Large-scale green hydrogen facility planned by bp
29 November 2021
Facility could deliver up to 500 MWe by 2030, company says
bp plans a new large-scale green hydrogen production facility in the Northeast of England that could deliver up to 500 MWe of hydrogen production by 2030.
To be developed in multiple stages, HyGreen Teesside is expected to match production to demand and build on experience to drive down costs, the company said. bp is aiming to start production by 2025, with an initial phase of some 60 MWe of installed hydrogen production capacity. A final investment decision on the project is expected in 2023.
bp’s blue and green hydrogen projects in Teesside, together with the proposed Net Zero Teesside power project, is expected to further support economic development and regeneration in Teesside. Creating high-quality jobs in both construction and operation phases, the projects will support local education, skills development and the development catalyze a highly skilled UK-based hydrogen supply chain.
“Low carbon hydrogen will be essential in decarbonizing hard-to-abate industrial sectors including heavy transport,” said Louise Jacobsen Plutt, bp’s senior vice president for hydrogen and CCUS. “Together, HyGreen and H2Teesside can help transform Teesside into the UK’s green heart, strengthening its people, communities and businesses. This is exactly the type of energy we want to create and more importantly deliver.”
HyGreen Teesside is expected to fuel the development of Teesside into the UK’s first major hydrogen transport hub, leading the way for large-scale decarbonization of heavy transport, airports, ports and rail in the UK.
The combined 1.5GW capacity of HyGreen Teesside and H2Teesside could deliver 30% of the UK government’s target of developing 5GW of hydrogen production by 2030. Industries in Teesside account for over 5% of the UK’s industrial emissions and the region is home to five of the country’s top 25 emitters.
Hygreen Teesside is the latest addition to bp’s integrated UK business portfolio, which includes 3GW gross of offshore wind in the Irish Sea, delivering 16 000 UK charging points by 2030 and bp and Aberdeen city’s partnership deal.
bp is working with industry, local administration such as Tees Valley Combined Authority (“TVCA”) and the UK government to increase the pace of decarbonization in transport.
bp has already announced a series of Memoranda of Understanding (MoU) with potential industrial customers for hydrogen in the Teesside area, including both existing and planned operations, as it grows demand for the hydrogen expected to be produced by H2Teesside. bp has also recently signed an MoU with Daimler Truck to pilot both the development of hydrogen infrastructure and the introduction of hydrogen-powered fuel-cell trucks in the UK.
bp is pursuing proposed projects for green hydrogen production at its refineries in Rotterdam in the Netherlands, Lingen in Germany and Castellon in Spain. It has also carried out a feasibility study identifying opportunities for green hydrogen production in Western Australia and was most recently chosen as the preferred bidder to develop a green hydrogen production hub in Aberdeen.