Two of Abu Dhabi’s largest energy companies have joined bp’s Teesside-based low-carbon hydrogen production projects, helping to bring fresh investment into UK hydrogen.
ADNOC will take a 25% stake in the design stage of H2Teesside, bp’s blue hydrogen project, marking the company’s first investment in the UK.
H2Teesside aims to advance the UK’s hydrogen economy by developing two 500MW hydrogen production units by 2030.
Abu Dhabi’s renewable energy company, Masdar, has signed a Memorandum of Understanding (MoU) to acquire a stake in bp’s proposed green hydrogen project, HyGreen Tesside, a development that aims to produce 60MWe (megawatt electrical input) of hydrogen at start-up in 2025, scaling up to 500MWe by 2030.
The projects could help the UK Government meet its target to achieve 10GW of hydrogen production by delivering 15% of the goal stated in its UK Hydrogen Strategy.
What’s the difference between blue and green hydrogen?
Blue hydrogen is produced from natural gas, utilising carbon capture and storage (CCS), whereas green hydrogen is produced through renewable energy-powered electrolysis.
As one of the UK’s main industrial hubs, the Teesside area is responsible for 5.6% of the UK’s industrial emissions.
To further scale up decarbonisation of the area, H2Teesside will be integrated with the bp-operated Northern Endurance Partnership (NEP) development - a project to develop the CCS infrastructure to export and store CO2 emissions form industrial clusters in Teesside and Humberside.
The partnerships will reinforce the ‘world-leading role’ that Teesside and the wider UK can play in developing new supplies of energy, according to Bernard Looney, Chief Executive, bp.
“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 sinigifcant contribution to the UK’s newly increased hydrogen ambition,” he added.
By scaling up the UK’s hydrogen economy, some of the most hard-to-abate sectors of industry – such as steel, cement, and aviation – could be fully or partially decarbonised.
The collaboration between Masdar and bp aims to lay the groundwork for deeper commercial partnership in new energies and clean technologies.
Commenting on the agreement, Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and Group CEO, ADNOC, said, “In the UK, our role in Teesside will represent ADNOC’s first investment into the UK and help to accelerate innovation in decarbonisation of energy in industrial sectors.”