Hydrogen on Tees: BP powers ahead with plans for green energy hub in boost for North-East
BP is powering ahead with plans to build the UK’s biggest green hydrogen facility on Teesside.
The energy giant is seeking backing to build the production facility, named HyGreen, in what will be a major boost for the North East of England and its efforts to transform itself into a clean energy hub.
‘BP has submitted a bid for its proposed large-scale green hydrogen production facility in Teesside to the UK Government,’ the company said.
Site: Energy giant BP is seeking backing to build a green hydrogen production facility on Teesside (pictured) in what will be a major boost for the north-east of England
Green hydrogen is used to make electric vehicle batteries, as well as provide fuel for trucks and buses – which traditionally use diesel – and heat homes.
The Government is expected to make a decision on the preferred bidder before the end of this year.
If it is given the green light, BP hopes to start building the facility early next year and is aiming for completion by 2025.
It already has six customers lined up, including the gas distributor Northern Gas Networks and the ethanol producer Ensus.
Hydrogen is a key pillar of the UK’s strategy to cut Britain’s carbon emissions, and the plant will employ 500 people.
Matt Williamson, vice-president at BP, said: ‘This is about moving energy consumers off natural gas as well as trucks and buses from diesel to hydrogen.’
BP has committed £2billion to developing hydrogen projects on Teesside as part of plans to invest £18billion in the UK by 2030.
Alongside HyGreen, BP is also developing a blue hydrogen facility on Teesside, a project named H2Teesside.
Green goal: The hydrogen plant plans are part of a strategy by chief executive Bernard Looney (pictured) to turn BP into a carbon-neutral green energy giant by 2050
It says this will provide more than 600 jobs and 12,000 in the supply chain by 2027.
The energy giant is not disclosing how much the two hydrogen projects will cost to develop but money has been secured from two Abu Dhabi investors.
Masdar will acquire a holding in HyGreen while Abu Dhabi National Oil Company will take a 25 per cent stake in the blue hydrogen facility.
The two projects are set to provide 15 per cent of the Government’s target for hydrogen production in 2030.
They are also a massive boost for Teesside, which was once a thriving centre of iron and steel production.
It is grappling with the decline of traditional industry and has spent several decades on massive regeneration projects to transform its derelict sites and tackle the area’s high unemployment.
Louise Kingham, head of BP’s UK business, said: ‘HyGreen Teesside has the potential to transform energy use, the economy and skills in the local region. Our plans will help drive the UK’s position in pioneering hydrogen and battery electric technology in transportation.
Pioneering: BP’s Louise Kingham (pictured) wants to see Britain at the front of hydrogen and battery electric technology in transportation
‘These can help deliver economic growth for the region and the home-grown hydrogen that the UK needs.’
Teesside is part of the ‘Red Wall’ where the Conservatives won Labour seats in the 2019 election.
The Government wants to show its commitment to the ‘levelling up’ agenda and as part of that is keen to set up what is described as a clean hydrogen industrial cluster in Teesside.
Tees Valley mayor Ben Houchen said: ‘The scheme will play a vital part in a whole host of low-carbon initiatives across Teesside, Darlington and Hartlepool, not least the continued development of our hydrogen transport hub.
These will only encourage further investment and create high-quality, well-paid jobs for decades to come.’
Plans for the site are part of a strategy by chief executive Bernard Looney to turn BP into a carbon-neutral green energy giant by 2050.
BP has been ramping up its investments in low carbon and renewable energy ventures as pressure mounts on polluters to reduce their carbon emissions.
But despite spending billions of pounds on green investments in recent years, BP still relies heavily on oil and gas during its day-to-day operations.
Until recently, BP’s activities in the UK had been dwindling as it expanded in other markets.
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