BP pushes ahead with Teesside hydrogen plants despite ditching green agenda elsewhere

BP is one step closer to turning Teesside into a green energy powerhouse – despite rowing back on its green agenda elsewhere.

The FTSE 100 oil major has entered the final stages of negotiations with the Government for one of the biggest blue hydrogen production facilities in the UK.

BP has also signed engineering design contracts for its proposed H2 Teesside project.

That includes agreements with engineer Costain, which has been selected to design the pipeline infrastructure, as well as with Technip Energies, which will support the engineering for blue hydrogen production.

H2 Teesside aims to capture and store over 2m tonnes of CO2 per year, which is the equivalent to capturing the emissions from the heating of 1m households.

Blue hydrogen is a clean fuel made through natural gas. The resulting product can be used in electric vehicles with hydrogen fuel cells producing power with no harmful emissions.

BP has been ploughing large sums into Teesside as part of a plan to invest £18billion in the UK by 2030.

The project joins BP’s two other planned projects in the area, Net Zero Teesside Power and The Northern Endurance Partnership.

But BP’s push into Teesside comes against a wider move away from its green agenda.

Last week BP revealed it will drill a new oilfield in the Gulf of Mexico as it prioritises returning cash to shareholders.

BP chief executive Murray Auchincloss has promised to focus on expanding its oil and gas business. 

That is a departure from green focus laid out by his predecessor Bernard Looney, who had been pushing for clean energy, with big bets on hydrogen and wind.

H2 Teesside could support around 1300 jobs during the construction phase, and up to 130 jobs once it is up and running.

Andy Lane, vice president for hydrogen at BP UK, said: ‘The project could play a critical role in decarbonising industry on Teesside, helping to transform the region into a leading hydrogen hub and kickstart the UK’s low carbon hydrogen economy.’