bp has proposed a large blue hydrogen production facility with a targeted capacity of 1 GW by 2030. The project, H2Teesside, would capture and send for storage up to two million tonnes of carbon dioxide per year. The project would be located in Teesside in north-east England which is in close proximity to North Sea storage sites, pipe corridors and existing operational hydrogen storage and distribution capabilities.
bp is carrying out a feasibility study to explore technologies capable of capturing up to 98% of carbon emissions from the hydrogen production process. A final investment decision is expected in early 2024. The project would be developed in stages with production expected to begin in 2027 or earlier with an initial 500 MW capacity. The additional capacity would be deployed by 2030.
H2Teesside would be integrated with the region’s already-planned Net Zero Teesside (NZT) and Northern Endurance Partnership (NEP) carbon capture use and storage (CCUS) projects. Both of these projects are led by bp as operator. The project is a step closer to UK Government’s target of developing 5 GW of hydrogen production by 2030.
In order to develop a hydrogen cluster in the region, bp has signed a number of agreements. It has signed an MoU with Northern Gas Networks (NGN), the gas distributor for the North of England, to work together to initiate decarbonisation of the gas networks in the UK. It has also signed an MoU with Tees Valley Combined Authority (TVCA) to explore the potential for green hydrogen in the region.
