Decarbonization BP’s Hydrogen Projects in the UK Attracts Investments from the UAE
BP has entered into strategic partnerships with Adnoc and Masdar for its blue hydrogen project, H2Teesside as well as its green hydrogen project, Hygreen Teesside respectively in the UK. Under the contracts, the Gulf firms will acquire stake in both the projects with an aim to develop low carbon hydrogen hubs in the country.
London/UK – BP has taken a major step forward in strengthening its strategic partnership with Adnoc and Masdar of Abu Dhabi, bringing international participation to its planned blue and green hydrogen developments in Teesside 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. This will be Adnoc’s first investment in the UK. BP and Adnoc will now advance the project, initially to the next stage of design, the pre-Feed stage. H2Teesside is expected to kickstart the UK’s hydrogen economy at scale with the development of two 500 MW hydrogen production units by 2030. The project is targeting start of operations in 2027.
Masdar – the Abu Dhabi renewable energy company – has also signed a memorandum of understanding to acquire a stake in BP’s proposed green hydrogen project, Hygreen Teesside. This project is planned to produce 60 MWe (megawatt electrical input) of hydrogen at start-up in 2025, increasing to up to 500 MWe by 2030.
Together, these two projects could deliver 15 % of the UK Government’s recently expanded 10 GW target for hydrogen production in 2030.
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, Adnoc, BP and Masdar have joined with Abu Dhabi Waste Management Centre (Tadweer) and Etihad Airways to explore production of sustainable aviation fuels, from hydrogen and municipal waste gasification, in the UAE.
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.
“As well as boosting home-grown energy, the global nature of our partnership with Adnoc and Masdar will support our plans to decarbonize some of the most hard-to-abate sectors in the world – like industrial manufacturing, power and aviation.
Partnerships like this reach beyond borders to provide the new energy solutions the world needs, and I want to applaud Dr. Sultan for his continued commitment to help solve the energy trilemma of providing the world with secure, affordable and cleaner energy.”
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, and Masdar Chairman, said: “In the UK, our role in Teesside will represent Adnoc’s first investment into the UK and help to accelerate innovation in decarbonization of energy in industrial sectors. Similarly, the partners’ collaboration in Abu Dhabi is expected to further position the UAE as a regional leader in low-carbon energies and technology-driven industrial growth.”
These new agreements follow from the formation of a strategic partnership for clean energy solutions in the UK and UAE between BP, Adnoc and Masdar in September 2021, including the intention to work together to develop low carbon hydrogen hubs, such as at Teesside. These initiatives are subject to relevant customary regulatory clearances.