ADNOC, a UAE-based energy company, announced its acquisition of a 25 per cent share in bp’s blue hydrogen project, H2 Teesside, during the design stage. Masdar, the Abu Dhabi-based renewable energy company, also signed a MoU to acquire a stake in bp’s proposed green hydrogen project, HyGreen Teesside. The project will now be advanced by ADNOC’s first investment in the UK, initially to the next level of design, the pre-FEED stage.
By 2030, H2Teesside expects to build two 500 MW hydrogen production units, kicking off the UK’s hydrogen economy. The project is scheduled to begin operations in 2027. The HyGreen Teesside project is expected to produce 60 MW of hydrogen when it begins operations in 2025, with the capacity expanding to 500 MW by 2030. Together, these two projects may meet 15 per cent of the UK government’s recently increased 10 GW hydrogen output target for 2030.
In March 2022, bp Alternative Energy Investments Limited (BPAEIL) and Marubeni inked cooperation and participation agreements to build offshore wind projects and explore decarbonization initiatives, including hydrogen. As part of their relationship, the two companies would form a joint venture to pursue offshore wind business prospects in Japan. The joint venture would be 49 per cent owned by BPAEIL.
REGlobal’s Views: bp has been making significant efforts to expand green hydrogen deployment in the UK. The green hydrogen project planned at Teesside will help delivering clean hydrogen fuel for industries and transport. These recent partnerships with ADNOC and Masdar will help in developing collaborations for future projects not just in UK but also the highly attractive Middle East market.
