West Australian Labor has urged the Albanese government to step in and save the state’s biofuel industry after BP shelved plans for a major renewable hub in Perth in the latest unwinding of clean energy projects.

The British energy giant cited the need to better align with government policy settings as part of its decision to put on ice its plans for the $600 million Kwinana biofuels project, which prompted immediate calls from the WA government and the industry for additional federal support.