UK’s oil giant, BP Plc, inked a strategic agreement with UAE’s largest energy company, Abu Dhabi National Oil Co. (ADNOC), and a memorandum of understanding with Abu Dhabi’s renewable energy company, Masdar, bringing international participation to its clean hydrogen developments in Teesside in the north-east of England.
This will be ADNOC’s first investment in the UK, where it will take a 25% stake in the design stage of BP’s blue hydrogen project, and advance the project, initially to the next stage of design, according to BP’s statement.
In addition, the two oil giants are conducting a joint feasibility study for a low-carbon hydrogen project in Abu Dhabi.
Masdar’s MoU entails the acquisition of a stake in BP’s proposed green hydrogen project, HyGreen Teesside.
Adnoc, BP and Masdar also agreed to explore production of Sustainable Aviation Fuels in the UAE using solar-to-green hydrogen and municipal waste gasification, tapping into the capabilities of the UAE’s Tadweer (Abu Dhabi Waste Management Centre) and Etihad Airways.
“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.” said Bernard Looney, BP’s chief executive.
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman, said: “ADNOC and Masdar’s deepened partnership with BP is a testament to the UAE and UK’s longstanding track record of bilateral partnership in sustainability as well as the UAE’s intent to play a leading role in the fast-growing clean hydrogen economy both domestically and internationally. To that end, we welcome the opportunity to collaborate with bp in both the UAE and UK, laying the groundwork for deeper commercial partnership in the area of new energies and clean technologies. In the UK, our role in Teesside will represent ADNOC’s first investment into the UK and help to accelerate innovation in decarbonization of energy in industrial sectors. Similarly, the partners’ collaboration in Abu Dhabi is expected to further position the UAE as a regional leader in low-carbon energies and technology-driven industrial growth.”