at its Whiting refinery, citing economic uncertainty, a sluggish hydrogen market in the Midwest and “lack of certainty for long-term federal government support for low carbon hydrogen.”
The project was part of the Midwest Alliance for Clean Hydrogen, or MachH2, a coalition involving Indiana, Illinois and Michigan. The group was selected by the Biden administration in 2023 to receive up to $1 billion in federal funding to develop one of seven regional clean hydrogen hubs.
Blue hydrogen is made through converting natural gas into hydrogen and carbon dioxide, with the CO2 captured and stored underground. The low-carbon fuel has potential uses in industries such as power, steel, and agriculture.
BP said in a statement that it remains committed to its operations in northwest Indiana but is indefinitely pausing the hydrogen effort at Whiting.
A key challenge has been the inability to identify a suitable site for carbon storage. A BP spokesperson said that storing captured CO2 is essential for developing blue hydrogen. The company has been exploring potential sites in several counties, including Benton County, where local opposition has emerged over safety concerns.
U.S. Rep. Frank Mrvan, D-Highland, previously said the MachH2 project could create roughly 16,000 jobs and attract up to $6 billion in private investment.
But momentum has stalled. In November, MachH2 received $22.2 million in initial federal funding to support infrastructure development and workforce training. Since then, progress has slowed, and officials in northwest Indiana say the project remains in limbo.
After taking office in January, Pres. Donald Trump signed an executive order to “unleash American energy,” which included a freeze on funding for hydrogen hubs under the Infrastructure Investment and Jobs Act.
Last month, Mrvan and Sen. Jim Banks, R-Ind., sent a letter to Energy Secretary Chris Wright urging the administration to prioritize the Indiana hub.
BP emphasized that the decision to suspend the Whiting project does not affect its other low-carbon initiatives in the U.S. or globally.
