Woodside’s $140M Hydrogen Exit Signals Strategic Shift Amid US Policy Reversal

Woodside Energy has pulled the plug on its much-anticipated H2OK hydrogen project in Ardmore, Oklahoma, pointing to the changing winds in U.S. politics and policy under the new Trump administration. The decision comes with a hefty price tag—an estimated $US140 million (AUD $213.5 million) hit to the company’s earnings—and leaves local leaders disappointed, as they’d been counting on the project to drive fresh economic momentum and bring some diversity to the region’s industry mix.

Refocusing on LNG and Clean Ammonia

Instead of going all-in on hydrogen in the U.S., Woodside is now steering its investment dollars toward a massive $17.5 billion liquefied natural gas (LNG) project in Louisiana and expanding its footprint in clean ammonia production in Texas. The pivot suggests a more cautious stance from major energy players when it comes to long-term bets on green hydrogen—especially when the regulatory and political landscape is in flux.

A Rise in Decommissioning Costs

At the same time, the company is bracing for up to $US500 million in costs related to winding down some of its aging oil and gas operations, particularly those off Australia’s coastline. Those decommissioning efforts are becoming a growing financial factor for traditional energy firms looking to reposition themselves in a more sustainable energy market.

What It Means for Hydrogen in the U.S.

While hydrogen production projects are still moving forward in Australia, this U.S.-based retreat sends a clear signal: investor interest in green hydrogen and electrolysis technology can cool quickly when government support wavers. The unpredictability has fueled a more careful, wait-and-see approach—especially for companies wary of making billion-dollar bets in an unsettled policy climate.