BP Halts Indiana Carbon Pipeline And Storage Project
06.18.2025 By Tank Terminals - NEWS

June 18, 2025 [Carbon Herald]- BP has indefinitely suspended plans for the transport and storage of carbon emissions underground in Indiana.

 

The project aimed to capture CO2 from the company’s Whiting Refinery and pipe it to rural counties including Newton, Jasper, Pulaski, White, and Benton for underground storage.

The initiative was part of BP’s strategy to develop blue hydrogen — hydrogen produced using fossil fuels with carbon emissions captured and stored. BP is a key partner in the Midwest Alliance for Clean Hydrogen (MachH2), but it’s unclear how this pause might impact the broader hydrogen hub initiative.

Initial geological surveys were conducted in Benton County to assess the feasibility of storing CO2 underground. However, strong resistance from local landowners and community members made the project’s future uncertain.

Indiana law complicates matters further by making taxpayers responsible for any long-term damages after a carbon storage site is shut down.

Residents living near the proposed pipeline route also expressed alarm. According to an article published by WFYI, Lisa Vallee, a local advocate with Just Transition Northwest Indiana who lives close to the Whiting facility, cited concerns over safety risks, including potential leaks and explosions.

Environmental organizations have long criticized carbon capture and storage (CCS) as a method that prolongs fossil fuel dependency instead of incentivizing actual emission cuts.

Vallee added that BP’s decision to backtrack on its promises — including community job creation and climate action — is disappointing. Earlier this year, the company slashed $5 billion in funding earmarked for renewable energy investments.

“When it is no longer profitable, when they no longer are getting tax credits — for example, for wind and solar energy – they are backing away from that,” Vallee said.

The decision comes amid a broader strategic pivot. BP attributed the pause to market uncertainty, a sluggish hydrogen sector, and a renewed corporate focus on oil and gas.

The company emphasized the move applies only to its Midwest operations and doesn’t affect other low-carbon hydrogen projects globally.

Two years ago, BP was awarded $98 million from the US Department of Energy to support carbon storage efforts in Indiana, Illinois, and Michigan. Despite the shift, BP has not provided further comment.

 

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