BP sees fast growth in lowcarbon hydrogen
Fuel to benefit from government subsidies
CEO Looney to announce hydrogen production targets
BP plans big hydrogen project at Whiting, Indiana refinery

LONDON, Dec 5 Reuters BP chief executive Bernard Looney is betting on hydrogen to power future lowcarbon businesses as the governments of major economies stump up cash to develop the fuel to decarbonise.

Lowcarbon hydrogen already has a big fanbase and is forecast to play a major role in reducing greenhouse gas emissions from heavy industries and some forms of transport.

But it is expensive to produce and often needs government support to compete against fossil fuels.

The United States, for example, is offering large incentives for producing it under President Joe Biden39;s 430 billion Inflation Reduction Act IRA.

BP has been quick to react and is in the early planning stages to develop a large, lowcarbon hydrogen hub around its Whiting, Indiana refinery, Tomeka McLeod, BP39;s newlyappointed head of hydrogen in the United States, told Reuters.

When Looney took office nearly three years ago, he pledged to reshape BP and cut carbon emissions by reducing oil and gas output and growing renewables. He is preparing to update investors on Feb. 7 on where things stand.

Hydrogen will have a starring role along with offshore wind, BP company sources told Reuters.

BP has overhauled its structure to create a dedicated hydrogen division led by Felipe Arbelaez which includes 150…