“As manufacturers and operators increasingly favour EVs, demand for hydrogen in transport has diminished,” a statement said.
“In light of these developments, both parties are reassessing their strategic direction to align with the evolving market landscape.”
The council will now negotiate the transfer of the joint venture from BP and move towards a full transition towards electric vehicles.
The council has been asked about the total cost of the project, which is understood to have run to tens of millions of pounds.
BP said it would work closely around the “next steps” with the council.
Bus operator First Bus said it remained in discussion about the future options of the fleet.
Move towards electric vehicles
The writing has been on the wall for hydrogen buses for years, as more and more cities opted for the battery alternative.
In 2021, First Bus in Glasgow confirmed that it was investing in a fleet of 120 single and double-decker buses which could be charged very quickly overnight before spending 18 hours on the road.
More recently, the electric inter-city bus operator Ember has seen its fleet between all of Scotland’s major conurbations grow to 98 vehicles.
Battery capacity and efficiency has come on enormously, meaning electric buses can be charged at incredible speeds and cover very long distances.
They cost more than the diesel equivalent, but running costs are very low, meaning operators are saving millions from the moment the vehicles hit the bus lanes.
Hydrogen, by contrast, is expensive to produce. It takes a huge amount of green electricity to create the fuel using a process called electrolysis.
And while it has the advantage that the bus can be refuelled in a matter of minutes rather than hours, that premium is now perceived as not worth paying.