August 08, 2024 [Storage Terminals Magazine]- Costain, the infrastructure solutions company, has been awarded a multimillion-pound front-end engineering and design contract by bp to develop a new hydrogen pipeline network in the Teesside area. This project marks a significant advancement in the UK’s efforts towards decarbonisation and the establishment of a hydrogen economy.
Costain’s in-house, multi-disciplinary engineering team will be responsible for delivering the FEED, which will facilitate the construction of a 31-kilometre onshore pipeline distribution network. This network is designed to transport purified and dehydrated hydrogen from bp’s new hydrogen production facility to various industrial end users in the region. The FEED project is scheduled for completion in 2025.
The pipeline will be a crucial component of H2Teesside (H2T), part of the East Coast Cluster, which is poised to become one of the largest blue hydrogen production facilities in the UK. Once operational, H2Teesside aims to produce approximately 160,000 tonnes of low-carbon hydrogen annually. This hydrogen will replace natural gas consumption among industrial users, driving the decarbonisation of the region and bolstering the development of the hydrogen economy.
Earlier this year, Costain successfully completed the FEED for the onshore CO2 pipeline and associated utilities for the East Coast Cluster. Building on this success, bp has selected Costain to continue into the next phase, overseeing and managing the engineering, procurement, and construction of the CO2 system. Subject to final investment decisions, detailed engineering design and preparatory work for the CO2 system are set to begin later this year.
Sam White, MD of Natural Resources at Costain, highlighted the transformative impact of the project: “This exciting project is a step change for UK decarbonisation. Our in-house engineering expertise will design a world-leading network that will safely transport hydrogen to provide industrial users with an alternative to natural gas, a key step in the development of the hydrogen economy.
“In addition to the environmental benefits, this is a project that will be transformative for Teesside and its people, creating jobs and developing skills throughout the region. In transportation, water, and energy, we’re committed to delivering critical infrastructure that improves lives and prosperity across the North-East of England.”
In parallel, Technip Energies has been selected by bp to deliver the FEED for the H2Teesside hydrogen production site. This work will involve establishing the execution methodology, developing a robust schedule, and determining the project cost, with FEED expected to be completed in 2025.
Andy Lane, VP for Hydrogen and CCUS at bp, UK, commented on the significance of these developments: “These agreements mark further critical milestones for H2Teesside as the project continues to move towards EPC contracts and then construction. 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.”
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