British multinational energy company bp has announced its plans to develop the UK’s largest blue hydrogen production facility.
bp has to date signed agreements to work with Venator, Northern Gas Networks and Tees Valley Combined Authority in developing the facility.
bp plans to develop the facility at Teesside and to produce 1GW of blue hydrogen capacity at the facility by 2030. The target would mean the facility will be producing 20% of the UK’s 2030 hydrogen target of 5GW.
A final investment decision is expected in early 2024 and production in 2027.
bp is currently exploring technologies that could capture up to 98% of carbon emissions from the hydrogen production process.
The project is the UK’s first hydrogen transport hub and would be developed in stages, with an initial 500MW of blue hydrogen capacity in production by 2027.
The project would capture and send for storage up to two million tonnes of carbon dioxide (CO₂) per year, equivalent to capturing the emissions from the heating of one million UK households.
Blue hydrogen produced from the project will be used to power industry and residential homes, be used as a fuel for heavy transport and support the creation of sustainable fuels.
Teesside is a perfect fit for the project owing to its existing hydrogen storage and distribution infrastructure.
bp says it will integrate the project with the region’s already-planned Net Zero Teesside and Northern Endurance Partnership carbon capture use and storage (CCUS) projects.
The project would also help the region to accelerate its decarbonisation efforts as 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.
Dev Sanyal, bp’s executive vice president of gas and low carbon energy said: “Clean hydrogen is an essential complement to electrification on the path to net-zero. Blue hydrogen, integrated with carbon capture and storage, can provide the scale and reliability needed by industrial processes. It can also play an essential role in decarbonising hard-to-electrify industries and drive down the cost of the energy transition.
“H2Teesside, together with NZT and NEP, has the potential to transform the area into one of the first carbon-neutral clusters in the UK, supporting thousands of jobs and enabling the UK’s Ten Point Plan.”