bp has taken a major step forward in strengthening its strategic partnership with ADNOC and Masdar of Abu Dhabi, bringing international participation to its planned blue and green H2 developments in Teesside in the northeast of England.
ADNOC will take a 25% stake in the design stage of bp’s blue H2 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 H2 economy at scale with the development of two 500-MW H2 production units by 2030. The project is targeting start of operations in 2027.
Masdar has also signed a MoU to acquire a stake in bp’s proposed green H2 project, HyGreen Teesside. This project is planned to produce 60 MWe (megawatt electrical input) of H2 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 10 GW target for H2 production in 2030.
bp will also join ADNOC to evaluate a new blue H2 project in Abu Dhabi, conducting a joint feasibility study for a world-scale, low-carbon H2 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 H2 and municipal waste gasification, in the UAE.
“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,” said Bernard Looney, bp’s chief executive.
“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.”
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman said, “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.”
Mohamed Jameel Al Ramahi, Masdar’s chief executive said, “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.”
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 H2 hubs, such as at Teesside. These initiatives are subject to relevant customary regulatory clearances.
UK Minister for Investment, Lord Grimstone said, “This deal will help us supercharge clean growth by harnessing the expertise of the UK’s renewable energy sector. Partnerships like these help level up investment across the country and boost productivity in our high-tech industries. It’s brilliant to see Teesside leading the way towards a net zero future, while also growing the economy and creating hundreds of new jobs.”