BP has taken a significant step forward in strengthening its strategic partnership with Abu Dhabi’s ADNOC and Masdar, bringing international participation to its planned blue and green hydrogen developments in Teesside, England.
ADNOC, the UAE’s largest energy company, will take a 25% stake in bp’s blue hydrogen project, H2Teesside, during the design phase. This is ADNOC’s first investment in the United Kingdom. bp and ADNOC will now move forward with the project, initially to the pre-FEED stage of design. With the development of two 500MW hydrogen production units by 2030, H2Teesside is expected to kickstart the UK’s hydrogen economy at scale. The project is scheduled to begin operations in 2027.
“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 – and together we can help deliver a significant contribution to the UK’s newly increased hydrogen ambition. As well as boosting home-grown energy, the global nature of our partnership with ADNOC and Masdar will support our plans to decarbonize some of the most hard-to-abate sectors in the world – like industrial manufacturing, power and aviation. Partnerships like this reach beyond borders to provide the new energy solutions the world needs, and I want to applaud Dr Sultan for his continued commitment to help solve the energy trilemma of providing the world with secure, affordable and cleaner energy.”Bernard Looney, bp’s chief executive said.
Masdar, the Abu Dhabi-based renewable energy company, has also agreed to buy a stake in British Petroleum’s proposed green hydrogen project, HyGreen Teesside. Starting in 2025, this project is expected to produce 60MWe (megawatt electrical input) of hydrogen, with the capacity increasing to 500MWe by 2030.
“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.”H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman, said.
Together, these two projects could meet 15% of the UK government’s recently increased 10GW hydrogen production target for 2030.
BP will also collaborate with ADNOC to assess a new blue hydrogen project in Abu Dhabi, conducting a joint feasibility study for a world-scale, low-carbon hydrogen project. ADNOC, BP, and Masdar have also teamed up with the Abu Dhabi Waste Management Centre (Tadweer) and Etihad Airways to investigate the production of sustainable aviation fuels in the UAE using hydrogen and municipal waste gasification.
“Today’s announcements will strengthen the strategic partnership between Masdar, ADNOC and bp and continue to drive clean energy innovation for both the UAE and the UK. Masdar has been a long-standing investor in the UK’s renewable energy sector, and we will leverage our expertise in offshore wind and sustainable aviation fuels to support both nations’ energy transition while solidifying the UAE’s leadership position in the emerging green hydrogen economy.”Mohamed Jameel Al Ramahi, Masdar’s chief executive, added.
These new agreements follow the formation of a strategic partnership for clean energy solutions in the UK and UAE by BP, ADNOC, and Masdar in September 2021, which included the intention to collaborate on the development of low-carbon hydrogen hubs, such as those in Teesside. These initiatives are subject to the required regulatory approvals.
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