ADNOC – the UAE’s largest energy company – will take a 25% stake in the design stage of bp’s blue hydrogen project, H2Teesside. This will be ADNOC’s first investment in the UK. bp and ADNOC will now advance the project, initially to the next stage of design, the pre-FEED stage. H2Teesside is expected to kickstart the UK’s hydrogen economy at scale with the development of two 500MW hydrogen production units by 2030. The project is targeting start of operations in 2027.
Masdar – the Abu Dhabi renewable energy company – has also signed a memorandum of understanding to acquire a stake in bp’s proposed green hydrogen project, HyGreen Teesside. This project is planned to produce 60MWe (megawatt electrical input) of hydrogen at start-up in 2025, increasing to up to 500MWe by 2030.
Together, these two projects could deliver 15% of the UK Government’s recently expanded 10GW target for hydrogen production in 2030.
bp will also join ADNOC to evaluate a new blue hydrogen project in Abu Dhabi, conducting a joint feasibility study for a world-scale, low-carbon hydrogen project in the country. In addition, ADNOC, bp and Masdar have joined with Abu Dhabi Waste Management Centre (Tadweer) and Etihad Airways to explore production of sustainable aviation fuels, from hydrogen and municipal waste gasification, in the UAE.
These new agreements follow from the formation of a strategic partnership for clean energy solutions in the UK and UAE between bp, ADNOC and Masdar in September 2021, including the intention to work together to develop low carbon hydrogen hubs, such as at Teesside. These initiatives are subject to relevant customary regulatory clearances.