BP, a British multinational oil and gas giant, plans to build a 1 GW equivalent blue hydrogen production plant in Teesside, UK, H2Bulletin reports.
The investment decision will be made in 2024, and production starting by 2027 with 0.5 GW capacity, ramping up to 1 GW through 2030. The oil giant has already begun the feasibility study of the project.
The project, which is named as H2Teesside, would use steam-methane reforming to produce hydrogen. The plant would use a carbon capture and storage system, which would capture 98% of the carbon emitted during the production process. The 2 million tonnes/year carbon would then be permanently stored. BP has already been leading two planned projects in the area, which are Net Zero Teesside (NZT) and Northern Endurance Partnership (NEP) carbon capture use and storage (CCUS).
The H2Teesside project location is ideal for the purpose given the required infrastructure such as the North Sea storage sites, gas pipes networks and storage facilities for hydrogen.
To combat carbon emission, the UK government has set a target to install around 5 GW of hydrogen production by 2030. Teesside, a home for industrial complexes, including steelworks, accounts for 5% of industrial emissions. The clean hydrogen can be blended with natural gas or used in other industrial applications to help decarbonising industries in Teesside.
In addition, clean hydrogen can provide energy to residential homes or power the transportation system. It also agreed with Northern Gas Networks (NGN) to help decarbonise gas networks, supplying hydrogen/blended hydrogen to both residential and industrial customers.
Northern Gas Networks (NGN) and BP have signed a Memorandum of Understanding (MOU) to collaborate on hydrogen. Both partners will conduct studies to ensure that the hydrogen plant can fulfil the local needs. NGN is also a partner in the H21 project, and through various studies, it aims to prove that the existing UK gas network can be converted for 100% hydrogen gas shipment.
NGN is also working with partner companies and the relevant authorities to construct houses for demonstrating the use of hydrogen-fuelled appliances. It will be opening its Low Thornley site near Gateshead for the public this year to showcase hydrogen appliances. This year 670 properties in Winlaton would also receive a blend of 20% hydrogen as part of the HyDeploy project, helping towards 100% hydrogen gas networks in the future.
BP has started joining forces with other partners to accelerate the process, including Venator, a producer of titanium dioxide pigments and performance additives.
Previously it signed an MoU with Tees Valley Combined Authority (TVCA) to explore the potential for green hydrogen in the region, including the development of Teesside as the UK’s first hydrogen transport hub.