August 09, 2024 [H2 View]- BP has entered the final stages of negotiations with the UK Government for its 1.2GW blue hydrogen production project on Teesside.
Having agreed on a statement of principles with the Department for Energy Security and Net Zero (DESNZ), the oil and gas major will begin final negotiations for a low-carbon hydrogen agreement to support hydrogen production.
The H2Teesside project plans to produce around 160,000 tonnes of blue hydrogen per year by 2030, with commercial operations expected to begin in 2028.
Alongside the statement of principles, bp has also signed “multimillion” front-end engineering design (FEED) contracts with Technip Energies and Costain for the project.
Technip will deliver FEED for the blue hydrogen facility with integrated carbon capture technology, which will include working out the EPC execution plans.
Costain’s work will be focused on the 31km pipeline which will deliver hydrogen from the plant to industry in the region.
bp anticipates both FEED contracts to be completed in 2025.
Andy Lane, Vice-President for Hydrogen and CCUS at bp, said the agreements mark “further critical milestones” for the project.
“The project could play a critical role in decarbonising industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the UK’s low-carbon hydrogen economy,” he added.
The oil and gas company also plans to develop a 500MW green hydrogen project on Teesside.
Having been shortlisted for DESNZ’s Hydrogen Allocation Round 1 (HAR1) funding last August, the project has an initial 80MW production target by 2026.
It comes after the company’s CEO, Murray Auchincloss, last month said the firm would invest in five to 10 hydrogen and carbon capture, utilisation and storage (CCUS) projects this decade.
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