The future of the Aberdeen Hydrogen Hub partnership between Aberdeen City Council and BP is in doubt with the local authority reportedly set to pull out of the deal.
The £20million partnership aimed to produce hydrogen using solar power at the former Ness landfill site.
But The Press and Journal has now revealed council officials are holding talks with BP to exit the partnership, with the council now set to sell off its 25 hydrogen buses which had been let to First.
A council spokesman told the P&J there are "ongoing discussions" between the local authority and BP around the "future viability of the hydrogen hub, prompted by significant advancements in EV technology".
He added: “The council and BP will negotiate the transfer of the joint venture to the council, ensuring Aberdeen’s assets are optimised to facilitate the city’s shift towards low-carbon EV transport.
“The steps agreed will strengthen Aberdeen’s electric vehicle charging infrastructure, reaffirm the council’s dedication to renewable energy, secure best value for the city, and, alongside First Bus Aberdeen, agree a full transition away from hydrogen in favour of electric vehicles in public transport.”
A BP spokesman told AGCC: "BP acknowledges Aberdeen City Council’s decision and the impact on the Aberdeen Hydrogen Hub. We will work closely with them around next steps."
Read the full exclusive in the P&J.