BP Advances Key U.K. Blue Hydrogen Project

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--One of the U.K.'s largest blue hydrogen production projects, H2Teesside, has advanced following an agreement between developer BP (NYSE:BP) (London, England) and the U.K. government.

The company announced that it has opened the way to the final stage of negotiations for low-carbon hydrogen production after it agreed on a statement of principles with the government's Department for Energy Security and Net Zero (DESNZ). It also appointed contractors Technip Energies (Paris, France) and Costain (Maidenhead, U.K.) to design the facility and its infrastructure. The project is targeting 1.2 gigawatts (GW) of hydrogen production in the heavily industrialized Teesside region, which equates to more than 10% of the U.K.'s 2030 hydrogen production target. It forms part of the larger East Coast Cluster hydrogen hub that covers the production and usage of blue hydrogen and also associated carbon capture and storage under the North Sea. H2Teesside was among a number of projects shortlisted by the government in 2023 for a share of the £1 billion in funding being offered for blue hydrogen projects under the "Phase-2 Cluster Sequencing process."

Industrial Info is tracking 10 blue hydrogen related projects in the U.K.. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Technip Energies will deliver the front-end engineering design (FEED) for the proposed blue hydrogen production facility with integrated carbon capture. The contract includes establishing the EPC execution methodology, a robust schedule and project cost, which will be completed in 2025. Costain, an infrastructure solutions company, has been selected to design the pipeline infrastructure that includes a 31-kilometer (km) pipeline distribution network to deliver hydrogen from the site to industry. This will also be delivered by next year.

Andy Lane, vice president for hydrogen and CCUS at BP U.K. said: "The project could play a critical role in the decarbonising of industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the U.K.'s low carbon hydrogen economy. These agreements mark further critical milestones for H2Teesside as the project continues to move towards EPC contracts and then construction."

Sam White, managing director of natural resources at Costain, added: "This exciting project is a step change for U.K. 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."

H2Teesside is one of four East Coast Cluster projects shortlisted by the government. The others are Equinor's (NYSE:EQNR) (Stavanger) Hydrogen to Humber (H2H) Saltend, H2NorthEast by Kellas Midstream, and Uniper's (Dusseldorf, Germany) Humber Hub Blue Project. For additional information, see August 22, 2022, article - U.K. Shortlists Hydrogen and Carbon Capture Projects.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).