bp has signalled its ambition to build the UK’s largest blue hydrogen production facility in Teesside, capable of 1GW of hydrogen production by 2030.
On 18 March, it unveiled its plans for H2Teesside, which would capture and store up to 2mn tonnes of CO2 per year and make a significant contribution towards the government’s target of 5GW of hydrogen production by 2030. Considering its close proximity to storage sites in the North Sea, pipe corridors and existing hydrogen storage and distribution capabilities, H2Teesside would be ideally placed to lead a low carbon transformation, support jobs, as well as regenerate and revitalise the surrounding region.
A final investment decision is expected for early 2024, before production commences from 2027, if not earlier. A feasibility study is being carried out, exploring technologies that could capture up to 98% of carbon emissions from the hydrogen production process.
Through large-scale, low cost production of clean hydrogen, H2Teesside will be able to support the conversion of surrounding industries to use hydrogen instead of natural gas and play a pivotal role in decarbonising a cluster of industries in the region. It will be developed in stages, beginning with an initial 500MW of blue hydrogen production capability in 2027 with further capacity being deployed from 2030 as hydrogen demand intensifies.
A memorandum of understanding (MoU) has been signed with Venator to scope the supply of clean hydrogen to its flagship Teesside plant, while a MoU has also been agreed with Northern Gas Networks to work together to initiate decarbonisation of gas networks in the UK, further decarbonising industrial customers and residential homes.