Wednesday 25 May 2022

UK’s bp taps UAE’s ADNOC and Masdar for hydrogen projects at Teesside

British energy giant bp has forged a partnership with Abu Dhabi's ADNOC and Masdar for its planned blue and green hydrogen developments in the north-east of England.

ADNOC, the UAE's largest energy company, will take a 25% stake in the design stage of bp's blue hydrogen project, H2Teesside – the company's first investment in the UK.

H2Teesside is expected to kickstart the hydrogen economy at scale in the country with the development of two 500MW hydrogen production units by 2030 and start of operations expected in 2027.

ADNOC and bp will now advance the project, initially to the next stage of design, the pre-FEED stage.

Abu Dhabi renewable energy company Masdar has signed a memorandum of understanding to buy a stake in bp's proposed green hydrogen project – HyGreen Teesside.

The project is planned to produce 60MW of hydrogen at start-up in 2025, increasing to up to 500MW by 2030.

The two projects could deliver a total of 15% of the UK Government's 10GW target for hydrogen production in 2030.

Bernard Looney, bp’s Chief Executive said: “By joining forces with ADNOC and Masdar we are reinforcing the world-leading role that Teesside and the UK more widely, can play in developing new supplies of energy, as well as new skills and supply chains.

“We’re backing Britain and the resources, capability and net zero ambition here in the UK make it ideal for the development of low carbon hydrogen - and together we can help deliver a significant contribution to the UK’s newly increased hydrogen ambition.”

bp will also join ADNOC to evaluate a new blue hydrogen project in Abu Dhabi, conducting a joint feasibility study for a world-scale, low carbon hydrogen project in the country.

In addition, the three companies have teamed up with Abu Dhabi Waste Management Centre (Tadweer) and Etihad Airways to explore the production of sustainable aviation fuels from hydrogen and municipal waste gasification in the UAE.