BP is a step closer to turning Teesside into a green energy powerhouse, despite backtracking on its green agenda in other areas.
The FTSE 100 oil major has entered the final stages of negotiations with the Government for one of the UK’s largest blue hydrogen production facilities.
BP has also signed engineering design contracts for its proposed H2 Teesside project.
BP has entered the final stages of negotiations with the Government for one of the largest blue hydrogen production facilities in the UK.
This includes agreements with engineer Costain, who has been selected to design the pipeline infrastructure, as well as with Technip Energies, which will support the engineering for the production of blue hydrogen.
H2 Teesside aims to capture and store more than 2 million tonnes of CO2 per year, equivalent to capturing the heating emissions from 1 million homes.
Blue hydrogen is a clean fuel made from natural gas. The resulting product can be used in hydrogen fuel cell electric vehicles that produce energy without harmful emissions.
BP has been investing large sums of money in Teesside as part of a plan to invest £18 billion in the UK by 2030.
The project joins two other planned BP projects in the area, Net Zero Teesside Power and The Northern Endurance Partnership.
But BP’s foray into Teesside comes against a backdrop of a broader shift away from its green agenda.
Last week, BP revealed it will drill a new oil field in the Gulf of Mexico as it prioritizes returning cash to shareholders.
BP Chief Executive Murray Auchincloss has vowed to focus on expanding its oil and gas business.
This marks a shift from the green approach advocated by his predecessor, Bernard Looney, who had been pushing clean energy, with big bets on hydrogen and wind power.
H2 Teesside could create around 1,300 jobs during the construction phase and up to 130 jobs once operational.
Andy Lane, vice president of hydrogen at BP UK, said: “The project could play a pivotal role in decarbonising industry in Teesside, helping to transform the region into a leading hydrogen hub and boosting the UK’s low-carbon hydrogen economy.”
