BP enters final negotiations with UK government for blue hydrogen plant
Oil firm BP says it has agreed a statement of principles with the UK government and has signed front-end engineering design (FEED) contracts for its proposed H2Teesside project, reaching more important milestones as it progresses its design of the low carbon hydrogen production plant.
Agreeing the statement of principles with DESNZ allows H2Teesside to enter the final stage of negotiations for a low carbon hydrogen agreement, intended to support the production of low carbon hydrogen on Teesside.
Technip Energies will deliver the FEED for the proposed blue hydrogen production facility with integrated carbon capture. The contract includes establishing the EPC execution methodology, a robust schedule and project cost, which will be completed in 2025.
Costain, the infrastructure solutions company, have been selected to design the pipeline infrastructure. The 31 km pipeline distribution network would deliver hydrogen from the blue hydrogen production site to industry. Costain is expected to complete FEED in 2025 too.
As part of the East Coast Cluster, the integrated blue hydrogen production facility and hydrogen distribution pipeline intends to integrate with other decarbonisation projects in the region. It could capture and send for storage over 2 million tonnes/year of CO₂, which is the equivalent to capturing the emissions from the heating of 1 million UK households.
The project is targeting 1.2 GW of hydrogen production, which equates to more than 10% of the UK’s 2030 hydrogen production target. It aims to supply a diverse range of customers, including those already established in the region as well as new businesses attracted to low carbon hydrogen produced at scale.
BP’s plans for H2Teesside can further support economic development and regeneration in Teesside. Helping to create jobs in both construction and operation phases, the project will also support local education, skills development and catalyse a highly skilled UK-based hydrogen and CCS supply chain.
Hydrogen is one of BP’s five energy transition growth engines. The business believes it will be a key enabler to decarbonise hard-to-abate industry, and is focused on selecting and delivering quality opportunities, by prioritising projects based on value.
