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BP confirmed it is planning a new large-scale green hydrogen production facility in the North East of England that could deliver up to 500Mwe (megawatt electrical input) of hydrogen production by 2030.
To be developed in multiple stages, HyGreen Teesside is expected to match production to demand and build on experience to drive down costs. bp is aiming to start production by 2025, with an initial phase of some 60MWe of installed hydrogen production capacity. A final investment decision on the project is expected in 2023.
Hygreen Teesside is the latest addition to bp’s integrated UK business portfolio, which includes 3GW gross of offshore wind in the Irish Sea, delivering 16,000 UK charging points by 2030 and bp and Aberdeen city’s partnership deal.
bp’s blue and green hydrogen projects in Teesside, together with the proposed Net Zero Teesside power project, is expected to further support economic development and regeneration in Teesside. Creating high-quality jobs in both construction and operation phases, the projects will support local education, skills development and the development catalyze a highly skilled UK-based hydrogen supply chain.
HyGreen Teesside is expected to fuel the development of Teesside into the UK’s first major hydrogen transport hub, leading the way for large-scale decarbonization of heavy transport, airports, ports and rail in the UK.
bp has already announced a series of Memoranda of Understanding (MoU) with potential industrial customers for hydrogen in the Teesside area, including both existing and planned operations, as it grows demand for the hydrogen expected to be produced by H2Teesside. bp has also recently signed an MoU with Daimler Truck to pilot both the development of hydrogen infrastructure and the introduction of hydrogen-powered fuel-cell trucks in the UK.
HyGreen Teesside would be a further important step in the development bp’s hydrogen business and its first green hydrogen project in the UK. bp is pursuing proposed projects for green hydrogen production at its refineries in Rotterdam in the Netherlands, Lingen in Germany and Castellon in Spain.
It has also carried out a feasibility study identifying opportunities for green hydrogen production in Western Australia and was most recently chosen as the preferred bidder to develop a green hydrogen production hub in Aberdeen, said the press release.