BP's H2Teesside Project: Revolutionizing Teesside into a Leading Hydrogen Hub
Key Ideas
- BP is in the final stages of negotiations with the UK Government for its H2Teesside project, including FEED contracts with Technip Energies and Costain.
- The H2Teesside project aims to produce 160,000 tonnes of low carbon hydrogen annually, connecting with the larger East Coast Cluster initiative for carbon capture and net zero power.
- The project is expected to play a critical role in decarbonizing industry on Teesside, creating jobs, developing skills, and transforming the region into a leading hydrogen hub.
- Contracts worth around £4 billion have been awarded as part of the initiative, with final investment decisions expected by September 2024 and commercial operations starting in 2027.
BP has reached the final negotiation stages with the UK Government for its H2Teesside project, signing contracts with Technip Energies and Costain. The project involves developing a low carbon hydrogen production facility with integrated carbon capture and a 31km onshore hydrogen pipeline network in the Teesside area. The initiative aims to produce 160,000 tonnes of low carbon hydrogen annually as part of the broader East Coast Cluster project for decarbonization. The project could play a crucial role in transforming Teesside into a leading hydrogen hub, aligning with the UK's decarbonization goals. Additionally, the contracts awarded under the initiative, worth approximately £4 billion, are expected to lead to final investment decisions by September 2024, with commercial operations set to commence in 2027. The project has garnered positive feedback from key stakeholders, with emphasis on job creation, skill development, and the environmental benefits of transitioning to a hydrogen economy.