Agreements bring international investment into UK hydrogen, strengthening the country’s leadership in new low-carbon industry.
bp has taken a major step forward in strengthening its strategic partnership with ADNOC and Masdar of Abu Dhabi, bringing international participation to its planned blue and green hydrogen developments in Teesside in the north-east of England.
ADNOC take a 25% stake in the design stage of bp’s blue hydrogen project, H2Teesside. This will be ADNOC’s first investment in the UK. bp and ADNOC will now advance the project, initially to the next stage of design, the pre-FEED stage. H2Teesside is expected to kickstart the UK’s hydrogen economy at scale with the development of two 500MW hydrogen production units by 2030. The project is targeting start of operations in 2027.
The Abu Dhabi renewable energy company Masdar has also signed a memorandum of understanding to acquire a stake in bp’s proposed green hydrogen project, HyGreen Teesside. This project is planned to produce 60MWe (megawatt electrical input) of hydrogen at start-up in 2025, increasing to up to 500MWe by 2030.
“By joining forces with ADNOC and Masdar we are reinforcing the world-leading role that Teesside, and the UK more widely, can play in developing new supplies of energy, as well as new skills and supply chains. 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,” said Bernard Looney, bp’s chief executive
Together, these two projects could deliver 15% of the UK Government’s recently expanded 10GW target for hydrogen production in 2030.
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